Article 163 POLICE PENSION FUND

Pursuant to the provisions of the Act of June 23, 1931, P.L. 932, as amended, the city created a police pension and retirement fund, which is known and designated as the police pension fund, and is hereafter referred to in this article as the “fund.” On February 10, 1968, pursuant to proceedings lawfully taken under and pursuant to the Act of July 15, 1957, P.L. 901, No. 399, as amended, the Optional Third Class City Charter Law, the City of Meadville became an optional charter city operating as a council-manager form of government. Since February 10, 1968, the fund has been maintained, administered, and continuously operated as a pension fund of the city as an optional charter city under and pursuant to the terms of the Act of July 15, 1957, P.L. 901, No. 399, as amended. (Ord. 3637 § 1, 2006; Ord. 3602 § 1, 2004; Ord. 2242 § 1, 1949)

163.02 Monthly retirement contribution by policemen – Exception for leave of absence – Partial refund of contribution.

(A) Except as has heretofore (and may hereafter from time to time be) otherwise provided in an applicable labor relations agreement approved by city council of the City of Meadville, no participant contributions shall be required to be made in 2000, 2001, 2002, or 2003. In each year thereafter, contributions by the fund members employed in the city police department will be set at zero, unless according to an annual study performed by the actuary selected by the city, participant contributions are necessary to ensure that no contributions from the city’s general fund are required to keep the fund actuarially sound or otherwise required pursuant to state law, including for this purpose the Third Class City Code. If contributions are required pursuant to the previous sentence, participant contributions will be set at the percent of compensation necessary to ensure no contributions from the city’s general fund are necessary to the fund. No participant contributions shall be required that shall be in excess of the Third Class City Code, 53 P.S. Section 39301, et seq. In the above determination by the actuary as to whether or not member contributions to the fund are necessary, there shall be allocated to the fund the general municipal pension systems unit credit state aid attributable to the police officers and received by the city as a result of the financial requirements of the fund pursuant to the provisions of Act 205, 53 P.S. Section 895.101, et seq. The above allocation formula shall not be binding on the city in its actual split of general municipal pension system state aid between pension plans.

(B) The payment of the monthly sum or contribution hereinbefore provided for shall cease and determine at the time the member receives the pension hereinafter provided for.

(C) Any member of the association who has been granted a leave of absence from the city police department by council shall be excused from any contribution to the fund during such leave of absence. The leave of absence shall not interrupt continuity of service with such member nor shall such leave of absence be deducted from the years of service of the member. Any leave of absence shall not be granted for a period exceeding one year, except in the case of a member being granted such leave of absence to engage in military service during war or time of emergency.

(D) Any and all accumulated contributions made by each member of the association, who are employees on the payroll as of January 1, 2000, into the fund since 1990, and not already withdrawn or paid out, shall be returned to each contributing member plus six percent interest to the extent permitted by law by August 11, 2000. (Ord. 3605 § 1, 2004; Ord. 3567 § 1, 2000; Ord. 3448 § 1, 1996; Ord. 3438 § 1, 1996; Ord. 2821-A § 1, 1973; Ord. 2750 §§ 1, 2, 3, 1970)

163.03 Gifts, bequests or donations for fund.

All gifts, testimonials and emoluments that may be presented, paid or given to any member of the association on account of police services, except compensation received for special detail work, and all bequests, legacies, gifts or donations made to the fund or to anyone in trust for the benefit of the fund, shall become and be a part of such fund. (Ord. 2242 § 3, 1949)

163.04 Annual appropriation by council for fund.

Council shall annually set aside and appropriate to the fund a sum of money sufficient to meet the requirements of and to maintain such fund which sum in no year shall be less than one-half percent of all city taxes levied by the city, other than taxes levied to pay interest on or extinguish the debt of the city or any part thereof. (Ord. 2750 § 4, 1970)

163.05 Fund for benefit of association members only.

The fund shall be maintained, directed, applied and distributed only pursuant to the provisions herein contained and the regulations adopted pursuant thereto for the benefit only of the members of the association herein created. (Ord. 2242 § 5, 1949)

