HOUSE AMENDED
        PRIOR PRINTER'S NO. 355                       PRINTER'S NO. 2399

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 345 Session of 1991


        INTRODUCED BY MELLOW, SALVATORE, LAVALLE, MUSTO, PORTERFIELD,
           BELAN, ANDREZESKI AND LYNCH, JANUARY 29, 1991

        AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
           JUNE 23, 1992

                                     AN ACT

     1  Amending the act of April 13, 1972 (P.L.184, No.62), entitled     <--
     2     "An act giving municipalities the right and power to adopt
     3     home rule charters or one of several optional plans of
     4     government and to exercise the powers and authority of local
     5     self-government subject to certain restrictions and
     6     limitations; providing procedures for such adoption and
     7     defining the effect thereof," authorizing certain
     8     municipalities to extend pension credit for prior military
     9     service for its employees.
     1  AMENDING THE ACT OF JULY 3, 1947 (P.L.1242, NO.507), ENTITLED     <--
     2     "AN ACT RELATING TO POLICE AND FIREMEN'S PENSION FUNDS IN
     3     CITIES OF THE SECOND CLASS A, AND DIRECTING SUCH CITIES TO
     4     APPROPRIATE CERTAIN MONEYS THERETO, AND REQUIRING REPORTS AND
     5     AUDITS," AND THE ACT OF SEPTEMBER 23, 1959 (P.L.970, NO.400),
     6     ENTITLED "AN ACT PROVIDING FOR THE CREATION, MAINTENANCE AND
     7     OPERATION OF AN EMPLOYES' RETIREMENT SYSTEM IN CITIES OF THE
     8     SECOND CLASS A, AND IMPOSING CERTAIN CHARGES ON CITIES OF THE
     9     SECOND CLASS A AND SCHOOL DISTRICTS IN CITIES OF THE SECOND
    10     CLASS A," FURTHER PROVIDING FOR CREDIT FOR MILITARY SERVICE.

    11     The General Assembly of the Commonwealth of Pennsylvania
    12  hereby enacts as follows:
    13     Section 1.  Section 302 of the act of April 13, 1972           <--
    14  (P.L.184, No.62), known as the Home Rule Charter and Optional
    15  Plans Law, is amended by adding a subsection to read:
    16     Section 302.  * * *

     1     (b.2)  Notwithstanding any provision of this or another act
     2  to the contrary, any municipality that is or was a city of the
     3  second class A may permit all municipal employes, including
     4  police and firefighters, to purchase prior military service time
     5  as a credit for pension purposes, as determined by ordinance.
     6     * * *
     7     SECTION 1.  SECTION 1 OF THE ACT OF JULY 3, 1947 (P.L.1242,    <--
     8  NO.507), ENTITLED "AN ACT RELATING TO POLICE AND FIREMEN'S
     9  PENSION FUNDS IN CITIES OF THE SECOND CLASS A, AND DIRECTING
    10  SUCH CITIES TO APPROPRIATE CERTAIN MONEYS THERETO, AND REQUIRING
    11  REPORTS AND AUDITS," AMENDED JULY 15, 1968 (P.L.341, NO.166), IS
    12  AMENDED TO READ:
    13     SECTION 1.  THERE SHALL BE PAID OVER, AS HEREINAFTER
    14  PROVIDED, TO THE ORGANIZATION OR ASSOCIATION CONSTITUTING AND
    15  HAVING IN CHARGE THE DISTRIBUTION OF POLICE AND FIREMEN'S
    16  PENSION FUNDS IN EVERY CITY OF THE SECOND CLASS A, THREE PER
    17  CENTUM (3%) OF ALL CITY TAXES COLLECTED BY THE CITY, OTHER THAN
    18  TAXES LEVIED TO PAY INTEREST ON OR TO EXTINGUISH THE DEBT OF THE
    19  CITY, OR ANY PART THEREOF, TO BE DIVIDED EQUALLY BETWEEN THE
    20  POLICE AND FIREMEN'S ASSOCIATION OR ORGANIZATION. IN ADDITION TO
    21  THE THREE PER CENTUM (3%) OF CITY TAXES REQUIRED TO BE PAID
    22  PURSUANT TO THIS SECTION, MONEYS SHALL BE APPROPRIATED BY CITIES
    23  OF THE SECOND CLASS A TO ORGANIZATIONS AND ASSOCIATIONS
    24  DISTRIBUTING POLICE AND FIREMEN'S PENSION FUNDS, WHENEVER
    25  NECESSARY TO ENABLE THE ORGANIZATIONS OR ASSOCIATIONS TO PAY THE
    26  AMOUNTS OF MINIMUM PENSIONS PRESCRIBED BY ACT OF ASSEMBLY,
    27  PURSUANT TO SECTION 11 OF ARTICLE III. OF THE CONSTITUTION OF
    28  PENNSYLVANIA. IN ADDITION TO THE ABOVE PAYMENTS AND
    29  APPROPRIATIONS, MONEYS MAY BE APPROPRIATED BY CITIES OF THE
    30  SECOND CLASS A TO ORGANIZATIONS AND ASSOCIATIONS DISTRIBUTING
    19910S0345B2399                  - 2 -

