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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY FARNESE, WAUGH, FONTANA, BROWNE, ORIE, DINNIMAN, HUGHES AND WASHINGTON, MARCH 23, 2011 |
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| REFERRED TO FINANCE, MARCH 23, 2011 |
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| AN ACT |
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1 | Amending the act of December 18, 1984 (P.L.1005, No.205), |
2 | entitled, as amended, "An act mandating actuarial funding |
3 | standards for all municipal pension systems; establishing a |
4 | recovery program for municipal pension systems determined to |
5 | be financially distressed; providing for the distribution of |
6 | the tax on the premiums of foreign fire insurance companies; |
7 | providing for the establishment and administration of |
8 | deferred retirement option plans in local governments and for |
9 | local tax; and making repeals," in provisions relating to |
10 | cities of the first class, providing for purchase of credit |
11 | for previous government service. |
12 | The General Assembly of the Commonwealth of Pennsylvania |
13 | hereby enacts as follows: |
14 | Section 1. The act of December 18, 1984 (P.L.1005, No.205), |
15 | known as the Municipal Pension Plan Funding Standard and |
16 | Recovery Act, is amended by adding a section to read: |
17 | Section 1004. Purchase of credit for previous government |
18 | service. |
19 | (a) General rule.--A member of a retirement system of a city |
20 | of the first class may purchase credited service for previous |
21 | government employment, which was full-time or its prorated |
22 | equivalent and which occurred prior to the member's current term |
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1 | of employment with the city of the first class, as follows: |
2 | (1) service with the military, under a branch of the |
3 | armed forces of the United States; or |
4 | (2) service as an employee of the Federal Government, |
5 | State or political subdivision within the Commonwealth or any |
6 | agency or instrumentality thereof or any association of |
7 | employees thereof; or of an educational organization which is |
8 | a public school within this Commonwealth which provides |
9 | elementary or secondary education, as determined by State |
10 | law. |
11 | (b) Limitation.-- |
12 | (1) Credited service which may be purchased, only if the |
13 | member has vested in the current retirement system, for |
14 | allowable other government employment is limited to a maximum |
15 | of ten years and shall be permitted only with respect to |
16 | service for which the member is not or will not be entitled |
17 | to a vested pension from another employer. |
18 | (2) Notwithstanding the provisions of paragraph (1), a |
19 | member may purchase credit for prior military service for |
20 | which the member is or will be entitled to a military |
21 | pension, if that member's entitlement to a military pension |
22 | is based on whole or in part upon service in the military |
23 | reserves. |
24 | (c) Amount payable and payments.--The amount payable shall |
25 | be certified in each case by the pension board in accordance |
26 | with methods approved by the actuary and shall be paid in a lump |
27 | sum within 30 days or amortized with statutory interest through |
28 | salary deductions in amounts agreed upon by the member and the |
29 | pension board. |
30 | (d) Applications.--Applications for purchase of credited |
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1 | service under this section shall be made on forms provided by |
2 | the pension board and, in the case of an application for |
3 | allowable military service, shall be accompanied by a certified |
4 | copy of the applicant's military record plus proof of a |
5 | discharge from the armed forces of the United States that is |
6 | characterized as "honorable" or "under honorable conditions." |
7 | Such discharge shall be a condition precedent to being entitled |
8 | to the purchase of credited service with respect to military |
9 | service. |
10 | (e) Compliance by city of the first class.--A city of the |
11 | first class that has an established procedure for members of its |
12 | retirement system to purchase previous government service which |
13 | procedure does not conform to the provisions of subsection (b) |
14 | shall amend its plan: |
15 | (1) within 180 days of the effective date of this |
16 | section; or |
17 | (2) when the current labor-management contract creating |
18 | the plan expires, whichever is later, to conform with the |
19 | provisions of this section with respect to future retirement |
20 | system participants. |
21 | (f) Applicability.--The provisions of subsection (b) shall |
22 | not apply to a member of the retirement system who: |
23 | (1) has civil service status; |
24 | (2) is entitled to be represented by a union; and |
25 | (3) has five or more years of credited service with the |
26 | retirement system. |
27 | (g) Construction.--A change of position in employment within |
28 | an administrative department of a city of the first class or |
29 | between administrative departments of a city of the first class |
30 | shall not be deemed as establishing a new current term of |
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1 | employment for purposes of this section. |
2 | Section 2. This act shall take effect in 60 days. |
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