[Adopted 4-22-2003 by Ord. No. 03-06 (Ch. 1, Part 7, of the
1992 Code)]
A police pension fund is hereby established pursuant to the
Act of May 29, 1956, P.L. 1804, as amended. Said fund shall be under the direction of the Middletown
Township Board of Supervisors and shall be applied under such regulations
as the Board may prescribe. Investment or change of investment of
the fund shall be by resolution of the Board of Supervisors.
Each full-time police officer now or hereafter employed by Middletown
Township shall be eligible to participate and shall be a participant
in the police pension fund.
[Amended 12-14-2015 by Ord. No. 15-05; 8-24-2020 by Ord. No. 20-04; 1-19-2021 by Ord. No. 21-02]
A. Normal retirement. Commencing on January 1, 2001, a member who has
served on the Middletown Township Police Department as a police officer
for a total of service in the aggregate of 20 years and in addition
has attained the age of 50 years may retire from active duty on the
first day of the month following the required years of service and
age and shall be entitled to receive normal pension or normal retirement
benefits as hereinafter provided.
B. Any member of the Middletown Police Department who has been a regularly
appointed employee for a period of at least six months and who thereafter
shall enter the military service of the United States shall have credited
to the member's employment record for the pension or retirement
benefits all the time spent by the member in such military service,
if such member returns or has heretofore returned to the employ of
the Middletown Township Police Department within six months after
separation from the service.
C. Members who are retired shall be subject to service, from time to
time, as a police reserve in cases of riot, tumult or preservation
of the public peace until unfitted for such services, when they may
be fully discharged by reason of age or disability.
D. Any member of the Middletown Police Department may purchase retirement
credit for up to five years of active military service with the United
States that occurred before their employment with the Middletown Police
Department, if the member is not eligible to receive a military retirement
pay for that service. To purchase such credit, the member must pay
an amount equal to the statewide average normal cost for borough,
town, township and regional police pension plans as certified by the
Public Employee Retirement Commission, not to exceed 10%, multiplied
by the member's average monthly salary during the first three
years of employment as a police officer, plus interest at the rate
of 4.75% compounded annually, from the participant's date of
hire to the date of payment.
E. Commencing on January 1, 2020, a member who has served on the Middletown Township Police Department as a police officer for a total of service in the aggregate of 20 years and in addition has attained the age of 50 years may retire from active duty on the first day of the month following the required years of service and age shall be entitled to receive a reduced vested pension or retirement benefits as hereinafter provided under §
70-204D of this article.
[Amended 12-14-2015 by Ord. No. 15-05]
Effective December 14, 2015, the date of adoption of this Ord. No. 15-05, members shall pay into the fund monthly, by a payroll deduction from each salary payment, an amount equal to 5 3/4% of average monthly salary as defined in §
70-204B below. The pension payroll deduction shall continue to be made during periods of temporary work-related disabilities. Actuarial studies shall be performed as required by state law to determine the amount of any additional sums necessary to maintain an actuarially sound fund. The expenses attributable to the preparation of any actuarial valuation report or experience investigation required pursuant to Chapter 2 of the Municipal Pension Plan Funding Standard and Recovery Act, Act of December 18, 1984, P.L. 1005, No. 205, Section 201 et seq., as amended, 53 P.S. § 895.101 et seq., shall be an allowable administrative expense payable from the assets of the Police Pension Plan established pursuant to Township ordinance.
[Amended 12-14-2015 by Ord. No. 15-05; 1-19-2021 by Ord. No. 21-02]
The pension or retirement benefits shall be payable during the balance of the participant's life following actual retirement or entry into the Deferred Retirement Option Plan (DROP) program, and for the life of his survivors subject to the limitations set forth in §
70-206 below, after fulfillment of the age and service requirements set forth above. The basis for determining the monthly benefit shall be as follows:
A. Monthly pension or retirement benefits other than length-of-service
increments and cost-of-living increases shall be the sum equal to
1/2 of the average monthly salary of such member during the last 36
months of employment or the last 36 months prior to entering into
the DROP program, whichever occurs first.
B. Average monthly salary shall include base salary plus overtime pay.
(1) Base salary shall consist of base salary, longevity pay, vacation
pay, and holiday pay and educational incentive pay; however, any unused
vacation leave paid at retirement of seven or more weeks shall be
excluded from the definition of average monthly salary used to compute
the monthly pension benefit.
