[Adopted as Art. 143 of the 1979 Codified Ordinances]
[Amended 9-29-1987 by Ord. No. 13-1987; 10-10-1996 by Ord. No. 33-1996]
As used in this article, certain words are defined as follows:
BOARD
Means the City of Chester Aggregated Pension Fund Board designated in § 97-21.
CONTRIBUTOR
Means a member of the police force contributing to the Police Pension Fund pursuant to §§ 97-11 and 97-12C.
MEMBER
Means every present or future regular salaried member of the police force who has accepted the provisions of this article.
PENSION FUND
Means the City of Chester Aggregated Pension Fund designated in § 97-20. The purpose of such pension fund shall include the payment of all police pension commitments.
RETIREMENT ALLOWANCE
Means a pension payable under this article.
SALARY
Includes regular wages (including personal, sick and vacation days), overtime wages, longevity wages, holiday pay, education benefits and any payment for reimbursement of health premiums.
SERVICE INCREMENT
Means the sum obtained by computing subject to the limitations prescribed by § 97-12B, the number of whole years served above the minimum required by this article during which a contributor to such Fund has been employed by the City and paid out of the City treasury and multiplying the number of years so computed by an amount equal to one-fortieth of the retirement allowance which has become payable to such contributor in accordance with the provisions of this article.
This article shall apply to all present or future regularly salaried members of the police force who have accepted the provisions of this article in writing as follows:
A. 
All present members of the police force not having in effect already done so, shall become subject to the provisions of this article upon accepting the provisions of this article in writing.
B. 
A person newly appointed as a member of the City police force shall not be permitted to enter upon his permanent employment until he has accepted the provisions of this article in writing.
[Amended 6-2-1970 by Ord. No. 32-1970; 6-13-1972 by Ord. No. 30-1972; 8-4-1982 by Ord. No. 25-1982; 12-29-1982 by Ord. No. 47-1982; 3-6-1985 by Ord. No. 7-1985; 9-29-1987 by Ord. No. 13-1987; 12-6-1989 by Ord. No. 20-1989; 6-27-1996 by Ord. No. 23-1996; 2-26-2003 by Ord. No. 5-2003]
A. 
A member who shall have reached 60 years of age shall be entitled upon application to the Board for their approval, to an honorable discharge and shall receive a pension until death. Such pension shall be 2% of his yearly salary multiplied by the number of years of service, and shall not exceed 50% of his yearly salary.
B. 
A member who has served continuously for a period of 20 years and has reached the age of 50 years shall be entitled upon application to the Board to retire and to receive a pension until death which shall be 50% of his salary.
(1) 
A member who was first hired by the City on or after January 1, 1988, and who has served continuously for a period of 25 years and has reached the age of 53 years shall be entitled upon application to the Board to retire and to receive a pension until death which shall be 50% of the average annual salary of such member which he or she received during the last three years of service immediately preceding retirement.
C. 
A member who becomes physically or mentally incapacitated through disease or ailment and by reason thereof is unable to perform his duty as a member of the police force, shall be entitled upon application to the Board to retire and to receive a pension until death or reinstatement, which shall be 2 1/2% of his yearly salary multiplied by the number of years of service. However, such pension shall not exceed 50% of his yearly salary. Any member with five or more years of service who retires on a non-service-connected disability shall be guaranteed a minimal retirement benefit of 25% of their annual salary at the time of retirement.
(1) 
Every policeman hired after January 1, 1988, who becomes physically or mentally incapacitated through disease or ailment and by reason thereof is unable to perform his duty as a member of the police force, shall be entitled upon application to the Board to retire and to receive a pension until death or reinstatement, which shall be 2% of his yearly salary multiplied by the number of years of service. However, such pension shall not exceed 50% of his yearly salary.
D. 
A member who becomes physically or mentally incapacitated through injury received while in the actual performance of his duty, and who by reason thereof is unable to perform his duty as a member of the police force, shall be entitled upon application to the Board to retire and to receive a pension until death, or reinstatement. Such pension shall not be paid during the time such member receives compensation allowed him by the law relative to workmen's compensation. Such pension shall be 70% of his yearly salary which will continue until his retirement pension becomes effective. (See Arbitration Award of 1972.)
