A. 
The normal retirement date for employees hired prior to January 1, 2020, shall be the first day of the month following the later of his or her 50th birthday or the completion of 25 years of credited service. The normal retirement date for employees hired on or after January 1, 2020, shall be the first day of the month following the later of his or her 55th birthday or the completion of 25 years of credited service.
B. 
Amount of normal retirement benefit. The retirement benefit of a participant shall be equal to 1/2 of his average monthly compensation continuing for life in equal monthly payments and ceasing in the month of death.
C. 
Service increment benefit. A participant hired prior to January 1, 2020, who retires with service in excess of 25 years shall have his pension increased by 1% of the average monthly compensation for each full year of service in excess of 25 years. The maximum service increment benefit for services over 25 years shall be $100 per month. For participants hired on or after January 1, 2020 the one-percent service increment benefit shall be eliminated.
A participant may elect to postpone his retirement beyond his normal retirement date. His postponed retirement benefit will be computed in the same manner as the normal retirement benefit, using compensation to the postponed retirement date.
A. 
For employees hired prior to January 1, 2020;
(1) 
Early retirement date. A participant may elect to retire prior to his normal retirement date on or after reaching his early retirement date which shall be the first of the month following the completion of 20 or more years service.
(2) 
Amount of early retirement benefit. The amount of the participant's early retirement benefit shall be the equivalent actuarial value of the participant's accrued benefit.
(a) 
Accrued benefit. A participant's accrued benefit shall be equal to the product obtained by multiplying the normal retirement benefit determined in accordance with § 49-8 using the monthly compensation during the appropriate period prior to his termination of employment by a fraction, the numerator of which is the actual years of service credited to the participant and the denominator of which is the total years of service the participant would have been credited had he or she continued to work to his or her normal retirement date.
(b) 
Equivalent actuarial value. In determining the actuarial reduction used to reflect that the early retirement benefit will commence prior to the normal retirement date, the equivalent actuarial value shall be calculated using the actuarial assumptions reported in the last actuarial valuation report filed with the Public Employee Retirement Commission under the Act of December 18, 1984 (P.L. 1005, No. 205), known as the Municipal Pension Plan Funding Standard and Recovery Act.[1]
[1]
Editor's Note: See 53 P.S. § 895.101 et seq.
B. 
For employees hired on or after January 1, 2020, the early retirement benefit shall be eliminated.
A. 
Eligibility. If a participant shall qualify for a permanent and total service related disability benefit under the provisions of the plan, such police officer shall be eligible to receive a disability benefit from the plan.
B. 
Disability retirement date. The disability retirement date for a participant shall be the first day of the month following the date of service-related disability.
C. 
Amount of disability benefit.
(1) 
In the event of permanent, service-related disability, benefits shall become payable to an injured police officer in an amount equal to 50% of the police officer's salary at the time the disability was incurred, provided that any police officer who receives benefits for the same injuries under the Social Security Act (49 Stat. 620, 42 U.S.C. § 301 et seq.) shall have the disability benefit offset or reduced by the amount of such social security benefits.
(2) 
"Total and permanent disability" means a physical or mental condition of a member resulting from bodily injury or disease or mental disorder contracted, without fault or misconduct on such officer's part, from the performance of such officer's duties in the Police Department, which renders the member incapable of continuing in the employment as a police officer for the Borough. The determination that a police officer is totally and permanently disabled shall be made by the Borough or its designated agent. Before making such determination, the Borough or its designated agent shall secure the opinion of one or more practicing physicians licensed to practice medicine in the Commonwealth of Pennsylvania. The Borough shall have the right to require a physical examination and a redetermination at its option.
A. 
Qualification for death benefit. The beneficiaries (as defined in Subsection D) of a police officer shall be entitled to receive a death benefit, if the police officer dies:
(1) 
After he/she has begun receiving benefits under a normal retirement benefit; or
(2) 
After he/she has begun receiving disability retirement benefits, provided that such benefits did not terminate prior to his/her death because he/she ceased to be disabled;
(3) 
While still employed by the Borough and after having met the age and service requirements for normal retirement; or
(4) 
Prior to commencement of any retirement benefit under this section and was vested in his/her accrued benefit.
B. 
Death benefit, form and amount of payments. The death benefit shall be paid in a series of monthly payments:
(1) 
Beginning on the first day of the month following the month of the police officer's death under the conditions described in Subsection A(1), (2) or (3);
(2) 
Beginning on the first day of the month following the expected normal retirement date of the deceased police officer and described in Subsection A(4); and
(3) 
Continuing on the first day of each succeeding month until there is no person who qualifies as a beneficiary;
(4) 
In a monthly amount equal to:
(a) 
50% of the monthly amount being received by the police officer at the time of his/her death, or would have been receiving had the police officer been retired at the date of death, described in Subsection A(1), (2) or (3); or
(b) 
50% of the monthly vested accrued amount the police officer would have been entitled to receive described in Subsection A(4).
