[Adopted 6-14-1983 by Ord. No. 38]
A Police Pension Plan is hereby established
pursuant to and in compliance with the Act of May 29, 1956, P.L. 1804,
as amended.[1] Such fund shall be under the direction of the Board of
Supervisors, Township of Kidder and shall be applied under such regulations
as the Board may prescribe.
[1]
Editor's Note: See 53 P.S. § 767
et seq.
As used in this article, the following terms
shall have the meanings indicated:
A benefit determined by an actuary to be equivalent in value
to the participant's normal retirement benefit, as defined herein;
provided that such actuarial equivalent is within the limitations
provided herein.
The persons appointed to serve in an advisory capacity to
the Board in the administration of the Pension Fund.
The payroll deductions made monthly from the compensation of the participants and paid to the Pension Fund; except that contributions in § 39-6 shall mean the total contributions accumulated during the period of employment and participation in this fund.
The Township of Kidder.
The Police Pension Fund established pursuant to this article.
The value of participant's benefits which shall accrue by
virtue of service in the aggregate rendered subsequent to the enactment
of this article.
The amount of salary received by a participant in each and
every month, including overtime, longevity pay and service increments,
if any.
Every person duly appointed from time to time by the municipality
as a full-time paid policeman working at least 40 hours a week at
a definite salary, subject to reasonable vacation and sick leave.
Total service, not necessarily continuous.
The cessation of services by the participant for any reason,
including disability, death, resignation and employer termination.
Voluntary leaves of absence without pay shall not be a termination
for purposes of this article; but no period of such leave shall be
computed in the total service in the aggregate for pension benefit
purposes. Leaves of absence with pay shall not be considered a termination
within the meaning of the article, and such leaves may be computed
in the total service in the aggregate for pension benefit purposes,
provided that the municipality is able to certify to the Department
of the Auditor General that such participant on a leave of absence
with pay is within the definition of participant herein.
The governing body of Kidder Township, hereinafter referred
to as “Board.”
The present value of any participant's benefits accrued prior
to the enactment of this article by virtue of his/her prior service
in the aggregate.
A.
The Board shall administer the Police Pension Fund
established by this article by such regulations as shall from time
to time be necessary for the effective maintenance of the fund, provided
that no regulation shall be contrary to the statutes of the Commonwealth
pursuant to which this fund is established.
B.
The Board may appoint a Committee which shall act
as an advisory body to the Board in the administration of the Pension
Fund established by this article according to the regulations established
pursuant to this article.
C.
The Committee shall consist of five members, which
number shall include three chosen by the Board and two chosen by the
participants in the fund. All persons so designated shall serve at
the pleasure of the Board. Any member may resign upon written notice
to the Board and the Committee. Any vacancies in the Committee arising
from resignation, death or removal shall be filled by the Board by
the procedure set out herein for the member of the Committee whose
resignation, death or removal has created the vacancy. The Committee
shall meet no less than annually and shall serve without compensation
for their services.
D.
The Board shall act by such procedure as the Board
shall establish, provided that all decisions shall be by majority
vote. The Board may authorize one of its members to execute any document
or documents on behalf of the Board. The Board may adopt bylaws and
regulations as it deems necessary for the conduct of its affairs and
may appoint such accountants, counsel, specialists or such other persons
as it may deem desirable for the proper administration of the Pension
Fund.
E.
The Board shall keep a record of all its proceedings
and acts, and shall keep all such books of accounts, records and other
data as shall be necessary for the proper administration of the Pension
Fund.
F.
All such reasonable expenses incurred in the administration
of the fund, including but not limited to fees for the services of
specialists, including actuaries, accountants and legal counsel shall
be approved by the Board.
G.
No member of the Board shall incur any liability for
any action or failure to act, accepting only liability for its own
gross negligence or willful misconduct. The employer shall indemnify
each member of the Board against any and all claims, loss, damages,
expense and liability arising from any action or failure to act, except
for such that is the result of gross negligence or willful misconduct
of such member.
A.
B.
Normal retirement benefits.
(1)
Each participant who shall complete the age and service eligibility requirements as set out in Subsection A shall receive a pension for life, payable in equal monthly installments in an amount equal to 1/2 the participant's average monthly compensation, based on his/her last 36 months of compensation, or that percentage and based on that number of months as shall be prescribed by statute of the Commonwealth subsequent to the adoption of the article.
(2)
Such pension shall be payable from the assets of the
fund established pursuant to this article.
[Amended 11-21-1996 by Ord. No. 96]
C.
Death prior to retirement or retirement eligibility. The beneficiaries designated by the participant pursuant to Subsection G herein shall be entitled to the death benefit incidental to a policy of insurance purchased primarily to fund the pension of the participant, provided that the participant, at the time of his/her death, is not retired according to the terms in Subsection B.
