§ 45-7. Basis for determining retirement benefits.

A. 

The basis for determining the amount of the full monthly pension benefits to police officers retiring under § 45-4 of this article shall be 1/2 of the average monthly salary during the last 36 months of employment.

B. 

Cost-of-living adjustments shall not be applicable to dependency benefits.

C. 

Cost-of-living allowances ("COLA") shall be included in the Police Pension Plan for officers who retire after reaching 50 years of age and 25 years of service, subject to the following conditions:

(1) 

The cost-of-living adjustment shall be granted each January 1 after one full year of retirement, based on the most recent available twelve-month increase in the Consumer Price Index, Urban Wage Earners.

(2) 

The total cost-of-living increase shall not exceed the percentage increase in the Consumer Price Index, Urban Wage Earners, from the year in which the officer last worked.

(3) 

The total cost-of-living increase shall not exceed 30% of the retiree's initial benefit.

(4) 

The total pension benefit, including cost of living, shall not exceed 75% of the officer's final average earnings used for computing retirement benefits.

(5) 

Maintenance of the COLA in the plan shall not impair the actuarial soundness of the plan nor require contributions from the Township as set forth in § 45-7D.

D. 

In the event that the Township's actuary determines that the Township must make financial contributions to the plan, then:

(1) 

For officers who have retired as of the date of the actuary's determination, no further COLA increases shall be granted until they can be provided without Township contributions.

(2) 

Officers who retire after the date of the actuary's determination shall not be entitled to any COLA increase until it can be provided without a need for Township contributions.

(3) 

Officers who retire after the actuary's determination shall have their monthly pension benefit based upon 1/2 of the average monthly salary during the last 36 months of employment without contribution from the Township.

E. 

In the case of a police officer who has completed 26 or more years of total service with the Township, the police officer's full monthly pension benefit as calculated in § 45-7A and payable each month of retirement shall be increased by $100.

Amended 6-17-1982 by Ord. No. 320; 8-17-1983 by Ord. No. 329; 6-16-1993 by Ord. No. 435; 4-18-2001 by Ord. No. 518; 9-18-2002 by Ord. No. 536; 7-8-2014 by Ord. No. 686