1Amending the act of July 28, 1953 (P.L.723, No.230), entitled,
2as amended, "An act relating to counties of the second class
3and second class A; amending, revising, consolidating and
4changing the laws relating thereto," in employees' retirement
5system, further defining "compensation"; further providing
6for retirement board; providing for tax qualification; and
7further providing for employees eligible for retirement
8allowances and for amount of retirement allowances.

9The General Assembly of the Commonwealth of Pennsylvania
10hereby enacts as follows:

11Section 1. The definition of "compensation" in section 1701
12of the act of July 28, 1953 (P.L.723, No.230), known as the
13Second Class County Code, amended July 6, 1984 (P.L.638, No.

14131), is amended to read:

15Section 1701. Definitions.--The following words and phrases
16as used in this article shall be construed to have the following
17meaning:

18* * *

19"Compensation," [pickup] (1) Pickup contributions plus
20salary or wages received per day, weekly, bi-weekly, semi-

1monthly, monthly, annually, or during an official term year.

2(2) For employes hired on or after the effective date of
3this paragraph, the term shall not include overtime pay.

4* * *

5Section 2. Section 1703 of the act is amended to read:

6Section 1703. Retirement Board.--The retirement system shall
7be under the sole direction of a board, which shall consist of
8the county [commissioners, the treasurer, the controller,] chief 
9executive; one member, who shall be a member of the retirement 
10system, appointed by the chief executive with the consent of 
11county council; one member, who shall be a member of the 
12retirement system, appointed by county council; the controller; 
13the treasurer; and two persons elected by ballot from among the
14members of the retirement system[, one to serve for two years
15and one for four years. Following the completion of the initial
16terms, the stated]. The terms of such members shall be four
17years. Ballots shall be mailed to each member of the retirement
18system at least twenty (20) days prior to the date of the
19election. A vacancy occurring during the term of any member of
20the board shall be filled for the unexpired term by the
21appointment or election of a successor in the same manner as his
22predecessor. A majority of the members of the board shall
23constitute a quorum for the transaction of any business.

24Section 3. The act is amended by adding a section to read:

25Section 1704.1. Tax Qualification.--The board may make such
26technical changes to the retirement plan as are necessary in
27order to qualify the retirement system and fund under section
28401(a) of the Internal Revenue Code of 1986 (Public Law 99-514,
2926 U.S.C. § 401(c)).

30Section 4. Section 1710(a), (b) and (h) of the act, amended

1January 27, 1998 (P.L.1, No.1) and June 18, 1998 (P.L.693,
2No.89), are amended to read:

3Section 1710. Employes Eligible for Retirement Allowances.--
4(a) (1) Every [present or future] county employe hired prior 
5to the effective date of paragraph (2), who has reached the age
6of sixty years or upwards and who has to his or her credit a
7period of service of eight years, but less than twenty years
8shall, upon application to the board, be eligible for retirement
9from service, and shall thereafter receive, during life, except
10as hereinafter provided, a retirement allowance computed on a
11service period of twenty (20) years which shall equal one
12twentieth (1/20) of such amount as he or she may be eligible to
13receive in accordance with the provisions of subsection (a) of
14section 1712, for each year's service which such county employe
15may have to his or her credit during the aforesaid period of
16time. The time spent in the employ of the county or county
17institution district need not necessarily have been continuous.
18The aforesaid retirement allowance shall be subject to a
19suspension thereof in accordance with the provisions of
20subsection (h) of this section 1710 and subsection (c) of
21section 1712.

22(2) Every county employe hired on or after the effective 
23date of this paragraph who has reached the age of sixty years or 
24upwards and who has to his or her credit a period of service of 
25ten years, but less than twenty-five years shall, upon 
26application to the board, be eligible for retirement from 
27service, and shall thereafter receive, during life, except as 
28hereinafter provided, a retirement allowance computed on a 
29service period of twenty-five years which shall equal one 
30twenty-fifth of such amount as he or she may be eligible to 

1receive in accordance with the provisions of subsection (a) of 
2section 1712, for each year's service which such county employe 
3may have to his or her credit during the aforesaid period of 
4time. The time spent in the employ of the county or county 
5institution district need not necessarily have been continuous. 
6The aforesaid retirement allowance shall be subject to a 
7suspension thereof in accordance with the provisions of 
8subsection (h) of this section 1710 and subsection (c) of 
9section 1712.