E. 
Increase of allowances after retirement. The allowances of members receiving allowances of any kind from the Police Pension Fund by reason of and after termination of their services shall be increased in conformity with a uniform scale, which may be based on the cost of living, but the total of any such allowances shall not at any time exceed one-half of the current salary being paid patrolmen of the highest pay grade.
F. 
Beginning January 1, 1982, any police officer who becomes permanently and totally disabled as a result of a disability incurred while in the actual performance of his or her duty and who, by reason thereof, is unable to perform his or her duties as a member of the police force shall be entitled upon application to the Board to retire and to receive a monthly pension until death or reinstatement. Such pension shall be in an amount equal to 100% of such police officer's average monthly earnings reportable or reported on the police officer's W-2 form in the twelve-month period prior to his or her retirement.
(1) 
The City can claim as an offset from the aforesaid pension the following items:
(a) 
100% of whatever workers' compensation benefit the retired police officer is receiving as a result of his or her service-connected disability; and
(b) 
All earnings from employment which the retired police officer did not have at the time he or she retired and/or all earnings in excess of those average earnings from employment which the retired police officer had at the time he or she retired and which such retired police officer had regularly received during the twelve-month period immediately preceding his or her service-connected disability retirement. This offset for earnings shall be reduced by the annual cost to the retiree of those health insurance benefits such as hospitalization, medical-surgeon, major medical, dental, vision and prescription-drug, chosen and paid for by the retiree provided, however, the annual cost of such benefit shall not exceed the annual cost to the City for providing such benefits to active police officers of the same status as the retiree at the time of his or her retirement (single, married, etc.).
(2) 
Any police officer receiving a service-connected disability pension pursuant hereto shall, to the extent he or she is able, pursue the maximum benefit to which he or she is entitled under the workers' compensation benefit laws of the Commonwealth of Pennsylvania.
(3) 
If the total payments from workers' compensation to any police officer receiving a service-connected disability pension exceed the total benefit which such police officer is entitled to receive, the City shall not have any obligation or duty to make any payments from the Police Pension Fund as long as such workers' compensation benefits are received. No police officer shall commute his or her workers' compensation benefits without receiving the prior approval of the City.
(4) 
Any police officer retiring as provided herein shall, from time to time, upon request of the City, furnish to the City written proof with sufficient documentation of the status of his or her workers' compensation claim, workers' compensation benefits to be received and/or received and/or all aspects of earnings received from other employment both before and after retirement as provided hereinbefore, as well as the names and the addresses of employers, the type of work performed, copies of federal, State and local tax returns, etc.
G. 
After completion of 20 full years of continuous service, regardless of age, each police officer shall have the option of retiring from service or continuing in service; and, if any police officer elects to retire after completion of 20 full years of continuous service, his pension shall vest and remain vested but not payable until he attains the age of 50 years. The pension benefits vested by this provision shall vest permanently; and, if an officer who is otherwise eligible to go on pension dies before reaching age 50, his survivor shall nevertheless be eligible to receive survivor's pension benefits on the date the officer would have reached age 50, if he had survived.
(1) 
After electing to retire as aforesaid and upon attaining the age of 50 years, each retired police officer shall receive an annual pension equal to 1/2 of such police officer's earnings reportable on I.R.S. Form W-2 in the twelve-month period prior to his or her election to retire.
(2) 
If due to a service-related injury any police officer is unable to work all or any portion of the twelve-month period prior to his or her election to retire, any portion of the weekly compensation paid to such police officer pursuant to the City's obligation to pay wages under the Workers' Compensation Laws of the Commonwealth of Pennsylvania which is not required to be reportable or reported on the police officer's W-2 form shall be included within the term "compensation" in computing such police officer's pension benefit.
H. 
After completion of 25 full years of continuous service, regardless of age, each police officer first hired by the City on or after January 1, 1988, shall have the option of retiring from service or continuing in service; and, if any police officer elects to retire after completion of 25 full years of continuous service, his pension shall vest and remain vested but not payable until he or she attains the age of 55 years. The pension benefits vested by this provision shall vest permanently; and, if an officer who is otherwise eligible to go on pension dies before reaching age 55, his survivor shall nevertheless, be eligible to receive survivor's pension benefits on the date the officer would have reached age 55 years, if he or she had survived.
