[Adopted 9-19-2012 by Ord. No. 2012-11]
There should be established by contract and designation by the
City Council of the City of Pittston a trustee organization to receive
and invest such sums in the manner it deems most beneficial to the
fund so as to provide retirement and other benefits as shall be required
by law or by this article, and, having in charge the distribution
of the Police Pension Fund for the members of the Bureau of Police
in the City of Pittston, the City Council shall appropriate an amount
of money sufficient to keep the fund actuarially sound.
[Amended 3-19-2014 by Ord. No. 2014-3]
A.
Establishment.
The Police Pension Fund shall be under the direction and control of
a Board of Managers, composed of both voting and nonvoting members.
C.
Method
of appointment.
(1)
City
Council member. The City Council shall designate its member by resolution.
(2)
Police
Department members. Of the first Managers so chosen by the Police
Department, one shall be chosen for a term of two years and one for
a term of four years. Biennially thereafter, one Manager shall be
chosen for a term of four years to take the place of the Manager whose
term expires. In the case of a vacancy among the Managers chosen by
the members of the Police Department, a successor shall be chosen
by such members for the remainder of the unexpired term.
[Amended 2-17-2016 by Ord. No. 2016-1[1]]
The City Council of the City of Pittston is hereby authorized to appoint a trustee or trustees and to enter into a trust agreement with said trustee upon such term or terms as the City Council shall establish, to invest and reinvest the fund and to make payments out of the fund in accordance with the provisions of the plan and trust agreement. The trustee may be a natural person or persons or corporation, including a financial institution. Further, the City Council of the City of Pittston may enter into contracts, deposit agreements, annuity contracts or trust accounts on behalf of the City with one or more insurance companies, banks or other financial institutions or investment companies which may provide the pension and other benefits. The appointment of the trustee shall be further governed by § 68-47 of this article.
[1]
Editor’s Note: This ordinance provided that it would
be effective retroactively to 1-1-2016.
The Council of the City of Pittston shall control, direct and
be responsible for the administration of the said trustee. The said
trustee is to manage the fund in the best welfare of the said fund
and to be entitled to reasonable compensation for their said management
to be paid from the pension fund.
The said pension fund shall maintain a fund that shall be given
by bequest, legacy, gifts, donations, fund appeals, or from funds
subscribed by the public, or from unclaimed articles in possession
of the police.
[Amended 2-17-2016 by Ord. No. 2016-1[1]]
In addition to the sum provided for the said pension fund by the City of Pittston in §§ 68-32 and 68-47 of this article, all members of the said fund as qualified under § 68-45 of this article shall have deducted 4.0% from his or her biweekly gross salary as of January 1, 2016, and 5.0% from his her biweekly gross salary as of January 1, 2018. All members shall also contribute $1 monthly for service increment, which is to be paid in monthly payments by the City Treasurer to the pension fund
[1]
Editor’s Note: This ordinance provided that it would
be effective retroactively to 1-1-2016.
The fund shall be used for the pensioning of the officers and
employees mentioned in the aforesaid section of this article and widows
and children of same as hereinafter provided.
All expenditures necessary for the maintenance of the said pension
fund shall be paid by the said fund and will be the responsibility
of the City of Pittston. No money except as heretofore set forth shall
be paid out except for the purposes of pensions for members of the
Police Bureau and other officers and their widows and children as
contemplated by this article. The said Pension Fund Association shall
make an annual report to the City Council and Mayor on the first Monday
of January of each year. The report shall give an account of all receipts
and disbursements of the fund or such other matters or shall properly
be embodied in such report.
A.
Payments for allowances shall not be a charge on any other fund in the treasury of the City or under its control, save the Police Pension Fund herein provided for. The basis of the appointment of the pension shall be determined by the rate of the monthly pay of the member at the date of injury, death, honorable discharge, or retirement or the highest average annual salary which the member received during any five years of service preceding injury, death, honorable discharge, or retirement, whichever is the higher, and, except as to service increments provided for in Subsection B of this section, shall not in any case exceed in any year 1/2 the annual pay of such member computed at such monthly or average rate, whichever is the higher.
B.
The service increment shall be the sum obtained by computing the
number of whole years after having served the minimum required by
this article during which a contributor has been employed by such
number of years so computed by an amount equal to one-fortieth of
the retirement allowance which has become payable to such contribution
in accordance with the provisions of this article. In computing the
service increment, no employment after the contributor has reached
the age of 65 years shall be included, and no service increment shall
be paid in excess of $100 per month.
