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

1salary or wages received per day, weekly, bi-weekly, semi-
2monthly, monthly, annually, or during an official term year.

3(2) For employes hired on or after the effective date of
4this paragraph, the term shall not include overtime pay <-in an 
5amount in excess of ten per centum of base pay.

6* * *

7Section 2. Section 1703 of the act is amended to read:

8Section 1703. Retirement Board.--The retirement system shall
9be under the sole direction of a board, which shall consist of
10the county [commissioners, the treasurer, the controller,] chief 
11executive; one member, who shall be a member of the retirement 
12system, appointed by the chief executive with the consent of 
13county council; one member, who shall be a member of the 
14retirement system, appointed by county council; the controller; 
15the treasurer; and two persons elected by ballot from among the
16members of the retirement system[, one to serve for two years
17and one for four years. Following the completion of the initial
18terms, the stated]. The terms of such members shall be four
19years. Ballots shall be mailed to each member of the retirement
20system at least twenty (20) days prior to the date of the
21election. A vacancy occurring during the term of any member of
22the board shall be filled for the unexpired term by the
23appointment or election of a successor in the same manner as his
24predecessor. A majority of the members of the board shall
25constitute a quorum for the transaction of any business.

26Section 3. The act is amended by adding a section to read:

27Section 1704.1. Tax Qualification.--The board may make such
28technical changes to the retirement plan as are necessary in
29order to qualify the retirement system and fund under section
30401(a) of the Internal Revenue Code of 1986 (Public Law 99-514,

126 U.S.C. § 401(c)).

2Section 4. Section 1710(a), (b) and (h) of the act, amended
3January 27, 1998 (P.L.1, No.1) and June 18, 1998 (P.L.693,
4No.89), are amended to read:

5Section 1710. Employes Eligible for Retirement Allowances.--
6(a) (1) Every [present or future] county employe hired prior 
7to the effective date of paragraph (2), who has reached the age
8of sixty years or upwards and who has to his or her credit a
9period of service of eight years, but less than twenty years
10shall, upon application to the board, be eligible for retirement
11from service, and shall thereafter receive, during life, except
12as hereinafter provided, a retirement allowance computed on a
13service period of twenty (20) years which shall equal one
14twentieth (1/20) of such amount as he or she may be eligible to
15receive in accordance with the provisions of subsection (a) of
16section 1712, for each year's service which such county employe
17may have to his or her credit during the aforesaid period of
18time. The time spent in the employ of the county or county
19institution district need not necessarily have been continuous.
20The aforesaid retirement allowance shall be subject to a
21suspension thereof in accordance with the provisions of
22subsection (h) of this section 1710 and subsection (c) of
23section 1712.

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

1service period of twenty-five years which shall equal one 
2twenty-fifth of such amount as he or she may be eligible to 
3receive in accordance with the provisions of subsection (a) of 
4section 1712, for each year's service which such county employe 
5may have to his or her credit during the aforesaid period of 
6time. The time spent in the employ of the county or county 
7institution district need not necessarily have been continuous. 
8The aforesaid retirement allowance shall be subject to a 
9suspension thereof in accordance with the provisions of 
10subsection (h) of this section 1710 and subsection (c) of 
11section 1712.

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

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

18(2) Every county employe hired on or after the effective
19date of this paragraph, other than a member of the police force
20or the fire department or a fire inspector or a sheriff or
21deputy sheriff, prison guard or probation officer, who has
22reached the age of sixty years or upwards and who has to his or
23her credit a period of service of twenty-five years or more, and
24every county employe who is a member of the police force or the
25fire department or a fire inspector, and who shall have been a
26county employe during a period of twenty-five or more years and
27has reached the age of fifty years or upwards shall, upon
28application to the board, be eligible for retirement from
29service, and shall thereafter receive, during life, except as
30hereinafter provided, a retirement allowance plus a service

