PRINTER'S NO. 3664
No. 2648 Session of 1990
INTRODUCED BY HARPER, PESCI, TIGUE, DEMPSEY, TRELLO AND
LASHINGER, JUNE 6, 1990
REFERRED TO COMMITTEE ON URBAN AFFAIRS, JUNE 6, 1990
AN ACT
1 Amending the act of May 23, 1945 (P.L.903, No.362), entitled "An
2 act authorizing cities of the third class to establish an
3 optional retirement system for officers and employes
4 independently of any pension system or systems existing in
5 such cities," further providing for withdrawal of
6 contributions.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Sections 4(e)(4) and 5 of the act of May 23, 1945
10 (P.L.903, No.362), entitled "An act authorizing cities of the
11 third class to establish an optional retirement system for
12 officers and employes independently of any pension system or
13 systems existing in such cities," amended or added October 19,
14 1967 (P.L.465, No.220), are amended to read:
15 Section 4. * * *
16 (e) In addition to the retirement allowance which is
17 authorized to be paid from the pension fund by this act,
18 notwithstanding the limitations therein placed upon such
19 retirement allowances and upon contributions, every contributor
1 who shall become entitled to the retirement allowance may also
2 by ordinance be entitled to the payment of a "service increment"
3 in accordance with and subject to the conditions hereinafter set
4 forth.
5 * * *
6 (4) Service increment contributions shall be paid at the
7 same time and in the same manner as retirement contributions,
8 and may be withdrawn in full, [without] with accumulated
9 interest, by persons who leave the employment of such city,
10 subject to the same conditions by which retirement contributions
11 may be withdrawn, or by persons who retire before becoming
12 entitled to any service increment.
13 * * *
14 Section 5. The officers and employes of any city, creating
15 such fund and board, shall, upon the acceptance of this act, pay
16 unto said board monthly an amount equal to three (3) per centum
17 of their monthly salaries or wages, and if the council elects to
18 make such payments, an additional amount not to exceed one per
19 centum if deemed necessary by the council to provide sufficient
20 funds for payments to widows and widowers of members retired on
21 pension or killed in the service, except as hereinafter provided
22 concerning laborers, which shall be applied to the purpose of
23 this act.
24 If any compensation be granted to a person who has not been a
25 contributor to the fund, as herein provided, for an aggregate
26 period of twenty (20) years, such person shall be required to
27 pay unto the board for the benefit of the fund, monthly, an
28 amount equal to three (3) per centum of his compensation until
29 such time as his contribution shall have been extended to a
30 period of twenty (20) years.
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1 If for any cause any person contributing to the fund who has
2 served less than twelve (12) years shall cease to be in the
3 service of the city, he shall become entitled to the total
4 amount of the contributions paid into the fund by him, [without]
5 with accumulated interest. Any person, who has served for a
6 period of less than twenty (20) years, and who has not reached
7 the age of fifty-five (55) years, and who voluntarily retires
8 from such service, shall be entitled only to the return of his
9 total contributions to the fund [without] with accumulated
10 interest.
11 If for any cause any person contributing to the fund shall
12 cease to be in the service of any city before he shall have
13 become entitled to any compensation, the total amount of the
14 contributions paid into the fund by him shall be refunded, in
15 full, [without] with accumulated interest: Provided, however, If
16 any such person shall have returned to him the amount
17 contributed, as aforesaid, and shall afterwards re-enter the
18 service of the city, he shall not be entitled to the
19 compensation designated, unless he shall return to the fund the
20 amount withdrawn, in which event, the required period of service
21 under this act shall be computed from the time he first entered
22 the service of the city; otherwise the date of his period of
23 service shall commence upon re-entry. In the event of the death
24 of any person after he becomes entitled to any compensation and
25 has not elected to retire, the total amount of contributions
26 paid into the fund by him shall be paid over to his estate,
27 [without] with accumulated interest.
28 Section 2. This act shall take effect in 60 days.
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