[HISTORY: Adopted by the Board of Supervisors
of the Township of Lower Salford as indicated in article histories.
Amendments noted where applicable.]
GENERAL REFERENCES
Salaries and compensation — See Ch. 38.
[Adopted 4-17-1974 by Ord. No. 74-4]
The Township hereby creates a Municipal Police
Pension Fund to be maintained by a charge against each member of the
police force, by annual appropriations made by the Township and by
payments made by the State Treasurer to the Township Treasurer from
the moneys received from taxes upon premiums by foreign casualty insurance
companies for purposes of pension retirements for Township police
officers.
The Police Pension Fund shall be administered
and managed by a corporate trustee to be selected by the Board of
Supervisors of the Township, under an appropriate deed of trust to
be prepared by the Township Solicitor and approved by the Board of
Supervisors of the Township.
[Amended 12-15-1982 by Ord. No. 82-12; 1-6-2003 by Ord. No.
2003-2]
A.
The benefits from the fund shall be payable to police
officers who have served in the Township for an aggregate total of
25 years and who have attained age 50, after which the police officers
may retire from active duty. Retired officers may be temporarily called
back into service in case of riot or tumult, or for the preservation
of the public peace, until unfit for such service, when they may be
finally discharged by reason of age or disability. If a member who
dies is survived by a spouse or dependent children, after having become
eligible to receive a pension benefit, i.e., the member was eligible
because the member was already receiving a pension or the member met
the age and service requirements, but had not yet retired, then a
monthly pension benefit shall be provided in an amount equal to 50%
of the normal retirement benefit the member was receiving or would
have been entitled to receive if the member had been retired when
the member died. The monthly pension benefit shall be payable to the
surviving spouse. In the event there is no surviving spouse, the benefit
shall be payable to the guardian of surviving dependent children until
the last dependent child dies or reaches his 18th birthday, whichever
comes first. Dependent children shall include stepchildren, adopted
children and any child conceived at the time of member's death and
thereafter born to the member's surviving spouse. Dependent children
shall also include children who are attending college or an accredited
institution of higher learning who are carrying a minimum course load
of seven credit hours per semester who have not yet attained the age
of 23 years.
[Amended 1-3-2006 by Ord. No. 2006-1; 12-5-2007 by Ord. No. 2007-11]
B.
In the case of the payment of pensions for permanent
injuries incurred on or after April 17, 2002, the amount of the payments
shall be calculated at the rate of 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
benefits offset or reduced by the amount of such benefits. Determination
of eligibility of disability benefits shall be based on the eligibility
of benefits payable for permanent injuries incurred in service under
the Township's long-term disability policy and shall be payable commencing
at the later of termination of benefits under the long-term disability
policy as a result of attaining the maximum age under the disability
policy or upon the officer's attainment of his superannuation retirement
date.
C.
The surviving family of a police officer who is killed
in the line of duty shall receive the benefits provided for and subject
to the terms of Act 51 of 2009 (effective January 1, 2011), which
benefits are paid exclusively by the Commonwealth of Pennsylvania.
With the exception of any pension benefit to which the police officer
was entitled prior to the police officer's death, solely by virtue
of the officer's age and service as a Township police officer, and
any other nonpension, contractual benefits to which the police officer
and/or the police officer's family may have been entitled prior to
the police officer's death, the Township shall not be obligated to
pay any benefit to the family of a police officer as the result of
the officer's death, including, but not limited to, the killed-in-service
pension benefit set forth which existed prior to the passage of Act
51 of 2009.
[Amended 2-2-2011 by Ord. No. 2011-2]
Any member of the Township police force who
has been in service in the force at least six months and who thereafter
enters the military service of the United States shall have credited
to his employment record for pension benefits all of his time in military
service if he returns to his employment within six months after his
separation from military service.
Payments made under the provisions of this article
shall not be a charge on any other fund in the treasury of the Township
or under its control, save the Police Pension Fund herein provided
for.
[Amended 12-15-1982 by Ord. No. 82-12; 3-5-1986 by Ord. No.
