[Adopted 5-2-1983 by Ord. No. HR-72
(Ch. I, Art. 3, § 301, of the 1979 General Laws of the Municipality
of Tredyffrin)]
The following words and phrases as used herein
shall have the following meanings unless a different meaning is plainly
required by the context:
The accrued benefit of a member expressed in terms of a monthly single life annuity beginning at normal retirement date determined under § 39-3A on the basis of the member's years of service and average monthly compensation.
The Manager of Tredyffrin Township, or any other person that
the Board of Supervisors may appoint.
Each December 31.
The average of an officer's compensation from the Township
for the 60 consecutive calendar months of employment ending immediately
prior to the earliest of the member's actual retirement date, his
or her death or any other termination of service as applicable. If
an officer is employed by the Township for less than 60 consecutive
calendar months prior to the event which causes his or her employment
as an officer to terminate, his or her "average monthly compensation"
means the average of the officer's compensation for all consecutive
calendar months of employment ending immediately prior to the event;
provided, however, that with respect to officers hired before January
1, 1991, and retiring or otherwise terminating service with the Township
on or after January 1, 1983, the number "36" shall be substituted
for the number "60" wherever that number appears in this definition.
[Amended 2-4-1991 by Ord. No. HR-162]
The person, persons or trust designated by the member as
direct or contingent beneficiary in a manner prescribed by the Administrator
or, in the absence of a beneficiary designation (or if all beneficiary
designations are ineffective), the member's spouse, if living, or
if his spouse is not living, the member's heirs under the Pennsylvania
intestate law.
The Board of Supervisors of Tredyffrin Township.
For the purpose of computing an officer's years of service,
an event other than the officer's retirement, death or disability
which results in the officer's termination of service with the Township.
An officer's wages from the Township, as reported on the
officer's Internal Revenue Service Form W-2, but excluding amounts
attributable to overtime pay, on-call pay and educational allowance.
Also excluded shall be Township contributions to this or any other
employee benefit plan or plans to which the Township contributes for
its officers, and amounts identified by the Township as expense allowances
or reimbursements.
[Amended 2-4-1991 by Ord. No. HR-162]
The index published by the Bureau of Labor Statistics, United
States Department of Labor (1967-100), United States, All Items, Major
Group Figures for Urban Wage Earners and Clerical Workers (including
single workers), or any replacement index or successor thereto. Should
the Bureau of Labor Statistics discontinue publication of this index,
the Township, with the consent of the officers' bargaining representative,
shall determine the appropriate figure to be applied under the plan.
Should the parties fail to reach agreement, the Township shall obtain
from the Bureau of Labor Statistics a conversion table for the new
index.
The first day of the month after a member's normal retirement
date on which the member actually retires.
August 11, 1952.
The assets and earnings, appreciation or additions thereto
held by the trustees under the Trust for the exclusive benefit of
members, their contingent annuitants or their beneficiaries.
A legal reserve life insurance company which is qualified
to do business in Pennsylvania.
Any group or individual insurance or annuity contract entered
into by the trustees with an insurance company to provide benefits
under the plan.
Any person or entity appointed by the Board of Supervisors
pursuant to Section 2.4 of the trust agreement for the Trust, with
the power to manage, acquire or dispose of plan assets and who is:
An officer who has completed the eligibility requirements of § 39-2 and who participates in the plan by authorizing the withholding of member contributions for him.
The contributions which an officer agrees to make as a condition of being a member of the plan, as provided in § 39-4A, plus interest at the rate or rates specified in Appendix A,[1] provided that in the case of an officer in the employ
of the Township on or after January 1, 1983, interest shall be at
the rate of 5% per year, compounded, for years after 1982.
[Amended 2-4-1991 by Ord. No. HR-162]
The first day of the month coincidental with or immediately
following the earliest of the date the officer:
A sworn police officer employed on a full-time basis by the
Police Department of the Township. For this purpose, "full-time" means
an average rate of at least 40 hours per week.
The pension plan set forth in this document and the trust
agreement pursuant to which the related Trust is maintained.
The year ending December 31.
Only in the case of an officer who does not qualify for payments
under any long-term disability insurance coverage or program then
maintained by the Township, a service-connected disability of a permanent
nature which has been established to the Township's satisfaction by
the report of a physician satisfactory to it and which renders the
officer incapable of being gainfully employed.