163.06 Fund control by police pension board – Composition, term and vacancy.

The police pension fund shall be under the care, direction, control and administration of a police pension board (hereinafter referred to as “the board”), which shall consist of the following city officers: the mayor, city manager, city controller, finance director and the chief of police, all of whose membership on such board shall be concurrent with their tenure of office, and two members of the police department to be chosen by the members of the association. Of the first members of the board so chosen by members of the association, one shall be chosen for a term of two years and one for a term of four years. Biannually thereafter, one member shall be chosen for a term of four years to take the place of the member whose term expires. In case of a vacancy on the board, exceeding one month by reason of one or more of the above-named city offices not being filled, council shall fill such vacancy by the appointment of another city officer to fill the unexpired term of the office so vacant, except in the case of a vacancy on the board with respect to the offices held by one or both of the two members of the police department, the chief of police shall hold an election of the members of the association to fill the unexpired term of the office so vacated. The members of the board shall serve without compensation, but shall be reimbursed from the fund for any necessary expenditures. (Ord. 2750 § 5, 1970)

163.07 Board records, meetings and procedure.

The board shall keep full and accurate accounts of all its transactions. It shall have full power to make rules for the transaction of its business, application of its funds, its time and place of meeting, etc., subject to the special provisions and regulations contained in this article. The board shall meet at least once every three months at a stated time, or at such times as it by resolution may designate, or upon call of the president, for the transaction of such business as may properly come before it. Special meetings shall also be called by the president at any time upon the written request of a majority of the board or 51 percent of the association. At least 10 days’ written notice shall be given to each member of the board of the time and place of the annual or any special meeting. Notice of a special meeting shall state briefly the special business to come before the meeting and only the business so stated shall be considered at such meeting. A quorum shall consist of four members for the transaction of business. (Ord. 2242 § 7, 1949)

163.08 Surety bond for board treasurer – Premium payment.

The city treasurer shall give a surety bond to the city for the faithful performance of his duties, in a sum to be set by the board, the premium on such bond to be paid from the fund. (Ord. 2242 § 8, 1949)

163.09 Annual report of board to council and association.

The board shall make an annual report to council and to the association on the second Tuesday of February in each year of all receipts and disbursements of the fund and such other matters as should properly be embodied in such report. (Ord. 2242 § 9, 1949)

163.10 Investments authorized – Mortgage limitations.

The board is authorized to invest any money accumulated in the fund in such investments as are authorized under and pursuant to the laws of the commonwealth of Pennsylvania for fiduciaries; including mortgages of one or more individuals or corporations, securing bonds or other obligations; such mortgages shall be a first lien upon improved real estate within this commonwealth, including improved farm lands, and shall not exceed two-thirds of the fair value of such real estate. Such mortgage shall be payable not more than five years after the date thereof, or the date of any renewal or extension thereof, or it shall be amortized in installments totaling in each year not less than three percent per annum of the face amount of the bond or other obligation secured thereby, over a period not exceeding 20 years from the date thereof, or the date of any renewal or extension thereof. (Ord. 2307 § 1, 1952)

163.11 Creation of association – Eligibility for membership.

(A) An association is hereby created which shall be known and designated as the police pension fund association, hereinafter referred to as the association.

(B) The membership of the association shall consist of all persons now regularly appointed or now employed by the city as policemen, detectives, sergeants and chiefs, and such persons hereinafter employed as policemen, detectives, sergeants or chiefs, who shall, within 30 days of the enactment of this section (August 4, 1970) or within 30 days following their appointment elect in writing to accept the provisions hereof and file application for membership in the association. However, no person hereafter employed as a policeman, detective, sergeant or chief who is over the age of 40 years shall be admitted to membership in the association, and no clerk or other person shall be eligible for membership in the association unless he is a member of the city police department, has been appointed as a patrolman, detective, sergeant or chief and has first passed the physical tests required for appointment as patrolman, or such physical tests as may from time to time be prescribed by the board.

