PRIOR PRINTER'S NO. 1121 PRINTER'S NO. 2016
No. 994 Session of 1991
INTRODUCED BY CAPPABIANCA, SALOOM, DEMPSEY, DeLUCA, VAN HORNE,
VEON, STURLA, HARPER, KRUSZEWSKI, BELFANTI, ALLEN, PESCI,
D. R. WRIGHT, CAWLEY, SCRIMENTI, ULIANA, R. C. WRIGHT,
JOHNSON, BILLOW, LAUGHLIN, MELIO, BOYES, WOZNIAK,
E. Z. TAYLOR, RICHARDSON, PETRARCA, COHEN, TRELLO, TELEK AND
JAMES, APRIL 3, 1991
AS REPORTED FROM COMMITTEE ON URBAN AFFAIRS, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 17, 1991
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 membership on retirement
6 boards; and authorizing cost-of-living increases.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Section 3 of the act of May 23, 1945 (P.L.903,
10 No.362), entitled "An act authorizing cities of the third class
11 to establish an optional retirement system for officers and
12 employes independently of any pension system or systems existing
13 in such cities," amended July 18, 1986 (P.L.1413, No.128), is
14 amended to read:
15 Section 3. In any such city which creates such retirement
16 system there shall be created a board to be known as the
17 "Officers and Employes Retirement Board," consisting of the
1 mayor, the city controller, the director of finance, two
2 employes to be chosen by the employes contributing to the
3 retirement fund, a retired city employe chosen by the <--
4 association of retired city employes, SUBJECT TO THE CONDITION <--
5 THAT IF, ON OR AFTER SEPTEMBER 1, 1991, A VACANCY OCCURS AMONG
6 THE EMPLOYE MEMBERS OF THE BOARD, A RETIRED CITY EMPLOYE CHOSEN
7 BY THE ASSOCIATION OF RETIRED CITY EMPLOYES SHALL BE APPOINTED
8 TO THE BOARD AND A RETIRED CITY EMPLOYE SHALL THEREAFTER HOLD
9 MEMBERSHIP ON THE BOARD and, if members of council participate
10 in the retirement fund and are members of the fund, a member of
11 council, chosen by council. It shall be the duty of said board
12 to register all persons employed by the said city, and to
13 administer the collections and distribution of the fund, herein
14 provided for, and make such reasonable rules in the premises as
15 such board may deem necessary to carry into effect the
16 provisions of this act.
17 Section 2. The act is amended by adding a section to read:
18 Section 4.1. (a) The board may, subject to the approval
19 required under subsection (b), increase the compensation of
20 persons receiving compensation of any kind from ANY MEMBER OF <--
21 the fund by reason of and after the termination of the services
22 of any SUCH member of the fund. Such increases shall be in <--
23 conformity with a uniform scale, which shall be based on the
24 Consumer Price Index for all urban consumers calculated by the
25 Bureau of Labor Statistics of the United States Department of
26 Labor, but the total of any such allowance shall not at any time
27 exceed one-half of the current salary being paid to nonuniformed
28 employes of the highest pay grade. No cost-of-living increase
29 shall be granted which would impair the actuarial soundness of
30 the fund.
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1 (b) The board may recommend the increase described in
2 subsection (a) to the city council at any time. Provided that
3 the provisions of section 305 of the act of December 18, 1984
4 (P.L.1005, No.205), known as the "Municipal Pension Plan Funding
5 Standard and Recovery Act," have been satisfied, the council
6 may, by ordinance, MAY approve this increase subject, however, <--
7 to the approval of the mayor.
8 Section 3. This act shall take effect in 60 days.
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