86-2; 1-2-2007 by Ord. No. 2007-1]
A.
The basis
for determining the pension payable under this article, following
retirement of any member of the force meeting the service and age
qualifications of this article, shall be as follows: monthly pension
or retirement benefits shall be 1/2 the monthly average salary of
such member during the last 36 months of employment. In no event shall
the computation described in the preceding sentence include any portion
of a police officer’s W-2 earnings that was paid in a lump-sum
amount for hours which were paid but not worked, e.g., accumulated
vacation time or accumulated sick time.
B.
Notwithstanding
anything in this article to the contrary, effective January 1, 2010,
salary will not include any payments made by the employer to the participant
in exchange for the participant's waiver of health insurance that
would otherwise be provided by the employer.
[Added 4-7-2010 by Ord. No. 2010-3[1]]
[1]
Editor's Note: This ordinance provided an effective date of
1-1-2010.
The Township shall employ an actuary at a compensation to be determined from time to time by the Township Supervisors. The actuary shall determine the present value of the liability on account of pensions payable under § 29-6 to police officers for service prior to the effective date of this chapter and shall offset the value of any assets transferred to the fund from a previous pension fund to determine the unfunded liability. The unfunded liability shall be paid entirely by the Township, provided that it may be funded over a period not to exceed 25 years. The actuary shall also determine the amount which shall be contributed annually into the fund for the service of police officers subsequent to the establishment of this Police Pension Fund (to be known as "future service cost").
[Amended 1-6-2003 by Ord. No. 2003-2; 1-2-2007 by Ord. No.
2007-1]
A.
Police officers shall pay into the fund, monthly,
an amount equal to not less than 5% nor more than 8% of monthly compensation.
The Board of Supervisors may, on an annual basis, by ordinance or
resolution, reduce or eliminate payments into the fund by police officers.
Notwithstanding the foregoing, police officers whose employment is
not subject to collective bargaining shall not be required to pay
into the fund in order to qualify for benefits from the pension fund.
[Amended 1-3-2006 by Ord. No. 2006-1; 1-2-2007 by Ord. No. 2007-1; 12-5-2007 by Ord. No. 2007-11; 7-3-2019 by Ord. No. 2019-03]
B.
The remainder of the needed annual contributions,
as determined by the actuary, shall become the obligation of the Township
and shall be paid by it to the pension fund by annual appropriations.
C.
The governing body of the Township may, on an annual
basis, by ordinance or resolution, reduce or eliminate payments into
the fund by members.
A.
Payments by the State Treasurer to the Township Treasurer
from the taxes paid upon premiums by foreign casualty insurance companies
shall be applied as follows:
B.
Unless otherwise specifically provided, any other
moneys paid into the Police Pension Fund shall be applied equally
against the police officer and the municipal portions of the future
service cost.
The existing Township Police Pension Fund shall
be discontinued and the members' assets and liabilities of such fund
will be transferred to the fund established pursuant to the terms
of this article.
[Amended 1-6-2003 by Ord. No. 2003-2]
A.
Any member of the Township police force, who for any
reason whatsoever shall be ineligible to receive a pension after having
contributed any charges to a police pension fund established pursuant
to the provisions of this article or to a police pension fund existing
on the effective date of this article supplanted by a police pension
fund established pursuant to the provisions of this article, shall
be entitled to a refund of all such moneys paid by him into such fund,
plus all interest earned by such moneys paid by him into such fund,
plus all interest earned by such moneys while in the Police Pension
Fund, as determined by regulations of the Township, immediately upon
discontinuance of his employment with the police force. If such discontinuance
is due to death, such moneys shall be paid to his designated beneficiary
or, in the absence thereof, to his estate.
B.
Effective April 17, 2002, the surviving spouse of
a member of the police force who dies before his pension has vested
or, if no spouse survives or if he or she survives and subsequently
dies, then the child or children under the age of 18, 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.
The pensions herein provided shall not be subject
to attachment or other legal process and shall be payable only to
the member or his designated beneficiary or to his estate and shall
not be subject to assignment or transfer.