D.
Early retirement benefits. An early retirement benefit
shall be provided to a member of the police force 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
governing body of the municipality or regional Police Department.
The early retirement benefit shall become effective as of the date
the application is filed with the governing body 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:
[Added 9-17-1998 by Ord. No. 100]
(1)
A partial superannuation retirement benefit shall
be determined by applying the percentage that the member's years of
service bears 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 report
file with the Public Employee Retirement Commission under the act
of December 18, 1984 (P.L. 1005, No. 205),[1] known as the "Municipal Pension Plan Funding Standard
and Recovery Act."
[1]
Editor's Note: See 53 PS § 895.101
et seq.
E.
Disability benefits.
[Amended 5-18-1995 by Ord. No. 91]
(1)
In the event of participant's permanent service-connected
disability, such participant may become eligible for a monthly disability
pension. The Board shall designate a physician to represent and certify
to the Board such disability as permanent and service-connected. Such
disability pension shall commence when the participant has been declared
permanently disabled. Disability shall mean any physical or mental
condition which prevents a member from performing the duties of a
full-time police officer as a result of service-connected injuries.
[Amended 12-14-2006 by Ord. No. 38-B]
(2)
Any member of the police force who suffers a permanent
injury incurred in service shall receive a pension calculated at a
rate of no less than 50% of the member's salary at the time the disability
was incurred, provided that any member who receives benefits for the
same injuries under the Social Security Act (49 Stat. 620, 42 U.S.C.
§ 301 et seq.) shall have his or her disability benefit
offset or reduced by the amount of such benefit.
[Added 9-19-2002 by Ord. No. 113]
F.
Designation of beneficiaries. Each participant shall
have the right to name the beneficiary or beneficiaries for preretirement
death benefits incidental to policies of insurance purchased primarily
to fund the participant's pension, provided that the ownership of
such policies shall remain in the municipality's governing body and
shall be endorsed to prevent the assignment of ownership to the insured.
If the participant shall fail to name a beneficiary, such benefits
that would have accrued to his beneficiaries shall be paid to the
participant's estate. Each participant may from time to time change
the beneficiaries in such form and manner as shall be prescribed by
the Board.
G.
Widows and survivors benefits.
[Amended 5-18-1995 by Ord. No. 91; 9-19-2002 by Ord. No.
113]
(1)
The surviving spouse of a member of the police force
or a member who retires on pension who dies, or if no spouse survives,
or if he or she survives and subsequently dies, then the child or
children under the age of 18 years, or if attending college, under
or attaining the age of 23 years, of a member of the police force
or a member who retires on pension who dies, shall, during his or
her lifetime, in the case of a surviving spouse, or until reaching
the age of 18 years, or if attending college, under or attaining the
age of 23 years, in the case of a child or children, be entitled to
receive a pension calculated at no less than 50% of the pension the
member was receiving or would have been receiving had he or she been
retired at the time of death.
(2)
The surviving spouse of a member of the police force
who dies before his or her pension has vested, or if no spouse survives,
or if he or she survives and subsequently dies, the child or children
under the age of 18 years, or if attending college, under or attaining
the age of 23 years, of the member of the police force shall be entitled
to receive repayment of all money which the member invested in the
pension fund plus interest or other increases in value of the member's
investment in the pension fund, unless the member has designated another
beneficiary for this purpose.
(3)
A surviving spouse of a member of the police force
who is killed in service, or if no spouse survives, or if he or she
survives and subsequently dies, the child or children under the age
of 18 years, or if attending college, under or attaining the age of
23 years, of the member of the police force shall be entitled to receive
a pension calculated at 100% of the member's salary at the time of
death. Benefits hereunder shall be paid by the Commonwealth of Pennsylvania
pursuant to the provisions of Act 51 of 2009 as amended[2] and shall not be an obligation of or payable from this
plan.
[2]
Editor's Note: See 53 P.S. § 771 et seq.
(4)
For purposes of this article, the phrase "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.
(5)
Insofar as these amendments affect the benefits available
to surviving spouses, the amendments shall apply to surviving spouses
whose spouse died on or before April 17, 2002, and who were not remarried
as of that date.
H.
Nonalienation of benefits and vesting. No benefit
under the plan shall be subject in any manner to anticipation, alienation,
sale, transfer, assignment, pledge, encumbrance or charge. Nor shall
any such benefits be in any manner liable for or subject to garnishment,
attachment, execution, levy or other legal process. Further, all benefits
granted herein shall vest in the participant upon completion of the
requirements for eligibility, and his/her benefits shall continue
in the amount and in the form in which he/she became entitled to them.
I.