C. 
(Reserved)
D. 
Beneficiaries.
(1) 
For purposes of the death benefit, the "beneficiary" of a police officer shall be his/her spouse. If there is no spouse or if the spouse survives and subsequently dies, then the death benefit shall be payable to the police officer's child or children who have not yet attained age 18 (or are attending college, and have not yet attained age 23). For purposes of this subsection, a person is "attending college" if he/she is registered at an accredited institution of higher learning and is carrying a minimum course load of seven credit hours per semester. The death benefit shall be payable to eliglble children in equal shares.
(2) 
For purposes of the death benefit return of contributions in Subsection E, the beneficiary(ies) shall be the spouse or eligible children as above. In the case where there is no spouse or eligible children, the participant may designate the beneficiary to whom the death benefit return of contributions shall be paid.
E. 
Death benefit return of accumulated contributions.
(1) 
In general. If a police officer: a) dies at a time when his/her beneficiaries are not eligible to receive a death benefit or has no beneficiaries; and b) has not received any payments under a normal retirement benefit, disability retirement, benefit, or vested benefit, then the plan shall distribute an amount equal to the amount of the police officer's accumulated contributions plus interest at the rate of 5% per annum to the police officer's named beneficiary(ies). If the police officer failed to designate a beneficiary or if no designate beneficiary shall have survived the police officer, the distribution shall be made to the estate of the police officer.
(2) 
Time of payment. A distribution under this Subsection E shall be made as soon as practicable, after the beneficiary (or if none, the executor of the officer's estate) files an election to receive the distribution.
F. 
No other death benefits. Except as provided in this section, no police officer or former police officer and no estate, heir, or beneficiary of any police officer or former police officer shall receive any payment or benefit under this plan or from the trust due to the death of a police officer or former police officer.
Accrued benefit. A member's accrued benefit as of any applicable date will be equal to the product obtained by multiplying the normal retirement benefit determined in accordance with § 49-8, using average monthly compensation as of the date employment terminated multiplied by a fraction, the numerator of which is the years of service to the date employment terminated and the denominator of which is the total years of service the member would have earned if the member continued to work to the normal retirement date.
A. 
For employees hired prior to January 1, 2020, the following shall apply to vested benefits:
(1) 
A participant who terminates employment with the Borough prior to his or her normal retirement date shall have a vested benefit calculated by multiplying the member's accrued benefit by the following applicable percentage:
Years of Service
Vesting Percentage
Less than 12
0%
12 or more
100%
(2) 
The participant's vested benefit shall be payable commencing on his or her normal retirement date. If the participant has met the service requirement for early retirement, he or she may elect to commence to receive the vested benefit as of the first of any month on or after his or her early retirement date.
B. 
For employees hired on or after January 1, 2020, the vested benefit shall be eliminated.
A. 
For employees hired prior to January 1, 2020:
(1) 
The Borough Council of Punxsutawney shall have the authority, upon the recommendation of the Police Pension Committee, to provide by resolution for a cost-of-living increase for those participants in the Plan receiving retirement benefits and who qualify under applicable law. These cost-of-living increases may be granted; provided, however, that such cost-of-living increase shall not exceed the following:
(a) 
The percentage increase in the Consumer Price Index from the year in which the police officer last worked.
(b) 
In no case shall the total police pension benefits exceed 75% of the salary used for computing basic retirement benefits.
(c) 
The total cost-of-living increase shall not exceed 30%.
(2) 
No cost-of-living increase shall be granted which would impair the actuarial soundness of the Borough of Punxsutawney Police Pension Plan. Prior to the recommendation of the cost-of-living increase, the Police Pension Committee shall direct the fund actuary to submit a written cost estimate of the funding cost of such an adjustment.
B. 
For employees hired on or after January 1, 2020, the cost of living adjustment shall be eliminated.
A. 
If it is found that the benefits provided under the Plan with respect to a participant are incorrect because of a misstatement as to his age, length of credited service, earnings, or any other relevant fact, the benefits shall be equitably adjusted on the basis of the correct facts with respect to such participant. The amount of the benefits will be adjusted to the amount which could have been provided on the basis of the correct facts.
B. 
If it is ascertained that an overpayment has been made, the amount of such overpayment will be charged against any further payments to the participant. If it is ascertained that an underpayment has been made by the plan, the amount of such underpayment shall be paid by the plan to the participant or person entitled thereto, subject to the sufficiency of the trust fund of the plan.