As used in this part, the following words and phrases, unless a different meaning is plainly required by the context, shall have the following respective meanings:
AVERAGE ANNUAL PAY — The amount which would constitute the highest average annual compensation which the member earned during any five calendar years of his service for the City, or which would be determined by the rate of the monthly pay of such member at the date of retirement, whichever is the higher. With respect to members hired after December 31, 2011, "average annual pay" means the member's rate of monthly pay at the date of termination or the highest annual salary during any five years of service. [Amended 9-14-2015 by Ord. No. 47-2015]
BOARD — The Police Pension Fund Association Board to which reference is made in § 62-402.
BOARD ADMINISTRATOR — The position designated by the Board to act on behalf of the Board in matters of day-to-day administration of the plan.
CITY — The City of Reading, Pennsylvania.
CODE — The United States Internal Revenue Code, as amended, including reference, where applicable, to regulations and other guidance issued by the United States Department of Treasury and the Commissioner of the Internal Revenue Service.
COMPENSATION — Pickup contributions plus remuneration received as a City employee excluding refunds for expenses, contingency and accountable expense allowances and excluding severance payments or payments for unused vacation or unused sick leave or comp time that is paid upon termination. Compensation includes amounts excluded from income pursuant to a member's election under a cash or deferred compensation arrangement described in Sections 401(k) of the Code, an eligible deferred compensation plan described in Section 457(b) of the Code, a cafeteria plan described in Section 125 of the Code, and, effective January 1, 1998, a qualified transportation fringe benefit plan under Section 132(f) of the Code. Notwithstanding the preceding, the annual compensation of a member shall be limited as set forth in Section 401(a)(17) of the Code [as adjusted annually pursuant to section 401(a)(17)(B) of the Code and announcement by the Internal Revenue Service; for 2011, $245,000]. Compensation for any prior year shall be subject to the limitations set forth in Appendix A, A-1.
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If compensation for any prior determination period is taken into account in determining a member's benefits for the current year, the compensation for such prior determination period is subject to the applicable annual compensation limit in effect for that prior period.
DROP — Deferred Retirement Option Plan.
DROP ACCOUNT — Separate account created to accept a DROP member's monthly pension check while an employee is a DROP member.
EMPLOYEE — A person in the service of the City as a member of the police force.
FUND — The Police Pension Fund, which shall hold the assets of the plan in trust.
MEMBER — A current or former employee who has made or makes required contributions under the plan.
MILITARY SERVICE — Honorable active service in the uniformed services listed below is considered military service for pension purposes: Navy; Air Force; Marine Corps; Coast Guard; Reserve Corps.
NEW EMPLOYEE — An employee who enters the service of the City on or after January 1,1977.
NEW MEMBER — An employee who is a member of the retirement system on or after January 1, 1977.
PENSION BENEFITS — The financial allowances provided to members pursuant to the provisions of this part.
PERSON — An officer or employee of the City. PLAN — The City of Reading Police Pension Plan.
PRESENT EMPLOYEE — An employee in the service of the City prior to January 1,1997.
PRESENT MEMBER — An employee who is a member of the retirement system prior to January 1, 1977.
QUALIFIED MILITARY SERVICE — Any service in the uniformed services (as defined in Chapter 3 of Title 38, United States Code), by any individual if such individual is entitled to reemployment rights under such chapter with respect to such service.
RATE OF MONTHLY PAY — One-twelfth of the base pay as set forth in the salary ordinance, in effect as of date of retirement, adopted pursuant to a collective bargaining agreement and/or Act 111 arbitration, plus 1/12 of longevity pay plus 1/12 of holiday pay the member is entitled to for the calendar year.
SALARY — The base pay as set forth in the salary ordinance adopted pursuant to a collective bargaining agreement and/or Act 111 arbitration and shall not include any other compensation subject to the limits on compensation set forth in Section 401(a)(17) of the Code. With respect to members hired after December 31, 2011, "salary" means the fixed amount of compensation paid at regular, periodic intervals by the City to the member and from which pension contributions have been deducted. [Amended 9-14-2015 by Ord. No. 47-2015]
SPOUSE — The spouse of a member, as determined under law of the Commonwealth of Pennsylvania. Effective for designations made after December 31, 2006, a member may designate his/her spouse to be the beneficiary of the member's pension, regardless of the date of the marriage.
YEARS ON RETIREMENT — The number of whole years that a police officer has been retired as of January 1, 2001.
YEARS OR WHOLE YEARS OF SERVICE — For the purposes of computing the period of time during which a member has been employed by the City, each whole twelve-month period commencing from the date of employment of a member.
11. Editor's Note: Appendix A is included at the end of this chapter.