1. Normal Retirement Date. Each participant shall be entitled to normal retirement benefits provided he retires on or after his normal retirement date, which shall be the earlier of the date set forth in (A) or (B):
A. The later of:
(1) The date when he has completed 25 years of aggregate service with the employer; and
(2) He has attained the age of 55 years (or if an actuarial study of the cost shows that such reduction in age is feasible, such age may be set at 50); or
B. In the case of an employee hired prior to December 21, 1965, the later of the date when:
(1) He has completed 20 years of aggregate service with the employer; and
(2) He has attained the age of 60 years (or 55 years if such age had been so fixed by ordinance or resolution prior to December 21, 1965, and he is currently employed by the employer).
2. Normal Retirement Benefit.
A. Each participant entitled to normal retirement benefits pursuant to subsection (1), above, shall receive during his lifetime a monthly retirement income which shall be equal to 1/2 of his final monthly average salary.
Provided, however, that payment of benefits upon retirement shall be conditioned upon a participant's being subject to service from time to time as a police reserve in cases of riot, tumult or preservation of the public peace until unfitted for such service, at which time such participant shall be finally discharged by reason of age or disability upon written notice from the Board.
B. Such pension or retirement benefits for any month shall be computed as the sum of:
(1) Any pension benefits from pension plans heretofore established by a private organization or association for the members of the police force but only to the extent that the Commonwealth or the employer shall have contributed to such pension plan monies raised by taxation;
(2) If positions covered by the plan are included in an agreement under the Federal Social Security Act, up to 75% of a participant's full Social Security old-age insurance benefit calculated in accordance with the provisions of the Federal Social Security Act in effect on the date of his termination of employment, except that such amount shall be included only upon attainment of the age at which the employee would be eligible to receive full Social Security old-age insurance benefits, and, in determining such eligibility and such amounts, only compensation for services actually rendered by the employee and covered by the plan shall be included; and
(3) Benefits from the plan to the extent necessary to bring the total benefits in any month up to the amount set forth in subsection (1), above.
Provided, however, that any participant who receives benefits from the plan and who is also entitled to receive Social Security old-age insurance benefits shall not, regardless of when the participant retired from active service, have his pension or retirement benefit offset or reduced by more than 75% of the Social Security old-age insurance benefits which he receives.
C. The percentage of such Social Security offset to be applied under this plan shall be set forth in Part V-1 of the Joinder.
D. If the employer or the Commonwealth shall have contributed monies raised by taxation to a pension plan established by a private organization or association for the members of the police force, the pension benefits to be taken into account under subsection (1) of this Section shall be that portion of the total pension benefits payable under subsection (1) as the assets attributable to contributions or monies raised by taxation bears to the total assets of the pension fund.
3. Optional Service Increment Benefits. If elected by the employer in Part V-2 of the Joinder, in addition to the pension benefit provided in subsection (2), above, for a participant retiring on or after the date set forth in Part V-2(B) of the Joinder an additional service increment benefit shall be payable to such participant if he has completed more than 25 years of aggregate service with the employer. The increment shall be equal to the monthly dollar amount set forth in Part V-2(A) of the Joinder, for each year of the participant's service in excess of 25; provided, however, in no case shall such increment exceed $100 per month.
4. Optional Cost-of-Living Increases. If elected by the employer in Part V-3(A) of the Joinder, for those participants specified in Part V-3(c), who have retired and are receiving normal retirement benefits pursuant to subsection (2), above, a cost-of-living adjustment shall be made to the pension benefit payable to such participant; this adjustment shall apply to the regular pension amount set forth in subsection (2), and, if elected, to the service increment amount set forth in subsection (3). The amount of such cost-of-living increase shall be specified in Part V-3(B) of the Joinder, along with any special conditions or requirements associated with such cost-of-living increase.
Provided, however, that such cost-of-living increase shall not exceed the percentage increase in the Consumer Price Index (as specified in the Joinder) from the year in which the participant was last employed by the employer. Provided further, that in no case shall the total pension benefit payable under this plan, exceed 75% of the participant's final monthly average salary; and, further provided, that the total cost-of-living increase applied to a participant's retirement benefit shall not exceed 30%. No cost-of-living increase shall be granted hereunder, if such increase would impair the actuarial soundness of the plan.