C.
Eligibility for payments.
[Amended 2-19-2020 by Ord. No. 3-2020]
(1)
For officers hired before September 1, 2019: the widow or widower
of a member of the police force or a member who retires on pension
who dies, or, if no widow or widower or if she or he survives and
subsequently dies, then the child or children under the age of 18
years of a member of the police force or a member who retires on pension
who dies on or after the effective date of this amendment, shall,
during her or his lifetime, or upon reaching the age of 18 years in
the case of a child or children, be entitled to receive the pension
the member was receiving had he or she been retired at the time of
his death.
(2)
For officers hired after September 1, 2019: the widow or widower
of a member of the police force or a member who retires on pension
who dies, or, if no widow or widower or if she or he survives and
subsequently dies, then the child or children under the age of 18
years of a member of the police force or a member who retires on pension
who dies on or after the effective date of this amendment, shall,
during her or his lifetime, or upon reaching the age of 18 years in
the case of a child or children, be entitled to receive 1/2 of the
pension the member was receiving had he or she been retired at the
time of his death.
D.
Any police officer who has less than 10 years of service and who
dies or is totally disabled due to injuries or mental incapacities
not in line of duty and is unable to perform the duties of a police
officer may be entitled to a pension of 25% of his annual compensation.
For death or injuries received after 10 years of service, the compensation
may be 50% of his annual compensation.
E.
The disability pension may be payable to the police officer during
his lifetime, and, if he shall die, the pension payment that he was
receiving may be continued to be paid to his widow if she survives,
or if she subsequently dies or remarries, then the child or children
under the age of 18 years of the police officer.
[Amended 2-19-2020 by Ord. No. 3-2020]
Every policeman or other employee in the Bureau of Police eligible
under this article who retires who shall have served for the term
of 20 years and wishes to be retired at his own request may do so
and be entitled to receive a pension. The pension being determined
from date of said resignation is submitted to Council; provided, however,
the Council shall have the right to retire any police officer who
shall have served 20 years or more if, in its opinion, the said officer
or employee is either physically or mentally incapacitated from performing
his or her duty in the Bureau of Police. All people covered by this
article must retire from the Bureau of Police upon reaching the age
of 65. This is a mandatory retirement age. Any member of the Bureau
of Police who, at the age of 65, has not completed 20 years of service
is entitled to receive only the monies he has paid by contributing
into the said pension fund. It is further enacted that, in addition
to the vesting of said pension as outlined above, there is established
a vested benefit wherein an employee may be eligible for vested benefits
if he has completed 12 years of total service and must have filed
written notice with the municipality of the intention to vest within
90 days after termination. Further, the City, through its trustees,
will be responsible for the accuracy of the vested pension benefit
payable upon an employee's superannuation retirement date. The calculation
of pension shall be based on the percentage of years as it relates
to the standard vesting period of 20 years. The employee would be
entitled to a vested pension based on the pro rata share of years
vested. Officers hired after September 1, 2019, shall be eligible
to retire upon completing 20 years of service with the City and shall
be a minimum of 55 years of age in order to collect full retirement
benefits.
All sums of money paid for any reason either for expense of
running the said pension fund or any sums used for the payment of
pensions to the officers, employees, widows, or children entitled
thereto under this article shall be paid by check, signed by the Treasurer
and anyone else designated by Council.
Any police officer or employee under this article who becomes
totally disabled due to injuries sustained in the line of duty shall
be deemed to be fully vested in the Police Pension Fund, regardless
of the actual number of years of credited services, and shall be eligible
for immediate retirement benefits. Proof of disability shall be by
competent medical evidence provided by the claimant from three practicing
physicians, designated by the Pension Board. The claimant shall thereafter
at any time be subject to physical examination at any reasonable time
or times, upon order of the Pension Board.
If a member shall resign before eligibility under this article
or shall be dismissed by the proper authorities, he shall be entitled
only to receive the sum he has paid by contribution into said pension
fund without interest.
All officers and employees of the Bureau of Police who are not
contributors to the said pension fund and all those so employed after
the enactment of this article shall be subject to the provisions of
this article.
The City Treasurer of the City of Pittston has the right to
inspect the books and records of the Pittston Police Pension Fund
Association during the course of each annual year.