     1  POLICE AND FIREMEN'S PENSION FUNDS, WHENEVER NECESSARY, TO
     2  ENTITLE ANY POLICEMAN OR FIREMAN WHO IS A MEMBER OF THE PENSION
     3  FUND AND WHO SERVED IN THE ARMED FORCES OF THE UNITED STATES
     4  SUBSEQUENT TO SEPTEMBER 1, 1940, AND WHO WAS NOT A MEMBER OF THE
     5  POLICE OR FIREMEN'S PENSION FUNDS PRIOR TO SUCH MILITARY
     6  SERVICE, AND WHO COMMENCED EMPLOYMENT AS A POLICEMAN OR FIREMAN
     7  IN A CITY OF THE SECOND CLASS A WITHIN [THREE (3) YEARS] SUCH
     8  PERIOD FROM DATE OF RELEASE FROM ACTIVE DUTY, AS THE GOVERNING
     9  BODY OF THE CITY SHALL DETERMINE BY ORDINANCE OR RESOLUTION, TO
    10  HAVE FULL CREDIT FOR EACH YEAR OR FRACTION THEREOF, NOT TO
    11  EXCEED FIVE (5) YEARS OF SUCH SERVICE UPON HIS PAYMENT TO THE
    12  POLICE OR FIREMEN'S PENSION FUND AN AMOUNT EQUAL TO THAT WHICH
    13  HE WOULD HAVE PAID HAD HE BEEN A MEMBER DURING THE PERIOD FOR
    14  WHICH HE DESIRES CREDIT COMPUTED WITH REFERENCE TO THE
    15  COMPENSATION HE RECEIVED UPON ENTRY INTO CITY SERVICE AS A
    16  POLICEMAN OR FIREMAN AND HIS CURRENT PERCENTAGE OF SALARY
    17  DEDUCTIONS, AND AN ADDITIONAL AMOUNT AS THE EQUIVALENT OF THE
    18  CONTRIBUTIONS OF THE CITY ON ACCOUNT OF SUCH MILITARY SERVICE,
    19  WHICH AMOUNT MAY BE PAID IN A LUMP SUM OR BY INSTALLMENTS AS MAY
    20  BE APPROVED BY THE ORGANIZATIONS OR ASSOCIATIONS DISTRIBUTING
    21  PENSION FUNDS TO POLICE AND FIREMEN.
    22     SECTION 2.  SECTION 12 OF THE ACT OF SEPTEMBER 23, 1959
    23  (P.L.970, NO.400), REFERRED TO AS THE SECOND CLASS A CITY
    24  EMPLOYE PENSION LAW, AMENDED JULY 15, 1968 (P.L.342, NO.167), IS
    25  AMENDED TO READ:
    26     SECTION 12.  CREDIT FOR MILITARY SERVICE; PAYMENT INTO FUND;
    27  REIMBURSEMENT.--ANY CITY EMPLOYE WHO, ON OR AFTER SEPTEMBER 16,
    28  1940, HAS BEEN EMPLOYED BY THE CITY FOR A PERIOD OF SIX MONTHS
    29  AND WHO, ON OR SUBSEQUENT TO SUCH DATE, SHALL HAVE ENLISTED OR
    30  BEEN INDUCTED INTO THE MILITARY SERVICE OF THE UNITED STATES IN
    19910S0345B2399                  - 3 -