10(b) (1) Every [present or future] county employe hired 
11prior to the effective date of paragraph (2), other than a
12member of the police force or the fire department or a fire
13inspector or a sheriff or deputy sheriff, has reached the age of
14sixty years or upwards and who has to his or her credit a period
15of service of twenty years or more, and every county employe who
16is a member of the police force or the fire department or a fire
17inspector, and who shall have been a county employe during a
18period of twenty or more years and has reached the age of fifty
19years or upwards shall, upon application to the board, be
20eligible for retirement from service, and shall thereafter
21receive, during life, except as hereinafter provided, a
22retirement allowance plus a service increment if any, in
23accordance with the provisions of section 1712. Every county
24officer or employe who is a sheriff, deputy sheriff, prison
25guard or probation officer who shall have been a county officer
26or employe during a period of twenty or more years and has
27reached the age of fifty-five years or upward, shall, upon
28application to the board, be eligible for retirement from
29service and shall thereafter receive, during life, except as
30hereafter provided, a retirement allowance in accordance with

1section 1712. The time spent in the employ of the county or
2county institution district need not necessarily have been
3continuous: Provided, That when any county employe has twenty or
4more years service, not necessarily continuous, and has not
5reached the age of sixty years or upwards, and shall be
6separated from the service of the county or county institution
7district by reason of no cause or act of his or her own, upon
8application to the board he or she shall thereafter receive,
9during life, except as hereinafter provided, a retirement
10allowance plus a service increment if any, in accordance with
11the provisions of section 1713. The aforesaid retirement
12allowance plus a service increment if any, shall be subject to a
13suspension thereof in accordance with the provisions of
14subsection (h) of this section 1710 and subsection (c) of
15section 1712.

16(2) Every county employe hired on or after the effective
17date of this paragraph, other than a member of the police force
18or the fire department or a fire inspector or a sheriff or
19deputy sheriff, prison guard or probation officer, who has
20reached the age of sixty years or upwards and who has to his or
21her credit a period of service of twenty-five years or more, and
22every county employe who is a member of the police force or the
23fire department or a fire inspector, and who shall have been a
24county employe during a period of twenty-five or more years and
25has reached the age of fifty years or upwards shall, upon
26application to the board, be eligible for retirement from
27service, and shall thereafter receive, during life, except as
28hereinafter provided, a retirement allowance plus a service
29increment if any, in accordance with the provisions of section
301712. Every county officer or employe who is a sheriff, deputy

1sheriff, prison guard or probation officer who shall have been a
2county officer or employe during a period of twenty-five or more
3years and has reached the age of fifty-five years or upwards,
4shall, upon application to the board, be eligible for retirement
5from service and shall thereafter receive, during life, except
6as hereafter provided, a retirement allowance in accordance with
7section 1712. The time spent in the employ of the county or
8county institution district need not necessarily have been
9continuous: Provided, That when any county employe has twenty-
10five or more years service, not necessarily continuous, and has
11not reached the age of sixty years or upwards, and shall be
12separated from the service of the county or county institution
13district by reason of no cause or act of his or her own, upon
14application to the board he or she shall thereafter receive,
15during life, except as hereinafter provided, a retirement
16allowance plus a service increment if any, in accordance with
17the provisions of section 1713. The aforesaid retirement
18allowance plus a service increment if any, shall be subject to a
19suspension thereof in accordance with the provisions of
20subsection (h) of this section 1710 and subsection (c) of
21section 1712.

22* * *

23(h) (1) Option I. Any [present or future] county employe
24hired prior to the effective date of paragraph (1.1) who has not
25reached sixty years of age, and who has to his or her credit a
26period of at least the minimum number of years of service
27specified in subsection [(a)] (a)(1) of this section but less
28than twenty years of service, shall upon application to the
29board be eligible to receive at age sixty years a retirement
30allowance computed on a service period of twenty years, which

1shall equal one-twentieth of such amount as he or she may be
2eligible to receive in accordance with the provisions of
3subsection (a) of section 1712 for each year's service which
4such county employe may have to his or her credit during the
5aforesaid period of time. The time spent in the employ of the
6county or county institution district need not necessarily have
7been continuous.

8(1.1) Option I-A. Any county employe hired on or after the
9effective date of this paragraph who has not reached sixty years
10of age, and who has to his or her credit a period of at least
11the minimum number of years of service specified in subsection
12(a)(2) of this section but less than twenty-five years of
13service, shall upon application to the board be eligible to
14receive at age sixty years a retirement allowance computed on a
15service period of twenty-five years, which shall equal one-
16twenty-fifth of such amount as he or she may be eligible to
17receive in accordance with the provisions of subsection (a) of
18section 1712 for each year's service which such county employe
19may have to his or her credit during the aforesaid period of
20time. The time spent in the employ of the county or county
21institution district need not necessarily have been continuous.

