PRINTER'S NO. 902
No. 839 Session of 1993
INTRODUCED BY McNALLY, THOMAS, PRESTON, JAROLIN, GIGLIOTTI,
DALEY, MELIO, TRELLO AND LAUGHLIN, MARCH 22, 1993
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, MARCH 22, 1993
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 of the act of May 29, 1956 (1955
15 P.L.1804, No.600), referred to as the Municipal Police Pension
16 Law, amended December 7, 1979 (P.L.475, No.99), is amended to
17 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 no less than one-half
6 the monthly average salary of such member during not more than
7 the last sixty nor less than the last thirty-six months of
8 employment. The ordinance or resolution establishing the police
9 pension fund may provide for a monthly pension or retirement
10 benefit up to seventy-five per centum of the monthly average
11 salary of the member during not more than the last sixty nor
12 less than the last thirty-six months of employment: Provided,
13 however, That the monthly pension or retirement benefit would
14 not impair the actuarial soundness of the pension fund. Such
15 pension or retirement benefits for any month shall be computed
16 as the sum of (i) any pension benefits from pension plans
17 heretofore established by a private organization or association
18 for the members of the police force but only to the extent that
19 this Commonwealth or any of its municipalities shall have
20 contributed to such pension plan moneys raised by taxation, (ii)
21 if positions covered by the fund are included in an agreement
22 under the Federal Social Security Act, up to seventy-five per
23 centum of his full social security old-age insurance benefit
24 calculated in accordance with the provisions of the Federal
25 Social Security Act in effect on the date of his termination of
26 employment, except that such amount shall be included only upon
27 attainment of the age at which the officer would be eligible to
28 receive full social security old-age insurance benefits and in
29 determining such eligibility and such amount only compensation
30 for services actually rendered by the officer and covered by the
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1 police pension fund shall be included, and (iii) benefits from
2 the police pension fund established pursuant to this act to the
3 extent necessary to bring the total benefits in any month up to
4 not less than one-half nor more than seventy-five per centum of
5 the aforesaid monthly average salary: Provided, however, That
6 any officer who receives pension or retirement benefits from any
7 plan established at any time pursuant to this act and who is
8 also entitled to receive social security old-age insurance
9 benefits shall not regardless of when the officer retired from
10 active service have his pension or retirement benefits offset or
11 reduced by more than seventy-five per centum of the social
12 security old-age insurance benefits which he receives. If this
13 Commonwealth or one of its municipalities shall have contributed
14 moneys raised by taxation to a pension plan established by a
15 private organization or association for the members of the
16 police force, the pension benefits to be taken into account
17 under clause (i) of this paragraph shall be that proportion of
18 the total pension benefits payable under clause (i) as the
19 assets attributable to contributions of moneys raised by
20 taxation bear to the total assets of the pension plan. In the
21 case of the payment of pensions for permanent injuries incurred
22 in service and to families of members killed in service, the
23 amount and commencement of the payments shall be fixed by
24 regulations of the governing body of the borough, town or
25 township. Any borough, town or township may establish and pay
26 length of service increments for years of service beyond twenty-
27 five years for each completed year of service in excess of
28 twenty-five years, not to exceed one hundred dollars ($100).
29 Such length of service increments may be paid in addition to
30 other monthly pension or retirement allowances.
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1 The ordinance or resolution establishing the police pension
2 fund may provide for a cost of living increase for members of
3 the police force receiving retirement benefits: Provided,
4 however, That such cost of living increase shall not exceed the
5 percentage increase in the Consumer Price Index from the year in
6 which the police member last worked: Provided further, That in
7 no case shall the total police pension benefits exceed seventy-
8 five per centum of the salary for computing retirement benefits:
9 And provided further, That the total cost of living increase
10 shall not exceed thirty per centum. No cost of living increase
11 shall be granted which would impair the actuarial soundness of
12 the pension fund.
13 The ordinance or resolution establishing the police pension
14 fund may provide for a vested benefit provided that such would
15 not impair the actuarial soundness of the pension fund. Under
16 the provisions of such benefit, should a police officer, before
17 completing superannuation retirement age and service
18 requirements but after having completed twelve years of total
19 service, for any reason cease to be employed as a full-time
20 police officer by the municipality in whose pension fund he has
21 been a member, he shall be entitled to vest his retirement
22 benefits by filing with the governing body within ninety days of
23 the date he ceases to be a full-time police officer a written
24 notice of his intention to vest. Upon reaching the date which
25 would have been his superannuation retirement date if he had
26 continued to be employed as a full-time police officer he shall
27 be paid a partial superannuation retirement allowance determined
28 by applying the percentage his years of service bears to the
29 years of service which he would have rendered had he continued
30 to work until his superannuation retirement date to the gross
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1 pension, using however the monthly average salary during the
2 appropriate period prior to his termination of employment. Such
3 pension or retirement benefits for any month shall be the sum of
4 clauses (i), (ii) and (iii) of such benefits from the police
5 pension fund established pursuant to this act to the extent
6 necessary to bring the total benefits in any month up to his
7 partial superannuation retirement allowance outlined above.
8 Section 2. This act shall take effect January 1 of the year
9 succeeding the year of enactment.
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