Tredyffrin Township, a Home Rule Municipality in Chester
County, Pennsylvania.
The contributions that the Township is required to make to
provide those benefits under the plan that are not provided by member
contributions.
The legal entity created by the trust agreement between the
Township and the trustees, fixing the rights and liabilities of each
with respect to managing and controlling the fund for the purposes
of the plan.
The trustees or any successor trustee or trustees hereafter
designated by the Board of Supervisors and named in the trust agreement
or any amendment thereto.
[Amended 2-4-1991 by Ord. No. HR-162]
A year of employment with the Township for which
an officer agrees to make member contributions, and:
During which he is actively employed as an officer;
or
For purposes of accrual of benefits under § 39-3A and for vesting in accrued pension benefits under § 39-5A, during which he or she is in the active military service of the United States, including a period before becoming an officer and while an officer, except that no credit shall be given for military service in excess of three such years or, in the case of an officer in the employ of the Township on or after January 1, 1983, four such years.
A period of employment after an officer reaches
age 65 shall not be taken into account in determining the number of
his years of service.
All of an officer's years of service with the Township, up to 20 such years, shall be used in computing the amount of his or her accrued pension benefit under § 39-3 and his or her vested percentage under § 39-5. Except as in Subsection B of the definition of "normal retirement date" in § 39-1 above, if an officer has a break in service and returns to employment as an officer, the years of service prior to the break shall be counted in computing his or her accrued pension benefit and his or her vested percentage, provided that such officer left his or her member contributions in the plan at the time of his or her break in service or, if after returning to employment and before his or her actual retirement date, contributes a member contribution to the plan in an amount actuarially determined by the Plan Administrator; if otherwise, such prior years shall be disregarded.
[1]
Editor's Note: Appendix A is included at the end of this chapter.
An individual shall be eligible to participate
in the plan on the first day of the pay period in which he becomes
an officer and authorizes withholding of member contributions. At
the time the officer first becomes a member, he shall also file with
the Administrator a designation of a beneficiary.
A.
Normal retirement and deferred retirement benefits. A member who retires on his or her normal retirement date or deferred retirement date shall be entitled to a monthly single life annuity retirement benefit equal to 2.5% of his or her average monthly compensation multiplied by his or her years of service, up to a maximum of 20 years of service, and payable in accordance with § 39-6.
[Amended 2-4-1991 by Ord. No. HR-162]
B.
Disability benefit. A member whose employment is terminated prior to his normal retirement date by reason of a total and permanent disability shall be entitled to a monthly retirement benefit calculated in accordance with § 39-3A using years of service credited to the date of total and permanent disability.
C.
Death benefits. There shall be death benefits provided
under the plan as follows:
(1)
Death of a member before retirement date. Upon the
death of a member in active service or of a member not in active service
but who is entitled to a deferred vested benefit before his retirement
date, the beneficiary of such deceased member shall receive the amount
of the member contributions, including interest to the date of death,
in a lump sum.
(2)
Death of a member after retirement date. Upon the
death of a member after his retirement date, benefits, if any, shall
be paid to his contingent annuitant in accordance with the form of
benefit payment selected by the member at retirement.
D.
Vested deferred retirement benefit. A member whose employment is terminated prior to his normal retirement date for any reason other than retirement, death or disability shall be entitled to his vested interest, if any, in his accrued pension benefit as determined in accordance with § 39-5A. Such benefit shall be payable in accordance with § 39-6D.
E.
Minimum benefit. Unless the trustees purchase an insurance
contract for the member, the minimum benefit payable to the member
under the plan shall be the amount of his member contributions, including
interest to the date of benefit entitlement. If an amount is due after
all payments to a member and any contingent annuitant have been made,
such amount shall be paid to the member's beneficiary. If the trustees
purchase an insurance contract for the member's benefit, this minimum
benefit provision shall be of no effect, and only the survivor provisions,
if any, of such insurance contract shall be applicable to the member's
benefit.
F.
Forfeiture of right to Township contributions. In
the case of a member who is an officer in the employ of the Township
at any time on or after January 1, 1983, and who is convicted of a
felony or misdemeanor involving moral turpitude, when the conduct
is connected with the individual's position as a police officer and
committed with intent, such a member shall forfeit any and all rights
to his vested interest in his accrued pension benefit derived from
Township contributions.
A.