22(2) Option II. Any [present or future] county employe hired 
23prior to the effective date of paragraph (2.1) who has not
24reached sixty years of age, and who has to his or her credit a
25period of the minimum number of years of service specified in
26subsection [(a)] (a)(1) of this section but less than twenty
27years of service, shall upon application to the board be
28eligible to receive thereafter, a retirement computed on a
29service period of twenty years, which shall equal one-twentieth
30of such amount as he or she may be eligible to receive in

1accordance with the provisions of subsection (a) of section 1712
2for each year's service which such county employe may have to
3his or her credit during the aforesaid period of time. Further,
4the above retirement allowance shall be subject to a reduction
5of one-half of one per centum for each month under the age of
6sixty years. In no event shall a retirement allowance be paid
7until the age of fifty-five years is attained. The time spent in
8the employ of the county or county institution district need not
9necessarily have been continuous. The aforesaid retirement
10allowance elected under Option I shall become null and void if
11said county or county institution district employe is reemployed
12prior to age sixty in accordance with the provisions of
13subsection (c) of section 1712.

14(2.1) Option II-A. Any county employe hired on or after the 
15effective date of this paragraph who has not reached sixty years 
16of age, and who has to his or her credit a period of the minimum 
17number of years of service specified in subsection (a)(2) of 
18this section but less than twenty-five years of service, shall 
19upon application to the board be eligible to receive thereafter, 
20a retirement computed on a service period of twenty-five years, 
21which shall equal one-twenty-fifth of such amount as he or she 
22may be eligible to receive in accordance with the provisions of 
23subsection (a) of section 1712 for each year's service which 
24such county employe may have to his or her credit during the 
25aforesaid period of time. Further, the above retirement 
26allowance shall be subject to a reduction of one-half of one per 
27centum for each month under the age of sixty years. In no event 
28shall a retirement allowance be paid until the age of fifty-five 
29years is attained. The time spent in the employ of the county or 
30county institution district need not necessarily have been 

1continuous. The aforesaid retirement allowance elected under 
2Option I-A shall become null and void if said county or county 
3institution district employe is reemployed prior to age sixty in 
4accordance with the provisions of subsection (c) of section 
51712.

6* * *

7Section 5. Section 1712(a), (b.1), (e), (f) and (i) of the
8act, amended December 10, 1970 (P.L.919, No.291), June 1, 1973
9(P.L.37, No.19), February 9, 1984 (P.L.12, No.6), January 27,
101998 (P.L.1, No.1) and October 30, 2000 (P.L.616, No.85), are
11amended to read:

12Section 1712. Amount of Retirement Allowances.--(a) (1)
13[The] For employes hired prior to the effective date of 
14paragraph (2), the retirement allowance paid under the
15provisions of this article shall equal fifty per centum of the
16amount which would constitute the average monthly compensation
17as received by the county employe during the highest twenty-four
18months of the last four (4) years of his employment or two years
19on a bi-weekly pay basis in which period of time the said county
20employe made monthly or bi-weekly contributions into the
21retirement fund prior to his or her retirement.

22(2) For employes hired after the effective date of this
23paragraph, the retirement allowance paid under the provisions of
24this article shall be equal to fifty per centum of the amount
25which would constitute the average monthly compensation as
26received by the county employe during the highest forty-eight
27months of the last eight (8) years of his employment or four (4)
28years on a bi-weekly pay basis in which period of time the
29county employe made monthly or bi-weekly contributions into the
30retirement fund prior to his or her retirement.

1(3) Such average monthly compensation shall include the
2compensation which any county employe would have been entitled
3to and would have received except for deduction from
4compensation due to time spent in serving as an elected State
5official: Provided, That the county and the employe shall make
6monthly contributions based on the last compensation equal to
7the amount the county and he or she would have paid into the
8retirement fund had such compensation been paid by the county.
9In the event an employe, on the effective date of employment
10termination, shall have less than a full year of service for the
11purpose of computing the employe's service time, then the amount
12of the retirement allowance, which would have been computed had
13the employe completed a full twelve-month period for the year of
14the termination of employment, shall be prorated upon a full
15completed month basis for said last year of service. No
16retirement allowance shall be computed on a monthly compensation
17in excess of four thousand three hundred thirty-three dollars
18and thirty-three cents ($4,333.33) (referred to in this
19subsection as "excess compensation") unless the employe and the
20county have made contributions on all excess compensation
21received by the employe during the five-year period preceding
22the employe's retirement: Provided, That the required
23contribution is paid into the retirement system within ninety
24(90) days of the date of retirement. An employe who retires
25within five (5) years of the effective date of the compensation
26cap removal may elect to satisfy the contribution requirement by
27making a lump sum contribution that is calculated by applying
28the applicable contribution percentage rate to all excess
29compensation received by the employe during the prior five-year
30period on which contributions were not made. Within ninety (90)

1days of such contribution by an employe, contributions shall
2also be made by the county in an amount equal to the amount
3contributed by the employe. The effective date of the cap
4removal is December 31, 1999.