[Amended 3-19-2014 by Ord. No. 2014-3]
Payments of pensions under this article shall not be a charge
on any fund in the treasury of the City or under its control, save
the Police Pension Fund provided for in this article. The City Council
shall, upon recommendation of the Board of Managers, and in accordance
with Act 44 of 2009, appoint a trustee by resolution for the Police
Pension Plan to receive from the City any allocation received by the
City of Pittston from the Commonwealth of Pennsylvania, from the City
of Pittston itself, from Police Department employees and from gifts,
grants, devises or bequests made pursuant to this article and shall
invest such funds in the manner it deems beneficial to the fund so
as to provide retirement and other benefits as shall be required by
the laws of the Commonwealth of Pennsylvania and this article where
it shall be established from time to time by resolution of the City
Council.
As used in this article, the following terms shall have the
meanings indicated:
The employee pension shall be calculated using the monthly
or five-year average salary as follows:
MONTHLYAny employee who retires during the course of any year shall do so effective the 1st of the month. He/she can use the monthly taxable wages (as defined in this section) paid during the last calendar month prior to retiring for pension calculation.
FIVE-YEAR AVERAGEAn employee who for some unforeseen reason is at a lower pay scale than at some time in his/her career with the City has the option of using the average salary (as defined in this section) of the five highest years of employment with the City.
The definition of the term "salary" shall be either of the
following two definitions:
MONTHLY SALARYThe total taxable amount paid to an employee during any calendar month. This would include the regular fixed scheduled salary (all W-2 wages), but specifically excludes other taxable pay such as vacation buyback, sick day buyback, compensatory pay and personal leave pay.
FIVE-YEAR AVERAGE EARNINGSThe average of the highest five years of annual earnings as taken from the employee's W-2 wages less any vacation buyback, sick day buyback, compensatory pay and personal leave pay.
This article is declared to be urgent and necessary for the
reservation of the public peace, health, safety, and welfare and after
full discussion with all interested parties and shall take effect
and be in force after due passage.
[Amended 2-17-2016 by Ord. No. 2016-1[1]]
Pursuant to the current labor contract between the Police Department and the City of Pittston, a provision is made that any and all police officers who have, prior to their full-time employment, been subject to employment by the City in the category of a "special police officer" shall be allowed to claim said time as credit against the Police Pension Fund, provided they comply with the terms and conditions as set forth by the pension trustee appointed by the City Council in accordance with §§ 68-34 and 68-47 of this article. Pursuant to § 68-37 of this article, the percentage of individual contribution shall be the same in effect for the periods of time they have accumulated. The option to purchase special time shall be complied with, or said officers shall waive their right to claim the inclusion of special time into the Police Pension Fund calculations.
[1]
Editor’s Note: This ordinance provided that it would
be effective retroactively to 1-1-2016.
Prior to the adoption of this article, a preliminary determination
by the pension trustee has indicated that said action will have a
noneffect on the current actuarial studies and projected responsibilities
of the fund.
A.
The City Council of the City of Pittston hereby ordains and authorizes
to provide a one-time two-hundred-dollar-per-month ad hoc cost-of-living
increase to the pension benefits of the current retired members under
the plan.
B.
A one-time post-retirement adjustment shall be provided to the eligible
retired members of the Police Pension Plan, the eligibility and amount
of such adjustment to be provided in Act 64 of 2002,[1] and such adjustment shall be retroactively effective to
the first monthly pension benefit paid after June 30, 2002.
[1]
Editor's Note: See 53 P.S. § 896.301 et seq.
C.
The total of any such allowances shall not at any time exceed 1/2
of the current salary being paid patrolmen of the highest pay grade.
[Added 2-17-2016 by Ord.
No. 2016-1]
If for any cause any member of the police force contributing
to the pension fund shall cease to be a member of the force before
he becomes entitled to a pension, the total amount of the contributions
paid into the pension fund by such member shall be refunded to him
in full, without interest. If any such member shall have returned
to him the amount contributed, and shall afterward again become a
member of the police force, he shall not be entitled to the pension
designated until 20 years after his reemployment, unless he shall
return to the pension fund the amount withdrawn, in which event the
period of 20 years shall be computed from the time the member first
became a member of the police force, excluding therefrom any period
of time during which the member was not employed by the police force.
In the event of the death of a member of the police force not in the
line of service before the member becomes entitled to the pension
aforesaid and such member is not survived by a spouse or family entitled
to payments as hereinbefore provided, the total amount of contributions
paid into the pension fund by the member shall be paid over to his
estate.
[Added 10-19-2022 by Ord. No. 11-2022]
A.
Title. This section shall be known as the "City of Pittston Police
Officers Act 44 Retirement Program."