Member contributions. Each officer who becomes a member
shall make contributions to the plan, through regular payroll deduction,
at the rate of 5% of his compensation, provided that the Township
may, consistent with the terms of any collective bargaining agreement
in effect between it and the representative of the officers and so
long as the plan shall remain actuarially sound in the opinion of
the Township with the advice of an actuary satisfactory to the Township
and the officers' bargaining representative, waive member contributions
for 1983 and/or 1984. While there is a waiver of member contributions
in effect, if any, each member affected by such waiver shall continue
to receive years of service credit for benefit accrual and vesting,
as provided by the plan, but shall not be entitled to credit for member
contributions except for interest on member contributions made prior
to the waiver effective date. The Administrator shall forward member
contributions to the trustees as soon as practicable following the
date the member contributions are made.
B.
Township contributions. The Township shall make Township
contributions to the fund in such amounts as the plan's actuary deems
sufficient, on an annual basis, taking into account member contributions,
to provide the benefits described under the plan. However, the Township
shall have no obligation to make Township contributions to the fund
after the plan has terminated, whether or not benefits accrued prior
to the date of termination have been fully funded. This provision
shall not affect the Township's obligation to provide pension benefits
to members in accordance with applicable law and the terms of any
applicable collective bargaining agreement then in effect.
A.
Rate of vesting Township contributions.
(1)
Vesting rule prior to 1981. Prior to January 1, 1981,
a member shall have a vested interest in his accrued pension benefit
in accordance with the following schedule:
|
Years of Service As a Member
|
Vested Interest
| |
|---|---|---|
|
Fewer than 5
|
0%
| |
|
5 but fewer than 10
|
25%
| |
|
10 but fewer than 15
|
50%
| |
|
15 but fewer than 20
|
75%
| |
|
20 or more
|
100%
|
(2)
Vesting rule after 1980. After December 31, 1980,
a member shall have a vested interest in his accrued pension benefit
based on his years of service as a member and in accordance with the
following schedule:
|
Years of Service As a Member
|
Vested Interest
| |
|---|---|---|
|
Fewer than 5
|
0%
| |
|
5 but fewer than 10
|
25%
| |
|
10 but fewer than 12
|
50%
| |
|
12 or more
|
100%
|
B.
Full vesting: Township contributions. A member shall
have a fully vested interest in his accrued pension benefit in any
event if he either dies or becomes totally and permanently disabled
while in active service.
C.
Rate of vesting: member contributions. A member shall
be one-hundred-percent vested in his member contributions at all times.
A.
Benefit commencement date.
(1)
Normal or deferred retirement. The benefit of a member
who retires on or after his normal retirement date shall be payable
beginning on his normal retirement date or his deferred retirement
date, as applicable.
(2)
Disability retirement. The benefit of a member who
retires by reason of becoming totally and permanently disabled shall
be payable beginning at disability or at such other time as the member
elects.
(3)
Vested deferred retirement benefit. The benefit of a member who is entitled to a vested deferred retirement benefit as provided in § 39-3D shall be payable beginning on what would have been his or her normal retirement date if he or she had remained in the employ of the Township until that date.
[Added 2-4-1991 by Ord. No. HR-162]
B.
Normal form of benefit. The normal form of benefit payable under the plan shall be monthly payments for the life of the member, beginning with the first month in which he is entitled to receive a benefit under § 39-3 and ending with the month in which he dies. If the member has received a refund of his member contributions pursuant to § 39-6F, his monthly benefit payable under the plan shall be reduced by an amount equivalent to such contributions, determined in accordance with § 39-6F(2).
[Amended 2-3-1992 by Ord. No. HR-191]
C.
Optional form of benefit payment. In lieu of the normal form of benefit provided under § 39-6B, a member may elect to have his retirement benefit paid in the form of a joint and survivor annuity, which is the actuarial equivalent of the normal form of benefit under § 39-6B, and which provides a reduced benefit payable for the life of the member with the further provision that after the member's death 50% of such reduced amount shall be paid during the life of and to the contingent annuitant designated by the member in the election filed with the Administrator. A member may elect to receive a refund of his member contributions pursuant to § 39-6F, in conjunction with either the normal form of payment or an optional form of payment. If the member receives a refund of his member contributions, his monthly benefit payable under the plan shall be reduced by an amount equivalent to such contributions, determined in accordance with § 39-6F(2). If the contingent annuitant dies before the member's retirement benefit is to begin, a joint and survivor annuity election shall be void and the retirement benefit shall become payable to the member when due and shall be computed as though the joint and survivor option had not been elected. If a contingent annuitant under a joint and survivor annuity option predeceases the member after benefit payments to such member have begun, such benefit payments shall continue without change and shall cease with the member's death. No benefit shall be payable to contingent annuitant if the member who has designated him dies before the member is entitled to receive his first benefit benefit payment.
