[Adopted 3-8-1989 by Ord. No. 89-4]
The Council of the Borough of Downingtown hereby restates the Police Pension Plan and Trust[1] for the purpose of providing retirement and other benefits as stated herein.
[1]
Editor's Note: The Police Pension Plan was originally adopted 2-14-1955 by Ord. No. 76-1, which ordinance was repealed by the enactment of this article.
A. 
As used in this article, the following terms shall have the meanings indicated:
AGE
The age attained by the employee at his or her last birthday.
ANNIVERSARY DATE
Any January 1 after the effective date.
AVERAGE APPLICABLE SALARY
The average monthly earnings of the member at any time of reference computed over the last 36 months (or such shorter period as represents the member's total period of continuous employment by the Borough) of his continuous employment by the Borough prior to such date of reference. For purposes of computing average applicable salary, actual monthly earnings shall include, but not be limited to, base pay, longevity pay, shift differential (if any) and overtime pay but shall exclude reimbursement expenses or payment in lieu of expenses, nonsalary compensation including, but not limited to, fringe benefits provided by the Borough and any other allowances paid by the Borough (i.e., uniform allowances).
[Amended 12-30-1991 by Ord. No. 91-27; 12-18-1996 by Ord. No. 96-20]
BOROUGH
The Borough of Downingtown, Chester County, Commonwealth of Pennsylvania.
CHIEF ADMINISTRATIVE OFFICER
The person who has primary responsibility for the execution of the administrative affairs of this pension plan, or the designee of that person.
COMPENSATION
Earnings, including but not limited to base pay, longevity pay, shift differential, if any, overtime pay, but shall exclude reimbursement expenses or payments in lieu of expenses, nonsalary compensation, including but not limited to fringe benefits provided by the Borough and any other allowances paid by the Borough (i.e., uniform allowances).
COUNCIL
The Council of the Borough of Downingtown.
EARLY RETIREMENT DATE
The first day following the date on which the member completes 20 years of service.
[Amended 7-16-2003 by Ord. No. 2003-02]
EFFECTIVE DATE
March 8, 1989.
EMPLOYEE
Any person in the full-time employ of the Borough Police Department whose customary employment is for not less than 40 hours a week.
FUND
All assets held by the trustee under the trust agreement relating to this Police Pension Plan.
MEMBER
Any police officer in the full-time employ of the Borough Police Department who has satisfied the eligibility requirements established in § 57-9 hereof and who is, at the time of reference, or has, prior to his elimination, been making such contributions as may be required pursuant to § 57-10A hereof.
[Amended 12-18-1996 by Ord. No. 96-20]
NORMAL RETIREMENT DATE
The first day of the month coincident with or next following the date on which the member completes 25 years of service, and the date on which the member attains age 50.
[Amended 12-30-1991 by Ord. No. 91-27]
PLAN
The Police Pension Plan for the Borough of Downingtown, as herein set forth and as the same may hereafter be amended.
PLAN YEAR
A period of 12 consecutive months commencing on any January 1 and ending on the following December 31.
POLICE PENSION COMMITTEE
A five-member committee composed of one Council member, the Borough's Director of Administration and Finance, two members of the Police Department and a member at large selected by the Borough Council.
[Amended 2-12-1992 by Ord. No. 92-1; 2-12-1992 by Ord. No. 92-2]
SERVICE
The aggregate of a member's total periods of employment as a full-time employee of the Borough. If a member enters military service, either voluntarily or by conscription, after he has been employed for at least six months, such time spent in the armed forces of the United States during a period of national emergency shall be counted as "service" for purposes of the plan, provided that such member returns to police service with the Borough within six months after his discharge or release from such active duty in the armed forces of the United States. The time spent in military service due to voluntary extension of such military service during a period of peacetime shall not be included as "service" for the purposes of this plan. Time spent on reserve or National Guard training shall be included as "service" for the purpose of this plan.
TOTAL DISABILITY
Any condition arising from service-connected illness or injury which precludes an employee from performing the duties associated with the normal occupational requirements of any position with the Police Department as certified by a physician designated by the Borough.
TRUSTEE
The Council of the Borough of Downingtown or any other agency or person appointed by such to serve in that capacity as set forth in the trust agreement.
B. 
Wherever applicable as used herein, unless the context specifically provides otherwise, the singular and plural shall be interchangeable, and the masculine and feminine pronoun shall include either sex.
A. 
All persons who are employees, as defined in this plan as of the effective date hereof shall be members as of the effective date.
