[Adopted 12-22-1994 by Ord. No. 3352 (Secs.
147.10 through 147.56 of the 1965 Codified Ordinances)]
A.
As of the effective date of this article, the City
will cease to participate in the Pennsylvania Municipal Retirement
System ("system") on behalf of its police officers. Subsections (a),
(b), (c) and (e) of Original Section 147.20 of the administrative
code adopted by Ordinances 2476 and 2909 are hereby repealed.
B.
As of the effective date of this article, all full-time sworn police officers shall be covered by the City of Easton Police Association Pension Plan effective January 1, 1995, attached hereto and made a part hereof, consisting of §§ 110-10 through 110-22, and which is hereby adopted and shall supersede and repeal the former Pennsylvania Municipal Retirement System.
C.
An application under Section 881.316 of the Pennsylvania Municipal Retirement Law shall be filed with the Pennsylvania Municipal Retirement Board ("Board") setting forth the decision to withdraw from the system and directing that a transfer of the funds accumulated on behalf of the police officers of the City of Easton in the system be made to the City of Easton Police Association Pension Plan. Subsections A and B hereof shall be effective upon the Board's approval of such application.
D.
The foregoing subsections shall be null and void if
the system refuses to transfer such amounts to the City of Easton
Police Association Pension Fund.
E.
A duly certified copy of this article shall be filed
with the Board.
A.
Whereas, the City of Easton, Pennsylvania ("City"),
through various public ordinances, created the City of Easton Police
Association Fund to provide retirement and survivor benefits for members
of the Police Association; and
B.
Whereas, the City makes an annual contribution to
a fund to provide the benefits described in the ordinances collectively
known as the City of Easton Police Association Pension Plan ("plan");
and
C.
Whereas, the plan is administered by a group of seven
persons who shall be officers of the City or residents thereof, or
corporation located therein, to be designated by Council, and known
as the Police Pension Commission; and
D.
Whereas, through Ordinance 2476, effective December
13, 1978, the City elected to join the Pennsylvania Municipal Retirement
System ("PMRS") for police officers hired after December 13, 1978,
and excluded those policemen from coverage under the plan; and
E.
Whereas, the City and the union representing the police
officers, Washington Lodge No. 17 Fraternal Order of Police (the "union"),
have agreed that, effective as set forth below, all police officers
employed by the City should be covered by and receive benefits under
the terms of the plan; and
F.
Whereas, the City and the union have agreed, pending
a favorable determination by the Internal Revenue Service, to withdraw
from PMRS, cover all eligible police officers under the plan, and
to cause the trustees of PMRS to transfer directly to the fund under
the plan the amounts standing to the credit in PMRS of the police
officers of the City covered by PMRS; and
G.
Whereas, the City and the union have agreed to state
the terms of the plan heretofore recited in various municipal ordinances
in a single document to be adopted by the Police Pension Commission,
made effective upon the passage of an ordinance, and submitted to
the Internal Revenue Service for a favorable determination letter;
H.
Now, therefore, the City of Easton Police Association
Pension Plan is set forth herein effective January 1, 1995, and as
otherwise specifically set forth.
A.
Except where otherwise clearly indicated by context,
the masculine shall include the feminine and the singular shall include
the plural, and vice versa.
B.
ACTUARY
ADMINISTRATOR
AGREEMENT DATE
CITY
CODE
COLLECTIVE BARGAINING AGREEMENT
COMMISSION
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
COMPUTATION PERIOD
COUNCIL
EFFECTIVE DATE
EMPLOYEE
EMPLOYMENT DATE
FUND
LATE RETIREMENT DATE
LIMITATION COMPENSATION
(1)
(2)
(a)
(b)
(c)
(d)
LIMITATION YEAR
NORMAL RETIREMENT AGE
NORMAL RETIREMENT DATE
PARTICIPANT
PENSIONABLE COMPENSATION
PLAN
PLAN YEAR
PMRS
PMRS ACCOUNT
POLICE ASSOCIATION
REEMPLOYMENT DATE
SEVERANCE DATE
SPOUSE
UNION
YEARS OF SERVICE
As used in this article, the following terms shall
have the meanings indicated:
The actuarial firm or individual selected by the fund from
time to time, provided that all applicable government requirements
for enrollment are satisfied.
The person(s), if any, to whom the Police Pension Commission
has delegated administrative responsibilities under the plan.
January 1, 1995, or such later date that funds are actually
transferred to the fund from the PMRS and the agreement between the
City and the union with respect to participation in the plan and fund
by employees hired after December 13, 1978, is effective.
The City of Easton of the Commonwealth of Pennsylvania.
The Internal Revenue Code of 1986, as amended from time to
time.
At any time, the labor agreement between the City and the
union which is then in effect.
The Police Pension Commission and individually the persons who supervise the administration of the plan as provided in § 110-19. The Commission shall be comprised of nine persons to be designated by the Council as follows:
[Amended 12-12-2001 by Ord. No. 4049; 9-27-2006 by Ord. No.
4853]
The Mayor or his designee.
The Director of Finance or his designee.
[Amended 2-11-2009 by Ord. No. 5156]
Chief of Police or his designee.
Chairperson, in his/her absence, Vice Chairperson,
of the City Council's Police and Fire Committee.
The President, Vice President, Secretary and
Treasurer of the Police Association, by virtue of their respective
offices during their respective terms of office in the Police Association.