Cost-of-living increases may be provided for members
of the police force receiving retirement benefits or work-related
disability benefits as authorized by the Kidder Township Board of
Supervisors at a duly called public meeting. Any such cost-of-living
increase shall not exceed the percentage increase in the Consumer
Price Index from the year in which the police member last worked.
In no case shall the total police pension benefits exceed 75% of the
salary for computing retirement benefits. The total cost-of-living
increase shall not exceed 30%. No cost-of-living increase shall be
granted which would impair the actuarial soundness of the pension
fund. The consumer price index to be utilized shall be the Philadelphia
- Wilmington - Atlantic City Index for all urban wage earners as established
by the United States Department of Labor, Bureau of Labor Statistics
or the successor index thereto. In each case, determination as to
whether the cost of living increase is appropriate and shall be granted
for a particular calendar year shall be determined by utilization
of the most recent published index available in order for such increase
to be included effective the first day of January of each year.
[Added 8-12-1986 by Ord. No. 45; amended 12-14-2006 by Ord. No.
38-B]
J.
Vested benefit. Should a participant, before completing
superannuation retirement age and service requirements, but after
having completed 12 years of total service, for any reason cease to
be employed as a full-time police officer by the municipality in the
pension he/she has been a member, the participant shall be entitled
to vest his/her retirement benefits by filing with the governing body
within 90 days of the date he/she ceases to be a full-time police
officer, a written notice of the intention to vest. Upon reaching
the date which would have been his/her superannuation retirement date
if he/she had continued to be employed as a full-time police officer,
the participant shall be paid a partial superannuation retirement
allowance determined by applying the percentage his/her years of service
bears to the years of service which he/she would have rendered had
he/she continued to work until superannuation retirement date to the
gross pension, using, however, the monthly average compensation during
the appropriate period prior to the participant's termination of employment.
[Added 5-18-1995 by Ord. No. 91]
K.
In addition
to other monthly pension or retirement allowances, the Police Pension
Fund will pay a monthly length-of-service increment of $100 per month
for the completion of one year of service in excess of 25 years. This
amount is not to exceed $1,200 per annum.
[Added 3-20-2014 by Ord. No. 166]
A.
Contributions of participants. Where positions covered
by the fund are included in an agreement under the Federal Social
Security Act, participants shall pay into the fund a minimum of 5%
and a maximum of 8%, as determined from time to time by the Board
of Supervisors of the Township of Kidder, on that portion of monthly
compensation on which social security benefits are payable.
[Amended 11-21-1996 by Ord. No. 96]
B.
Reduction or elimination of participant's contributions.
The monthly contributions of the participant may be reduced or eliminated
if an actuarial study annually indicates that such reduction or elimination
for that year will not adversely affect the actuarial soundness of
the fund. If the actuarial study so indicates, the reduction or elimination
shall be effected by resolution, and it shall be effective for one
year. No reduction or elimination shall result in increasing the liability
of the municipality to the fund.
C.
Contributions of the municipality.
(1)
Past service liability. It shall be the obligation
of the municipality to fund the past service liability as determined
by the actuary, provided that such liability may be funded over a
period not to exceed 25 years. The 25 years commences with the passage
of this article.
(2)
Future service cost. The municipality shall have no
liability for the future service cost of the Pension Fund unless such
costs are not met by the allocation of Commonwealth funds and participants'
contributions. The maintenance of the actuarial soundness shall be
the responsibility of the municipality.
(3)
All administrative expenses incurred in the management
of the fund, including but not limited to actuarial, consulting and
legal, shall be paid from the fund.
[Amended 3-11-1986 by Ord. No. 47]
(4)
The governing body of the Township of Kidder may,
on an annual basis, by ordinance or resolution, reduce or eliminate
payments into the fund by members without the necessity of conducting
an actuarial study.
[Added 9-19-2002 by Ord. No. 113]
D.
Allocation of commonwealth funds. The payments made
by the State Treasurer to the municipality from the monies received
from the taxes paid on the premiums of foreign casualty insurance
companies for purposes of pension retirement or disability benefits
for policemen shall be used as follows:
E.
Gifts, bequests and grants. All other monies and property
received by the Committee, including gifts, bequests, devices and
grants, shall, unless otherwise specifically provided, be applied
equally against the participant and the municipality portions of the
future service cost.
F.
Allocation of assets of existing pension fund(s).
Any assets of any existing pension fund for the members of the municipality's
Police Department are hereby transferred to the fund established by
this article and shall be applied against the unfunded liability.
A.
If for any reason a member of the police force of
the municipality shall terminate service with municipality, that member
shall be entitled to a refund of contributions plus interest at a
rate of 6%. Such interest shall be uniform for all participants.
B.
