PRINTER'S NO. 642
No. 590 Session of 1971
INTRODUCED BY MESSRS. STONE, LUTTY, DeMEDIO, KAHLE AND FOOR, MARCH 29, 1971
REFERRED TO COMMITTEE ON URBAN AFFAIRS, MARCH 29, 1971
AN ACT 1 Providing for the creation, maintenance and operation of a 2 county employes' retirement system, and imposing certain 3 charges on counties and providing penalties. 4 The General Assembly of the Commonwealth of Pennsylvania 5 hereby enacts as follows: 6 Section 1. Short Title.--This act shall be known and may be 7 cited as the "County Pension Law." 8 Section 2. Definitions.--As used in this act: 9 (1) "Board" means the County Retirement Board created by 10 this act. 11 (2) "County employe" means any person, whether elected or 12 appointed, who is employed by the county, the county institution 13 district, in the county prison or in any other institution 14 maintained by the county from county moneys, or who is employed 15 by any county or State official and paid by such official from 16 moneys appropriated by the county for such purpose, whose salary 17 or compensation is paid in regular periodic installments or from 18 fees collected by his office, but shall not, except as hereafter
1 provided, include any person paid on a per diem basis, nor shall 2 it include any person to the extent that the total of the salary 3 and fees exceed the highest salary paid to any elected county 4 official. 5 (3) "Fund" means the County Employes' Retirement Fund 6 created by this act. 7 (4) "Accumulated deductions" means the total of the amounts 8 deducted from the salary of a contributor and paid into the fund 9 and standing to the credit of the members' annuity reserve 10 account, together with the regular interest thereon. 11 (5) "Contributor" means any person who has accumulated 12 deductions in the fund standing to the credit of the members' 13 annuity reserve account. 14 (6) "Retiree" means any person in receipt of a retirement 15 allowance under this act. 16 (7) "Prior service" means all service as a county employe 17 served not later than December thirty-first, preceding the year 18 the retirement system shall be established in any county. 19 (8) "Original member" means a member who was a county 20 employe on the date of establishment of the retirement system in 21 the county. 22 (9) "New member" means a member who shall have become a 23 member of the retirement system after the establishment of the 24 retirement system in said county. 25 (10) "Superannuation retirement age" means sixty years of 26 age or upwards, except as applied to a contributor who has 27 completed twenty years of total service, in which case 28 superannuation retirement age means fifty-five years of age or 29 upwards. 30 (11) "Final salary" means the average annual salary received 19710H0590B0642 - 2 -
1 by the contributor for the three highest years of service in the 2 employment of the county, or in the event a member has not 3 served five years, the total salary received divided by the 4 number of years served. 5 (12) "Regular interest" means interest at the rate of four 6 per cent compounded annually. 7 (13) "County annuity" means payments for life or during 8 disability derived from contributions made by the county. 9 (14) "Member's annuity" means payments for life or during 10 disability derived from contributions made by the contributor. 11 (15) "Retirement allowance" means the county annuity plus 12 the member's annuity. 13 (16) "Vesting" means the right of a contributor who 14 separates from service after having completed eight or more 15 years of credited service to leave accumulated deductions 16 credited to his account in the fund and upon reaching 17 superannuation retirement age receive a superannuation 18 retirement allowance. 19 Section 3. Applicability.--The provisions of this act shall 20 apply to each county of the second class A, third class, fourth 21 class, fifth class, sixth class, seventh class and eighth class 22 which has or hereafter may establish a county employes' 23 retirement system. 24 Section 4. County Retirement System; County Retirement 25 Board.--(a) A retirement system may be established for county 26 employes by resolution of the county commissioners in any county 27 of the second class A, third class, fourth class, fifth class, 28 sixth class, seventh class and eighth class. The retirement 29 system shall be established on the first Monday of January of 30 the year succeeding the one in which the resolution of the 19710H0590B0642 - 3 -
1 county commissioners was adopted. 2 (b) The system, when established, shall be administered by a 3 county retirement board, consisting of five members, three of 4 whom shall be the county commissioners, the county controller 5 and the county treasurer. In counties having no elected county 6 controller, the chief clerk of the county shall be a member of 7 the board. In counties where an optional form of government is 8 adopted, the county retirement board shall consist of five 9 members, appointed by the council. The chairman of the board of 10 county commissioners shall be chairman of the board. Each member 11 of the board may designate a deputy or clerk to act in his 12 stead. Each member of the board shall take an oath of office 13 that he will diligently and honestly administer the affairs of 14 the board, and that he will not knowingly violate or permit to 15 be violated any of the provisions of this act. Such oath shall 16 be subscribed by the member taking it, and shall be filed among 17 the records of the board. The members of the board shall not 18 receive any compensation for their services, but shall be 19 reimbursed for all expenses necessarily incurred in the 20 performance of their duty. Three members of the board shall 21 constitute a quorum. 22 Section 5. Personnel; Administrative Expenses.--The board 23 may appoint and fix the compensation of an actuary. Except in 24 counties having an optional form of government, the county 25 controller or the chief clerk of the county, as the case may be, 26 shall be the secretary of the board. In counties having an 27 optional form of government, the board shall appoint a 28 secretary. The compensation of the secretary shall be fixed by 29 the salary board or council, as the case may be. The secretary 30 shall keep a record of all of the proceedings of the board, 19710H0590B0642 - 4 -