The Police Association may also appoint up to four alternate delegates
to serve in the absence of the President, Vice President, Secretary
or Treasurer.
A ninth representative as selected by a majority
of the eight members of the Commission, with a term to run concurrently
with the term of office of the City Controller. In the event the ninth
member is not selected within 30 days after this article becomes effective,
the ninth member shall be the City Controller and/or his/her designee.
Designees and alternate delegates shall have
the same powers, duties, and obligations of voting members for whom
they are substituting.
The Commission shall meet as needed.
For any employee the twelve-month period beginning on the
employee's date of employment by the City or on any anniversary of
such date and ending on the day before the anniversary thereof.
The City Council of the City.
(Except as otherwise set forth herein) January 1, 1995, the
effective date of this plan document. Pension benefits for members
of the Police Association were originally effected by an ordinance
first effective on July 1, 1923.
Any sworn employee of the City who is a member of the Bureau
of Police of the City and either covered under the collective bargaining
agreement or the Chief of Police or a Captain in the Bureau of Police
of the City. Provided, however, that, until the agreement date, a
person originally hired by the City on and after December 13, 1978,
was not an employee for purposes of the plan.
The date on which an employee first performs an hour of service
for the City.
The fund established by ordinance and known as the "City
of Easton Aggregated Pension Trust Fund," out of which benefits payable
under this plan shall be paid and to which contributions by the City
and the employees shall be made.
The first day of the calendar month coincident with or next
following the date on which a participant retires from employment
with the City, provided that such retirement occurs after the participant's
normal retirement date. The continued employment of an employee beyond
the employee's normal retirement date shall be in accordance with
City policy and applicable law.
For any participant:
The participant's wages, salary, fees for professional
services, and other amounts received for personal services rendered
in the course of employment with the City, to the extent that such
amounts are includable in gross income, and regardless of whether
an amount is paid in cash, including (but not limited to) commissions
paid to salesmen, compensation for services on the basis of a percentage
of profits, commissions on insurance premiums, tips, bonuses, fringe
benefits, reimbursements, and expense allowances; foreign earned income,
whether or not excludable from gross income under Section 911 of the
Internal Revenue Code; taxable amounts received by the participant
through accident or health insurance for personal injury or sickness
or from a self-insured medical expense reimbursement plan; moving
expenses paid or reimbursed by the City in excess of any amount deductible
by the participant; and wages or payments in lieu of wages received
on account of absence from work for permanent and total disability.
"Limitation compensation" shall exclude the
following:
Contributions made by an employer to a qualified
plan to the extent that, before the application of Section 415 of
the Internal Revenue Code to that plan, the contributions are not
includable in the gross income of the participant for the year in
which contributed;
Employer contributions on behalf of an employee
to a simplified employee pension plan;
Any distributions from a plan of deferred compensation,
except that any amounts received by an employee pursuant to an unfunded
nonqualified plan may be included in the year that such amounts are
included in gross income;
Other amounts which receive special tax benefits,
such as premiums for group term life insurance to the extent not includable
in gross income, or contributions made by an employer toward the purchase
of an annuity contract described in Section 403(b) of the Internal
Revenue Code.
The plan year or such other twelve-consecutive-month period
as may be designated by the City.
For any participant, the later of:
The first day of the calendar month coincident with or next
following a participant's attainment of normal retirement age.
An employee who is participating in this plan in accordance
with its terms; a former employee receiving benefits under the plan;
and a former employee who has a present or future right to receive
benefits under the plan.
The annual salary plus degree pay, longevity pay, personal
day buyback, holiday pay, scheduled shift differential, and acting
rank pay for regularly scheduled shift of a participant on the date
in question.
The City of Easton Police Association Pension Plan, as set
forth in various municipal ordinances and set forth herein (including
any schedules) and as hereafter amended from time to time.
The calendar year (January 1 through December 31).
The Pennsylvania Municipal Retirement System as established
by the Pennsylvania Municipal Retirement Law, February 1, 1974, P.L.
34, No. 15, § 101.
The separate account established by the Commission under the fund to hold amounts which include member's contributions and any interest or excess interest credited to the participant's account by PMRS that are transferred from PMRS to the fund on behalf of a participant as more fully explained in § 110-21.
The City of Easton Police Association.
The first day on which a former employee performs an hour
of service for the City as a rehired employee.
The date, as recorded on the records of the City, on which an employee quits, retires, is discharged, or dies, or, if earlier, the first anniversary of the first day of a period during which the employee remains absent from service with the City (with or without pay) for any other reason expressly provided in § 110-12A(2).
The person to whom a participant is married on any date of
reference.
Washington Lodge No. 17 of the Fraternal Order of Police.
The number of computation periods counted with respect to determining an employee's vested status and eligibility for benefits under the plan, as further described in § 110-12.
A.
Date of participation.
(1)
Each person who was participating in the plan immediately
prior to the effective date and who is an employee on the effective
date shall be a participant hereunder as of the effective date.
(2)
Each employee hired by the City on and after December
13, 1978, but before the agreement date shall not be a participant
until the agreement date.
(3)
Each other employee hired by the City on and after
the agreement date shall become a participant on his date of hire.
B.
Participation after reemployment.
[Amended 9-30-1997 by Ord. No. 3518]
(1)
A participant whose employment is terminated and who
is later reemployed as an employee shall resume his participation
in the plan as of the date of his reemployment.
