(a) The Borough of Swarthmore shall contribute all of the payments made by the State Treasurer to the Treasurer of the Borough from the moneys received from taxes paid upon premiums by foreign casualty insurance companies for purposes of pension, retirement or disability benefits for policemen which shall be used as follows:
(1) To reduce the unfunded liability; or
(2) After such liability has been funded, to apply against the annual obligation of the Borough for future service and disability reserve costs.
(b) Effective January 1, 1984, participants shall contribute 5% of their monthly compensation to the Police Pension Fund, or such rate as is hereinafter set by resolution of the Borough Council.
(Adopting Ordinance)
(c) The monthly compensation of a participant means all salary, wages and other scheduled compensation, including all overtime pay, but specifically excludes amounts contributed by the employer to any public or private employee pension, insurance or welfare benefit plan (including this Plan as herein set forth or as subsequently amended) or to any profit-sharing plan, or any other form of nonrecurring or non-fixed compensation including severance payments.
(Ord. 888. Passed 3-8-93; Ord. 1042. Passed 4-11-11.)
(d) Interest shall be accumulated and credited to participants' contributions at the rate of 6% or such rate as is hereinafter set by resolution of the Borough Council after having received the fund earnings from the Pension Committee.
(e) Interest shall be computed at the end of the Fund year, beginning December 31, 1984, and shall be credited to the contributor's account.
(f) Any police employee who, for any reason whatsoever, shall be unable to receive a pension after having contributed any charge to the Fund established pursuant to the provisions of this chapter shall be entitled to a refund of all such monies paid to him or her into such Fund, with such interest as may be credited to the employee's account based on an annual evaluation by Council of the performance of the Fund, within one month after discontinuance of his or her employment in the Borough. The surviving spouse of a member of the police force who dies before his or her pension is vested or if no spouse survives or if he or she survives and subsequently dies, the child or children under the age of eighteen years, or, if attending college, under or attaining the age of twenty-three years, of the member of the police force shall be entitled to receive repayment of all money which the member invested in the Pension Fund plus interest or other increases in value of the member’s investment in the Pension Fund, unless the member has designated another beneficiary for that purpose.
(Ord. 1003. Passed 6-12-06.)