If a member shall subsequently return to service and return the contribution plus interest to the fund which were refunded to him/her upon termination, he/she shall be entitled to credit for the prior years of service to the extent of the return of contributions. Nothing in this section shall be construed to allow credit for service not actually given to the municipality, except as specifically provided in § 39-7.
A.
Any member
of the police force of the municipality for at least six months who
thereafter shall enter the military service of the United States shall
have credited to his/her employment record for pension benefits all
of the time spent by him/her in such military service, if such person
returns to his/her employment with the municipality within six months
after his/her separation from the service.
B.
A service
credit shall be provided for each year of military service or fraction
thereof, not to exceed five years, to any member of the police force
who was not employed by the political subdivision prior to such military
service. The amount due for the purchase of credit for military service
other than intervening military service shall be computed by applying
the average normal cost rate for the Township Police Pension Plans,
as certified by the Public Employee Retirement Commission, but not
to exceed 10% to the member’s average annual rate of compensation
over the first three years of municipal service and multiplying the
result by the number of years and fractional part of a year of creditable
nonintervening military service being purchased together with interest
at the rate of 4 3/4% compounded annually from the date of initial
entry of municipal service to the date of payment.
[Added 3-20-2014 by Ord. No. 166]
C.
Any member
of the police force shall be eligible to receive service credit for
intervening or nonintervening military service as provided herein
that the member is not entitled to receive, eligible to receive now
or in the future, or is receiving retirement benefits for such service
under a retirement system administered and wholly or partially paid
for by any other governmental agency, with the exception of a member
eligible to receive or receiving military retirement pay earned by
a combination of active duty or nonactive duty with a reserve or National
Guard component of the armed forces, which retirement pay is payable
only upon the attainment of a specified age and period of service
under 10 U.S.C. Chapter 67 (relating to retired pay for nonregular
service).
[Added 3-20-2014 by Ord. No. 166]
Upon termination of the fund, the assets shall
be distributed as follows:
A.
Sufficient funds shall be maintained to provide the pension benefits prescribed in § 39-4B for all participants who have retired prior to termination or who are eligible for retirement at the time of the termination of this fund.
B.
Contributions with interest at the rate of 6% as provided in § 39-6 shall be refunded to any and all participants who terminate service at the time of the termination of the fund.
C.
Of the remaining funds, those which can be identified
as municipality contributions or contributions other than from participants
or from the Commonwealth allocation, shall be distributed as the Council
sees fit, provided that such distribution is made on a uniform basis.
A.
Neither the establishment of the plan hereby created,
nor any modification thereof, nor the creation of any fund or account,
nor the payment of any benefits, shall be construed as giving to any
participant or other person any legal or equitable right against the
municipality, or any officer or employee thereof, or the Board except
as herein provided. Under no circumstances shall the fund created
hereby constitute a contract for continuing employment for any participant
or in any manner obligate the municipality to continue or discontinue
the services of an employee.
B.
This plan has been established and shall be maintained
by the municipality in accordance with the laws of the Commonwealth
of Pennsylvania. The plan shall continue for such period as may be
required by such laws and should such laws provide that the municipality
may, by its own action, discontinue this plan, the municipality reserves
the right to take such action in its sole and absolute discretion.
Upon termination, the municipality shall have no liability hereunder
other than that imposed by law.
All investments by the Board of the assets of
the fund shall comply with the Fiduciary Investment Act of 1949, as
amended, and such regulations as the Board shall establish for the
purpose of investing such fund. The Board may also purchase annuities
or other contracts of insurance which provide a cash value with which
to fund pensions, provided that the Board shall determine the value
of any policies purchased, the company with which the contracts shall
be made, and the time to purchase such policies. The Board shall also
have the obligation to insure that the policies purchased provide
benefits on a uniform scale and that such policies are endorsed to
the ownership of the municipality's pension fund.
The Board reserves the right to amend at any time, in whole or in part, any or all of the provisions of this fund. However, no such amendment shall authorize or permit any part of the fund to be used or diverted to purposes other than for the exclusive benefit of the participants, their beneficiaries or their estates. Nor shall any amendment divest a participant of benefits vested by § 39-4H. All such amendments shall comply with the applicable statutes of the Commonwealth, including but not limited to the Act of May 29, 1956, P.L. (1955) 1804, as amended, 53 P.S. § 767 et seq.
A.
This plan shall be constructed according to the laws
of the Commonwealth of Pennsylvania and all provisions hereof shall
be administered according to the laws of such Commonwealth.
B.
Whenever any words are used herein in the masculine
gender they shall be construed as though they were also used in the
feminine gender in all cases where they would so apply, and wherever
any words are used herein in the singular form they shall be construed
as though they were also used in the plural form in all cases where
they would so apply.
C.
Headings of sections and subsections of this instrument
are inserted for convenience of reference. They constitute no part
of this plan and are not to be considered in the construction hereof.