(2)
In case of any reemployed participant, credit with
respect to previous service for any purpose shall be granted only
if such reemployed participant repays to the fund the amount of all
previous distribution made on account of such previous employment.
Repayment of the previous distribution shall be made within 24 months
of reemployment unless extended by the Police Pension Commission for
cause due to extraordinary circumstances. Otherwise, the reemployed
participant shall only be granted credit for any purpose under the
plan for service from his most recent date of employment.
(3)
In the case of any reemployed participant, the decision
regarding repayment of all previous distribution made on account of
such previous employment shall be made in writing within 30 days of
reemployment by the City.
(4)
Interest on any unpaid previous distribution shall
be made and shall be at the City's actuarial assumed rate of interest
and shall accrue from the date of previous distribution until the
date of full repayment.
A.
Service for vesting.
(1)
An employee shall earn a year of service for all employment
with the City as an employee. Years of service shall be calculated
from the employee's employment date or reemployment date to his severance
date, subject to the rules set forth below.
(2)
Relief days, vacation periods, suspension from duty,
or leaves of absence that are under one year shall not affect service
and need not be continuous.
(3)
Beginning on August 5, 1993, an employee shall earn
credit toward a year of service for any period during which he is
absent from work on unpaid leave under the Family and Medical Leave
Act of 1993.
B.
Partial years. Years of service shall be calculated
on the basis of completed days. A partial year of service shall be
awarded for any portion of a year of employment that does not constitute
a full year based upon the ratio that the number of such days bears
to 365.
A.
Normal retirement. A participant who is employed when he attains normal retirement age shall immediately become fully vested in his accrued benefit and shall be eligible for normal retirement benefits on his normal retirement date, provided he retires on his normal retirement date. His benefits shall be paid to him in accordance with the provisions of §§ 110-15A, B, C and 110-17.
B.
Late retirement. If a participant continues his employment with the City beyond his normal retirement date, he shall be eligible for normal retirement benefits commencing on his late retirement date. His benefits shall be paid to him in accordance with the provisions of §§ 110-15A, B, C and 110-17. Any such person who has not less than 20 years of service and who has attained the age of 70 shall be automatically retired.
C.
Disability retirement.
[Amended 11-9-2022 by Ord. No. 5800]
(1)
Regardless of age or service, an employee with a disability
pension shall receive the full pension as defined in 11 Pa.C.S.A.
§ 14303.2(e).
(2)
The City shall have the right to any offset and/or
subrogation available under Pennsylvania statutes/laws, including
but not limited to the Third Class City Code[1] and the Pennsylvania Workers' Compensation Act[2]. For any employee that received a disability pension after
January 1, 2021, said subrogation will be effective on the execution
of the collective bargaining agreement dated January 1, 2021.
(3)
A pension payable in the event of disability described
in this section shall commence on the first day of the calendar month
coincident with or after the determination by the Police Pension Commission
that all events have occurred entitling the participant to such pension.
D.
Furnishing data. Each employee and beneficiary shall
furnish such information as the Police Pension Commission may consider
necessary for the determination of his rights and benefits under the
plan and shall otherwise cooperate fully with the Commission in the
administration of the plan. Benefit commencement shall be deferred
until all of such information is provided.
[Added 7-10-2007 by Ord. No. 4989]
A.
"Early Retirement Incentive Program" shall be defined
as a program offered by the City to some or all plan participants,
that provides an enhanced level of retirement benefits for plan participants
who have not yet reached normal retirement.
B.
Subject to its obligations pursuant to the Pennsylvania
Labor Relations Act, 43 P.S. § 211.1 et seq.; Act 111, 43
P.S. § 217.1 et seq.; and all other applicable state and
federal laws and regulations, the City may by ordinance enact, from
time to time, early retirement incentive programs which provide for
limited periods during which the prerequisites for benefits and benefit
levels set forth in this plan may be modified for plan participants
who may qualify for the program, as defined by the City.
A.
Normal retirement.
B.
Late retirement.
(1)
A participant who is eligible for late retirement benefits shall receive an annual pension, payable monthly, which is equal to the amount calculated under § 110-15A using the participant's pensionable compensation on his late retirement date.
(2)
In addition to the pension provided in Subsection B(1) hereof, a participant shall also be entitled to the payment of a service increment, in accordance with and subject to the conditions hereinafter set forth:
(a)
The service increment shall be obtained by computing
the number of whole years after having served the minimum of 20 years
during which a participant has been employed by the City and paid
out of the City Treasury, including credit for military service as
provided in this plan, and multiplying the number of years so computed
by an amount equal to 2.5% of pensionable compensation for each year
of service to a maximum of 75% of pensionable compensation after 30
years of service. In computing the service increment, no employment
after the participant has reached the age of 60 years shall be included.
[Amended 5-28-1997 by Ord. No. 3498]
(b)
A person who is a participant on January 1,
1952, who has already reached the age of 60 years, shall have his
service increment computed on the years of employment prior to the
date of reaching his 60th birthday.
(c)
Service increment contributions shall be paid
at the same time and in the same manner as retirement contributions
and may be withdrawn in full, without interest, by participants who
leave the employment of the City, subject to the same conditions by
which retirement contributions may be withdrawn.
C.