1 which record shall be open to inspection by the public. 2 The expense of the administration of this act, exclusive of 3 the payment of retirement allowances, shall be paid by the 4 county by appropriations made on the basis of estimates 5 submitted by the board. 6 Section 6. Rules and Regulations; Actuarial Data.--The board 7 shall, from time to time, establish such rules and regulations 8 for meetings of the board and for the administration of the 9 fund, and the various accounts thereof, as may be deemed 10 necessary. It shall keep such data as shall be necessary for 11 actuarial valuation purposes. The actuary of the board shall (i) 12 periodically make an actuarial investigation into the mortality 13 and service experience of the contributors to and beneficiaries 14 of the fund, (ii) adopt for the retirement system one or more 15 mortality tables, and (iii) certify to the board annually the 16 amount of appropriation to be made by the county to the fund to 17 build up and maintain adequate reserves for the payment of the 18 county's share of the retirement allowances. 19 Section 7. County Employes' Retirement Fund; Transfers 20 Between Classes.--There is hereby created in each county of the 21 second class A, third class, fourth class, fifth class, sixth 22 class, seventh class, and eighth class, in which a retirement 23 system has been established, a County Employes' Retirement Fund 24 which shall consist of all moneys arising from appropriations 25 made by the county and from contributions made by the members of 26 the County Employes' Retirement System and all interest earned 27 by the investments of moneys of the fund. The moneys contributed 28 by the county shall be credited to a county annuity reserve 29 account; and, those contributed by the members shall be credited 30 to a county annuity reserve account. Upon the granting of a 19710H0590B0642 - 5 -
1 retirement allowance to any contributor, whether as a 2 superannuation retirement allowance, an involuntary retirement 3 allowance or a total disability retirement allowance, the amount 4 of the contributor's accumulated deductions in the members' 5 annuity reserve account shall lose their status as accumulated 6 contributions and shall be transferred to a retired members' 7 reserve account. Regular interest shall be credited up to the 8 date of retirement, death or withdrawal, to the members' annuity 9 and county annuity and retired members' reserve accounts. Where 10 a contributor separates from county service with vesting, 11 regular interest shall be credited to all accumulated deductions 12 credited to his account in the fund to the date on which he 13 attains his superannuation retirement age. The actuary shall 14 determine the present value of the liability on account of all 15 county annuities payable to original members and the percentage 16 of such liability which shall be contributed by the county each 17 year over a period of fifteen years from the time the system is 18 established until the accumulated reserve equals the present 19 value of said liability. All such contributions shall be 20 credited to the county annuity reserve account. The actuary 21 shall also determine the amount which shall be contributed by 22 the county into the fund periodically for credit to the county 23 annuity reserve account on account of service of all new and 24 original members subsequent to the time the retirement system is 25 established. 26 Each member of the retirement system shall be required to 27 contribute to the fund such per cent of his salary determined as 28 follows: 29 (1) Class 1-120 5% 30 (2) Class 1-100 6% 19710H0590B0642 - 6 -
1 (3) Class 1-80 7% 2 (4) Class 1-70 8% 3 (5) Class 1-60 9% 4 Each member may elect to contribute an additional amount not 5 exceeding ten per cent more than the percentage herein required. 6 The contributions shall be paid into the fund through payroll 7 deductions in such manner as the board may require. All 8 contributions including optional additional payments by members 9 shall be credited to the members' annuity reserve account. 10 The board may at any time, by rule, authorize members of the 11 retirement system, whether original or new members, to transfer 12 from the one-one hundred twentieth class, or from the one-one 13 hundredth class, to the one-eightieth class, to the one- 14 seventieth class, or to the one-sixtieth class. Whenever such 15 transfers are authorized, salary deductions applicable to the 16 transferred members shall be based upon the per cent of salary 17 deduction applicable while in each class. 18 Section 8. Custody of Fund; Payments.--All moneys and 19 securities in the fund shall be placed in the custody of the 20 county treasurer for safekeeping; and, all payments from the 21 fund shall be made only on requisition signed by the chairman 22 and secretary of the board. 23 Section 9. Management and Investment of Fund.--The members 24 of the board shall be trustees of the fund, and shall have 25 exclusive management of the fund with full power to invest the 26 moneys therein subject to the terms, conditions, limitations and 27 restrictions imposed by law upon fiduciaries. Subject to like 28 terms, conditions, limitations and restrictions, the trustees 29 shall have power to hold, purchase, sell, assign, transfer or 30 dispose of any of the securities and investments in the funds, 19710H0590B0642 - 7 -
