PRINTER'S NO. 2875
No. 2246 Session of 1980
INTRODUCED BY FREIND (By Request), FEBRUARY 7, 1980
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, FEBRUARY 7, 1980
AN ACT
1 Amending the act of May 29, 1956 (1955 P.L.1804, No.600),
2 entitled "An act providing for the establishment of police
3 pension funds or pension annuities in certain boroughs, towns
4 and townships, and the regulation and maintenance thereof;
5 providing for an actuary; continuance of existing funds or
6 transfer thereof to funds herein established; prescribing
7 rights of beneficiaries; contributions by members; providing
8 for expenses of administration; continuation of existing
9 authority to provide annuity contracts; credit for military
10 service; refunds; exempting allowances from judicial process;
11 and repealing certain acts," further providing for benefits.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 5, act of May 29, 1956 (1955 P.L.1804,
15 No.600), referred to as the Municipal Police Pension Law,
16 amended April 11, 1974 (P.L.250, No.61), and September 19, 1974
17 (P.L.645, No.211), is amended to read:
18 Section 5. Payments made under the provisions of this act
19 shall not be a charge on any other fund in the treasury of any
20 borough, town or township, or under its control, save the police
21 pension fund herein provided for. The basis for determining any
22 pension payable under this act, following retirement of any
1 member of the force meeting the service and age qualifications
2 of the ordinance or resolution establishing a police pension
3 fund, shall be as follows:
4 Monthly pension or retirement benefits other than length of
5 service increments shall be computed at one-half the monthly
6 average salary of such member during not more than the last
7 sixty nor less than the last thirty-six months of employment.
8 Such pension or retirement benefits for any month shall be
9 computed as the sum of (i) any pension benefits from pension
10 plans heretofore established by a private organization or
11 association for the members of the police force but only to the
12 extent that this Commonwealth or any of its municipalities shall
13 have contributed to such pension plan moneys raised by taxation,
14 (ii) up to seventy-five per centum of the primary benefits under
15 Federal social security laws for which the officer may be
16 eligible because of age where positions covered by the fund are
17 included in an agreement under the Federal Social Security Act,
18 and (iii) benefits from the police pension fund established
19 pursuant to this act to the extent necessary to bring the total
20 benefits in any month up to one-half the aforesaid monthly
21 average salary. If this Commonwealth or one of its
22 municipalities shall have contributed moneys raised by taxation
23 to a pension plan established by a private organization or
24 association for the members of the police force, the pension
25 benefits to be taken into account under clause (i) of this
26 paragraph shall be that proportion of the total pension benefits
27 payable under clause (i) as the assets attributable to
28 contributions of moneys raised by taxation bear to the total
29 assets of the pension plan. In the case of the payment of
30 pensions for permanent injuries incurred in service and to
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1 families of members killed in service, the amount and
2 commencement of the payments shall be fixed by regulations of
3 the governing body of the borough, town or township but in no
4 event shall the amount of such payments, plus any benefits the
5 member is eligible for under the act of June 2, 1915 (P.L.736,
6 No.338), known as "The Pennsylvania Workmen's Compensation Act,"
7 exceed eighty per centum of the member's final salary. Any
8 borough, town or township may establish and pay length of
9 service increments for years of service beyond twenty-five years
10 for each completed year of service in excess of twenty-five
11 years, not to exceed one hundred dollars ($100). Such length of
12 service increments may be paid in addition to other monthly
13 pension or retirement allowances.
14 The ordinance or resolution establishing the police pension
15 fund may provide for a cost of living increase for members of
16 the police force receiving retirement benefits: Provided,
17 however, That such cost of living increase shall not exceed the
18 percentage increase in the Consumer Price Index from the year in
19 which the police member last worked: Provided further, That in
20 no case shall the total police pension benefits exceed seventy-
21 five per centum of the salary for computing retirement benefits:
22 And provided further, That the total cost of living increase
23 shall not exceed thirty per centum. No cost of living increase
24 shall be granted which would impair the actuarial soundness of
25 the pension fund.
26 Section 2. This act shall take effect in 60 days.
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