Death benefits. Any participant who is killed while in the performance of his duties, or who dies from injuries sustained while in the performance of his duties, shall be entitled to the full pension described in § 110-15A, which shall be paid to his surviving spouse, if any, during the remainder of such surviving spouse's life, provided the family relation exists between the deceased participant and the surviving spouse such as would enable such surviving spouse to take under the intestate laws of Pennsylvania. In the event such deceased participant leaves children to survive him, but no surviving spouse, then such payments shall be paid equally, share and share alike, to such surviving children of the deceased participant, until the children reach the age of 18 years; such payments to be made through a legally appointed guardian. As each child reaches the age of 18, the share of such child in the pension shall cease, and the pension shall be divided equally or go entirely to such child or children as are still under the age of 18 until finally all children have reached the age of 18, when and in such case the pension shall terminate. Any payment under this section shall be in lieu of the benefits described in § 110-15D.
[Amended 10-28-1998 by Ord. No. 3627]
D.
Death benefit for spouses and children.
[Amended 10-28-1998 by Ord. No. 3627]
(1)
Death on and after January 3, 1972.
(a)
Until death, the surviving spouse of:
[1]
Any participant who dies on and after January
3, 1972; or
[2]
Any participant who dies on and after January
3, 1972, while retired on pension, shall be entitled to receive a
pension equal to the pension the retired participant was receiving
or would have been entitled to receive had he been retired at the
time of his death, provided that such surviving spouse had a family
relationship to the deceased as would entitle the surviving spouse
to elect to take against the deceased participant's will under the
laws of the Commonwealth of Pennsylvania, as such election right is
now defined by law.
(b)
If no spouse survives any participant referred to in Subsection D(1)(a) hereof, or if such spouse who survives does not have such family relationship to the deceased participant as would entitle the surviving spouse to elect to take against the deceased participant's will under the laws of the Commonwealth of Pennsylvania, or if such surviving spouse then dies and the participant died leaving child or children to survive, then each such child surviving the death as aforesaid shall be entitled to receive an equal share of the aforesaid pension until that child shall attain the age of 18 years. As each child attains 18 years of age, such child shall cease to have pension rights, and the pension shall be distributed equally to such child or children who have not attained 18 years of age. All pension rights under this subsection shall cease when the youngest surviving child attains the age of 18 years.
E.
Maximum benefit. The provisions of this section shall
be effective January 1, 1987, and shall be construed to comply with
Section 415 of the Internal Revenue Code.
(1)
Limitation.
(a)
Notwithstanding anything in § 110-15 to the contrary, in no event shall the combined annual benefit attributable to the City's contributions of a participant payable on a single life basis (or, if applicable, as a qualified joint and survivor annuity) under this and any other defined benefit plan to which the City contributes exceed the lesser of:
[1]
Ninety thousand dollars (as adjusted by the
Internal Revenue Service to reflect cost-of-living increases); or
[2]
One hundred percent of the participant's average
limitation compensation during the three consecutive calendar years
of participation hereunder in which his limitation compensation is
the highest.
(b)
If the retirement income benefit under the plan begins before the participant attains age 62, the determination as to whether the ninety-thousand-dollar limitation set forth in Subsection E(1)(a)[1] hereof has been satisfied shall be made, in accordance with regulations prescribed by the Secretary of the Treasury, by reducing the ninety-thousand-dollar limitation of Subsection E(1)(a)[1] hereof so that such limitation (as so reduced) equals an annual benefit (beginning when such retirement income benefit begins) which is equivalent to a ninety-thousand-dollar annual benefit beginning at age 62. The reduction under this Subsection E(1)(b) shall not reduce the dollar limitation of Subsection E(1)(a)[1] hereof.
(c)
If a participant's retirement benefits begin after the participant has attained age 65, the dollar limitation in Subsection E(1)(a)[1] hereof shall be increased to its actuarial equivalent at the date of commencement, using an interest rate of 5%.
(d)
For a participant with 15 years of service, Subsection E(1)(b) hereof shall not reduce the dollar limitation of Subsection E(1)(a)[1] hereof to an amount less than $50,000.
(e)
Notwithstanding the limitations set forth in the other provisions of this subsection (a), the benefits payable under this plan with respect to a participant shall be deemed not to exceed the limitations of this Subsection E(1), if:
[1]
The benefits payable with respect to such participant
under this plan and all other defined benefit plans maintained by
the City do not exceed $10,000 for the plan year or for any prior
plan year; and
[2]
The City has not maintained a defined contribution
plan in which the participant participated.
(f)
If the benefit is payable to a participant:
[1]
Who has fewer than 10 years of participation in the plan at the time that retirement benefits begin, the dollar limitation described in Subsection E(1)(a)[1] hereof shall be multiplied by a fraction, the numerator of which is the participant's year of participation in the plan (or part thereof) and the denominator of which is 10; and
[2]
Who has fewer than 10 years of service at the time that retirement benefits begin, the percentage of earnings limitation described in Subsection E(1)(a)[2] hereof and the special limit set forth in Subsection E(1)(d) hereof shall be multiplied by a fraction, the numerator of which is the participant's years of service and the denominator of which is 10.
[3]
Computation of participant's years of participation:
[a]
For purposes of determining a participant's years of participation for the adjustment to the dollar limitation of Subsection E(1)(a)[1] hereof required by Subsection E(1)(e)[1] hereof, the participant shall be credited with a year of participation (computed to fractional parts of a year) for each computation period for which the following conditions are met: the participant is credited with at least the number of hours of service required under the terms of the plan in order to accrue a benefit for the computation period, and the participant is included as a participant under the eligibility provisions of the plan for at least one day of the computation period. If these two conditions are met, the portion of a year of participation credited to the participant shall equal the percentage of a full year of credited service credited to the participant for such computation period.
