(a) Contributions by members.
(1) Members shall pay into the Fund at a rate of 4.85% of compensation up to the Social Security maximum wage plus 5% on compensation which is not subject to Social Security taxes by the member. Effective January 1, 2007, the contribution rate shall be 5% of compensation. Compensation for this purpose shall be as defined in § 282.01 of the Plan.
(2) The Board may, on an annual basis, by ordinance or resolution, reduce or eliminate payments into the Fund by members. Individual records of contributions by members shall be maintained, including all interest credited to his or her individual account. Interest to be credited shall be 6% compounded annually. Interest shall be credited from the end of the plan year in which paid, to the end of the month after which a refund becomes payable.
(b) Refund of member’s contributions.
(1) Any member who for any reason shall be ineligible to receive a pension after having made contributions shall be entitled to a refund of his or her individual account balance; such refund is payable immediately upon discontinuance of his or her employment with the police force or within a reasonable time (not more than 45 days after discontinuance).
(2) If such discontinuance is due to death, then such refund shall be paid to his or her designated beneficiary or, in the absence thereof, to his or her estate. If a retired member who is receiving a benefit by reason of disability or retirement, dies, and is not survived by a spouse, then the refund payable to the beneficiary shall be equal to the individual account balance at the date of disability or retirement, less any pension payments made to the member.
(c) Deposits. Contributions by members shall be remitted to the trustee monthly.
(d) State aid. The portion of the payments made by the State Treasurer to the township and designated by the Board to be allocated to the Police Pension Fund from money received from taxes paid upon premiums by foreign casualty insurance companies for purposes of pension retirement or disability benefits for police officers shall be used as follows:
(1) To reduce the unfunded liability, or, after such liability has been fully funded;
(2) To apply against the annual obligation of the township for future service costs, or to the extent that the payment may be in excess of such obligations; or
(3) To reduce member contributions pursuant to subsection (a) above.
(e) Township contributions. Subject to the provisions and limitations set forth in other sections of this Plan, the township shall contribute the amounts certified to be necessary by the Fund’s actuary to provide the benefits provided by this Plan.
(f) Non-intervening military buy back.
(1) The Plan provides full service credit for each year of military service or fraction thereof, not to exceed five years, to a member who was not employed by the township prior to such military service, payable by the member. The member shall pay the amount for the purchase of credit for military service other than intervening military service shall be computed by applying the average normal cost rate for the Plan as certified by the Public Employee Retirement Study Commission, but not to exceed 10%, to the member’s average annual rate of compensation over the first three years of service and multiplying the result by the number of years and fractional part of a year of creditable non-intervening military service being purchased, together with interest at the rate of 4.75% compounded annually from the date of initial entry into service to the date of payment.
(2) A member of the Plan shall be eligible to receive service credit for intervening or non-intervening military service provided that he or she is not entitled to receive, eligible to receive then or in the future, or is receiving retirement benefits for such service under a retirement system administered and wholly or partially paid for by any other governmental agency with the exception of a member eligible to receive or is receiving military retirement pay earned by a combination of active duty and non-active duty with a reserve or national guard component of the armed forces which retirement pay is payable only upon the attainment of a specified age and period of service under 10 U.S.C. Ch 67 (relating to retired pay for non-regular service).
(g) Other contributions. The Fund shall be authorized to receive by gift, grant, devise or bequest, any money or property, real, personal or mixed, in trust for the benefit of the Fund. The trustee of the Fund shall be subject to such directions not inconsistent with this Plan as the donors of such funds and property may prescribe.
(Ord. 839, passed 5-17-2006; Ord. 903, passed 6-27-2012)