1increment if any, in accordance with the provisions of section
21712. Every county officer or employe who is a sheriff, deputy
3sheriff, prison guard or probation officer who shall have been a
4county officer or employe during a period of twenty-five or more
5years and has reached the age of fifty-five years or upwards,
6shall, upon application to the board, be eligible for retirement
7from service and shall thereafter receive, during life, except
8as hereafter provided, a retirement allowance in accordance with
9section 1712. The time spent in the employ of the county or
10county institution district need not necessarily have been
11continuous: Provided, That when any county employe has twenty-
12five or more years service, not necessarily continuous, and has
13not reached the age of sixty years or upwards, and shall be
14separated from the service of the county or county institution
15district by reason of no cause or act of his or her own, upon
16application to the board he or she shall thereafter receive,
17during life, except as hereinafter provided, a retirement
18allowance plus a service increment if any, in accordance with
19the provisions of section 1713. The aforesaid retirement
20allowance plus a service increment if any, shall be subject to a
21suspension thereof in accordance with the provisions of
22subsection (h) of this section 1710 and subsection (c) of
23section 1712.

24* * *

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

1board be eligible to receive at age sixty years a retirement
2allowance computed on a service period of twenty years, which
3shall equal one-twentieth of such amount as he or she may be
4eligible to receive in accordance with the provisions of
5subsection (a) of section 1712 for each year's service which
6such county employe may have to his or her credit during the
7aforesaid period of time. The time spent in the employ of the
8county or county institution district need not necessarily have
9been continuous.

10(1.1) Option I-A. Any county employe hired on or after the
11effective date of this paragraph who has not reached sixty years
12of age, and who has to his or her credit a period of at least
13the minimum number of years of service specified in subsection
14(a)(2) of this section but less than twenty-five years of
15service, shall upon application to the board be eligible to
16receive at age sixty years a retirement allowance computed on a
17service period of twenty-five years, which shall equal one-
18twenty-fifth of such amount as he or she may be eligible to
19receive in accordance with the provisions of subsection (a) of
20section 1712 for each year's service which such county employe
21may have to his or her credit during the aforesaid period of
22time. The time spent in the employ of the county or county
23institution district need not necessarily have been continuous.

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

1service period of twenty years, which shall equal one-twentieth
2of such amount as he or she may be eligible to receive in
3accordance with the provisions of subsection (a) of section 1712
4for each year's service which such county employe may have to
5his or her credit during the aforesaid period of time. Further,
6the above retirement allowance shall be subject to a reduction
7of one-half of one per centum for each month under the age of
8sixty years. In no event shall a retirement allowance be paid
9until the age of fifty-five years is attained. The time spent in
10the employ of the county or county institution district need not
11necessarily have been continuous. The aforesaid retirement
12allowance elected under Option I shall become null and void if
13said county or county institution district employe is reemployed
14prior to age sixty in accordance with the provisions of
15subsection (c) of section 1712.

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

1years is attained. The time spent in the employ of the county or 
2county institution district need not necessarily have been 
3continuous. The aforesaid retirement allowance elected under 
4Option I-A shall become null and void if said county or county 
5institution district employe is reemployed prior to age sixty in 
6accordance with the provisions of subsection (c) of section 
71712.

8* * *

9Section 5. Section 1712(a), (b.1), (e), (f) and (i) of the
10act, amended December 10, 1970 (P.L.919, No.291), June 1, 1973
11(P.L.37, No.19), February 9, 1984 (P.L.12, No.6), January 27,
121998 (P.L.1, No.1) and October 30, 2000 (P.L.616, No.85), are
13amended to read:

14Section 1712. Amount of Retirement Allowances.--(a) (1)
15[The] For employes hired prior to the effective date of 
16paragraph (2), the retirement allowance paid under the
17provisions of this article shall equal fifty per centum of the
18amount which would constitute the average monthly compensation
19as received by the county employe during the highest twenty-four
20months of the last four (4) years of his employment or two years
21on a bi-weekly pay basis in which period of time the said county
22employe made monthly or bi-weekly contributions into the
23retirement fund prior to his or her retirement.

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

1county employe made monthly or bi-weekly contributions into the
2retirement fund prior to his or her retirement.