(2) Overtime pay shall consist of overtime pay, court time pay, and compensatory
time wage compensation.
(3) A police officer may be compensated for a maximum of six weeks of
unused vacation leave in the calendar year prior to entering the DROP
program. However, at the end of the DROP period, the employee must
use any available vacation leave and shall not be compensated for
any unused vacation leave at final separation.
C. Service increment benefit.
(1) There shall be a service increment for all members who retire with
more than 25 years of service paid as follows:
(a)
After completion of at least 26 years of service: $600 additional
annually.
(b)
After completion of at least 27 years of service: $600 additional
annually.
(2) The total maximum benefit for service increment shall be $1,200 additional
annually. (This includes the $600 annually after the 26th year of
service.)
D. Reduced vested pension or retirement benefits pursuant to §
70-202E. The reduced vested pension or retirement benefits ("early retirement benefits") shall be payable during the balance of the participant's life following actual retirement, and for the life of his survivors subject to the limitations set forth in §
70-206 below, after fulfillment of the age and service requirements set forth above in §
70-202E. The early retirement benefit shall be provided to a member of the Police Department with 20 or more years of service who terminates employment prior to the completion of superannuation retirement age and service requirements and who files a written application for an early retirement benefit with the Board of Supervisors. The early retirement benefit shall become effective as of the date the application is filed with the Board of Supervisors or the date designated on the application, whichever is later, and shall be the actuarial equivalent of a partial superannuation retirement benefit calculated as follows:
(1) A partial superannuation retirement benefit shall be determined by
applying the percentage that the member's years of service bear
to the years of service that the member would have rendered had the
member continued to be employed until his superannuation retirement
date to the gross pension amount calculated using the monthly average
salary during the appropriate period prior to his termination of employment.
(2) The actuarial equivalent of the partial superannuation retirement
benefit shall be determined by actuarially reducing the partial superannuation
retirement benefit to reflect that it will commence on the effective
date of the early retirement rather than on the date on which the
member would have completed superannuation age and service requirements.
The actuarial reduction 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."
E. Cost-of-living increases on pensions shall be paid to officers who
retire with pension benefits on or after January 1, 1991; provided,
however, that such cost-of-living increase shall not exceed the percentage
increase in the Consumer Price Index (i.e., the CPI-U for the Philadelphia,
Wilmington, and Atlantic City Metropolitan Statistical Area) from
August to August from the year in which the police member last worked;
provided, further, that in no case shall the total police pension
fund benefits (including service increments) exceed 75% of the salary
for computing retirement benefits; and provided, further, that the
total cost-of-living increase shall not exceed 20% effective January
1, 2002; 25% effective January 1, 2004; and 30% effective January
1, 2008. Such benefit shall commence one full year after the employee's
retirement date. Beginning with adjustments due for the year 2,000,
all adjustments will be made on January 1 based on the change in the
Consumer Price Index from August to August. A new retiree's initial
adjustment will be prorated to reflect the actual number of months
retired prior to January 1, and a current retiree, who consents, in
writing, to this change, will have the January 1 adjustment prorated
to reflect the actual number of months since his or her last adjustment.
F. Ad hoc cost-of-living increase on pensions. Each retired participant
who retired prior to January 1, 1991, shall, beginning 2001, have
the amount of his/her monthly benefit increased by the lesser of $100
or the amount that will increase the participant's monthly benefit
to an amount that is the lesser of 75% of the salary used in calculating
the participant's original benefit or 130% of the participant's
original benefit.
G. Special ad home postretirement adjustment for police officers for those eligible under §
70-204F by the Commonwealth of Pennsylvania. Should the Commonwealth of Pennsylvania at any time in the future mandate a special ad hoc postretirement adjustment for police officers that affects those receiving benefits under Subsection
F of this section, the amount of those benefits received by those police officers under Subsection
F of this section shall be reduced dollar for dollar by the amount of the special ad hoc retirement adjustment established by the commonwealth.