[b]
A participant who is permanently
and totally disabled within the meaning of Section 415(c)(3)(C)(i)
of the Internal Revenue Code for a computation period shall receive
a year of participation with respect to that period.
[c]
For a participant to receive a
year of participation (or part thereof) for a computation period,
the plan shall be established no later than the last day of such period.
In no event shall more than one year of participation be credited
for any twelve-month period.
[5]
Subsection E(1)(f)[1] hereof shall be applied separately with respect to each change in the benefit structure of the plan.
(2)
Exclusions from limitation.
(a)
Any contributions made by an employee under § 110-21A shall be deemed to constitute a separate defined contribution plan. The benefit subject to the limit of Subsection E(1) hereof shall not include any benefit attributable to such employee contributions. The portion of the benefit attributable to employer contributions and subject to Subsection E(1) hereof shall be determined by converting the employee contributions to an annual benefit amount pursuant to Section 411(c)(2)(B) of the Internal Revenue Code and subtracting such amount from the total annual benefit.
(b)
The annual additions under any defined contribution
plan shall not exceed the lesser of:
(3)
If in any limitation year a participant is also a participant in one or more defined contribution plans sponsored by the City, the annual benefit referred to in Subsection E(3)(a) hereof shall be reduced, if necessary, so that the sum of the fractions described in Subsections E(3)(a) and (b) hereof does not exceed one for such limitation year.
(a)
Defined benefit fraction.
[1]
A fraction, the numerator of which is the participant's
"projected annual benefit" under the defined benefit plans sponsored
by the City in which he has participated, determined as of the close
of the limitation years of such plans, and the denominator of which
is the lesser of:
[2]
In calculating the adjustments required by Subsection E(1)(e) hereof for purposes of determining the denominator of the defined benefit fraction for any limitation year, the years of participation or years of service (as applicable) that are used shall include future years occurring before the participant's normal retirement age. For purposes of the preceding sentence, years of participation or years of service (as applicable) may include the future year which includes the date on which the participant will reach normal retirement age, provided that it can be reasonably anticipated that the participant will receive a year of participation or a year of service (as applicable) for such year. In projecting years of participation or years of service for future years, it may be assumed that a participant is a full-time employee if he is currently a full-time employee.
(b)
Defined contribution fraction. A fraction, the
numerator of which is the sum of the "annual additions" to the participant's
accounts under all defined contribution plans sponsored by the City
for all limitation years, and the denominator of which is the sum
of the lesser of the following amounts, determined for each limitation
year of service with the City:
(c)
Definitions.
[1]
For the purpose of this subsection, "projected
annual benefit" means the annual benefit to which a participant would
be entitled under the terms of a defined benefit plan if he had continued
employment until his normal retirement date under such plan and if
his compensation for the purpose of such plan had continued at the
same rate. "Annual additions" to a participant's accounts under any
defined contribution plan for any limitation year means the sum of:
[2]
A defined benefit plan sponsored by the City
to which nondeductible employee contributions are made is considered
to be a separate defined contribution plan, to the extent that the
employee contributions constitute annual additions in the current
and prior limitation years.
[3]
Notwithstanding any other provision of this
plan, the annual additions for any limitation year beginning before
January 1, 1987, shall not be recomputed to treat all of a participant's
own after-tax contributions as annual additions.
(4)
Adjustments of dollar limitations; effect on accrued
benefits.
(b)
The dollar limitations described in Subsection E(1), (2) and (3) hereof shall not reduce any benefit which was accrued by a participant under the plan prior to the first day of its limitation year beginning in 1983, using the applicable maximum dollar limitations then in effect; provided, however, that this sentence shall not apply to any participant unless he was a participant in the plan before January 1, 1983. For the purpose of this Subsection E(4)(b), no change in the plan after July 1, 1982, and no cost-of-living adjustment after July 1, 1982, shall be taken into account.
(c)
The dollar limitations described in Subsection E(1), (2) and (3) hereof shall not reduce any benefit which was accrued by a participant under the plan prior to the first day of its limitation year beginning in 1987, using the applicable maximum dollar limitations then in effect; provided, however, that this sentence shall not apply to any participant unless he was a participant in the plan on January 1, 1983. For the purpose of this Subsection E(4)(c), no change in the prior plan after May 5, 1986, and no cost-of-living adjustment after May 5, 1986, shall be taken into account. Any change in the terms and conditions of this plan made pursuant to a collective bargaining agreement ratified before May 6, 1986, shall be treated as a change made before May 6, 1986.
(5)
Alternate calculations.
(a)
The Police Pension Commission may elect to apply Subsection E(3)(b) hereof with respect to any plan year ending after December 31, 1982, by calculating the denominator under Subsection E(3)(b) hereof using an alternate amount for all plan years ending before January 1, 1983. The alternate amount shall be equal to the amount determined for the denominator under Subsection E(3)(b) hereof as in effect for the plan year ending in 1982 multiplied by the transition fraction. The "transition fraction" shall be a fraction determined as follows:
(b)
Adjustment for limitation year ending after
December 31, 1986.
[1]
The Police Pension Commission may elect to apply Subsection E(3)(b) hereof with respect to any limitation year ending after December 31, 1986, by adjusting the numerator under Subsection E(3)(b) hereof by using an alternate amount for all limitation years beginning on or before December 31, 1986. The adjustment is to subtract permanently from the numerator of the defined contribution fraction an amount equal to the product of Subsection E(5)(b)[1][a] and [b] hereof:
F.