5(4) After the effective date of this amendment, certain
6former county employes who are now receiving a retirement
7allowance shall receive an increase of a certain per centum of
8such retirement allowance, which sum shall be computed on the
9average monthly retirement allowance as heretofore authorized by
10the board.

11(5) The per centum of increase in said monthly retirement
12allowance shall be a flat 10 per centum increase with the
13maximum amount not to exceed forty-five dollars ($45.00) per
14month.

15(6) Any employe who earns in excess of ten thousand eight
16hundred dollars ($10,800) per annum and shall retire during the
17period from January 1, 1973 to December 31, 1981 shall pay, as a
18condition to the payment of any benefits hereunder a lump sum
19contribution into the retirement fund, which contribution shall
20be computed as follows:

21(i) The difference between ten thousand eight hundred
22dollars ($10,800) and the annual salary of the employe
23multiplied by the number of years during which he was not an
24employe of the county for the period aforesaid and upon that
25amount the sum of two per centum which shall be the lump sum
26contribution as required herein.

27(ii) No person who is reemployed as a county employe shall
28be eligible to receive the benefit of a retirement allowance
29plus a service increment, if any, until he or she shall have
30made at least twenty-four monthly or fifty-two bi-weekly

1contributions into the retirement fund subsequent to his or her
2reemployment. The foregoing provisions shall not have a
3retroactive application and shall apply only to present and
4future county employes. The rate required to be paid in
5accordance with this provision shall apply to present county
6employes notwithstanding the rate of contribution that the
7present county employe has made into the retirement fund.

8(b.1) (1) In addition to the retirement allowance which is
9authorized by this article and notwithstanding the limitations
10therein placed upon retirement allowances, any [present or
11future] county employe hired prior to the effective date of 
12paragraph (2) who upon retirement shall be eligible to receive
13payment of a retirement allowance and who has been employed as
14such for twenty or more years during which period of time he or
15she shall have made monthly contributions into the retirement
16fund, shall also be eligible to the payment in addition to a
17retirement allowance a service increment of two per centum per
18year computed upon the annual retirement allowance to which he
19or she is entitled. Said service increment shall be the sum
20obtained by computing the number of full years, and any portion
21of a year, in excess of twenty years during which period of time
22he or she shall have made monthly or bi-weekly contributions
23into the retirement fund. No service increment shall be paid for
24more than twenty (20) such excess service years. Effective as of
25January 1, 1989, in the event an employe, on the effective date
26of employment termination, shall have less than a full year of
27service for the purpose of computing the employe's service
28increment, then the amount of the service increment which would
29have been computed had the employe completed a full twelve-month
30period for the year of the termination of employment shall be

1prorated upon a full completed month basis for said last year of
2service increment.

3(2) In addition to the retirement allowance which is
4authorized by this article and notwithstanding the limitations
5therein placed upon retirement allowances, any county employe
6hired on or after the effective date of this paragraph who upon
7retirement shall be eligible to receive payment of a retirement
8allowance and who has been employed as such for twenty-five or
9more years during which period of time he or she shall have made
10monthly or bi-weekly contributions into the retirement fund,
11shall also be eligible to the payment in addition to a
12retirement allowance a service increment of two per centum per
13year computed upon the annual retirement allowance to which he
14or she is entitled. Said service increment shall be the sum
15obtained by computing the number of full years, and any portion
16of a year, in excess of twenty-five years during which period of
17time he or she shall have made monthly or bi-weekly
18contributions into the retirement fund. No service increment
19shall be paid for more than twenty (20) such excess service
20years. In the event an employe, on the effective date of
21employment termination, shall have less than a full year of
22service for the purpose of computing the employe's service
23increment, then the amount of the service increment which would
24have been computed had the employe completed a full twelve-month
25period for the year of the termination of employment shall be
26prorated upon a full completed month basis for said last year of
27service increment.

28* * *

29(e) Any present or future married county employe covered
30under the provisions of this article may receive retirement

1benefits in accordance with the provisions of this section to
2which such county employe may be entitled or he or she may elect
3at anytime before retirement, to receive in lieu thereof
4benefits under the option as hereinafter set forth.