(1) 
After electing to retire as aforesaid and upon attaining the age of 55 years, each retired police officer shall receive an annual pension equal to 1/2 of such police officer's average annual earnings reportable on I.R.S. Form W-2 during the last five-year period immediately prior to his or her election to retire.
(2) 
If due to service-related injury any police officer is unable to work all or any portion of the last five-year period immediately prior to his or her election to retire, any portion of the weekly compensation paid to such police officer pursuant to the City's obligation to pay wages under the Worker's Compensation Laws of the Commonwealth of Pennsylvania which is not required to be reportable or reported on the police officer's W-2 Form shall be included within the term "compensation" in computing such police officer's pension benefit.
I. 
A one-time post retirement adjustment be provided to the eligible retired members of the Police Pension Plan, the eligibility and amount of such adjustment to be as provided in Act 64 of 2002, and that such adjustment be retroactive to the first monthly pension benefit paid after June 30, 2002.
[Amended 1-28-1969 by Ord. No. 5-1969; 6-13-1972 by Ord. No. 30-1972; 9-29-1987 by Ord. No. 13-1987]
A. 
Monthly the City Treasurer shall deduct from the salary or compensation of each member of the police force accepting the provisions of this article 4% of his salary, which shall be applied to the purposes of this article. The City Treasurer is hereby authorized and directed to make deductions and pay the same to himself as Treasurer of the Board.
B. 
Monthly the City Treasurer shall deduct from the salary or compensation of each member of the police force accepting the provisions of this article, an additional 1% of his salary, in addition to amounts deducted pursuant to Subsection A hereof, which shall be applied to provide sufficient funds for payments required by § 97-15 for widows. The City Treasurer is hereby authorized to make deductions and pay the same to himself as Treasurer of the Board.
C. 
A member of the police force who does not make payment or contributions required from him shall not be entitled to a pension under this article.
[Amended 11-7-1962 by Ord. No. 65-1962]
A. 
In addition to the retirement allowance which is authorized to be paid from the Police Pension Fund by this article and notwithstanding the limitations therein placed upon such retirement allowances and upon contributions, every contributor who becomes entitled to such retirement allowance shall also be entitled to a service increment in accordance with and subject to the conditions set forth in this section.
B. 
Service increments.
(1) 
Service increments shall be the sum obtained by computing the number of whole years after having served a minimum of 20 years as required by the Act of June 21, 1957 (P.L. 378 #202), Section 2, 53 P.S. § 39303, during which a contributor has been employed by the City and paid out of the City treasury and multiplying such number of years so computed by an amount equal to 1/40 of the retirement allowance which has become payable to such contributor 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.
(2) 
It is the intent of this amendment of Subsection B to determine service increments by computing the number of whole years after having served a minimum of 20 years regardless of the service requirement of 25 years provided for in this article. It is further the intent that the service period for retirement shall remain at 25 years, but that the increment benefits shall be computed after the service of 20 years.
C. 
Each contributor shall pay into the Pension Fund a monthly service increment contribution in addition to his contribution, which shall be equal to 0.5% of his salary. Such payment shall not exceed the sum of $1 per month. Service increment contribution shall not be paid after a contributor has reached the age of 65 years.
D. 
Service increment contributions shall be paid at the time and in the same manner as pension contributions, and may be withdrawn in full, without interest, by persons who leave the employment of the City, subject to the same conditions under which pension contributions may be withdrawn.
A member who has enlisted or is drafted into the armed service of the United States shall be granted a leave of absence. Such member, upon his return to active duty in the police force of the City, shall resume his obligations under this article. The time so spent in the armed forces of the United States shall be considered as continuous service entitling such member to all the rights and benefits under this article. During the leave of absence, the member shall not pay into the Pension Fund any moneys whatsoever.
[Amended 9-29-1987 by Ord. No. 13-1987; 10-15-1963 by Ord. No. 45-1963]
A. 