B. 
Any person who becomes an employee after the effective date hereof shall become a member on the first day of service as an employee.
A. 
Contributions by members. Members shall pay into the fund at a rate of 5% of compensation. Compensation for this purpose shall be as defined in § 57-8 of the plan. The Council may, on an annual basis, by ordinance or resolution, reduce or eliminate payments into the fund by members. Individual records of contributions by members shall be maintained, including all interest credited to each member's individual account. Interest to be credited shall be 6% compounded annually. Interest shall be credited from the end of the plan year in which paid, to the end of the month after which a refund becomes payable.
[Amended 12-18-1996 by Ord. No. 96-20; 7-16-2003 by Ord. No. 2003-02]
B. 
Refund of member's contributions. Any member who for any reason shall be ineligible to receive a pension after having made contributions shall be entitled to a refund of his individual account balance; such refund is payable immediately upon discontinuance of his employment with the police force or within a reasonable time (not more than 45 days after discontinuance). If such discontinuance is due to death, then such refund shall be paid to his designated beneficiary or, in the absence thereof, to his estate. If the disabled or retired member is receiving a benefit by reason of disability or retirement, then the refund payable to the beneficiary is equal to the individual account balance at the date of disability or retirement, less any pension payments made to the member.
C. 
Deposits. Contributions by members shall be remitted to the trustees biweekly.
D. 
State aid. The portion of the payments made by the State Treasurer to the Borough and designated by the Borough Council to be allocated to the Police Pension Fund from money received from taxes paid upon premises by foreign casualty insurance companies for purposes of pension retirement or disability benefits for policemen shall be used as follows: To reduce the unfunded liability or, after such liability has been fully funded, to apply against the annual obligation of the Borough for future service costs or, to the extent that the payment may be in excess of such obligations, to reduce member contributions pursuant to Subsection A hereof.
E. 
Borough contributions. Subject to the provisions and limitations set forth in other sections of this plan, the Borough shall contribute the amounts certified to be necessary by the fund's actuary to provide the benefits provided by this plan.
F. 
Contributions by members while on military service. A member who enters the military service during a time of national emergency either voluntarily or by conscription shall continue to make contributions to the plan as outlined in Subsection A of this section based on the compensation in effect on the last day of service with the Borough's Police Department. These contributions will continue throughout the length of his military service. During military service, the Trustee shall continue to contribute to the fund for the officer's benefit. However, no contributions will be made either by or on behalf of a member who voluntarily extends his military service during peacetime.
G. 
Other contributions. The fund shall be authorized to receive, by gift, grant, devise or bequest, any money or property, real, personal or mixed, in trust for the benefit of the fund. The Trustee of the fund shall be subject to such directions not inconsistent with this plan as the donors of such funds and property may prescribe.
A. 
Normal retirement. Each member may retire on or at any time after his normal retirement date. Any member so retiring shall be entitled to receive a monthly pension commencing as of the first day of the month coincident with or next following his date of actual retirement and ending with the payment made as of the first day of the month in which his death occurs. The monthly pension to which such retired member shall be entitled to under this plan shall be equal to 50% of such member's average applicable salary reduced by 0% of the primary social security benefit payment at age 65 or later. For officers hired prior to August 30, 1983, the monthly pension to which such retired member shall be entitled shall be equal to 50% of the member's average compensation computed over the 36 months immediately prior to retirement reduced by 0% of the primary social security benefit payable at age 65 or later.
[Amended 12-30-1991 by Ord. No. 91-27; 3-1-1995 by Ord. No. 95-2[1]]
[1]
Editor's Note: This ordinance also provided for an effective date retroactive to January 1, 1995.
B. 
Postponed retirement. An employee shall be allowed to continue as an employee beyond his normal retirement date. In such case, the employee shall remain a member of the plan until he actually retires or ceases to be an employee. Any contributions required pursuant to § 57-10A hereof shall continue.
C. 
Disability benefit. If a member retires because of a total disability, the member shall be entitled to receive a pension benefit equal to 50% of the member's salary at the time the disability was incurred, offset by social security. The benefit will commence on the first day of the month following the month in which the member retires.
[Amended 12-18-1996 by Ord. No. 96-20; 7-16-2003 by Ord. No. 2003-02]
D. 
