PRINTER'S NO. 2913
No. 2142 Session of 1986
INTRODUCED BY MOWERY AND A. C. FOSTER, JR., FEBRUARY 11, 1986
REFERRED TO COMMITTEE ON URBAN AFFAIRS, FEBRUARY 11, 1986
AN ACT
1 Amending the act of May 25, 1933 (P.L.1050, No.242), entitled
2 "An act creating and establishing a fund for the care,
3 maintenance, and relief of aged, retired and disabled
4 employes of the bureau of fire in cities of the second class;
5 creating a board for the management thereof; providing the
6 mode and manner of payment to beneficiaries, and for the care
7 and disposition of its funds; and providing for the transfer
8 and payment of all moneys and securities in existing funds in
9 similar boards superseded by the fund and board herein
10 created," further providing for payments by the city and
11 members into the pension fund and for payment of dues to
12 certain members.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Sections 2 and 7 of the act of May 25, 1933
16 (P.L.1050, No.242), referred to as the Second Class City Firemen
17 Relief Law, are amended to read:
18 Section 2. Such fund shall consist of, and to it shall be
19 transferred--
20 (1) All moneys and securities held by similar boards
21 existing by virtue of any law or ordinance in such city, which
22 fund or funds were held for purposes similar to the purpose of
23 the fund created by this act with respect to the city employes
1 covered by the provisions of this act.
2 (2) All fines imposed upon the firemen of such city, which,
3 by virtue of any law or ordinance referring to such city, are
4 required to be paid by the proper authorities to a fund of this
5 nature.
6 (3) All donations of money from whatever source which have
7 been or shall be made to the fund.
8 (4) The income from any and all trust funds which now or may
9 hereafter be established by gift for the benefit of such persons
10 as are eligible to be beneficiaries under the fund.
11 (5) The dues of the members of the fund, as hereinafter
12 stipulated.
13 (6) Such moneys as the city shall pay into the fund from
14 time to time, as provided by ordinance, in an amount sufficient
15 to meet the minimum obligation of the municipality with respect
16 to the pension plan pursuant to the act of December 18, 1984
17 (P.L.1005, No.205), known as the "Municipal Pension Plan Funding
18 Standard and Recovery Act," and as may be necessary to carry out
19 the provisions of this act.
20 Section 7. The board shall designate and choose such bank or
21 banks, trust company or trust companies, in such city, in which
22 the moneys of the fund shall be deposited, and such bank or
23 banks, trust company or trust companies, shall be selected
24 annually after the board shall have received written proposals
25 as to the rate of interest which shall be paid on such deposits,
26 and the bank or banks, trust company or trust companies,
27 offering to pay the highest rate of interest shall be chosen as
28 the depository or depositories of the fund if the board be
29 satisfied of the soundness of such institution or institutions.
30 The [board shall create and establish a sinking fund into
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1 which shall be paid all moneys remaining to the credit of the
2 fund and the depositories of the fund on the first day of each
3 year and after all claims and running expenses of the prior year
4 have been paid; and the moneys in the sinking fund shall not be
5 used for any purpose excepting by a two-thirds vote of the
6 board, but the interest accruing on the moneys in such sinking
7 fund may be used for the] payment of the necessary expenses for
8 the operation of the fund shall be payable from the assets of
9 the fund.
10 The board may invest the moneys of the fund [and of the
11 sinking fund] in such State, county, or municipal bonds of the
12 State of Pennsylvania, or in bonds of the United States
13 Government, as they may deem to the best interest of the
14 respective funds. All such investments shall be made in the name
15 of the respective fund. The accounts of the fund shall be
16 audited annually by the city controller, or oftener if the board
17 requests the same to be done, and a copy of the audit furnished
18 to the council of the city.