Pension revocation or suspension. If any beneficiary of the fund is granted a pension as herein provided and shall thereafter be convicted of a crime or misdemeanor, or shall become a habitual drunkard or a habitual user of narcotics, or shall cease to care for and support his spouse and family, unless legally separated from them, or shall fail to comply with the provisions of the plan or to the bylaws of the Police Association, the Police Pension Commission shall have the power, by a majority vote, after a hearing, of which five days' notice shall be given the participant by registered mail to his last known address, at which hearing the participant, his counsel and witnesses shall be heard, revoke the pension or suspend payment thereof, or to direct the payment thereof to the spouse or family of such participant, and to order, if it deems best, that all rights of the participant in the fund shall be forfeited. The pension otherwise shall be payable to the participant until his death. No pension shall be paid to any person after the death of the participant except as hereinbefore provided in Subsection D.
A.
Refund of contributions. If for any reason or cause any participant shall cease to be a member of the Police Association prior to his or her spouse or children being entitled to a pension under §§ 110-13 to 110-15, his right to a pension under the plan is hereby lost and forfeited except to the extent provided in § 110-16B. He shall be entitled to have returned to him, without interest, the total amount of:
B.
Vested benefit. Any employee having served 12 years or more with the Department and terminating his employment or having his employment terminated for any reason other than criminal misconduct before the expiration of 20 years of service shall be entitled to a refund of contributions in accordance with § 110-16A or shall be entitled to receive during the remainder of his life, after attaining the age of 50 years, such portion of the full benefit provided in § 110-15A as the period of his service, up to the date of its termination, bears to the full twenty-year period of service, provided that such employee has continued his contributions into the fund until he attains age 50.
A.
Earliest and latest commencement of benefits. Distribution
of a participant's benefits under this plan shall commence by the
April 1 that follows the end of the calendar year in which the participant
attains age 70 1/2. Such April 1 shall be the participant's "mandatory
benefit commencement date."
B.
Payment of benefits. Except as provided in §§ 110-16A, 110-21A and D, benefits shall be paid monthly in an amount equal to the benefit calculated under the plan. At the direction of the Police Pension Commission, benefits may be provided by an annuity contract purchased from an insurance company. The terms of such annuity contract shall prohibit the cash surrender of the annuity contract and shall make the payments due under the annuity contract nonassignable. The distribution of such annuity contract shall be in complete discharge of the plan's liability to the participant accepting the annuity contract.
C.
Lost participant or beneficiary. If the Police Pension
Commission is unable to pay benefits to a participant or beneficiary
because the Commission cannot locate that participant or beneficiary,
the participant's or beneficiary's benefit shall be forfeited as of
the date that is three years after the date on which the benefit first
becomes payable. However, if the participant or beneficiary is subsequently
located or subsequently submits a written application for his benefit,
the benefit shall be reinstated retroactively, without interest, no
later than 60 days after the date on which the participant or beneficiary
is located or his written application is received.
D.
Mailing address. Benefit payments and notifications
hereunder shall be deemed made when mailed to the last address furnished
to the Police Pension Commission.
A.
The fund. All of the assets of the plan shall be held
by the fund for use in accordance with this plan in providing for
the benefits hereunder.
B.
Contributions to the fund.
(1)
The benefits provided under the plan shall be financed
exclusively by contributions made from time to time to the fund by
the City, participant contributions, and amounts transferred from
PMRS. Subject to the provisions of applicable law, the liability of
the City under the plan shall be limited to the contributions determined
by the City from time to time in accordance with the advice and counsel
of the actuary and as required under collective bargaining agreement.
(2)
The funding policy applicable to the fund shall be
established by the Police Pension Commission and shall be reviewed
from time to time.
C.
Use of contributions to the fund.
(1)
The contributions deposited under the terms of this
plan shall constitute the fund held for the benefit of participants
and their eligible survivors under and in accordance with this plan.
(2)
No part of the corpus or income of the fund shall
be used for or diverted to purposes other than exclusively for the
benefit of participants and their eligible survivors and for necessary
administrative costs.
(3)
In the case of a contribution made by the City as
a mistake of fact, such contribution shall be refunded to the City
within one year after payment of the contribution.
D.
Forfeitures. Forfeitures shall not be applied to increase
the benefits of any participant but shall be used to reduce the City's
contributions to the plan.
E.
No rollovers or transfers permitted. No employee shall
be permitted to roll over or transfer funds to the plan from an individual
retirement account or individual retirement annuity from another qualified
retirement plan or trust or from an annuity plan.
F.
Expenses of administration. All expenses of administration
of this plan shall be paid from the fund unless they are paid directly
by the City.
G.
Sole source of benefits. The fund shall be the sole
source for the provision of benefits under the plan. Neither the City,
the union, nor any other person shall be liable therefor.
A.
Commission. The Police Pension Commission shall control
and manage the operation of the plan and shall administer the plan.
The Commission members shall be entitled to reimbursement of expenses.
Members of the Commission shall not be entitled to compensation for
their service on the Commission. Any reimbursement of the expenses
of the Commission shall be paid directly by the fund. The Commission
shall be responsible for the general administration of the plan under
the terms of the plan, the ordinances establishing the plan, and the
collective bargaining agreement.
B.
Duties and powers of the Commission.