H. Deferred Retirement Option Plan (DROP program). Beginning January 1, 2002, an optional DROP program shall be made available to any Middletown Township police officer who has fulfilled the age and service requirements as set forth in §
70-202 above. The DROP program shall be an optional retirement program in which an eligible member of the pension plan may elect to participate, deferring receipt of normal retirement benefits while continuing employment with the Township of Middletown without the loss of any other employee benefits. The DROP plan is designed to allow a police officer to accumulate a lump sum cash amount for retirement without affecting his or her normal monthly retirement benefit as of the date that he or she becomes a DROP participant. Under DROP, the police officer effectively makes a decision to "retire" with respect to the pension plan only, yet continues to work as an active police officer. The actual date of availability of the DROP plan will commence at the ratification of the collective bargaining agreement by both the Township and the PBA or the appointment of an investment manager, whichever is later.
(1) Eligibility. Any Middletown Township police officer who has fulfilled the age and service requirements for a normal retirement as set forth above shall be eligible to participate in the DROP program at his or her option in conformance with this agreement and after providing at least 30 days' written notice to the employer. A Middletown Township police officer electing to retire pursuant to §
70-202E of this article shall not be eligible for the DROP Program.
(2) Entry into DROP. Election to participate by an eligible police officer
shall be made on any date following the date on which the police officer
fulfills the minimum age and service requirements for retirement under
the pension plan. Once a police officer commences participation in
the DROP program, he or she may not choose to end participation in
the DROP program and resume contributions to the pension plan.
(3) Request to enter and enrollment forms. Election to participate shall
be made by completing the required request and enrollment forms, which
shall show the entry date into the DROP program and the deferred retirement
date for the term chosen by the police officer. The deferred retirement
date shall not exceed 96 months from the date of enrollment or entry
into the DROP program.
(4) The length of the DROP. For police officers hired on or before December
31, 2019, the DROP term shall be for a period of no more than 96 months
from the date of entry. For police officers hired on or after January
1, 2020, the DROP term shall be for a period of no more than 60 months
from the date of entry. Termination of participation in the DROP program
shall take place:
(a)
At the end of the ninety-six- or sixty-month period (as applicable),
or at any other time prior if the police officer chooses to end his
or her participation earlier than 96 or 60 months (as applicable);
or
(b)
If the time limit of 96 or 60 months (as applicable) is extended
in future collective bargaining agreements, any member participating
in the DROP program at that time may at his or her option extend the
DROP participation period to that allowed under the then current agreement;
or
(c)
If the participant is terminated from employment for reasons
set forth under applicable Pennsylvania law.
(5) Retirement status and pension contributions. Once enrolled in the
DROP program, the participant shall be retired under the pension plan
for the purpose of calculating pension benefits, unless otherwise
prescribed herein, but not for the purpose of employment with the
Middletown Township Police Department. The DROP participant shall
continue to receive all employee benefits and programs as set forth
in this agreement. Once a police officer enters the DROP program,
he or she shall no longer be required to make any contributions to
the pension fund.
(6) Retirement rate. Payments to DROP accounts will be made at the participant's normal retirement monthly benefit amount, which is determined by §
70-204 above at the time said police officer enters the DROP program.
(7) Administration. DROP accounts shall be administered by an investment
manager who shall be selected, and agreed upon, by both the Township
and the PBA. All DROP accounts shall receive the rate of return experienced
by the DROP Fund during the participant's DROP period.
(8) Disability issues. If, while a police officer is enrolled in DROP
and he or she is injured while on duty, to the extent that he or she
is permanently disabled from performing police work for Middletown
Township as a result of that service-connected disability, the police
officer shall be retired on the basis of a service-connected disability,
at the then current normal monthly retirement benefit.
(9) Survivorship options. If a DROP participant dies during his or her
participation period, all funds in that participant's account
shall be disbursed to the participant's beneficiary or beneficiaries
listed in the DROP contract. If the DROP participant dies after receiving
the DROP account funds, further disbursements or disposition of those
funds shall be determined by the deceased participant's last
will and testament and/or applicable state and federal estate laws.
(10)
Conflict with existing laws. If, after the DROP plan is instituted,
an agency of the Commonwealth of Pennsylvania issues an official opinion
holding that this DROP plan is in conflict with Pennsylvania law,
the Township and the PBA agree to meet within 30 days to discuss such
opinion and bring the DROP plan into compliance with applicable law,
if possible; or if no agreement can be reached, or if there is a dispute
as to the validity of the official opinion, either or both parties
may submit the dispute to the Court of Common Pleas of Bucks County
for a declaratory judgment. If the DROP plan cannot be brought into
compliance with Pennsylvania law, it shall be terminated subject to
any constitutionally vested rights of the participants. It is the
intention of the parties that the DROP program will only be terminated
if a final determination is made that the program cannot be brought
into compliance with applicable Pennsylvania law.