B.
ACT 44 PROGRAM
ACT 44 PROGRAM ACCOUNT
CITY
FUND OR PLAN
PARTICIPANT
POLICE OFFICERS
Definitions. When used in this section, the below words shall have
the meaning indicated.
The Act 44 Deferred Retirement Option Program between the
City of Pittston police officers and City of Pittston.
Separate ledger account created to accept Act 44 Program
participants' monthly pension benefit while an Act 44 Program
participant, as well as any interest thereon.
City of Pittston, Luzerne County, Pennsylvania.
The Police Pension Plan.
A police officer who meets the eligibility for and has executed
the proper documents for participation in Act 44 Program and has had
such application approved by the City.
Police officers of the Police Department.
C.
Eligibility. Eligibility for the Act 44 Program shall be determined
as follows:
(1)
Police officers hired prior to September 1, 2019 who have not
retired prior to the implementation of the Act 44 Program may enter
into the Act 44 Program on the first day of the month following completion
of 20 years of credited service and attaining the age of 50.
(2)
Police officers hired after September 1, 2019 who have not retired
prior to the implementation of the Act 44 Program may enter into the
Act 44 Program on the first day of the month following completion
of 20 years of credited service and attaining the age of 55.
D.
Written election. Eligible police officers who wish to be participants
in the Act 44 Program must signify that intention in writing as follows:
(1)
A police officer electing to participate in the Act 44 Program
must complete and execute an "Act 44 Program participation election
form" prepared by the City, which shall evidence the member's
election to participate in the Act 44 Program. The form must be signed
by the police officer and be notarized and submitted prior to the
date on which the member wishes Act 44 Program participation to commence.
The Act 44 Program participation election form shall include an irrevocable
notice to the City, by the police officer member, that the police
officer shall resign from employment with the Police Department effective
on a specific date (the "resignation date") that is no later than
36 months from the effective date of the Act 44 Program election form.
A police officer shall cease to work as and may no longer be employed
as a police officer on the officer's resignation date, unless
the City properly terminates or honorably discharges the officer prior
to the resignation date. A participant may resign from employment
while in Act 44 Program status, which shall terminate his/her participation
in the Act 44 Program.
(2)
In addition to the above information, the Act 44 Program participation
election form shall also advise the employee of the following: (1)
an explanation of the participant's rights and obligations while
in Act 44 Program; (2) that, as a condition of Act 44 Program participation,
the participant foregoes active participation in the Police Pension
Plan and foregoes any recalculation of pension benefits to include
salary increases occurring after Act 44 Program participation commences;
and (3) that the Act 44 Program participant's service while in
Act 44 Program will not count as pension service nor will it entitle
a participant to any service increment benefits to which the participant
was not entitled prior to commencing Act 44 Program participation.
An Act 44 Program participant must also complete any and all retirement
documents required by the Police Pension Plan Administrator, and such
documents must be filed and presented to the City for approval of
retirement and payment of pension. Once an Act 44 Program participation
election form has been approved by the City, it is irrevocable. Likewise,
once an Act 44 Program participant enters the Act 44 Program, the
participant may not subsequently leave and then re-enter the Act 44
Program, even if the employee separates from employment and subsequently
begins employment with the City again.
E.
Benefit calculation. For all Pension Plan purposes, continuous service
of a police officer participating in the Act 44 Program shall remain
as it existed on the effective date of commencement of participation
in the Act 44 Program. Service thereafter shall not be recognized
or used for the calculation or determination of any benefits payable
by the City of Pittston Police Pension Plan. The average monthly compensation
of the police officer for pension calculation purposes shall remain,
as it existed on the effective date of commencement of participation
in the Act 44 Program. Earnings or increases in earnings thereafter
shall not be recognized or used for the calculation or determination
of any benefits payable by the Pension Plan. The pension benefit payable
to the members shall increase only as a result of cost of living adjustments
if applicable and in effect on the effective date of the member's
participation in the Act 44 Program.
F.
Accumulation of the Act 44 Program account. The monthly retirement
benefits that would have been payable had the police officer elected
to cease employment and receive a normal retirement benefit, shall,
upon the police officer commencing participation in Act 44 Program,
accumulate to the benefit of that police officer and be accounted
for on that police officer's Act 44 Program account. Participants
shall not have the option of self-directed investment of their individual
Act 44 Program account while in the Act 44 Program. Instead, the monies
shall be invested in a fund to be identified and selected solely by
the City in accordance with applicable law so as to generate a rate
of return of no less than 0% and no more than 4.5%.