(C) Each policeman, detective, sergeant or chief who files an application within the period of 30 days as provided for in subsection (B) of this section shall automatically be admitted to membership. Each policeman, detective, sergeant or chief who fails to file an application within such period of 30 days shall be admitted to membership only by a majority vote of the members of the association. (Ord. 2750 §§ 6, 7, 1970; Ord. 2242 § 11, 1949)

163.12 Duties of association members.

The members of the association, subject to the limitations of this article and of law, shall:

(A) Establish rules and regulations for the administration and transaction of its business;

(B) Elect officers in accordance with established rules and regulations to represent the association;

(C) Certify to the board annually a list of the members in good standing, the amount of wages and salaries paid to each member in the city police department, together with a list of members of the association who, during such year, were dismissed, resigned or terminated their service and the date thereof; and

(D) Furnish to the board, upon request, such information relative to the subject of this article as the board shall require. (Ord. 2242 § 12, 1949)

163.13 Expulsion from association membership.

A member of the association may be expelled from membership and be deprived of the right of participation in the fund by a two-thirds vote of the association membership for failure to comply with any of the provisions of this article or any general regulation adopted pursuant thereto relating to the management of the fund, or the transaction of the business of the association. No member shall be expelled pursuant to this section without due notice and a full hearing at which he shall be afforded the opportunity to present witnesses and be represented by counsel, if he so desires. (Ord. 2242 § 13 1949)

163.14 Qualifications to retire on pension – Vesting.

(A) Any member of the association in good standing who has served in the city police department for 20 years prior to the adoption of this section (August 4, 1970), or who has rendered 20 years’ continuous service and in each instance has reached 50 years of age may be retired at his own request on a pension. The pension shall date from the time the member shall have filed his application with the board.

(B) Effective for police officers who terminate employment on or after January 1, 1996, a limited vested benefit shall be available pursuant to the Third Class City Code, 53 P.S. Section 39302.1. As such, should a member of the police pension and retirement fund (“fund”), before completing the minimum age and minimum period of continuous service requirements but after having completed 12 years of full-time service with the City of Meadville police department (“service”), the member shall be entitled to vest his pension benefit subject to the following conditions:

(1) The member must file with the police pension board (“board”) of the fund a written notice of his or her intention to vest;

(2) The member must include in the notice the date the member intends to terminate his or her service;

(3) The termination date shall be at least 30 days later than the date of notice to vest;

(4) The member must be in good standing with the police department on the date of notice to vest; and

(5) The board shall indicate on the notice to vest the rate of the monthly pay of the member as of the date of said notice to vest or the highest average annual salary which the member received during any five years of service preceding said date, whichever is the higher.

(C) Upon reaching the date which would have been the member’s retirement date had the member continued his full-time employment with the police department, the member shall notify the board, in writing, that the member desires to collect his or her pension. The amount of retirement benefits the member is entitled to receive pursuant to this provision shall be computed as follows:

(1) The initial determination of the member’s base retirement benefits shall be computed on the salary or pay indicated on the notice to vest; and

(2) The portion of the base retirement benefit due the member shall be determined by applying to the base amount the percentage that his or her years of service actually rendered bears to 20. Notwithstanding anything contained herein to the contrary, in no event shall the percentage exceed 100 percent.

(D) Purchase of Prior Military Service. Any member of the fund who served in the armed forces of the United States subsequent to September 1, 1940, and who was not a member of the fund prior to such military service, shall be entitled to have full credit for each year, or fraction thereof, not to exceed five years of such service upon his payment to the police pension fund of an amount equal to that which he would have paid had he been a member during the period for which he desires credit, and his payment to such fund for an additional amount as the equivalent of the contribution of the city on account of such military service. The above amounts to be paid by the member shall be determined by the methodology customarily utilized by the city.

(E) Unused accumulated sick leave for which the member does not receive compensation may be credited as continuous service for purposes of calculating years of service under the fund at a rate of one hour of continuous service for every two hours of unused accumulated sick leave up to a maximum credit of 448 hours. (Ord. 3688 § 1, 2011; Ord. 3658 §§ 1, 2, 2008; Ord. 3448 § 2, 1996; Ord. 3438 § 2, 1996; Ord. 2750 § 8, 1970)

163.15 Mandatory retirement at age 65 – Contract exception by council.

Council in its sole discretion may require any member of the association who has at least 20 years’ service and who has attained the age of 55 years to be retired by the board on a pension, to date from the time such member is mandatorily retired by council. However, in every case, any member of the association, who is regularly employed by the city police department and has reached the age of 65 years, shall be honorably discharged and retired by the board on a pension, to date from the time such member attains the age of 65 years. However, any chief, superintendent, captain or lieutenant, after reaching such age, may continue as a member of the city police department provided a contract of employment is entered into between such officer and council. In such case the officer shall not be granted a pension until the contract has expired. (Ord. 2750 § 9, 1970)