The expenses of administration and management
of the fund, including the compensation of the actuary and of the
trustee of the fund, shall be paid by the Township.
[Added 12-15-1982 by Ord. No. 82-12]
Should a police officer, 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 Township, he shall be entitled to
vest his retirement benefits by filing with the Township within 90
days of the date he ceases to be a full-time police officer a written
notice of his intention to vest. Upon reaching the date which would
have been his superannuation retirement date if he had continued to
be employed as a full-time officer, he shall be paid a partial superannuation
retirement allowance determined by applying the percentage his years
of service bears to the years of service which he would have rendered
had he continued to work until his superannuation retirement date
to the gross pension, using, however, the monthly average salary during
the appropriate period prior to his termination of employment. Such
pension or retirement benefits for any month shall be the benefits
from the Police Pension Fund established pursuant to this article
to the extent necessary to bring the total benefits in any month up
to his partial superannuation retirement allowance outlined above.
[Added 4-2-2000 by Ord. No. 2000-2[1]]
A.
If a police force member's employment with the Township
ceases for any reason after at least 20 years of continuous service
but before his normal retirement date (other than for death or for
permanent disability), the member shall be eligible for an early retirement
pension; provided that the member files a written application for
an early retirement benefit with the Township Board of Supervisors.
The early retirement benefit shall become effective as of the date
the application is filed with the Board or the date designated on
the application, whichever is later, and shall be the actuarial equivalent
of his deferred vested pension as of the date his employment ceased.
B.
The actuarial equivalent of the deferred vested pension
shall be determined by the actuarial reduction of the deferred vested
pension to reflect that it will commence on the effective date of
his early retirement rather than on his normal retirement date. The
actuarial reduction shall be calculated using the actuarial assumptions
reported in the last actuarial report filed with the Public Employee
Retirement Commission under the Act of December 18, 1984 (P.L. 1005,
No. 205), known as the "Municipal Pension Plan Funding Standard and
Recovery Act."[2]
[2]
Editor's Note: See 53 P.S. § 895.101
et seq.
[Added 5-3-1989 by Ord. No. 89-4]
A.
Notwithstanding anything in the plan to the contrary,
there shall be paid therefrom a special ad hoc cost-of-living adjustment
(COLA) to each retiree hereunder who retired prior to January 1, 1985,
according to the following schedule:
|
Years of Retirement as of January 1, 1989
|
Amount of Monthly COLA
| |
|---|---|---|
|
5 but less than 10
|
$25
| |
|
10 but less than 20
|
$75
| |
|
20 or more
|
$150
|
B.
In the case of each such retiree who is totally disabled
and has been retired less than 10 years as of January 1, 1989, the
amount of the monthly COLA shall be $50.
C.
Each such COLA paid hereunder shall be in addition
to the pension otherwise payable under the plan and shall continue
for the retiree's lifetime, ending with the payment due for the month
of his death.
D.
If any retiree hereunder shall also be receiving a
pension as a police retiree from any Pennsylvania municipality, the
amount of the COLA under this plan shall be reduced so that the total
of all COLA's does not exceed the dollar amount set out above. Further,
if this plan shall otherwise provide for COLA benefits, the special
ad hoc COLA adjustments hereunder shall be correspondingly reduced.
[Added 1-3-2006 by Ord. No. 2006-1]
A.
BENEFICIARY
DROP
DROP ACCOUNT
FUND or PLAN
POLICE OFFICERS
SUPERANNUATION DATE
TOWNSHIP
Definitions. As used in this article, the following
terms shall have the meanings indicated:
The individual identified by a police officer to receive
the contents of an officer's DROP account in the event of the death
of an officer during the period in which the officer is participating
in the DROP, but before the officer separates from employment.
Deferred retirement option plan.
Separate account created to accept DROP participants' monthly
pension check while a DROP participant.
The Police Pension Plan For Lower Salford Township.
Police officers of Lower Salford Township.
The first day of the month following completion of 25 years
of credited service and attaining the age of 50.