(1)
The Police Pension Commission shall have all powers
necessary to administer the plan in accordance with its terms, applicable
law, and the collective bargaining agreement and shall also have discretionary
authority to determine eligibility for participation or benefits and
to construe the terms of the plan. Any construction, interpretation,
or application of the plan by the Commission shall be final, conclusive,
and binding on all persons subject to the terms of applicable law
and the collective bargaining agreement.
(2)
In addition to the duties and powers described elsewhere
hereunder, the Commission shall have the following specific duties
and powers:
(a)
To enact uniform and nondiscriminatory rules
and regulations to carry out the provisions of the plan;
(b)
To resolve questions or disputes relating to
eligibility for benefits or the amount of benefits under the plan;
(c)
To interpret the provisions of the plan; and
(d)
To evaluate administrative procedures.
C.
Functioning of Commission.
(1)
The Police Pension Commission and those persons or
entities to whom the Commission has delegated responsibilities shall
keep accurate records and minutes of meetings, interpretations, and
decisions. The Commission shall act by majority vote of the members,
and such action shall be evidenced by a written document.
(2)
The expenses incurred by the Commission in connection
with the operation of the plan, including, but not limited to, the
expenses incurred by reason of the engagement of professional assistants
and consultants, shall be expenses of the plan and shall be payable
from the fund at the direction of the Commission.
D.
Fund. Notwithstanding anything else herein, the fund
shall be charged by ordinance with certain rights and duties concerning
administration of the plan. The rights and duties of the fund as conferred
by ordinance shall supersede any contrary provisions hereof.
A.
No employment rights. Neither the action of the City
in establishing the plan, nor any provisions of the plan, nor any
action taken by the City or by the Police Pension Commission shall
be construed as giving to any employee of the City the right to be
retained in its employ or any right to payment except to the extent
of the benefits provided in the plan to be paid from the fund.
B.
Governing law. All questions pertaining to the validity,
construction, and operation of the plan shall be determined in accordance
with the laws of the Commonwealth of Pennsylvania.
C.
Severability of provisions. If any provision of this
plan is determined to be void by any court of competent jurisdiction,
the plan shall continue to operate and, for the purposes of the jurisdiction
of that court only, shall be deemed not to include the provision(s)
determined to be void.
D.
No interest in fund. No person shall have any interest
in, or right to, any part of the principal or income of the fund,
except as and to the extent expressly provided in this plan.
E.
Spendthrift clause.
(1)
No benefit payable at any time under this plan and
no interest or expectancy herein shall be anticipated, assigned, or
alienated by any participant or beneficiary, or subject to attachment,
garnishment, levy, execution, or other legal or equitable process,
except for a federal tax levy made pursuant to Section 6331 of the
Internal Revenue Code.
(2)
Any attempt to alienate or assign a benefit hereunder,
whether currently or hereafter payable, shall be void. No benefit
shall in any manner be liable for or subject to the debts or liability
of any participant or beneficiary. If any participant or beneficiary
attempts to or does alienate or assign his benefit under the plan
or any part thereof, or if by reason of his bankruptcy or other event
happening at any time such benefit would devolve upon anyone else
or would not be enjoyed by him, then at the direction of the Police
Pension Commission such benefit may be forfeited or the Commission
may terminate payment of such benefit and hold or apply it for the
benefit of the participant or beneficiary.
F.
Incapacity. If the Police Pension Commission deems
any participant who is entitled to receive payments hereunder to be
incapable of receiving or disbursing the same by reason of youth,
illness, infirmity or incapacity of any kind, the Commission may apply
such payments directly for the comfort, support and maintenance of
such participant or pay the same to any responsible person caring
for the participant who is determined by the Commission to be qualified
to receive and disburse such payments for the participant's benefit,
and the receipt by such person shall be a complete acquittance for
the payment of the benefit. Payments pursuant to this section shall
be complete discharge to the extent thereof of any and all liability
of the City, the Commission, the Administrator, and the fund.
G.
Withholding. The Police Pension Commission and the
City shall have the right to withhold any and all local, state, and
federal taxes which are required to be withheld in accordance with
applicable law.
H.
Military service.
[Added 10-26-2011 by Ord. No. 5331]
(1)
The rights of any returning veteran who resumes employment with the
City on or after December 12, 1994, shall be modified as set forth
in this subsection. Notwithstanding the foregoing, this subsection
shall not apply if the returning veteran is not entitled to benefits
under this plan but is instead entitled to benefits under the Pennsylvania
Municipal Retirement System.
(2)
QUALIFIED MILITARY SERVICE
RETURNING VETERAN
UNIFORMED SERVICES
The following definitions shall apply for purposes of this subsection:
Any service (either voluntary or involuntary) by an individual
in the uniformed services if such individual is entitled to reemployment
rights with the City with respect to such service. An individual's
qualified military service shall include any absence from employment
necessitated by service in the uniformed services, including absences
required to prepare for service or to recuperate from injuries sustained
in active duty.
A former employee of the City who on or after December 12,
1994, returns from qualified military service to employment by the
City within the period of time during which his/her reemployment rights
are protected by law.
The armed forces, the Army National Guard and Air National
Guard (when engaged in active duty for training, inactive duty training,
or full-time National Guard duty), the Commissioned Corps of the Public
Health Service, and any other category of persons designated by the
President of the United States in time of war or emergency.