To be entitled to retire and receive a pension as provided in § 97-10C and D, the member shall submit to a medical examination by a medical commission composed of three physicians, one who shall be the City's physician and the remaining two to be selected by the Police Pension Fund Commission. A majority of such physicians shall certify that the applicant is physically or mentally incapacitated and by reason thereof is unable to perform his duty as a member of the police force. Applicants seeking retirement and pension under § 97-10D shall establish to the satisfaction of the Board that the injury claimed pursuant to such subsection occurred while in the actual performance of duty.
B. 
The Mayor may direct a member of the police force, who is entitled to retire as provided in § 97-10, to submit to physical examination as provided in Subsection C hereof, and if a majority of the physicians report him to be mentally or physically incapacitated and by reason thereof unable to perform his duties as a member of the police force, he shall be retired by the Board and shall be paid a pension as provided in § 97-10. The Mayor may, also, at his discretion, order a member of the police force entitled to retirement as provided in § 97-10 to go on retirement, and upon such order, the member shall be retired by the Board and shall be paid a pension as provided in § 97-10.
C. 
At the direction of the Mayor, the Board or upon his own application, a pensioner receiving a pension under § 97-10C or D may be examined by three physicians as provided in this section. Should the majority of the physicians report the pensioner to be physically or mentally fit for active service as a member of the police force, the Board shall certify his fitness for duty to the Mayor. The pension shall stop when he is ordered by the Mayor to report to duty.
[Amended 12-24-1963 by Ord. No. 64-1963]
A. 
If, for any cause, any member ceases to be a member of the police force or withdraws from the provisions of this article or is not entitled to nor has received a pension hereunder, 100% of the total amount of the contribution paid into the Pension Fund by the member out of his salary shall be refunded to him without interest.
B. 
In the event of the death of a member before he becomes a pensioner or becomes eligible for pension hereunder, 100% of the total amount of his contribution, without interest, shall be paid to the widow, and if none, to the estate of such deceased member.
C. 
The widow of a member of the police force, or a member who retires on pension who dies on or after January 1, 1960, or if no widow survives, or if she survives and subsequently dies or remarries, 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 January 1, 1960, shall, during her lifetime, or so long as she does not remarry, in the case of a widow, or until reaching the age of 18 years, in the case of a child or children, be entitled to receive a pension calculated at the rate of 50% of the pension the member was receiving or would have received had he been retired at the time of his death.
Whenever any person shall become entitled to receive an allowance from the Police Pension Fund, and has been admitted to participate therein, he shall not be deprived of his right to an equal and proportionate participation therein upon the basis upon which he first became entitled thereto.
[Amended 3-4-1958 by Ord. No. 10-1958]
In the event of the death of a member after he becomes a pensioner any accrued pension due the deceased is to be paid, whether or not a personal representative has been appointed, to the spouse, any child, the father or mother or any sister or brother (preference being given in the order named) of the deceased pensioner. Payment of such pension shall release the City to the same effect as if payment had been made to a duly appointed personal representative of the decedent.
[Amended 6-23-1959 by Ord. No. 45-1969]
A policy of group life insurance shall provide coverage for policemen on active duty in the amount of $5,000 to 60 years of age and $2,500 thereafter, and $1,000 for retired policemen. The premiums on such policy of insurance shall be paid out of the Police Pension Fund.
[Amended 6-7-1960 by Ord. No. 25-1960; 9-29-1987 by Ord. No. 13-1987]
A. 
There is hereby created a Police Pension Operating Fund for the use and benefit of the regular salaried members of the police force of the City to consist of:
(1) 
Gifts, grants, devises, bequests of money or property, real, personal or mixed, in accordance with the Act of June 23, 1931 (P.L. 932), 53 P.S. § 39307;
(2) 
All lost, abandoned, unclaimed or stolen property or money in the possession of the police for the period required by law and for which there shall be no lawful claimant;
(3) 
Salary deductions of each member, as provided in §§ 97-11 and 97-12C;
(4) 
The appropriation by the City annually by Council of not less than 0.5% and not more than 1% of all City taxes levied by the City other than taxes levied to pay interest on or extinguish the City debt or any part thereof.