19 Section 2. Sections 9, 9.5 and 12.4 of the act, amended
20 October 10, 1974 (P.L.730, No.247), are amended to read:
21 Section 9. Any individual eligible to membership in such
22 fund, as aforesaid, shall be required--
23 (1) To sign an acceptance of the provisions of this act,
24 which acceptance shall contain an agreement, on the part of the
25 one so signing, that upon resignation or dismissal from the
26 employ of said bureau of fire, he shall thereby relinquish and
27 forfeit all rights to participate in said fund; and no
28 employment shall be granted an applicant to a position which
29 would make him eligible as a member of said fund until such
30 acceptance and agreement is signed by him.
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1 (2) [To] Except to the extent that subsection (c) of section
2 607 of the act of December 18, 1984 (P.L.1005, No.205), known as
3 the "Municipal Pension Plan Funding Standard and Recovery Act,"
4 applies to contribute to said fund six per centum of his rated
5 monthly wages, which shall be deducted from his wages by the
6 city controller from the payroll for the last pay period of each
7 month, and paid into the fund. All beneficiaries of the fund
8 shall, in addition thereto, pay the sum of one dollar a month
9 into the said fund, and in the case of active members, the city
10 controller shall deduct said contribution from the payroll of
11 the last pay period of each month and the secretary of the fund
12 shall deduct the sum of one dollar from the pension paid each
13 pensioner. The amount so collected shall be paid into the
14 firemen's relief and pension fund and out of the funds of the
15 firemen's relief and pension fund there shall be paid to the
16 beneficiary of any deceased member of the fund, the sum of one
17 thousand two hundred dollars.
18 When any member of the fund shall resign or be dismissed from
19 service and no pension benefit is payable, there shall be paid
20 to him from the fund a sum of money equal to all dues paid by
21 him into the fund, without interest. When any member of the fund
22 shall die in active service there shall be paid from the fund a
23 sum of money equal to all dues paid by him into the fund,
24 without interest, to his widow, if there be such widow, or in
25 the absence of such widow to such person or persons as he shall
26 have designated on a form prepared and approved by the board for
27 such purpose, or in the absence of such widow and such
28 designation to his estate. When any beneficiary shall die before
29 he has received pension payments equal in amount to his total
30 contributions to the fund, there shall be paid a sum of money
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1 equal to the difference between the amount of his said
2 contributions and the amount he shall have received as pension
3 payments, without interest, to his widow, if there be such widow
4 or in the absence of such widow to such person or persons as he
5 shall have designated on a form prepared and approved by the
6 board for such purpose, or in the absence of such widow and such
7 designation to his estate.
8 In addition when any member of the fund shall die as a result
9 of injuries incurred while in the performance of his duties,
10 there shall be paid to his widow from the fund monthly sums in
11 amounts which, together with any payments received under "The
12 Pennsylvania Workmen's Compensation Act" or "The Pennsylvania
13 Occupational Disease Act," will be equal to fifty per centum of
14 his salary at the time of his death. Such monthly payments shall
15 continue for five hundred weeks, or until the widow shall
16 remarry, or until her death, whichever shall first occur.
17 In the event there are surviving children but no widow, or
18 after the payments herein provided for the widow have been
19 discontinued by reason of the end of the five hundred week
20 period or her remarriage or death, each unmarried child of the
21 deceased member under the age of eighteen years shall thereafter
22 receive payments equal to twenty-five per centum of the payments
23 above provided for the widow, but in no case shall total
24 payments to one family be more than fifty per centum of his
25 salary at the time of his death. Where there is only one child,
26 the minimum monthly payments shall be sixty dollars. Where the
27 maximum amount is payable, it shall be divided equally among the
28 children entitled thereto. The payments for each child shall
29 terminate upon his reaching the age of eighteen years or his
30 marriage or death: Provided, That the board may continue
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1 indefinitely payments to a dependent incompetent child. These
2 payments shall consist of any payments received under "The
3 Pennsylvania Workmen's Compensation Act" or "The Pennsylvania
4 Occupational Disease Act," supplemented by the necessary amounts
5 from the pension fund. In the event there are no surviving
6 children or no widow entitled to receive the payments provided
7 for in this act, any dependent parents of the member shall
8 receive the payments the widow would have received had she
9 survived and not remarried.