(3)
For purposes of § 110-11, a returning veteran who was participating in the plan immediately prior to his/her qualified military service shall be deemed to have continued participating in the plan throughout his/her qualified military service. A returning veteran who would have become eligible to participate in the plan during the period of his/her qualified military service, but for the resulting absence from employment, shall be deemed to have commenced participation in the plan as of the date he/she would have commenced participation in the plan if he/she had not entered in qualified military service.
(5)
A returning veteran's benefit under the plan will be increased to reflect his/her period of qualified military service once he/she has made the contributions required under § 110-21 in an amount equal to those which he/she would have made during his/her period of qualified military service.
(6)
For purposes of determining the amount of a participant's "pensionable compensation," and for applying the limits of § 110-15E, a participant's compensation during any period of qualified military service shall be deemed to equal either:
(a)
The compensation he/she would have received but for such qualified
military service, based on the rate of pay he/she would have received
from the City; or
(b)
If the amount described in Subsection H(6)(a) above is not reasonably certain, his/her average compensation from the City during the twelve-month period immediately preceding the qualified military service (or, if shorter, the period of employment immediately preceding the qualified military service). Such amount shall be adjusted as necessary to reflect the length of the participant's qualified military service.
(7)
If a returning veteran received a distribution of all or a portion
of his/her benefit as a result of his/her qualified military service,
he/she shall be permitted to repay the amount of such distribution,
plus interest. Such repayment shall be made during the period that
begins with his/her reemployment with the City and ends with the expiration
of a period of five years, or, if shorter, a period of three times
the period of qualified military service, and may only be made while
the returning veteran is an employee of the City.
(8)
Effective January 1, 2007, notwithstanding any provision of the plan
to the contrary, in the case of a participant who dies while performing
qualified military service, the survivors of the participant are entitled
to any additional benefits (other than benefit accruals relating to
the period of qualified military service) provided under the plan
had the participant resumed then terminated employment on account
of death. This provision shall be applied in accordance with guidance
issued under Section 401(a)(37) of the Code.[1]
[1]
Editor's Note: See Internal Revenue Code.
(9)
The City shall establish such rules and procedures as it deems necessary
or desirable to implement the provisions of this article, provided
that they are not in violation of the Uniformed Services Employment
and Reemployment Rights Act of 1994, any regulations thereunder, or
any other applicable law.
A.
Contributions by payroll deduction.
(1)
A participant is required to authorize the City to
deduct from each paycheck 6% of pensionable compensation. A deduction
of 6% of pensionable compensation shall be made from the amount paid
to him during each pay period. Such amounts shall be remitted by the
City to the Treasurer of the fund. The percentage to be deducted from
each participant's pensionable compensation may be increased upon
determination by the City after consulting with the actuary.
[Amended 5-28-1997 by Ord. No. 3498]
(2)
Each participant on and after January 1, 1952, shall
pay into the fund a monthly sum in addition to his or her retirement
contribution, which shall be equal to 1/2 of 1% of his salary, provided
that such payment shall not exceed the sum of $1 per month. Such service
increment contribution shall not be paid after a participant has reached
the age of 60 years.
B.
Emergency appropriations; temporary payroll deductions.
In case the funds derived from the various sources herein enumerated
shall fall short of the necessary amount required for relief or pensions,
payments may be temporarily suspended, and it shall be the duty of
the officers of the Police Association to make a special report to
Council, whereupon Council may make a special appropriation for relief.
Also, upon petition of the Police Association to Council, the Director
of Finance or their designee shall be directed to increase the retention
and deduction for salaries or wages due on payrolls up to a maximum
of 3% for a specified time. The foregoing provisions of this section
shall not be construed to limit the right of the City, by ordinance,
to maintain the fund by fixing an equal and proportionate monthly
charge against each participant within the limits as provided by Section
4301 of the Third Class City Code.[1]
[Amended 7-22-2015 by Ord. No. 5502]
[1]
Editor's Note: See 53 P.S. § 39301.
C.
Military service. Any participant who served in the
armed forces of the United States subsequent to September 1, 1940,
and who was not a participant prior to such military service, shall
be entitled to have full credit for each year or fraction thereof,
not to exceed five years, of such service. Such credit shall be granted
upon his payment to the fund of:
D.
PMRS accounts.
(1)
The Police Pension Commission shall credit to a separate account established for each participant who previously participated in the PMRS an amount equal to the amount previously credited to the participant in the PMRS and transferred by the trustees of PMRS to the fund. Such account shall be known as the "participant's PMRS account." Such amounts without any interest earned from the time of transfer may be withdrawn by a participant who has terminated employment with the City and is not entitled to a benefit under §§ 110-15 and 110-16B.
A.
Power of amendment and termination. It is the intention
of the City that this plan shall be permanent. However, the City reserves
the power to amend or terminate the plan at any time by ordinance
duly passed and in accordance with the laws of the Commonwealth of
Pennsylvania. Any such amendment or termination shall become effective
as of the date designated in such ordinance. Except as expressly provided
elsewhere in the plan, prior to the satisfaction of all liabilities
with respect to the benefits provided under this plan, no amendment
or termination shall cause any part of the monies or other property
contributed hereunder to revert to the City or to be diverted to any
purpose other than for the exclusive benefit of participants and their
beneficiaries. No amendment shall have the effect of retroactively
depriving participants of benefits already accrued under the plan.
B.
Disposition on termination. Upon termination, the
rights of employees to benefits accrued to the date of such termination,
to the extent funded, shall be nonforfeitable.
