(A) Upon retirement, a police employee shall receive a monthly pension equal to one-half of his or her average monthly salary for the last 36 months of employment prior to his or her retirement.
(B) The term SALARY as used in this section and in this subchapter shall mean all compensation for which payroll deductions have been required and withheld for payment in to the Fund. SALARY shall include wages, holiday pay, longevity pay, overtime pay, Heart and Lung Act pay, and any other remuneration earned over the same period. Only accumulated paid leave earned during the measuring period for calculating a member’s pension benefit (e.g., last 36 months of employment) and paid as a lump sum at retirement shall be included as part of the paid compensation for calculating the monthly retirement benefit. Any paid leave used by the member during this period shall be deemed to have come from the member’s accumulated unused leave as opposed to his or her yearly allocation. To this end, unused leave earned during the measuring period shall have been deemed to have replaced the equivalent portion of existing accumulated paid leave.
(C) The borough hereby establishes length of service increments for years of service beyond 25 years for each completed year of service in excess of 25 years at a rate of $80 per month up to a maximum of $450 per month. Such length of service increments shall be paid in addition to other monthly pension or retirement allowances.
(D) The Fund hereby provides for a cost of living increase for members of the police force receiving retirement benefits; provided, however, that such cost of living increase shall not exceed the percentage increase in the Consumer Price Index from the year in which the police member has worked; and, provided further, that the total cost of living increase shall not exceed 30%. No cost of living increase shall be granted which would impair the actuarial soundness of the Pension Fund.
(Prior Code, Ch. 1, Pt. 6, § 607) (Ord. 2-2001, passed 7-2-2001; Ord. 2015-02, passed 3-2-2015)