3(3) Such average monthly compensation shall include the
4compensation which any county employe would have been entitled
5to and would have received except for deduction from
6compensation due to time spent in serving as an elected State
7official: Provided, That the county and the employe shall make
8monthly contributions based on the last compensation equal to
9the amount the county and he or she would have paid into the
10retirement fund had such compensation been paid by the county.
11In the event an employe, on the effective date of employment
12termination, shall have less than a full year of service for the
13purpose of computing the employe's service time, then the amount
14of the retirement allowance, which would have been computed had
15the employe completed a full twelve-month period for the year of
16the termination of employment, shall be prorated upon a full
17completed month basis for said last year of service. No
18retirement allowance shall be computed on a monthly compensation
19in excess of four thousand three hundred thirty-three dollars
20and thirty-three cents ($4,333.33) (referred to in this
21subsection as "excess compensation") unless the employe and the
22county have made contributions on all excess compensation
23received by the employe during the five-year period preceding
24the employe's retirement: Provided, That the required
25contribution is paid into the retirement system within ninety
26(90) days of the date of retirement. An employe who retires
27within five (5) years of the effective date of the compensation
28cap removal may elect to satisfy the contribution requirement by
29making a lump sum contribution that is calculated by applying
30the applicable contribution percentage rate to all excess

1compensation received by the employe during the prior five-year
2period on which contributions were not made. Within ninety (90)
3days of such contribution by an employe, contributions shall
4also be made by the county in an amount equal to the amount
5contributed by the employe. The effective date of the cap
6removal is December 31, 1999.

7(4) After the effective date of this amendment, certain
8former county employes who are now receiving a retirement
9allowance shall receive an increase of a certain per centum of
10such retirement allowance, which sum shall be computed on the
11average monthly retirement allowance as heretofore authorized by
12the board.

13(5) The per centum of increase in said monthly retirement
14allowance shall be a flat 10 per centum increase with the
15maximum amount not to exceed forty-five dollars ($45.00) per
16month.

17(6) Any employe who earns in excess of ten thousand eight
18hundred dollars ($10,800) per annum and shall retire during the
19period from January 1, 1973 to December 31, 1981 shall pay, as a
20condition to the payment of any benefits hereunder a lump sum
21contribution into the retirement fund, which contribution shall
22be computed as follows:

23(i) The difference between ten thousand eight hundred
24dollars ($10,800) and the annual salary of the employe
25multiplied by the number of years during which he was not an
26employe of the county for the period aforesaid and upon that
27amount the sum of two per centum which shall be the lump sum
28contribution as required herein.

29(ii) No person who is reemployed as a county employe shall
30be eligible to receive the benefit of a retirement allowance

1plus a service increment, if any, until he or she shall have
2made at least twenty-four monthly or fifty-two bi-weekly
3contributions into the retirement fund subsequent to his or her
4reemployment. The foregoing provisions shall not have a
5retroactive application and shall apply only to present and
6future county employes. The rate required to be paid in
7accordance with this provision shall apply to present county
8employes notwithstanding the rate of contribution that the
9present county employe has made into the retirement fund.

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

1have been computed had the employe completed a full twelve-month
2period for the year of the termination of employment shall be
3prorated upon a full completed month basis for said last year of
4service increment.

5(2) In addition to the retirement allowance which is
6authorized by this article and notwithstanding the limitations
7therein placed upon retirement allowances, any county employe
8hired on or after the effective date of this paragraph who upon
9retirement shall be eligible to receive payment of a retirement
10allowance and who has been employed as such for twenty-five or
11more years during which period of time he or she shall have made
12monthly or bi-weekly contributions into the retirement fund,
13shall also be eligible to the payment in addition to a
14retirement allowance a service increment of two per centum per
15year computed upon the annual retirement allowance to which he
16or she is entitled. Said service increment shall be the sum
17obtained by computing the number of full years, and any portion
18of a year, in excess of twenty-five years during which period of
19time he or she shall have made monthly or bi-weekly
20contributions into the retirement fund. No service increment
21shall be paid for more than twenty (20) such excess service
22years. In the event an employe, on the effective date of
23employment termination, shall have less than a full year of
24service for the purpose of computing the employe's service
25increment, then the amount of the service increment which would
26have been computed had the employe completed a full twelve-month
27period for the year of the termination of employment shall be
28prorated upon a full completed month basis for said last year of
29service increment.

30* * *

1(e) Any present or future married county employe covered
2under the provisions of this article may receive retirement
3benefits in accordance with the provisions of this section to
4which such county employe may be entitled or he or she may elect
5at anytime before retirement, to receive in lieu thereof
6benefits under the option as hereinafter set forth.