(5) 
All fees and costs received by City police for service and execution of all criminal processes for City ordinance violations shall be paid directly to the Fund, and Council further appropriates any such past sums and further ratifies and confirms all such payments heretofore made to such Fund.
B. 
Effective January 1, 1988, all funds, assets, accounts, claims and liabilities of the Police Pension Operating Fund shall be transferred to the City of Chester Aggregated Pension Fund which shall thereafter receive the moneys set forth hereinbefore in Subsection A(1) through (5), hereof, inclusive.
Effective January 1, 1988, the City of Chester Aggregated Pension Fund Board shall act as trustee of the City of Chester Aggregated Pension Fund and shall have legal title to the assets being transferred as aforesaid to such Fund.[1]
[1]
Editor's Note: Original Secs. 143.15 through 143.20, which immediately followed this section, were repealed 9-29-1987 by Ordinance 13-1987.
In the event Federal or State legislation shall extend social security or similar benefits to City police officers, only so much of the income and principal from the Trust Fund shall be paid into the Operating Fund as will be required to pay pension benefits fixed by this article less any social security or similar benefits to which any member of the Police Pension Fund shall be entitled.
[Amended 12-6-1989 by Ord. No. 20-1989]
Any member of the Police Pension Fund who is a contributor and who served in the armed forces of the United States subsequent to September 1, 1940, and who was not a member of the Police Pension Fund prior to such military service, shall be entitled to have full credit for each year or fraction thereof, not to exceed five years of such service, upon his payment to the Police Pension Fund of an amount equal to that which he would have paid had he been a member during the period for which he desires credit, and his payment to such Fund of an additional amount as the equivalent of the contributions of the City on account of such military service.
[Amended 11-28-2007 by Ord. No. 17-2007]
A. 
The following definitions apply to this section, unless the context requires otherwise, in addition to those definitions or defined terms set forth or used elsewhere in this Article II:
BOARD
The City of Chester Aggregated Pension Fund Board.
DROP
The deferred retirement option plan established under § 97-25. The DROP is not a separate pension plan from the Pension Fund described in § 97-10, but rather operates as a separate account within the Pension Fund.
DROP ACCOUNT
The total amount credited to an individual DROP Participant due to participation due in the DROP.
DROP BENEFIT
A member's total DROP Account balance as of the date the member separates from active service with the City as a police officer.
DROP ENTRY DATE
The effective date of the member's participation in the DROP.
DROP PARTICIPANT
A member who is participating in the DROP.
DROP PERIOD
The duration of a member's participation in the DROP, commencing on the DROP Entry Date and ending on the date the member separates from active service with City as a police officer.
B. 
Eligible members of the Pension Fund who elect to participate in the DROP shall make an irrevocable commitment to separate from City service as a police officer and retire upon ceasing participation in the DROP, which they must do no later than five years after entering the DROP. Such members remain employees of the City for all other purposes (except that deductions for member Pension Fund contributions cease and the employee no longer accrues additional service credit for Pension Fund purposes) and are not treated as separated from the City during their participation in the DROP. (With respect to a member who makes an election to participate in the DROP for 2003, 2004 and 2005, any member pension fund contributions made prior to such member's DROP Entry Date shall be refunded to the member by the Board as soon as administratively practicable following the member's DROP Entry Date.) However, the determination of the retirement benefit annuity amount under the Pension Fund is made and in-service payment is begun upon entry into the DROP, as if the member had retired with an annuity in pay status then commencing, except payments of that annuity are credited to the member's DROP Account under the Pension Fund subject to certain conditions during the DROP Period, rather than paid to the member directly.
C. 
In order to be eligible to participate in the DROP, a member must be an active employee of the City, and must have attained 20 years of service in the Chester Police Department on or before the member's DROP Entry Date. In lieu of separating from employment with the City and commencing receipt of a service retirement benefit annuity under the Pension Fund, any such member may enter into the DROP on or after the date the member satisfies the 20 years of service requirement; provided, however, that the member's participation in the DROP shall commence as of the DROP Entry Date determined in accordance with Subsection D below. For participation in the DROP to be effective, the member's application must first be approved by the Board.
