PRINTER'S NO. 904
No. 813 Session of 1989
INTRODUCED BY VAN HORNE, MOWERY, TRELLO, PRESSMANN, HECKLER,
HALUSKA, RICHARDSON, PRESTON, COLAIZZO AND SALOOM,
MARCH 14, 1989
REFERRED TO COMMITTEE ON LABOR RELATIONS, MARCH 14, 1989
AN ACT
1 Amending the act of June 24, 1931 (P.L.1206, No.331), entitled
2 "An act concerning townships of the first class; amending,
3 revising, consolidating, and changing the law relating
4 thereto," further providing for police pensions and
5 annuities.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Section 605 of the act of June 24, 1931
9 (P.L.1206, No.331), known as The First Class Township Code,
10 reenacted and amended May 27, 1949 (P.L.1955, No.569), is
11 amended to read:
12 Section 605. Annuities in Lieu of Joining Pension or
13 Retirement System.--A township may, by ordinance, provide as
14 compensation to employes of not less than ten years of
15 satisfactory service who are not less than sixty years of age
16 upon termination of active employment with the township a
17 proportion of the compensation last paid to them but not in
18 excess of fifty per centum thereof, as fixed in said ordinance
19 or amendment thereto. Any arrangement to provide post retirement
1 compensation to aged appointees and employes pursuant to this
2 section shall be a pension plan within the meaning of that term
3 pursuant to the act of December 18, 1984 (P.L.1005, No.205),
4 known as the "Municipal Pension Plan Funding Standard and
5 Recovery Act," and the township establishing that plan shall
6 provide funding of that pension plan in an amount sufficient to
7 meet the minimum obligation of the municipality with respect to
8 the pension plan pursuant to that act. Nothing herein shall
9 preclude any employe of the township from joining any pension
10 system or municipal retirement system that the township may
11 establish or adopt. The intent and purpose of this section is to
12 permit townships, without levying any special tax or exceeding
13 the existing tax limitation for general revenue purposes, to pay
14 to their employes who are too old to advantageously join any
15 pensioning or retirement system a reasonable annuity in lieu of
16 joining a pension or retirement system, and who are not and
17 cannot now be socially protected by any Federal social security
18 system.
19 Section 2. Section 1409 of the act, amended May 14, 1949
20 (P.L.1341, No.401) and repealed in part May 29, 1956 (1955
21 P.L.1804, No.600), is amended to read:
22 Section 1409. Establishment of Police Pension Fund;
23 Management.--Townships shall, unless there is a private
24 organization or association constituting and managing an
25 existing pension fund for the members of the police force in any
26 such township, by ordinance, establish a police pension fund to
27 be maintained by member contributions of an equal percentage
28 charge against each member of the police force, [not exceeding]
29 which, except to the extent that subsection (c) of section 607
30 of the act of December 18, 1984 (P.L.1005, No.205), known as the
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1 "Municipal Pension Plan Funding Standard and Recovery Act,"
2 applies, shall not exceed annually four per centum of the pay of
3 such member. All pension funds established under the provisions
4 of this section shall be under the direction of the township
5 commissioners or such committee as they may designate, and shall
6 be applied, under such regulations as the commissioners may by
7 ordinance prescribe, for the benefit of such members of the
8 police force as shall receive honorable discharge therefrom by
9 reason of age or disability and the families of such as may be
10 injured or killed in the service. Any allowances made to those
11 who are retired by reason of disability or age shall be in
12 conformity with a uniform scale.
13 Section 3. Section 1413 of the act, repealed in part May 29,
14 1956 (1955 P.L.1804, No.600), is amended to read:
15 Section 1413. Township Appropriations; Gifts; Management.--
16 Any township [may] shall make contributions to the police
17 pension fund in an amount sufficient to meet the minimum
18 obligation of the municipality with respect to the pension plan
19 pursuant to the act of December 18, 1984 (P.L.1005, No.205),
20 known as the "Municipal Pension Plan Funding Standard and
21 Recovery Act," and may take, by gift, grant, devise or bequest,
22 any money or property, real, personal or mixed, in trust for the
23 benefit of such police pension fund. The care, management,
24 investment, and disposal of such trust funds or property shall
25 be vested in such officers as the township commissioners shall,
26 by ordinance, direct, and shall be governed by such officers,
27 subject to any directions not inconsistent therewith, as the
28 donors of such funds and property may prescribe. Any township
29 may also make contributions to any incorporated police pension
30 fund extending retirement benefits to police officers of the
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1 township, subject to such conditions as the township
2 commissioners may impose[.] and in conformance with any
3 applicable provisions of the "Municipal Pension Plan Funding
4 Standard and Recovery Act."
5 Section 4. This act shall take effect immediately.
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