7The option shall consist of retirement benefits in accordance
8with the provisions of [subsections (a) and (b)] subsection (a)
9of this section but reduced at age fifty-five, or on
10commencement of retirement benefits if later, by ten per centum
11plus one per centum for each full year in excess of five years
12by which the spouse is younger than the married county employe,
13with a maximum reduction to seventy per centum of such
14retirement benefits, and minus one-half of one per centum for
15each year by which the spouse is older, with a maximum increase
16to ninety-five per centum of such retirement benefits. The
17reduced amount of such retirement benefits shall commence at the
18time of retirement, but not before age fifty-five, and shall be
19paid to the employe subject to the provisions of subsection (d)
20of this section.

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

1reinstated to the full amount had there been no option
2exercised. Said reinstated amount to commence immediately upon
3the death of the spouse so designated or upon satisfactory proof
4of legal separation.

5(2) All [present and future] employes hired prior to the 
6effective date of paragraph (3) may elect to provide
7survivorship option benefits for a spouse in the following
8classifications if the following conditions are satisfied:

9Class I. The deceased employe shall have attained the age of
10fifty years and had completed between the minimum number of
11years of service specified in subsection (a) of section 1710 and
12nineteen years of service and dies before reaching the age of
13fifty-five years. The reduced retirement option benefit to
14commence to the survivor at the time the deceased employe would
15have attained the age of fifty-five years. Said benefits to be
16paid in accordance with the provisions set forth under
17subsection (d), Option II, of section 1713.

18Class II. All [present and future] employes hired prior to 
19the effective date of paragraph (3), who after completion of
20twenty or more years of service and shall die before reaching
21the age of fifty years, his or her spouse shall be eligible to
22receive the reduced retirement option immediately, in accordance
23with the provisions set forth under subsection (d), Option II of
24section 1713.

25(3) All employes hired on or after the effective date of
26this paragraph may elect to provide survivorship option benefits
27for a spouse in the following classifications if the following
28conditions are satisfied:

29Class I-A. The deceased employe shall have attained the age
30of fifty years and had completed between the minimum number of

1years of service specified in subsection (a) of section 1710 and
2twenty-four years of service and dies before reaching the age of
3fifty-five years. The reduced retirement option benefit to
4commence to the survivor at the time the deceased employe would
5have attained the age of fifty-five years. Said benefits to be
6paid in accordance with the provisions set forth under
7subsection (d), Option II, of section 1713.

8Class II-A. All employes hired on or after the effective
9date of this paragraph, who after completion of twenty-five or
10more years of service and shall die before reaching the age of
11fifty years, his or her spouse shall be eligible to receive the
12reduced retirement option immediately, in accordance with the
13provisions set forth under subsection (d), Option II of section
141713.

15* * *

16(i) (1) Any county employe hired prior to the effective 
17date of paragraph (2) retiring under disability retirement
18benefits shall qualify for survivorship option benefits if he or
19she shall have reached the age of fifty-five years and having
20twenty or more years of service credit will be eligible for same
21benefits had he retired under the normal retirement provided for
22in this act. Any county employe retiring under disability
23retirement and having [fifteen] twelve years but less than
24twenty years of service credit, upon reaching age fifty-five
25will be eligible for survivorship option benefits and his or her
26spouse shall receive the maximum amount of seventy-five dollars
27($75.00) per month upon his or her death under the option
28benefit clause as set forth under subsection (e) of this
29section.

30(2) Any county employe hired on or after the effective date

1of this paragraph retiring under disability retirement benefits
2shall qualify for survivorship option benefits if he or she
3shall have reached the age of fifty-five years and having
4twenty-five or more years of service credit will be eligible for
5same benefits had he retired under the normal retirement
6provided for in this act. Any county employe retiring under
7disability retirement and having twelve years but less than
8twenty-five years of service credit, upon reaching age fifty-
9five will be eligible for survivorship option benefits and his
10or her spouse shall receive the maximum amount of seventy-five
11dollars ($75.00) per month upon his or her death under the
12option benefit clause as set forth under subsection (e) of this
13section.

14Section 6. This act shall take effect in 60 days.