Early retirement benefit. Each member may retire on or at any time after the member's early retirement date. Upon termination, the member must file, with the Secretary of the Borough, a written notice of the member's intention to elect an early retirement benefit. This benefit shall become effective as of the date of the notice or the date designated in the notice, whichever is later. The amount of the early retirement benefit shall be the actuarial equivalent of a vested retirement benefit as computed in § 57-13A. The actuarial equivalent of the vested retirement benefit shall be determined by actuarially reducing the vested retirement benefit to reflect that it will commence on the effective date of the early retirement rather than on the member's normal retirement date. The actuarial reduction shall be calculated using the actuarial assumptions reported in the last actuarial valuation report filed with the Public Employee Retirement Commission.
[Added 7-16-2003 by Ord. No. 2003-02]
E. 
Service increment. In addition to the monthly retirement benefit, each member who has completed 26 years of service shall receive an additional monthly pension benefit equal to a maximum of $100 per month.
[Added 7-16-2003 by Ord. No. 2003-02]
F. 
Cost-of-living adjustment. There shall be a cost-of-living increase provided to all members who retire on or after January 1, 2002, provided, however, that such cost of living increase shall not exceed the percentage increase in the All Urban Consumers C.P.I. for the Philadelphia area for the year in which the police officer last worked; provided, further, that in no case shall the total Police Pension benefits exceed 75% of the salary for computing retirement benefits; provided, further, that the total cost of living increase shall not exceed 30%. No cost-of-living increase(s) shall be granted which would impair the actuarial soundness of the plan. All cost of living adjustments shall be made in January and calculated on the twelve-month-percentage change in the consumer price index as of the previous December.
[Added 7-16-2003 by Ord. No. 2003-02]
A. 
Death benefit if no surviving spouse nor dependent children. If a member dies prior to the commencement of pension benefits, then his designated beneficiary shall be entitled to a refund of his accumulated member's contributions with credited interest. If no beneficiary survives, then the refund is payable to the members' estate.
B. 
Pension benefit to surviving spouse and dependent children.
[Amended 12-18-1996 by Ord. No. 96-20; 7-16-2003 by Ord. No. 2003-02]
(1) 
If a member dies survived by a spouse or dependent children, after having become eligible to receive a pension benefit (i.e., member was eligible because member was already receiving a pension or member met the age and service requirements, but member had not yet retired), then a monthly pension benefit shall be provided. The amount of the monthly pension benefit shall be 50% of the pension the member was receiving or would have been entitled to receive if the member had been retired at the time of the member's death.
(2) 
In the event a member dies after completing 12 or more years of service but was not yet eligible for normal retirement or preretirement survivor benefits, the surviving spouse shall act on behalf of the member and make the benefit selection pursuant to § 57-13. If a vested benefit is selected, the surviving spouse shall receive 50% of the member's vested monthly benefit commencing on the first day of the month following the member's normal retirement date.
(3) 
In the event a member dies after completing 20 or more years of service and when not yet eligible for normal retirement or preretirement survivor benefits, the surviving spouse shall act on behalf of the member and select a benefit pursuant to § 57-11D. If an early retirement benefit is selected, the surviving spouse shall receive 50% of the member's monthly early retirement benefit, commencing on the first day of the month following the election of this benefit.
(4) 
The monthly pension benefit is payable to the surviving spouse until death, then to surviving dependent children under the age of 18 years or, if attending college, under or attaining the age of 23 years. Attending college shall mean the eligible children are registered at an accredited institution of higher learning and are carrying a minimum course load of seven credit hours per semester. Dependent children shall include stepchildren, adopted children and any child conceived before the time of the member's death and thereafter born to the member's spouse.
C. 
Preretirement survivor benefit. In the event a member is killed in service, the member's family shall receive a pension calculated at 100% of the member's salary at the time of death. "Family" shall mean the surviving spouse and dependent children of the member. The benefit is payable to the surviving spouse until death, then to the surviving dependent children under the age of 18 years or, if attending college, under or attaining the age of 23 years. The terms "dependent children" and "attending college" shall be consistent with those of Subsection B.
[Amended 7-16-2003 by Ord. No. 2003-02]
If a member leaves the employ of the Borough or ceases to be a member, whether by reason of his transfer, resignation or discharge or by reason of disability or retirement other than after becoming eligible for benefits pursuant to § 57-11 or 57-12 of this plan, he shall be entitled to a refund of all contributions made by him and then on deposit in the fund, plus interest thereon, computed at the rate described in § 57-10A. However, a member who has completed 12 or more years of service may elect either A or B as described below:
A. 