[Amended 12-22-2008 by Ord. No. 08-06; 12-8-2009 by Ord. No. 09-04; 12-14-2015 by Ord. No. 15-05]
A. Service-connected disability pension.
(1) If a police officer hired on or before December 31, 2007, is permanently
disabled from performing police work for the Township as a result
of a service-connected disability, then the police officer shall receive
a disability pension that is 75% of average monthly salary at the
time of the determination that the disability is permanent, offset
by any payment for such disability under workers' compensation and
further offset dollar for dollar by any income earned in excess of
$75,000 per year by the disabled officer from other employment subsequent
to the commencement of the disability pension benefit. This pension
shall continue to be paid until a determination is made that the member
is no longer permanently disabled or until the member's death, whatever
occurs first. In no case shall the amount of the annual pension be
reduced to an amount below $25,000. The earned income threshold of
$75,000 per year, effective January 1, 2002, shall be adjusted annually
commencing January 1, 2003, based upon the Consumer Price Index for
all Urban Consumers (CPI-U), published by the United States Department
of Commerce, Bureau of Labor Statistics.
(2) If a police officer hired on or after January 1, 2008, is permanently
disabled from performing police work for the Township as a result
of a service-connected disability, then the police officer shall receive
a disability pension that is 60% of average monthly salary at the
time of the determination that the disability is permanent, offset
by any payment for such disability under workers' compensation and
further offset dollar for dollar by any income earned in excess $75,000
per year by the disabled officer from other employment subsequent
to the commencement of the disability pension benefit. This pension
shall continue to be paid until a determination is made that the member
is no longer permanently disabled or until the member's death, whatever
occurs first. In no case shall the amount of the annual pension be
reduced to an amount below $25,000. The earned income threshold of
$75,000 per year, effective January 1, 2002, shall be adjusted annually
commencing January 1, 2003, based upon the Consumer Price Index for
all Urban Consumers (CPI-U), published by the United States Department
of Commerce, Bureau of Labor Statistics.
(3) If a police officer hired on or after January 1, 2008, is permanently
disabled as a result of a service-connected disability to the extent
that he/she is no longer capable of performing any gainful employment,
then the police officer shall receive a disability pension that is
90% of average monthly salary at the time of the determination that
the disability is permanent, offset by any payment for such disability
under workers' compensation and further offset dollar for dollar by
any income earned in excess of $75,000 per year by the disabled officer
from other employment subsequent to the commencement of the disability
pension benefit. This pension shall continue to be paid until a determination
is made that the member is no longer permanently disabled or until
the member's death, whatever occurs first. In no case shall the amount
of the annual pension be reduced to an amount below $25,000. The earned
income threshold of $75,000 per year, effective January 1, 2002, shall
be adjusted annually commencing January 1, 2003, based upon the Consumer
Price Index for all Urban Consumers (CPI-U), published by the United
States Department of Commerce, Bureau of Labor Statistics.
(4) A disabled police officer who is receiving a disability pension and
who has received income earned from other employment subsequent to
commencement of the disability pension benefit shall submit annually
by April 1 to the Township Personnel Office copies of all W-2 and
1099 forms received from employers for the prior calendar year. The
Personnel Officer, after consulting with the plan actuary, shall then
determine if a pension adjustment based upon the earned income offset
is applicable and, if applicable, shall notify the disabled police
officer in writing of the adjusted monthly pension benefit. Payment
of the adjusted monthly pension benefit shall commence May 1 each
year and shall continue in effect for a period of 12 months.
B. Procedure for disability pension application. Any member of the Middletown
Township Police Department who shall suffer a service-connected disability
so as to render the member permanently disabled from performing police
work for the Township of Middletown may, upon application or on the
application of one acting in the member's behalf, or upon application
of the Chief of Police, be retired on disability pension if the physician(s)
designated by the Board of Supervisors, after a medical and/or psychiatric
examination, shall certify to the Board of Supervisors that the member
is physically or mentally disabled from performing police work for
the Township of Middletown and that said member ought to be retired.