5. Late Retirement. A participant may continue to work beyond his normal retirement date subject to the employer's rules and regulations regarding retirement age. If a participant who has met the requirements of subsection (1) shall continue to work beyond his normal retirement date, there shall be no retirement benefits paid until his employment ceases and retirement begins.
6. Payment of Benefits. Retirement payments shall be made monthly as of the first day of each month. The first installment of any retirement benefit payable to a participant shall be payable on the first day of the month next following the retirement date.
7. Required Distributions.
A. Notwithstanding any other provision of this plan, the entire benefit of any participant who becomes entitled to benefits prior to his death shall be distributed either:
(1) Not later than the required beginning date, or
(2) Over a period beginning not later than the required beginning date and extending over the life of such participant or over the lives of such participant and a designated beneficiary (or over a period not extending beyond the life expectancy of such participant, or the joint life expectancies of such participant and a designated beneficiary).
If a participant who is entitled to benefits under this plan dies prior to the date when his entire interest has been distributed to him after distribution of his benefits has begun in accordance with subsection (2) of this subsection, the remaining portion of such benefit shall be distributed at least as rapidly as under the method of distribution being used under subsection (2) of this subsection as of the date of his death.
B. If a participant who is entitled to benefits under this plan dies before distribution of his benefit has begun, the entire interest of such employee shall be distributed within 5 years of the death of such employee, unless the following sentence is applicable. If any portion of the employee’s interest is payable to (or for the benefit of) a designated beneficiary, such portion shall be distributed over the life of such designated beneficiary (or over a period not extending beyond the life expectancy of such beneficiary), and such distributions begin not later than 1 year after the date of the employee’s death or such later date as provided by regulations issued by the Secretary of the Treasury, then for purposes of the 5-year rule set forth in the preceding sentence, the benefit payable to the beneficiary shall be treated as distributed on the date on which such distributions begin. Provided, however, that notwithstanding the preceding sentence, if the designated beneficiary is the surviving spouse of the participant, then the date on which distributions are required to begin shall not be earlier than the date upon which the employee would have attained age 70½ and, further provided, if the surviving spouse dies before the distributions to such spouse begin, this subsection shall be applied as if the surviving spouse were the employee.
C. For purposes of this Section, the following definitions and procedures shall apply:
(1) “Required beginning date” shall mean April 1 of the calendar year following the later of:
(a) The calendar year in which the employee attains age 70½; or,
(b) The calendar year in which the employee retires.
(2) The phrase “designated beneficiary” shall mean any individual designated by the employee under this plan according to its rules.
(3) Any amount paid to a child shall be treated as if it had been paid to the surviving spouse if such amount will become payable to the surviving spouse upon such child’s reaching majority (or other designated event permitted under regulations issued by the Secretary of the Treasury).
(4) For purposes of this Section, the life expectancy of an employee and/or the employee’s spouse (other than in the case of a life annuity) may be redetermined but not more frequently than annually.
8. Killed-in-Service Death Benefit and Survivor Benefit.
Killed-in-Service Death Benefit. If an active participant is killed on or after April 17, 2002, while performing police services for the employer, the participant’s surviving spouse or dependent child (or children, if any) shall receive a monthly benefit equal to 100% of the participant’s monthly salary at the time of death. The term payable to any child (or children) of the participant shall include those who are under the age of 18 or, if attending college, who are under or attaining the age of 23. For this purpose, attending college shall mean being registered at an accredited institution of higher learning and carrying a minimum course load of 7 credit hours per semester. In the case of multiple eligible children, the benefit payable shall be divided equally among the children. Payment shall cease upon the earlier of death or the attainment of age 18 (or under or attaining the age of 23, if attending college). Child shall include adopted child of the participant.
The participant’s spouse cannot waive receipt of this benefit. In the case of an unmarried participant who has no children under the age of 18 (or under or attaining age 23, if attending college), no death benefit shall be payable under this Section.
[Ord. 276]
(Ord. 253, 2/3/1997, Master Trust Document, Art. V; as amended by Ord. 276, 5/7/2007, §I)