163.16 Pension for service-incurred disability – Reinstatement.

Any active member of the city police department and a member of the association who has become permanently disabled may, upon his application, be placed upon the retired list, if in the opinion of the board, and in the opinion of two reputable physicians (one to be selected by the board and the other by the applicant, and in the case of a dispute a third physician to be selected by the board) who shall make a physical examination and file their opinion in writing with the board, the applicant is physically or mentally incapacitated through injury received by reason of the performance of his duty as a policeman or detective. However, the board shall have the authority to order subsequent examination from time to time, but not more often than 60 days, by physicians chosen in the same manner as set forth above, to ascertain if the disability of the pensioner has been moved and if it has, the board shall terminate the pension and the pensioner shall be reinstated as an active member of the police department with the same rank and rating that he had upon retirement. If reinstated the pensioner shall file with the board a release duly executed and acknowledged of any right or claim to the pension during the period which he shall serve after such retirement. The fees of the first two physicians shall be paid by the board and the fees of the third physician, if necessary, shall be paid by the applicant. (Ord. 2242 § 16, 1949)

163.17 Pension computation – Cost of living adjustment– Not subject to attachment or assignment.

(A) The pension that shall be paid to all pensioned or retired members of the association shall be determined and computed by the rate of the monthly pay of the member at the date of injury, death, honorable discharge or retirement, or the highest average annual salary which the member received during any five years of service preceding injury, death, honorable discharge or retirement, whichever is higher. Except as to service increments as herein provided, for any member of the association who retires on or after January 1, 2000, the pension shall not in any case exceed in any year 60 percent of the annual pay of such member computed at such monthly or average annual rate, whichever is higher. Effective January 1, 1998, the minimum monthly pension allowance for all retirees will be $500.00 per month.

(B) Any represented employee who first receives pension payments after January 1, 1998, by reason of injury, death, honorable discharge, vesting under 53 P.S. Section 39302.1 or retirement shall at the completion of the third year after actual payment of that employee’s pension allowance is first due and payable receive an annual cost of living adjustment in the amount of two percent of the pension actually paid to such employee in the prior year including any cost of living adjustment paid in such prior year, if any. Cost of living adjustments to an individual pension payments shall be made on the annual anniversary of the month in which each employee first received payment of benefits from the pension fund. Qualified employees shall continue to receive the applicable cost of living adjustments provided by this section for so long as the city’s police pension plan is, in the opinion of a qualified actuary selected by the city, able to make such payments without contribution of any funds by the city other than the funds received by the city from the commonwealth of Pennsylvania as a result of police participation in the police pension plan.

(C) Beginning in the year 2001, all retirees, spouses or dependents receiving pension allowances before January 1, 1998, shall receive an annual cost of living adjustment in the amount of two percent of the pension paid to such employees in the prior year; provided, that an annual study performed by the actuary selected by the city determines that the fund can make such annual cost of living allowance payments and remain actuarially sound without any contribution to the fund by the city. The cost of living provision shall continue to be subject to the availability of funding, and is to be implemented at the sole discretion of the city. Cost of living adjustments to individual pension payments shall be made on the annual anniversary of the month in which each employee first received payment of benefits from the pension fund.

(D) The pension shall be paid in addition to any workmen’s compensation or benefits which the member shall receive by reason of disability.

(E) The pension herein provided for shall not be subject to attachment or execution, and shall be payable only to the beneficiary designated and shall not be subject to assignment or transfer. (Ord. 3567 § 2, 2000; Ord. 3509 § 1, 1998; Ord. 2750 § 10, 1970)

163.18 Refund of contributions to widow, children or estate.

(A) If a member of the association contributing to the fund shall be dismissed from the city police department, or for any other reason ceases to be a member of the department before he becomes entitled to a pension hereunder, the total amount of the contributions paid into the fund by such member shall, upon his request, be refunded in full, without interest.

(B) In the event of the death of a member of the association before he becomes entitled to the pension herein provided for, the total of the contributions paid into the fund by such member shall be paid, without interest, to the widow of such member, if living, otherwise to his children, otherwise to his estate.

