PRINTER'S NO. 375
No. 343 Session of 1977
INTRODUCED BY DeMEDIO AND BITTINGER, FEBRUARY 15, 1977
REFERRED TO COMMITTEE ON VETERANS AFFAIRS, FEBRUARY 15, 1977
AN ACT
1 Amending the act of February 1, 1974 (P.L.34, No.15), entitled
2 "An act creating a Pennsylvania Municipal Retirement System
3 for the payment of retirement allowances to officers,
4 employes, firemen and police of political subdivisions and
5 municipal authorities and of institutions supported and
6 maintained by political subdivisions and municipal government
7 associations and providing for the administration of the same
8 by a board composed of the State Treasurer and others
9 appointed by the Governor; imposing certain duties on the
10 Pennsylvania Municipal Retirement Board and the actuary
11 thereof; providing the procedure whereby political
12 subdivisions and municipal authorities may join such system,
13 and imposing certain liabilities and obligations on such
14 political subdivisions and municipal authorities in
15 connection therewith, and as to certain existing retirement
16 and pension systems, and upon officers, employes, firemen and
17 police of such political subdivisions, institutions supported
18 and maintained by political subdivisions, and upon municipal
19 authorities; providing for the continuation of certain
20 municipal retirement systems now administered by the
21 Commonwealth; providing certain exemptions from taxation,
22 execution, attachment, levy and sale and providing for the
23 repeal of certain related acts," changing the length of
24 service in the municipality in order to secure certain
25 military service credits for retirement.
26 The General Assembly of the Commonwealth of Pennsylvania
27 hereby enacts as follows:
28 Section 1. Section 204, act of February 1, 1974 (P.L.34,
29 No.15), known as the "Pennsylvania Municipal Retirement Law," is
30 amended to read:
1 Section 204. Service Allowance; Change of Employment;
2 Military Service.--In computing the length of service of a
3 contributor for retirement purposes, full credit shall be given
4 to each original member for each year of service rendered to the
5 municipality prior to the time the municipality joined the
6 system, whether or not such service was continuous.
7 As soon as practicable, the board shall issue to each
8 original member a certificate certifying the aggregate length of
9 service rendered to the municipality prior to the time it joined
10 the system. Such certificate shall be final and conclusive as to
11 his prior service unless thereafter modified by the board, upon
12 application of the member.
13 The time during which a member was absent from service
14 without pay shall not be counted in computing the service of a
15 contributor in his certificate, or upon retirement, unless
16 specifically allowed by the municipality, with the approval of
17 the board.
18 When a contributor leaves the employ of a municipality which
19 has joined the system, and enters into the employ of another
20 municipality which has also joined the system, his service
21 credits shall remain unimpaired, but in such cases the unpaid
22 municipal liability for prior service shall be prorated by the
23 board between the municipalities on an equitable basis.
24 A contributor who has been employed by a municipality for a
25 period of at least six months and is an active member of the
26 system and who thereafter, heretofore, or hereafter, shall be
27 inducted into the military service of the United States in times
28 of war, armed conflict, or National emergency, so proclaimed by
29 the President of the United States, shall have credited to his
30 employment record, for pension or retirement benefits, all of
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1 the time spent by him in such military service during the
2 continuance of such war, armed conflict, or National emergency
3 if such person returns or has heretofore returned to his
4 employment within six months after his separation from the
5 service. The municipality shall, during the period of the
6 member's intervening military service, continue to make current
7 service contributions toward the municipal annuity of the
8 member. An active member may file an application with the board
9 for permission to purchase credit toward his member's share of
10 the annuity for intervening military service. These
11 contributions shall be computed by applying the member's
12 contribution rate to his annual rate of compensation at the time
13 of entry of the member into active military service, and
14 multiplying the result by the number of years and fractional
15 part of a year of creditable intervening military service,
16 together with interest from date of return to employment to date
17 of purchase. The amount due from the member shall be certified
18 by the board in accordance with methods approved by the actuary,
19 and may be paid by (1) regular monthly payments during active
20 military service, or (2) a lump sum payment within thirty days
21 or (3) it may be amortized with additional interest through
22 salary deductions in amounts agreed upon by the member of the
23 board.
24 An active member may also purchase credit for other than
25 intervening military service performed for the United States in
26 times of war, armed conflict or National emergency, so
27 proclaimed by the President of the United States, for a period
28 not to exceed five years: Provided, That the member has
29 completed [five] three years of service to the municipality
30 subsequent to such military service. An active member may file
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1 an application with the board for permission to purchase credit
2 for nonintervening military service upon completion of [five]
3 three years of subsequent service to the municipality. The type
4 of service credit for such service shall be determined by the
5 date of entry of the municipality into the system. If the date
6 of the member's separation from military service is prior to the
7 date on which the municipality joined the system, then the
8 credit purchased shall be considered as prior service credit. In
9 this case the amount due from the member shall be computed by
10 applying the member's basic contribution rate plus the rate of
11 contribution the municipality paid for current service during
12 its first year of entry into the system to his prior salary and
13 multiplying the result by the number of years and fractional
14 part of a year of creditable nonintervening military service,
15 plus interest from the date of the member's employment by the
16 municipality to the date of purchase. The amount due from the
17 member shall be certified by the board in accordance with
18 methods approved by the actuary, and may be paid in a lump sum
19 within thirty days or it may be amortized with additional
20 interest through salary deductions in amounts agreed upon by the
21 member and the board. If, on the other hand, the date of the
22 member's separation from military service is later than the date
23 of entry of the municipality into the system, then the credit
24 purchased shall be considered as current service credit. In this
25 case the amount due from the member shall be computed by
26 applying the member's basic contribution rate plus the
27 municipality's normal contribution rate for current service
28 which was in effect on the date of the member's entry into
29 employment with the municipality to his average annual rate of
30 compensation over the first [five] three years of his subsequent
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1 employment and multiplying the result by the number of years and
2 fractional part of a year of creditable nonintervening military
3 service being purchased, plus interest from the date of
4 employment by the municipality to date of purchase.
5 The amount due from the member shall be certified by the
6 board in accordance with methods approved by the actuary, and
7 may be paid in a lump sum within thirty days or it may be
8 amortized with additional interest through salary deductions in
9 amounts agreed upon by the member and the board.
10 The rate of interest to be charged to members on their
11 purchase of credit for intervening or nonintervening military
12 service shall be the rate being credited by the system to
13 member's contribution accounts in effect on the date of the
14 member's application, compounded annually.
15 A member may purchase credit for intervening or
16 nonintervening military service only if his discharge or
17 separation from the service was granted under other than
18 dishonorable conditions.
19 A member may not purchase credit for any military service for
20 which he is entitled to receive [a retirement allowance from the
21 United States Government.] , eligible to receive now or in the
22 future, or is receiving retirement benefits for such service
23 under a retirement system administered and wholly or partially
24 paid for by any other governmental agency.
25 Applications for permission to purchase credit for military
26 service must be accompanied by proof of the nature of his
27 discharge or separation from the military service.
28 Section 2. This act shall take effect immediately.
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