D. 
Except as otherwise provided by this section, an election to participate in the DROP is irrevocable. A member's DROP Entry Date shall be the date provided on the member's application, provided that such date may only be the first day of a month and shall not be earlier than 90 days after the date the DROP application is filed with the Board nor earlier than the date of satisfaction of the member's 20 years of service requirement, except regarding elections made with respect to calendar years 2003, 2004 or 2005 where the timing requirements, but not the years of service requirement, of this sentence shall be waived and members may enroll in the DROP pursuant to uniform rules and regulations promulgated by the Board.
E. 
Credits to a DROP Participant's DROP Account consist of the sum of:
(1) 
A monthly amount equal to the member's normal accrued monthly service retirement benefit annuity under the Pension Fund determined as of the member's DROP Entry Date; plus
(2) 
Interest on the member's DROP Account balance computed at a rate determined by the Board. The initial annual interest rate shall be 0.0% upon the effective date of this section and shall be reviewed not less frequently than annually by the Board at the beginning of each year. The Board may adjust the interest rate prospectively following such review, provided that:
(a) 
The rate selected shall not exceed 12% and shall not be below 0.0%; and
(b) 
The rate selected shall not be more than 3% points lower than the actual rate of return of Fund assets during the previous year.
F. 
Credits to a member's DROP Account shall begin on the participant's DROP Entry Date and shall continue until the DROP Participant separates from active service with the City as a police officer, provided that such separation must be no later than five years after the DROP Entry Date. Amounts are creditable for partial crediting periods of not less than one month each. Credits may not be made to a member's DROP Account for any period of time that occurs after the member separates from active service with the City as a paid police officer.
G. 
The DROP Accounts shall not be segregated from other assets of the Pension Fund.
H. 
Upon a member's entry into the DROP, member contributions made to the Pension Fund under § 97-11 on behalf of that member shall cease for duration of the DROP Period.
I. 
A DROP Participant who separates from active service with the City as a police officer is entitled to receive the member's DROP Benefit in a single sum. In addition, upon the effective date of such separation from service, the member shall be deemed retired, and become eligible to receive a service retirement benefit annuity under the Pension Fund, in the monthly amount calculated pursuant to § 97-10A and B.
J. 
Once entering the DROP, the member continues to be a DROP Participant until separation from City service as a police officer, at which point the member is deemed retired. A retiree may be re hired by the City as a paid Participant who is re-hired by the City as a police officer and may be eligible to again participate in the DROP.
K. 
Upon the death of a DROP Participant while enrolled in the DROP, the member's total DROP Account balance at the date of death shall be added to any benefit payable under § 97-15 and be payable to the beneficiary or beneficiaries as determined under that section.
L. 
DROP Participants are not eligible for an ordinary disability retirement under § 97-10C. If a DROP Participant becomes disabled and does not meet the requirements for a service-connected disability retirement benefit, that DROP Participant shall be terminated from the DROP and separated from service with the City to commence a service retirement benefit annuity under the Pension Fund and to receive the DROP Benefit, as provided in § 97-25I.
M. 
If a DROP Participant applies for, and the Board grants, a service connected disability retirement benefit under § 97-10D or F, the member shall be terminated from the DROP and separated from service with the City to begin a service connected disability retirement benefit annuity and to receive the DROP Benefit, as provided in § 97-25I, with the service-connected disability retirement benefit being based on the compensation and service levels as determined at the DROP Entry Date.
N. 
Upon entry into the DROP, a member's service level is frozen for purposes of the Pension Fund. Therefore, a DROP Participant is not eligible to purchase any past service credit under the Pension Fund; provided, however, that a DROP Participant may complete any installment or other method of purchase within the parameters of § 97-24.
O. 
The DROP shall operate as a cost-neutral benefit. The Board shall conduct an actuarial study of the financial impact of the DROP on the Pension Fund as of the fourth anniversary of the effective date of this section.
P. 
The Board may, by regulation, provide for additional details of implementation and interpretation of this section.
Q. 
The provisions of this section shall become effective as of January, 1, 2003.