(C) In the event of the death of a member of the association or in the event of the death of the widow or the death of the children of a member, while receiving a pension hereunder, but before the amount of pension received shall equal the total amount of contributions paid into the fund by the member on his behalf, the difference between the amount of pension paid to the member or to the widow or to the children of the member, and the amount contributed to the fund by the deceased member shall be paid without interest to his widow, if living, otherwise to his children, otherwise to his estate, as the case may be. (Ord. 2750 § 11, 1970; Ord. 2242 § 18, 1949)

163.19 Pension benefit payments chargeable only to pension fund.

Payments for pension and allowance hereunder shall not be a charge on any other fund of the city treasurer or of any fund under its control, except the fund as provided for herein. (Ord. 2242 § 19, 1949)

163.20 Service increment payments chargeable only to pension fund – Maximum pension allowance.

Payments for service increment allowances shall not be a charge on any other fund of the city treasury or any fund under its control except the police pension fund herein provided for. The basis of the apportionment of the pension shall be determined by the provisions of this article as amended, and, except as to service increments provided herein, the apportionment of the pension shall not in any case exceed in any one year one-half the annual pay of members computed at the monthly rate. (Ord. 2750 § 13, 1970)

163.21 Service increment allowance additional to retirement.

In addition to the retirement allowance which is authorized to be paid from the police pension fund by this article, and notwithstanding the limitations therein placed upon such retirement allowances and upon contributions, every contributor who shall become entitled to the retirement allowance shall also be entitled to the payment of a service increment in accordance with and subject to the conditions hereinafter set forth. (Ord. 2750 § 13, 1970)

163.22 Computation of and maximum service increment allowance.

Service increment shall be the sum obtained by computing the number of whole years after having served the minimum 20-year service during which a contributor has been employed by the city and paid out to the city treasury, in multiplying the number of years so computed by an amount equal to one-fortieth of the retirement allowance which has become payable to such contributor in accordance with the provisions of this article. In arriving at the minimum 20-years service, credit shall be given a contributor for service in the Armed Forces of the United States subsequent to September 1, 1940, provided the contributors were not members of the police pension fund prior to such military service, such credit not to exceed five years of service. In computing the service increments, no employment after the contributor has reached the age of 65 years shall be included, and no service increment shall be paid in excess of $100.00 per month. (Ord. 2871 § 1, 1975)

163.23 Monthly service increment contribution – Limitations.

Each contributor shall pay into the retirement fund a monthly sum in addition to his retirement contribution, which shall be equal to one-half percent of his salary. However, such payments shall not exceed $1.00 per month and such service increment contribution shall not be paid after a contributor has reached the age of 65 years. (Ord. 2750 § 13, 1970)

163.24 Computation of service increment allowances.

Persons who are contributors on the effective date of this amendment (July 13, 1954), who have already reached the age of 65 years, shall have his service increment computed on the years of employment prior to the date of reaching his 65th birthday. (Ord. 2750 § 13, 1970)

163.25 Payment and refund of service increment contributions.

Service increment contributions shall be paid at the same time and in the same manner as retirement contributions, and may be withdrawn in full, without interest, by persons who leave the employment of the city, subject to the same conditions by which the basic retirement contributions may be withdrawn under this article. (Ord. 2750 § 13, 1970)

163.26 Pension fund contributions subject to service increment provisions.

All members of the police department who are now contributors to the retirement fund and all those employed by the city after July 13, 1954, if required to become contributors to the retirement fund, shall be subject to the service increment provisions of this article. (Ord. 2750 § 13, 1970)

163.27 Back contributors for service increment allowances.

Each contributor who is presently employed as a member of the city police department and who was so employed on January 1, 1952, or who has been employed since that date, shall be required to make a contribution to the fund in accordance with the rates and terms specified in MMC 163.23. However, such payment shall be made retroactively from January 1, 1952, or from the date of employment as the case may be. (Ord. 2750 § 13, 1970)

163.28 Retirees eligible for service increment allowance upon payment of contributions.

Any contributor who has been retired since January 1, 1952, and who is eligible to receive payment of a service increment in accordance with the terms hereof, shall be entitled to receive such increment allowance upon payment of the required contribution for the period served between January 1, 1952, and his date of retirement. (Ord. 2750 § 13, 1970)