G.
Accrual of nonpension benefits. After a police officer elects to
participate in the Act 44 Program, all other contractual benefits
shall continue to accrue with the exception of those provisions relating
to the Police Pension Plan.
H.
Payout. Upon separation from employment, the Act 44 Program payout
options available to the Act 44 Program participant shall be as follows:
(1)
The balance of the Act 44 Program participant's account,
less withholding taxes, if any, remitted to the Internal Revenue Service,
shall be paid to the participant or the participant's surviving
beneficiary.
(2)
The balance of the Act 44 Program participant's account
shall be paid directly to the custodian of an eligible retirement
plan as defined by Internal Revenue Code Section 402(c)(8)(b), or
in the case of an eligible rollover distribution to the surviving
spouse of a deceased Act 44 Program participant, an eligible retirement
plan that is an individual retirement account or an individual retirement
annuity as defined by Internal Revenue Code Section 402(c)(9).
I.
Service connected disability during Act 44 Program. If an Act 44
Program participant becomes temporarily incapacitated due to a service-connected
injury during his participation in Act 44 Program, that police officer
shall continue to participate in the Act 44 Program as if fully employed.
The police officer shall receive disability pay in the same amount
as disabled police officers that are not participating in Act 44 Program.
In no event shall a police officer on temporary disability have the
ability to draw from his Act 44 Program account. However, notwithstanding
any other provision in this paragraph, if a police officer is disabled
and has not returned to work as of the date of his required resignation,
then such resignation shall take precedence over all other provisions
herein and said officer shall be required to resign. Nothing contained
in this plan shall be construed as conferring any legal rights upon
any police officer or other person to a continuation of employment
nor shall participation in the Act 44 Program supersede or limit in
any way the right of the City to honorably discharge a police officer
based upon an inability to perform his or her full duties as a police
officer. If an Act 44 Program participant becomes eligible for a service-connected
disability pension and his employment is terminated due to an inability
to continue in service on grounds that render him eligible for a service-connected
disability pension, the monthly normal retirement benefit of the Act
44 Program participant shall be reclassified as being on account of
a service-connected disability. In no event shall an Act 44 Participant's
monthly retirement benefit be recalculated. The Act 44 Participant's
monthly retirement benefit shall remain 50% as calculated at the time
of entry into the Act 44 Program.
J.
Death. If an Act 44 Program participant dies, the participant's
eligibility for Act 44 Program shall terminate upon the date of death.
In such case, if the Act 44 Program account balances have not yet
been paid out, the participant's legal beneficiary shall have
the same rights and options as the participant to withdraw/roll over
the account balance.
K.
Forfeiture of benefits. Notwithstanding a police officer's status
as an Act 44 Program participant, a current or former participant
who is convicted or pleads guilty to engaging in criminal misconduct
which constitutes a "crime related to public office or public employment,"
as that phrase is defined in Pennsylvania's Pension Forfeiture
Act, 43 P.S. §§ 1311-1314, shall forfeit his right
to receive a pension, including any amounts currently deposited in
the Act 44 Program account. In such a case, the participant shall
only be entitled to receive the contributions, if any, made by the
participant to the Police Pension Fund, without interest.
L.
Cost of management for Act 44 Program. The police officers and the
City agree that any costs or fees associated with the management of
the Act 44 Program accounts shall be paid directly from the Pension
Fund and not by City of Pittston.
M.
Amendment. Any amendments to this Act 44 Program ordinance shall
be consistent with the provisions covering individual retirement option
plans and shall be binding upon all future Act 44 Program participants
and upon all Act 44 Program participants who have balances in their
individual retirement option accounts. The Act 44 Program may only
be amended by a written instrument, not by any oral agreement or past
practice.
N.
Construal of provisions. A police officer's election to participate
in the Act 44 Program shall in no way be construed as a limitation
on the City's right to suspend or to terminate a police officer
for just cause or to grant the police officer an honorable discharge
based upon a physical or mental inability to perform his or her duties.
O.
Severability. The provisions of the Act 44 Program shall be severable:
and if any of its provisions shall be held to be unconstitutional
or illegal, the validity of any of the remaining provisions of the
Act 44 Program shall not be affected thereby. It is hereby expressly
declared as the intent of the City that the Act 44 Program would have
been adopted had such unconstitutional or illegal provision or provisions
not been included herein.
P.
Effective date. The effective date of the Act 44 Program shall be
January 1, 2023.