He may elect to leave his contributions, plus interest, in the fund so as to receive a vested pension benefit to start at his normal retirement date. He must file with the Secretary of the Borough of Downingtown, within 90 days of the date he ceases to be a full-time police officer, a written notice of his intention to vest. The amount of the vested pension benefit shall be (x) divided by (y) where (x) is the number of years of service at date of termination and (y) is the number of years of service which the member would have had if he worked until the normal retirement date, multiplied by the benefits described in § 57-11A. Years of service shall be measured in years and completed months.
B. 
He may elect to receive a refund of all contributions made by him and then on deposit in the trust fund, plus interest thereon, computed at the rate described in § 57-10A. If he elects to receive the refund of his contributions, plus interest, he would forfeit the pension benefit outlined in Subsection A above.
A. 
Refund benefits becoming distributable pursuant to § 57-13 and death benefits becoming distributable pursuant to the provision of § 57-12A shall be paid in the form of a lump-sum distribution.
B. 
The normal form of all benefits payable hereunder shall be a pension for the life of the member, commencing on the date specified and ending with a payment made on the first day of the month in which the member dies; subject, however, to the payment of a death benefit calculated pursuant to § 57-12B.
C. 
In lieu of the above, actuarially equivalent reduced retirement benefits may also be paid under the following optional forms of annuity at the election of the member:
(1) 
Life annuity with 120 monthly payments certain.
(2) 
Joint and 100% contingent annuity.
(3) 
Joint and 66 2/3% contingent annuity.
D. 
Officers hired on or after the enactment of this subsection shall not be entitled to the election of optional actuarial equivalent reduced retirement benefits.
[Added 7-5-2000 by Ord. No. 2000-3]
A. 
It is the duty of the trustee to pay the benefits to members and their beneficiaries, as provided in §§ 57-11, 57-12 and 57-13 in accordance with the instructions received from the Board; provided, however, that the duty of the Trustee to make such payments is wholly contingent upon the sufficiency of the fund for such purposes. The Borough in no way guarantees the sufficiency of the fund to make such payments nor assumes any liability for the insufficiency thereof.
B. 
The Borough may employ an actuary, investment advisors, counsel or other professional consultants from time to time in connection with the operation of the fund or of this plan. Such persons or entities shall be compensated by the Borough at such rates as may be agreed upon by the Council. Such compensation may be paid from the fund.
C. 
The Trustee shall make an annual determination of the fairmarket value of the fund as of the anniversary date and as of such additional dates as the Council may direct. The fair market value of the fund shall be reported to the actuary, who shall calculate the amount to be contributed to the fund by the Borough with respect to each plan year in accordance with the assumptions most recently adopted by the Council for the purpose of such computations; provided, however, that the liability of the Borough to make such contributions is subject to all of the conditions and limitations set forth elsewhere in this plan.
A. 
The plan shall be administered by the Council of the Borough of Downingtown. The Council shall make and adopt rules and regulations for the efficient administration of the plan.
B. 
The Council shall keep all data, records and documents pertaining to the administration of the plan and shall execute all documents necessary to carry out the provision of the plan and shall provide all such data, records and documents to the professionals whose services are employed pursuant to § 57-15B of this plan.
C. 
The Council shall construe the plan, shall determine any questions or fact arising under the plan and shall make all decisions required of it under the plan. Decisions and actions taken thereon in good faith shall be final and conclusive. It may correct any defect or supply any omission or reconcile any inconsistency in such manner and to such extent as it shall deem expedient to carry the plan into effect, and it shall be the sole judge of such expediency. The Council shall act uniformly with respect to matters coming before it concerning employees in similar circumstances.
D. 
The Council shall serve without bond, except as may be otherwise required by law, and without compensation for its services as such.
E. 
The members of Council, and each of them, shall be free of all liability for any act or omission except by willful misconduct or gross negligence, and each of them shall be fully indemnified by the Borough against all judgments not involving findings of their respective personal or collective willful misconduct or gross negligence and against all cost, including counsel fees, incurred in defense of actions brought against them.
F. 
The Council shall make available to members, retired members and terminated members and to their beneficiaries, for examination during business hours, such records as to pertain to the person examining.
G. 
To enable the Council to perform its function, the Borough administration shall supply full and timely information to it on all matters relating to the pay of all members, their retirement, death, termination of employment and such other pertinent facts as the Council may require.
H. 