163.29 Monthly contributions for widows or orphans – Payment and refund.

From and after July 1, 1966, each member of the police pension fund association shall contribute one percent of his monthly wage or salary for the purpose of providing a pension for widows or orphans of such members as set forth below. This contribution shall be in addition to contributions for basic pensioning and servicing as heretofore provided in this article. This additional contribution shall be paid at the same time and in the same manner as retirement contributions, and may be withdrawn in full, without interest, for persons who leave the employment of the city, subject to the same conditions by which the basic retirement contribution may be withdrawn under this article. (Ord. 2821-A § 2, 1973)

163.30 Allowances for widows or orphans – Eligibility and termination.

From and after December 12, 1994, the widow of a member of the police department or a member who retires on pension and who dies, or if no widow survives or if she survives and subsequently dies, then the child or children under the age of 18 years of a member of the police department or a member who retires on pension and who dies on or after December 12, 1994, shall, during her lifetime in the case of a widow, or until reaching the age of 18 years in the case of a child or children, be entitled to receive the pension the member of the police department was receiving or would have been receiving had he been retired at the time of his death. (Ord. 3474 § 1, 1997; Ord. 2871 § 1, 1975)

163.31 Pension fund contributors subject to widows and orphans provisions.

All members of the police department who are now contributing to the retirement fund and all those employed by the city after July 1, 1966, if required to become contributors to the retirement fund, shall be subject to the widows and orphans provisions of this article. (Ord. 2750 § 14, 1970)

163.32 First paid workday as effective date for commencing accrued time.

For the purposes of determining the effective date that a police officer shall commence to accrue time towards pension eligibility hereunder, it is hereby ordained that the first day such officer actually worked and was paid by the city shall be the effective date of commencing employment hereunder and that the probationary period, after final acceptance by the city, shall be considered as accrued time for pension purposes hereunder. (Ord. 2750 § 14, 1970)

163.32-1 Benefits for death or total disability not in the line of duty.

(A) Any police officer who has at least two years of service but less than three years of service and who dies or is totally disabled due to injuries or mental incapabilities not in the line of duty and is unable to perform the duties of a police officer shall be entitled to a pension of one-eighth of his annual compensation. For death or injuries not in the line of duty to a member of the police department, not in the line of duty with at least three years of service but less than four years of service, said employee shall be entitled to receive one-quarter of his annual compensation. For death or injuries to a member who has at least four years of service but less than five years of service, said employee shall be entitled to receive three-eights of his annual compensation. For death or injuries received after five years of service, and not in the line of duty, said employee shall be entitled to receive one-half of his annual compensation.

(B) The disability pension shall be payable to the employee during his lifetime, and if he shall die, 50 percent of the pension payment that he was receiving shall continue to be paid to his widow, if she survives, or if she subsequently dies or remarries, then to the child or children under 18 years of age of the police officer. The benefits enumerated in this section shall only apply to otherwise eligible members who have not yet completed 20 years of service and attained age 50. (Ord. 3438 § 3, 1996; Ord. 2821-A § 3, 1973)

163.33 Reserved.

163.34 Repealed.

(Ord. 3180, 1988)

163.35 Increase in retirement benefits of certain defined classes of retirees.

(A) Entitlement to Special Ad Hoc Adjustment. For so long as such adjustments are mandated by state law, retirees who meet the following qualifications shall be entitled to payment of special ad hoc post-retirement pension adjustments from the police pension fund effective January 1, 1989, in accord with the provisions of this section:

(1) The retiree has terminated active employment with the city as police officers;

(2) The retiree is receiving a retirement or disability pension benefit from the city on the basis of active employment with the city as a police officer; and

(3) The retiree began receiving the retirement or disability pension benefits before January 1, 1985.

(B) Amount of Special Ad Hoc Adjustment. The special ad hoc post-retirement adjustment under this section shall be paid to retired police officers as follows:

(1) The sum of $25.00 per month, if on January 1, 1989, the retiree has been retired at least five years but less than 10 years.

(2) The sum of $50.00 per month, if on January 1, 1989, the retiree is totally disabled and has been retired less than 10 years.

(3) The sum of $75.00 per month, if on January 1, 1989, the retiree has been retired at least 10 years but less than 20 years.

(4) The sum of $150.00 per month, if on January 1, 1989, the retiree has been retired at least 20 years.

(C) Payment of Special Ad Hoc Adjustment. The special ad hoc adjustment shall apply to a retiree’s retirement or disability pension benefits payable after December 31, 1988.