[Added 12-6-2017 by Ord.
No. 2017-05]
Lower Salford Township.
B.
Eligibility. As of the effective date of this section, police officers
who have not retired prior to the implementation of the DROP program
may enter into DROP in accordance with the following requirements.
[Amended 12-5-2007 by Ord. No. 2007-11; 12-6-2017 by Ord. No. 2017-05]
(1)
Written election. A police officer electing to participate in the
DROP must complete and execute a DROP option form prepared by the
Township, which shall evidence the member's participation in
the DROP. The form must be signed by the member and notarized and
submitted to the Township prior to the date on which the member wishes
the DROP option to be effective. The DROP option notice shall include
an irrevocable notice to the Township by the member that the member
shall resign from employment with the Lower Salford Township Police
Department effective on a specific date (the "resignation date").
Members who enter the DROP immediately upon their superannuation date
shall be eligible for the maximum resignation date of 60 months from
such date. Members who enter the DROP within six months after their
superannuation date shall be eligible for a maximum resignation date
of 48 months from the execution of the DROP option form. Members who
enter the DROP six months or later after their superannuation date
shall be eligible for a maximum resignation date of 36 months from
the execution of the DROP option form. The maximum resignation date
for police officers who reached their superannuation date prior to
January 1, 2018, shall be as follows: i) 60 months from the execution
of the DROP option form should they enter the DROP period before February
1, 2018; ii) 48 months from the execution of the DROP option form
should they enter the DROP between February 1, 2018, and June 30,
2018; or iii) 36 months from the execution of the DROP option form
should they enter the DROP on or after July 1, 2018. Following the
member's resignation date, the normal monthly pension benefit
will be paid to the police officer. An officer shall cease to work
as a police officer on the officer's resignation date, unless
the Township terminates or honorably discharges the officer prior
to the resignation date. The police officer in the deferred retirement
option program may change the termination date of participation in
the deferred retirement option program to an earlier date by giving
a minimum six months' written notice. In addition, all retirement
documents required by the Police Pension Plan Administrator must be
filed and presented to the Township for approval of retirement and
payment of pension. Once a retirement application has been approved
by the Township, it is irrevocable.
(2)
Pension contributions. A police officer shall not be required to
make any contributions to the fund during his/her DROP period.
C.
Limitation on pension accrual. After the effective
date of the DROP option, the police officer shall no longer earn or
accrue additional years of continuous service for pension purposes.
D.
Benefit calculation. For all retirement fund purposes,
continuous service of a police officer participating in the DROP shall
remain as it existed on the effective date of commencement of participation
in the DROP. Service thereafter shall not be recognized or used for
the calculation or determination of any benefits payable by the police
pension plan of Lower Salford Township. The average monthly compensation
of the police officer for pension calculation purposes shall remain
as it existed on the effective date of commencement of participation
in the DROP. Earnings or increases in earnings thereafter shall not
be recognized or used for the calculation or determination of any
benefits payable by the pension plan.
E.
Payments to the DROP account. The monthly retirement
benefits that would have been payable had the police officer elected
to cease employment and receive a normal retirement benefit shall,
upon the Police Officer commencing participation in DROP, be paid
into the separate account established to receive the participant's
monthly pension payments. This account shall be designated “the
DROP account.” The Township will select a third party to provide
investment options, record keeping and reporting to the police officer
and the Township. An individual officer's DROP account shall be a
self-directed investment vehicle with the officer having exclusive
control over the investment of his or her DROP account monies. The
Township accepts no responsibility and makes no guarantee for the
performance of any investments made by the officer, nor shall the
Township guarantee or be required to guarantee that an officer's DROP
account generate a specific amount of earnings or income or any earnings
or income at all. Any investment losses occurring in an officer's
DROP account shall be solely the responsibility of the officer, and
the Township assumes no liability or responsibility for the same.
All investment and administrative costs shall he charged against the
individual DROP investment accounts for the police officers. In the
event there are additional costs or expenses to the Township as a
result of the DROP plan, the individual DROP plan police officers
shall indemnify the Township and hold it harmless from additional
costs and any and all additional costs shall be charged against the
individual DROP investment accounts of the police officers.