[Amended 2-3-1992 by Ord. No. HR-191]
D.
Vested deferred benefit. Upon termination of service
with the Township for reasons other than retirement or death, a member
may elect an immediate distribution of his or her vested benefit in
a lump sum to the extent consistent with applicable law or defer payment
of his or her benefit until normal retirement date. The amount of
the immediate distribution, if elected, shall be his or her member
contributions, including interest to his or her date of termination,
plus the lump sum actuarial present value of his or her vested interest
in his or her accrued pension benefit derived from Township contributions.
[Amended 2-4-1991 by Ord. No. HR-162]
E.
Cost of living increases for certain retirees. In the case of a member who was an officer in the employ of the Township on or after January 1, 1983, and on or before December 31, 1990, who retires and begins to receive a normal retirement benefit, a vested deferred retirement benefit or a disability benefit in the normal form or optional form, the benefit of such a member shall be increased to reflect increases in the cost of living. Such increases shall be effective as of January 1 of each year that this provision is in effect and shall equal the lesser of 3% or the actual cost of living increase for the immediately preceding calendar year, based in either case upon such an increase in the consumer price index for such calendar year. No such adjustment shall be made unless the plan is determined by the Township, based upon the advice of an actuary satisfactory to the Township and the officers' bargaining representative, to be actuarially sound after giving effect to the increase, to any provision then in effect waiving member contributions and to the other obligations of the plan. If benefit payments have not been in effect for a member for the entire calendar year before any January 1 adjustment date, the increase shall be the lesser of 3% or the actual cost of living increase for the immediately preceding calendar year, multiplied by a fraction, the numerator of which is the number of months that benefit payments have been in effect and the denominator of which is 12. There shall be no cost of living adjustment to any contingent annuity payment under § 39-6C or to any vested deferred benefit payable earlier than a member's normal retirement date. Cost of living adjustments made pursuant to this § 39-6E shall be based on the monthly amounts received by a retired member (i.e., after the adjustment for refunded member contributions is made pursuant to § 39-6F, if any).
[Amended 2-4-1991 by Ord. No. HR-162; 2-3-1992 by Ord. No. HR-191]
F.
Refund of member contributions. Member contributions made pursuant to § 39-4A and interest earned thereon may, at the election of the member, be refunded to the member upon the member's retirement under the plan.
(1)
(2)
Adjustment of member's monthly benefit. In the event that a member receives a refund of his member contributions, his monthly benefit, if any, payable under § 39-6B or C shall be reduced by the value of member contributions. The reduction shall be equal to the annuity value of the member's member contributions plus interest earned thereon. Such annuity value shall be determined on the basis of actuarial assumptions equal to an interest rate of 7% and the 1971 TPF&C mortality table.
A.
Responsibilities of Administrator and trustees. All
matters relating to the plan, except those duties relating to the
control or management of plan assets, shall be the responsibility
of the Administrator. All matters relating to the control or management
of plan assets shall, except to the extent delegated in accordance
with the trust agreement, be the sole and exclusive responsibility
of the trustees. The Administrator may resign by giving written notice
to the Board of Supervisors, which notice shall be effective 30 days
after delivery. The Administrator may be removed by the Board of Supervisors
by written notice to the Administrator, which notice shall be effective
immediately upon delivery of the notice. The Board of Supervisors
shall promptly select a successor following the resignation or removal
of the Administrator. The appointments and removal of the trustees
shall be made in accordance with the terms of the trust agreement.
B.
Administrator: rules and regulations. The Administrator
shall enact such rules and regulations of the plan as he may deem
desirable, provided that they are consistent with applicable law and
the terms of any applicable collective bargaining agreement then in
effect. The Administrator shall keep records of his actions.
C.
Exclusive benefit rule; applicable law. The Administrator
shall administer and interpret the plan for the exclusive benefit
of members, their contingent annuitants and their beneficiaries, and
in consistency with both applicable law and the terms of any applicable
collective bargaining agreement then in effect.
D.
Advisors and experts.