(D) Integration with Previous Increases. Increased allowances payable under and pursuant to MMC 163.34 (prior section based on Ordinance No. 3180 of 1988, rendered obsolete by the provisions of this article) shall be integrated with the special ad hoc adjustment payable under this section so that no retiree receives any pension benefit increase or adjustment in any year which exceeds the applicable adjustment required by the terms of subsection (B) of this section. To the extent required by law or by any appropriate authority, any employee entitled to receive any benefit under both MMC 163.34 and this section shall be deemed to receive benefits under this section. (Ord. 3211 § 1, 1989)

163.36 Deferred retirement option program (D.R.O.P.).

(A) Eligibility. Effective July 1, 2000, members of the association may enter into the D.R.O.P. on the first day of any month following completion of 20 years of credited service and age 50.

(B) Written Election. A member of the association electing to participate in the D.R.O.P. must complete and execute the proper forms prepared by the city, which shall evidence the member’s participation in the D.R.O.P. and establish the member’s resignation from employment with the City of Meadville police department effective on a specific date not more than 36 months from the effective date of the D.R.O.P. option. Such forms must be signed by the member and notarized and submitted to the city manager prior to the date on which the member wishes the D.R.O.P. option to be effective. Election in the D.R.O.P. is irrevocable. The D.R.O.P. option notice shall include an irrevocable notice to the city by the member that the member shall resign from employment with the City of Meadville police department effective on a specific date not more than 36 months from the effective date of the D.R.O.P. option.

(C) Limitation and Disqualification for Other Benefits. After the effective date of the D.R.O.P. option, the member shall no longer earn or accrue additional years of continuous service and shall not be eligible for disability or preretirement death benefits.

(D) Benefit Calculation. For all retirement fund purposes, continuous service of a member participating in the D.R.O.P. shall remain as it existed on the effective date of commencement of participation in the D.R.O.P. Service thereafter should not be recognized or used for the calculation or determination of any benefits payable by the retirement fund. The average monthly pay of the member for pension calculation purposes shall remain as they existed on the effective date of commencement of participation in the D.R.O.P. Earnings or increases in earnings thereafter shall not be recognized or used for the calculation or determination of any benefits payable by the retirement fund. The pension benefit payable to the members shall increase only as a result of the cost of living adjustment in effect on the effective date of the member’s participation in the D.R.O.P.

(E) Payments to D.R.O.P. Account. The monthly retirement benefits that would have been payable had the member elected to cease employment and receive a normal retirement benefit upon commencing participation in the D.R.O.P. shall be paid into the member’s deferred retirement option account.

(F) D.R.O.P. Account Earnings. Each member’s deferred retirement option account shall accrue interest at the rate of six percent per annum.

(G) Payout. Upon the termination date set forth in the member’s notice of participation in the D.R.O.P., the retirement benefits payable to the member or the member’s beneficiary, if applicable, shall be paid to the member or beneficiary and shall no longer be paid to the member’s deferred retirement option account. Within 60 days following termination of a member’s employment pursuant to their election of the D.R.O.P. option, the balances in the member’s deferred retirement option account shall be paid to the member in full in a single lump sum payment.

(H) Death. If a D.R.O.P. member dies before the D.R.O.P. account balances are paid, the participant member’s designated beneficiary shall have the same rights as the member.

(I) Amendment. The police pension board can amend the D.R.O.P. at any time. Such amendments shall be consistent with the provisions covering deferred retirement option plans set forth in any applicable collective bargaining agreement and shall be binding upon all future D.R.O.P. participants and upon all D.R.O.P. participants who have balances in their accounts. In addition, this D.R.O.P. shall be amended to conform with any and all applicable laws and regulations. (Ord. 3567 § 3, 2000)

163.37 Transferred participants.

(A) For employee transfers from the City of Meadville fire department to the City of Meadville police department on or after July 1, 2005, an active participant in the City of Meadville firemen’s pension fund (firemen’s pension fund) immediately prior to transfer, who is transferred to the City of Meadville police department and who, as of the date of transfer, is otherwise eligible to participate in the City of Meadville police pension fund (police plan), may, within one year of commencing participation in the police plan, elect to have his years of credited service in the firemen’s pension fund transferred to the police pension plan. Said election shall be made by executing an election form provided by the city and shall be irrevocable. If no election is made within the one-year period specified in this subsection, the participant shall be deemed to have elected not to have his credited service in the firemen’s pension fund plan transferred to the police pension plan and shall have no further rights to make an election under this section. A participant making such election shall be termed for the purposes of this section as a “transferring participant.”