F.
Accrual of nonpension benefits. After a police officer
elects to participate in the DROP program, all other contractual benefits
shall continue to accrue with the exception of those provisions relating
to the police pension plan. A police officer may utilize leave time
during the DROP period, but the Township shall not be required to
buy back any such unused leave time at the end of the DROP period.
G.
Payout. Upon the resignation date set forth in the
police officer's DROP option notice or such date as the Township separates
the member from employment, the retirement benefits payable to the
police officer or the police officer's designated beneficiary, if
applicable, shall he paid to the police officer or beneficiary and
shall no longer be paid to the police officer's deferred retirement
option account. Within 30 days following termination of a police officer's
employment pursuant to his participating in the DROP program, the
balance in the Police Officer's DROP account shall be paid to the
Police Officer in a single lump-sum payment, or at the police officer's
option, in any manner permitted by law.
H.
Disability During DROP. If a police officer becomes
temporarily incapacitated during his participation in DROP, that police
officer shall continue to participate in the DROP program as if fully
employed. The police officer shall receive disability pay in the same
amount as disabled police officers that are not participating in DROP.
In no event shall a police officer on temporary disability have the
ability to draw from his DROP account. However, notwithstanding any
other provision in this subsection, if a police officer is disabled
and has not returned to work as of his required resignation date then
such resignation shall take precedence over all other provisions herein
and said officer shall be required to resign. If a police officer
becomes permanently disabled during the DROP period, the officer shall
be honorably discharged from employment; on such date, the police
officer may obtain the contents of his DROP account and, thereafter,
commence receiving his normal pension benefit.
I.
Death. If a DROP participant dies before the DROP
account balances are paid, the participant member's designated beneficiary
shall have the same rights as the police officer to withdraw the account
balance.
J.
Forfeiture of benefits. Notwithstanding a police officer's
participation in the DROP plan, a police officer who is convicted
or pleads guilty to engaging in criminal misconduct which constitutes
a "crime related to public office or public employment," as that phrase
is defined in Pennsylvania's Pension Forfeiture Act, 43 P.S. §§ 1311
to 1314 and interpreted thereunder, shall forfeit his right to receive
a pension, including any amounts currently deposited in the DROP account.
In such a case, the police officer shall only be entitled to receive
the contributions, if any, made by the police officer to the fund,
without interest.
K.
Amendment. Any amendments to the DROP Ordinance shall
be consistent with the provisions covering deferred retirement option
plans set forth in any applicable collective bargaining agreement
and shall be binding upon all future DROP participants and upon all
DROP participants who have balances in their deferred retirement option
accounts. The DROP plan may only be amended by a written instrument,
not by any oral agreement or past practice.
L.
Construal of provisions. A police officer's election
to participate in the DROP program shall in no way be construed as
a limitation on the Township's right to suspend or to terminate a
police officer for just cause or to grant the police officer an honorable
discharge based upon a physical or mental inability to perform his
or her duties.
M.
Authorization of Township Manager. The Township Manager
or his designee is hereby empowered to take any steps necessary to
effectuate the actions provided for in this section.
[Adopted 11-19-1992 by Res. No. 92-21[1]]
[1]
Editor's Note: This resolution superseded
former Art. II, Employee's Pension Fund, adopted 12-28-1977 by Res.
No. 77-15.
Effective January 1, 1991, except as otherwise
provided, the Township, in accordance with the provisions of the prototype
plan pertaining to amendments thereof, hereby cancels participation
in the prototype plan, and the proper officers of the Township are
hereby authorized and directed to execute on behalf of the Township
and in the form presented to this meeting a document which amends
and restates the prototype plan as a pension plan, known as the "Lower
Salford Township and Lower Salford Township Authority Pension Plan,"
(hereinafter referred to as the "plan"). A true and correct copy of
the plan, which shall remain on file in the Township's offices, is
incorporated herein by reference as though fully set forth.