C. Reexamination.
(1) The Board of Supervisors may require any member receiving a disability
pension and not eligible for the normal police officer's retirement
pension to undergo a medical and/or psychiatric examination not more
than once every year for a period of five years from the date the
member is determined to be disabled by a physician(s) designated by
the Board of Supervisors. Should the physician's (physicians') report
certify to the Board of Supervisors that such pension beneficiary
is no longer physically or mentally disabled, then the member shall
be returned to active-duty status until such time as the member is
eligible for normal retirement. After five years of a retiree receiving
service-connected disability pension, reexamination will not be necessary
as the service-connected disability pension determination will be
permanent.
(2) Should a member on disability pension, and not on regular retirement,
refuse to submit to the aforesaid annual medical examination, the
member's disability pension shall be discontinued until the withdrawal
of such refusal, and should such refusal continue for a period of
one year or more, then the member's right in and to the disability
pension shall be forfeited.
D. In the event the Board of Supervisors requires a medical and/or psychiatric
examination in connection with a disability pension, such examination
shall be conducted at a physician's office not more than 50 miles
from the member's current place of residence. Should the Board of
Supervisors require the member to travel more than 50 miles to the
Greater Philadelphia Area for the examination, travel expenses of
the member, including necessary lodging and sustenance, shall be borne
by the Township of Middletown.
[Amended 12-14-2015 by Ord. No. 15-05; 8-24-2020 by Ord. No. 20-04: 1-19-2021 by Ord. No. 21-02]
A. Survivor's benefits. Widow's, widower's or children's
benefits will be paid in accordance with the laws of the Commonwealth
of Pennsylvania, pursuant to Act 51 of 2009, as amended.
B. Retirement on or before December 31, 2019. In the event of the death
of a police officer who retired or became disabled on or before December
31, 2019, his widow, or her widower, shall be entitled, during his
or her lifetime, to 65% of the pension the police officer was receiving
or would have been receiving had he or she been retired at the time
of his or her death. If there is no surviving spouse, or if the spouse
survives and subsequently dies, then benefit entitlement shall continue
to the member's child or children under the age of 18 years,
or if attending college, under or attaining the age of 23 years.
C. Retirement on or after January 1, 2020. In the event of the death
of a police officer who retired or became disabled on or after January
1, 2020, his widow, or her widower, shall be entitled, during his
or her lifetime, to 75% of the pension the police officer was receiving
or would have been receiving had he or she been retired at the time
of his or her death. If there is no surviving spouse, or if the spouse
survives and subsequently dies, then benefit entitlement shall continue
to the member's child or children under the age of 18 years,
or if attending college, under or attaining the age of 23 years.
Each member shall be entitled, in the event of termination or
discontinuance of the member's employment for reasons other than retirement
or death, to have returned to the member the total amount of all such
monies paid by the member into the pension fund, plus all interest
earned by such monies while in the police pension fund. If such termination
or discontinuance of employment is due to death, such refund of monies
shall be paid to the member's designated beneficiary or, in the absence
thereof, to the member's estate.
All contracts, agreement or funds held for the purpose of providing
pensions, annuities or retirement income on any police officer who
shall be a member in the program herein established shall be and hereby
are transferred and assigned to the fund herein established. After
transfer, the police pension fund shall assume the liability, if any,
of continuing the payments of pensions to the members of the Police
Department retired prior to such transfer in accordance with the laws
and regulations under which such members were retired.
The pension payments herein provided for shall not be subject
to attachment, execution, levy, garnishment or other legal process
and shall be payable only to the member or his or her designated beneficiary
and shall not be subject to assignment or transfer.
The general municipal pension system state aid credited to the
police pension plan shall be applied, as permitted by law, to defray
the cost of the pension plan in accordance with the Pennsylvania Auditor
General Bulletin No. 1-85, dated December 13, 1985. Any additional
expenses or costs not allowed by law shall be borne by the general
fund of the Township.
[Amended 12-14-2015 by Ord. No. 15-05]
Pension benefits for members shall vest after 12 years of service.
Two members of the Middletown Township Police Benevolent Association
shall be members of the Police Pension Fund Advisory Board.
[Amended 12-14-2015 by Ord. No. 15-05]
Authorized representatives of the Middletown Township Police
Benevolent Association and the Township Manager shall, at a mutually
convenient time, meet annually for the purpose of discussing the Police
Pension Plan.