5The option shall consist of retirement benefits in accordance
6with the provisions of [subsections (a) and (b)] subsection (a)
7of this section but reduced at age fifty-five, or on
8commencement of retirement benefits if later, by ten per centum
9plus one per centum for each full year in excess of five years
10by which the spouse is younger than the married county employe,
11with a maximum reduction to seventy per centum of such
12retirement benefits, and minus one-half of one per centum for
13each year by which the spouse is older, with a maximum increase
14to ninety-five per centum of such retirement benefits. The
15reduced amount of such retirement benefits shall commence at the
16time of retirement, but not before age fifty-five, and shall be
17paid to the employe subject to the provisions of subsection (d)
18of this section.

19(f) (1) The election by said county employe of the option
20as provided in subsection (e) of this section shall be final on
21attainment of age fifty or on later election prior to
22retirement, and no further election shall be permitted:
23Provided, That the election shall automatically be cancelled if
24the county employe shall either be divorced or if his or her
25spouse shall die, in each case before retirement benefits under
26the option shall commence. In the event the designated spouse
27shall predecease, or if a legal separation occurs, while on
28retirement, the reduced retirement option benefit shall be
29reinstated to the full amount had there been no option
30exercised. Said reinstated amount to commence immediately upon

1the death of the spouse so designated or upon satisfactory proof
2of legal separation.

3(2) All [present and future] employes hired prior to the 
4effective date of paragraph (3) may elect to provide
5survivorship option benefits for a spouse in the following
6classifications if the following conditions are satisfied:

7Class I. The deceased employe shall have attained the age of
8fifty years and had completed between the minimum number of
9years of service specified in subsection (a) of section 1710 and
10nineteen years of service and dies before reaching the age of
11fifty-five years. The reduced retirement option benefit to
12commence to the survivor at the time the deceased employe would
13have attained the age of fifty-five years. Said benefits to be
14paid in accordance with the provisions set forth under
15subsection (d), Option II, of section 1713.

16Class II. All [present and future] employes hired prior to 
17the effective date of paragraph (3), who after completion of
18twenty or more years of service and shall die before reaching
19the age of fifty years, his or her spouse shall be eligible to
20receive the reduced retirement option immediately, in accordance
21with the provisions set forth under subsection (d), Option II of
22section 1713.

23(3) All employes hired on or after the effective date of
24this paragraph may elect to provide survivorship option benefits
25for a spouse in the following classifications if the following
26conditions are satisfied:

27Class I-A. The deceased employe shall have attained the age
28of fifty years and had completed between the minimum number of
29years of service specified in subsection (a) of section 1710 and
30twenty-four years of service and dies before reaching the age of

1fifty-five years. The reduced retirement option benefit to
2commence to the survivor at the time the deceased employe would
3have attained the age of fifty-five years. Said benefits to be
4paid in accordance with the provisions set forth under
5subsection (d), Option II, of section 1713.

6Class II-A. All employes hired on or after the effective
7date of this paragraph, who after completion of twenty-five or
8more years of service and shall die before reaching the age of
9fifty years, his or her spouse shall be eligible to receive the
10reduced retirement option immediately, in accordance with the
11provisions set forth under subsection (d), Option II of section
121713.

13* * *

14(i) (1) Any county employe hired prior to the effective 
15date of paragraph (2) retiring under disability retirement
16benefits shall qualify for survivorship option benefits if he or
17she shall have reached the age of fifty-five years and having
18twenty or more years of service credit will be eligible for same
19benefits had he retired under the normal retirement provided for
20in this act. Any county employe retiring under disability
21retirement and having [fifteen] twelve years but less than
22twenty years of service credit, upon reaching age fifty-five
23will be eligible for survivorship option benefits and his or her
24spouse shall receive the maximum amount of seventy-five dollars
25($75.00) per month upon his or her death under the option
26benefit clause as set forth under subsection (e) of this
27section.

28(2) Any county employe hired on or after the effective date
29of this paragraph retiring under disability retirement benefits
30shall qualify for survivorship option benefits if he or she

1shall have reached the age of fifty-five years and having
2twenty-five or more years of service credit will be eligible for
3same benefits had he retired under the normal retirement
4provided for in this act. Any county employe retiring under
5disability retirement and having twelve years but less than
6twenty-five years of service credit, upon reaching age fifty-
7five will be eligible for survivorship option benefits and his
8or her spouse shall receive the maximum amount of seventy-five
9dollars ($75.00) per month upon his or her death under the
10option benefit clause as set forth under subsection (e) of this
11section.

12Section 6. This act shall take effect in 60 days.