(B) The consequences of making the election described in subsection (A) of this section shall be the following:

(1) A transferring participant shall receive service credit in the police pension plan for his or her accumulated years of credited service as a participant in the firemen’s pension fund and, upon transfer of service credit to the police pension fund, the transferring participant’s years of credited service in the firemen’s pension fund shall be zero.

(2) A transferring employee shall not be entitled to any service credit in the firemen’s pension fund for any service rendered as a participant in the police pension plan.

(3) Notwithstanding anything to the contrary in either the police pension plan or the firemen’s pension fund, a transferring participant (as well as his survivor or beneficiary) shall be entitled to no benefits of any kind from the firemen’s pension fund including but not limited to a return of accumulated employee contributions.

(4) Upon election of a transferring employee to transfer his credited service from the firemen’s pension fund to the police pension plan, the transferring employee’s participant contributions made to the firemen’s pension fund shall be transferred to the police pension fund.

(5) Upon election of a transferring employee to transfer his credited service from the firemen’s pension fund to the police pension plan, the city shall transfer the amount of funds it allocated to the firemen’s pension fund attributable to the participation of the transferring employee in the firemen’s pension fund to the police pension fund.

(6) An election made under this section shall be binding on the transferring participant, his survivors, beneficiaries, heirs, and estate. (Ord. 3637 § 2, 2006)

163.38 Distributions for health insurance.¹

Effective upon adoption of this section, a retired member may elect, in accordance with IRC Section 402(l), that a portion of his retirement benefit, that would otherwise be paid to him may instead be used to purchase health insurance, subject to the following conditions:

(a) Only a member who: (i) has terminated employment with the city after the attainment of normal retirement age or on account of a disability, (ii) is entitled to benefit payments under this article, and (iii) is covered by a health insurance plan sponsored by the city or (iv) is covered by a health plan that the city has determined would be administratively feasible for the city to make payments to, may make this election.

Any member who terminated employment prior to normal retirement age for any reason other than a disability is not eligible to make the election. No persons receiving benefits under this article other than members are eligible to make the election.

(b) A member may not elect to have more than $3,000 of his benefit used to pay insurance premiums per calendar year. The dollar amount is periodically adjusted, without formal amendment, in accordance with IRC Section 402(l).

(c) Payments shall be made only for “qualified health insurance premiums” as that term is used in IRC Section 402(l). Furthermore, payments shall be used only to pay premiums under a health insurance plan described in subsections (a)(iii) and (a)(iv) of this section. The city may nullify a member’s election if the city determines, in its sole discretion, that complying with the election would be administratively infeasible.

(d) For the purposes of this section, “disability” shall mean qualification of the member for and receipt of an in-service disability pursuant to MMC 163.16. (Ord. 3658 § 3, 2008)

163.39 Defined contributions provisions.

DEFINED CONTRIBUTION PLAN

(A) Eligibility for Participation in Defined Contribution (DC) Features. In general, this section applies only to police employees (including those collectively bargained) hired after December 31, 2014, on the first day of employment; provided, that all prerequisites to participation under the plan have been fulfilled, including, but not limited to, completion of any probationary status and grant of regular full-time (at least 35 hours per week) employee status and after any completion of any forms required by the plan administrator. Such persons shall be referred to as participants. Any employee who participates (or is eligible to participate) in the defined contribution provisions of this section shall not be eligible to participate in the defined benefit features of this article for the same period of service.

(B) The defined contribution provisions contained in MMC 165.19(B) through (Q) are incorporated herein and made a part hereof such that police full-time new hires after December 31, 2014, participate in the defined contribution provisions and not in the defined benefit features of this article. All mandatory employee contributions made after December 31, 2014, by such employees continue to be “picked up” by the employer in lieu of contributions by the employees as set forth in MMC 165.19(C)(2).

(C) Normal Retirement. Normal retirement for this section shall be after meeting the requirements set forth in MMC 163.14(A). (Ord. 3754 § 1 (Exh. A), 2016)

Annex A Waiver of pension contributions.

Repealed by Ord. 3438.

Code reviser’s note: Ord. 3658 added this section as MMC 163.37. It has been editorially renumbered to avoid duplication.