10 Regular employes shall serve at least fifteen days in each
11 month and appear on all payrolls of said bureau of fire in said
12 month in order to be credited for one month's service for
13 pension under this act. In the event, however, that such regular
14 employe served one or more days in any month while serving as a
15 substitute employe prior to becoming a regular employe, such
16 regular employe shall be given a full month's credit for the day
17 or days in every month so served as a substitute: Provided, That
18 the dues for each month so credited are paid in full.
19 Payments to the widows and children of members killed while
20 on duty shall first be made on and after July 1, 1959.
21 Section 9.5. [Each] Except to the extent that subsection (c)
22 of section 607 of the act of December 18, 1984 (P.L.1005,
23 No.205), known as the "Municipal Pension Plan Funding Standard
24 and Recovery Act," applies, each member who elects to be
25 governed under the provisions of this amendment shall agree to
26 contribute one-half of one per centum of his rated monthly wages
27 in addition to all other required contributions as set forth in
28 this act.
29 Section 12.4. In every city of the second class, in addition
30 to the pension which is authorized by law, every contributor who
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1 shall have otherwise become entitled to the pension and who has
2 reached the age of fifty years, shall also be entitled to the
3 payment of a service increment in accordance with and subject to
4 the conditions hereinafter set forth:
5 (1) Service increment shall be the sum obtained by computing
6 the number of whole years after the completion of twenty years'
7 service while a contributor has been employed by the bureau of
8 fire or the city, and paid out of the city treasury, and
9 multiplying the number of years so computed by an amount equal
10 to ten dollars for each month of service beyond twenty years of
11 service. This sum shall be divided by twelve to arrive at the
12 monthly increment payment. In computing the service increment,
13 no employment, after the contributor has reached the age of
14 sixty-five years shall be included.
15 (2) [Each] Except to the extent that subsection (c) of
16 section 607 of the act of December 18, 1984 (P.L.1005, No.205),
17 known as the "Municipal Pension Plan Funding Standard and
18 Recovery Act," applies, each contributor, from and after the
19 effective date of this amendment, shall pay into the retirement
20 fund as the contribution to the increment fund, a monthly sum in
21 addition to his or her retirement contribution which shall be
22 equal to one-half of one per centum of his or her wages. Such
23 payment shall not exceed the sum of one dollar per month. The
24 service increment contribution shall not be paid after a
25 contributor has reached the age of sixty-five years.
26 (3) Persons who are contributors on the effective date of
27 this amendment who have already reached the age of sixty-five
28 years shall have his or her service increment computed on the
29 years of employment prior to the date of reaching his or her
30 sixty-fifth birthday. Such person, however, shall be entitled to
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1 the increment only by paying in the one dollar per month
2 contribution for the number of months his or her service exceeds
3 twenty years, but such contribution shall not exceed a total of
4 one hundred dollars.
5 (4) Service increment contributions shall be paid at the
6 same time and in the same manner as pension contributions, and
7 may be withdrawn in full without interest by persons who leave
8 the employment of the bureau of fire subject to the same
9 conditions by which pension contributions may be withdrawn, or
10 by persons who retire before becoming entitled to any service
11 increment. When any person is re-employed by the bureau of fire
12 after withdrawal of pension contributions, his or her prior
13 service shall not be used in the computation of service
14 increment unless the amount of such contributions be repaid into
15 the pension fund subject to the same conditions by which pension
16 fund withdrawals are permitted to be repaid.
17 (5) All employes of the bureau of fire who are now
18 contributors to the pension fund, and all persons who are
19 employed by the bureau of fire after the effective date of this
20 amendment, who are required to become contributors to the
21 pension fund, shall be subject to the provisions of this
22 section.
23 Section 3. This act shall take effect immediately.
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