(1)
The Board of Supervisors shall appoint an actuary
to make actuarial valuations of the liabilities of the plan, to recommend
to it the mortality or other tables and the interest rates to be used
from time to time in actuarial and other computations for purposes
of the plan, to recommend to it the amounts of Township contributions
and to perform such other services as the Board of Supervisors shall
deem necessary or desirable in connection with the administration
of the plan. In addition, the Board of Supervisors may employ accountants,
attorneys, consultants and other advisors to perform services with
respect to the plan.
(2)
The fees charged by any such accountants, actuaries, attorneys, consultants or other advisors appointed or employed pursuant to Subsection D(1) above prior to January 1, 1976, shall be paid by the Township. Any such fees charged by such advisors on or after January 1, 1976, shall be paid from the fund, unless they are paid by the Township.
A.
Amendment procedures. The plan may be amended at any
time and from time to time by an ordinance adopted by the Board of
Supervisors.
B.
Termination procedures.
(1)
While the Township intends to continue the plan indefinitely,
it reserves the right, by adoption of an ordinance, to terminate the
plan at any time, in a manner not inconsistent with any applicable
collective bargaining agreement with the officers, and any applicable
law. In the event of termination of the plan, all of the assets of
the fund shall be allocated among the members, contingent annuitants
and beneficiaries in the following order:
(a)
To that portion of each member's accrued pension benefit
which is derived from his member contributions, including interest
to the date of plan termination;
(b)
In the case of benefits payable as an annuity:
[1]
If the benefit of a member or contingent annuitant
was in pay status as of the beginning of the three-year period ending
on the termination date of the plan, to each such benefit, based on
the provisions of the plan as in effect on the date of termination;
or
[2]
If a benefit {other than a benefit described
in Subsection B(1)(a)[1]} would have been in pay status as of the
beginning of such three-year period if the member had retired prior
to the beginning of the three-year period and if the benefits had
begun (in the normal form of annuity under the plan) as of the beginning
of such period, to each such benefit based on the provisions of the
plan as in effect on the date of termination;
(c)
To all other nonforfeitable benefits under the plan;
(d)
To all other benefits under the plan; and
(e)
To the Township, if all liabilities of the plan to
members, their contingent annuitants and their beneficiaries have
been satisfied and such distribution does not contravene any applicable
law or the terms of any applicable collective bargaining agreement
then in effect.
(2)
If the fund is insufficient to provide in full for
any of the classes set forth above, the assets remaining shall be
applied proportionately among members, contingent annuitants and beneficiaries
of the first such class as to which there is an insufficiency, and
nothing shall be applied to any subsequent class.
A.
Township prerogatives. The existence of the plan shall
not confer upon any officer the right to be continued as an officer.
The Township expressly reserves the right, consistent with any applicable
Pennsylvania law or Township ordinance, to discharge any officer whenever,
in its judgment, its best interests so require.
B.
Nonalienation. No benefit payable under the plan shall
be subject in any manner to anticipation, assignment or voluntary
or involuntary alienation.
C.
Facility of payment: incapacity. If any member, contingent
annuitant or beneficiary shall be physically or mentally incapable
of receiving or acknowledging receipt of any payment due under the
plan and no legal representative shall have been appointed for him,
the Administrator may direct the trustees to make any such payment
to any person or institution maintaining such member, contingent annuitant
or beneficiary, and the release of such person or institution shall
be a valid and complete discharge for such payment.
D.
Facility of payment: minority. If the contingent annuitant
or beneficiary of any member shall be a minor and no guardian shall
have been appointed for him, the Administrator may direct the trustees
to retain any payment due under the plan for his benefit until he
attains majority. Such amount, as authorized by the Administrator,
may be held in cash, deposited in bank or savings accounts or invested
and reinvested in direct obligations of the United States, and the
income thereon may be accumulated and invested or the income and principal
may be expended and applied directly without the intervention of any
guardian and without application to any court.
E.
Prohibition against diversion. Prior to the satisfaction
of all liabilities with respect to members, contingent annuitants
and beneficiaries, no part of the principal or income of the Trust
shall be used for or diverted to purposes other than for the exclusive
benefit of members, their contingent annuitants or their beneficiaries
under the plan. No person shall have any interest in or right to any
part of the earnings of the Trust or any rights in or to the Trust
or any part of the assets thereof, except to the extent expressly
provided in the plan and trust agreement.