The Council shall enact such rules and regulations for the conduct of its business and for the administration of the plan as it may consider desirable, provided that the same shall not be in conflict with any of the provisions of the plan. All actions of the Council shall be taken at meetings at which at least four members shall be present or by written resolution and any resolutions concurred in by not fewer than four of its members shall be the action of the entire Council. Written minutes shall be kept of the meetings and action of the Council.
I. 
The Secretary, acting on behalf of the Council, or any four members of the Board, shall have the power to execute all documents necessary to carry out the actions of the Board, and any person, partnership, corporation or government agency shall accept such documents over such signature or signatures as if executed by the Council.
A. 
The Police Pension Committee pursuant to § 57-16H shall assist the Council in carrying out the duties and responsibilities as set forth in § 57-16A, B and C of this plan.
B. 
The Committee shall have no authority to make decisions. It serves strictly in an advisory capacity to the Council.
C. 
Committee members will meet at least semiannually (February and September) to review the plan administration, fund management, plan provisions and other matters which from time to time may effect the plan. The Committee will present its findings and/or recommendations to the Council.
D. 
The Committee may employ professional consultants pursuant to § 57-15B of this plan.
A. 
It is the expectation of the Borough that it will continue this pension plan indefinitely and will, from time to time, contribute to the fund such amounts as may be needed to provide the benefits set forth in the plan.
B. 
The provisions of any ordinance establishing, amending or maintaining the plan shall not be a charge on any other fund in the treasury of the Borough or under its control, save the Uniformed Employee's Pension Fund herein provided for.
C. 
Nothing contained in the plan shall be held or construed as a contract or guaranty of employment nor to create any liability upon the Borough to retain any person in its service. The Borough reserves the full right to discontinue the service of any person without any liability, except for salary or wages that may be due and paid, whenever, in its judgment, its best interests so require, and such discontinuance shall be without regard to this plan.
A. 
The Borough may amend this plan from time to time as is necessary to maintain its actuarial soundness and to incorporate changes in plan benefits or entitlements. However, no amendment shall be made which will in any manner divert any part of the fund to any purpose other than the exclusive benefit of members or their beneficiaries, except that upon termination such diversion may be made after all of the fixed and contingent liabilities to members and their beneficiaries have been met, nor shall any amendment be made at any time which will in any manner divest any benefit then vested in a member or reduce or eliminate a benefit to which a member has been given an expectation by virtue of pension ordinance or pension calculations for retiring officers who retired during the members participation in this plan.
B. 
In the event of termination of this plan, the Council, shall allocate the assets then remaining in the fund, to the extent that such assets are sufficient, to members and retired members in the following order of precedence:
(1) 
To members and retired members in an amount equal to their respective contributions with interest, reduced in cases of retired members by any prior distribution made.
(2) 
To provide benefits due retired members in the proportion that the pension earned by each member bears to the total pension earned for all such members.
C. 
After allocation of the fund, the Council shall determine whether to operate the fund as the source of whatever payments the money so allocated will provide.
A. 
No benefit under this plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge or encumbrance nor to seizure, attachment or other legal process for the debts of any member or member's beneficiary. This provision shall not apply to a qualified domestic relations order, defined in Code Section 414(p), and those other domestic relations orders permitted to be so treated by the Council under the provisions of the Retirement Equity Act of 1984. The Board shall establish a written procedure to determine the qualified status of domestic relations orders to administer distributions under such qualified orders. Further, to the extent provided under a qualified domestic relations order, a former spouse of a participant shall be treated as the spouse or surviving spouse for all purposes under this plan.
B. 
Any person dealing with the Borough may rely upon a copy of this plan and any amendments thereto certified to be true and correct by the Trustee.
C. 
In no circumstances, whether upon amendment or termination of this plan or otherwise, shall any part of the fund be used or diverted to any purpose other than the exclusive benefit of members or their beneficiaries until all of the actuarial obligations to such member or member's beneficiaries have been met.
D. 
If the Council deems any person incapable of receiving benefits to which he is entitled by reason of minority, illness, infirmity or other incapacity, it may make payment directly for the benefit of such person to the guardian or trustee for said person, whose receipt shall be complete acquittance therefor. Such payment shall, to the extent therefor, discharge all liability of the Borough or the fund.
E. 
Should any provision of this plan be determined to be void by any court, the plan will continue to operate and, to the extent necessary, will be deemed not to include the provision determined to be void.
F. 
Headings and captions provided herein are for convenience only and shall not be deemed part of the plan.
G. 
This plan shall be construed and applied under the laws of the Commonwealth of Pennsylvania where not in conflict with federal law, which shall prevail.