     1  TIME OF WAR, ARMED CONFLICT OR NATIONAL EMERGENCY SO PROCLAIMED
     2  BY THE PRESIDENT OR THE CONGRESS OF THE UNITED STATES, SHALL
     3  HAVE CREDITED TO HIS EMPLOYMENT RECORD, FOR RETIREMENT BENEFITS,
     4  ALL OF THE TIME SPENT BY HIM IN SUCH MILITARY SERVICE DURING THE
     5  CONTINUANCE OF SUCH WAR, ARMED CONFLICT, OR NATIONAL EMERGENCY,
     6  AND SUCH PAYMENTS AS WERE HERETOFORE OR SHALL HEREAFTER BE
     7  REQUIRED TO BE MADE DURING SUCH PERIOD BY SUCH CITY EMPLOYE INTO
     8  THE CITY EMPLOYES' RETIREMENT FUND SHALL BE PAID INTO SUCH FUND
     9  BY THE CITY. ANY EMPLOYES WHO HAVE MADE PAYMENTS INTO THE CITY
    10  EMPLOYES' RETIREMENT FUND, FOR WHICH PAYMENTS THE CITY IS LIABLE
    11  UNDER THE PROVISIONS OF THIS ACT, SHALL BE REIMBURSED BY THE
    12  CITY TO THE FULL EXTENT OF SUCH PAYMENTS OR BE GIVEN CREDIT
    13  TOWARDS FUTURE PAYMENTS UNDER THIS ACT.
    14     ANY MEMBER OF THE PENSION FUND WHO IS A CONTRIBUTOR AND WHO
    15  SERVED IN THE ARMED FORCES OF THE UNITED STATES SUBSEQUENT TO
    16  SEPTEMBER 1, 1940, AND WHO WAS NOT A MEMBER OF THE PENSION FUND
    17  PRIOR TO SUCH MILITARY SERVICE, AND WHO COMMENCED EMPLOYMENT IN
    18  CITY SERVICE WITHIN [THREE YEARS] SUCH PERIOD FROM DATE OF
    19  RELEASE FROM ACTIVE DUTY, MAY, AS THE GOVERNING BODY OF THE CITY
    20  OR SCHOOL DISTRICT SHALL DETERMINE BY ORDINANCE OR RESOLUTION,
    21  BE ENTITLED TO HAVE FULL CREDIT FOR EACH YEAR OR FRACTION
    22  THEREOF, NOT TO EXCEED FIVE YEARS OF SUCH SERVICE UPON HIS
    23  PAYMENT TO THE PENSION FUND AN AMOUNT EQUAL TO THAT WHICH HE
    24  WOULD HAVE PAID HAD HE BEEN A MEMBER DURING THE PERIOD FOR WHICH
    25  HE DESIRES CREDIT, COMPUTED WITH REFERENCE TO THE COMPENSATION
    26  HE RECEIVED UPON ENTRY INTO CITY SERVICE AND HIS CURRENT
    27  PERCENTAGE OF SALARY DEDUCTIONS, AND AN ADDITIONAL AMOUNT AS THE
    28  EQUIVALENT OF THE CONTRIBUTIONS OF THE CITY AND SCHOOL DISTRICT
    29  ON ACCOUNT OF SUCH MILITARY SERVICE, WHICH AMOUNT MAY BE PAID IN
    30  A LUMP SUM OR BY INSTALLMENTS AS MAY BE APPROVED BY THE BOARD.
    19910S0345B2399                  - 4 -

     1     Section 2 3.  This act shall take effect in 60 days.           <--




















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