1 as well as the proceeds of investments and of the moneys 2 belonging to the fund. 3 The board shall annually allow regular interest on the mean 4 amount for the preceding year to the credit of each of the 5 accounts. The amount so allowed shall be credited to each 6 contributor's account. 7 Section 10. Compulsory Membership.--Each county officer may 8 and all other county employes shall be required to become a 9 member of the retirement system established by this act at the 10 date specified in the resolution establishing the retirement 11 system, and thereafter when first becoming a county employe. 12 Those becoming members who have been at any time county employes 13 prior to the first Monday of January of the year the retirement 14 system is established shall be known as original members; and, 15 those becoming members after that date as new members. Any 16 person who becomes a county employe subsequent to the time the 17 system was established, and who has been an employe of the 18 county at any time theretofore, shall receive credit for the 19 service prior to the time the system was established, and shall 20 be known as an original member if he shall contribute to the 21 fund the amount which he would have contributed if the 22 retirement system had been in effect during such previous 23 employment; in which event, the county shall contribute for each 24 employe the amount which it would have contributed if the 25 retirement system had been in effect during such previous 26 employment. 27 Section 11. County Guarantee; Annual Budgets.--The regular 28 interest charges payable, the creation and maintenance of the 29 necessary reserves for the payment of the county and members' 30 annuities in accordance with this act, and the additional 19710H0590B0642 - 8 -
1 retirement benefits, are hereby made obligations of the county. 2 The board shall prepare and submit to the county commissioners, 3 on or before the first day of November of each year, an itemized 4 estimate of the amounts necessary to be appropriated by the 5 county to complete the payment of the obligations of the county 6 during the next fiscal year. 7 Section 12. Service Allowance.--In computing the length of 8 service of a contributor for retirement purposes, full credit 9 shall be given to each original member for each year of service 10 rendered to the county prior to January first of the year the 11 retirement system was established. This shall include the 12 services of a county official whose compensation was in the form 13 of fees collected by his office, and shall also include the 14 services of employes paid directly by such county official out 15 of such fees. Full credit shall also be given for each year of 16 service of a contributor who was a per diem employe of the 17 county for a period of at least five years prior to the time the 18 system became effective and who averaged at least two hundred 19 days of employment in each of such years. As soon as 20 practicable, the board shall issue to each original member a 21 certificate certifying the aggregate length of his service prior 22 to January first of the year the retirement system was 23 established. Such certificate shall be final and conclusive as 24 to his prior service, unless thereafter modified by the board 25 upon application of the member. The board may also give credit 26 to any person who was a county employe for each year that he was 27 employed for at least two hundred days per year on a per diem 28 basis for the purpose of the computation of his retirement 29 credit upon payment by the employe of the amount which the board 30 determines should have been his contribution during such period. 19710H0590B0642 - 9 -
1 Such payment may be made in installments over a period fixed by 2 the board. The time during which a member is absent from service 3 without pay may be counted in computing the service of a 4 contributor, if allowed by the county commissioners and approved 5 by the board and if the employe pays both his personal 6 contribution and the county's contribution into the fund based 7 upon the contributions made the year immediately preceding the 8 leave of absence. 9 Section 13. Credit for Military Service; Payments into Fund; 10 Reimbursement.--Any county employe who, on or after September 11 16, 1940 has been employed by the county for a period of six 12 months and who, on or subsequent to such date, shall have 13 enlisted or been inducted into the military service of the 14 United States in time of war, armed conflict or national 15 emergency, so proclaimed by the President or the Congress of the 16 United States, shall have credited to his employment record, for 17 retirement benefits, all of the time spent by him in such 18 military service during the continuance of such war, armed 19 conflict or national emergency; and, such payments as were 20 heretofore or shall hereafter be required to be made during such 21 period by such county employe into the fund shall be paid into 22 the fund by the county. Any employes who have made payments into 23 the fund for which payments the county is liable shall be 24 reimbursed by the county to the full extent of such payments, or 25 be given credit towards future employe payments. 26 Section 14. Superannuation Retirement Allowance.--(a) Any 27 contributor who has reached superannuation retirement age may 28 retire for superannuation by filing with the board a written 29 statement duly signed by the contributor setting forth at what 30 time he desires to be retired. The application shall retire the 19710H0590B0642 - 10 -
1 contributor at the time so specified. 2 (b) On retirement for superannuation, a retiree shall 3 receive a retirement allowance which shall consist of: (i) a 4 member's annuity which shall be the actuarial equivalent of his 5 accumulated deductions standing to his credits in the members' 6 annuity reserve account, and (ii) a county annuity equal to one- 7 one hundred twentieth of his final salary multiplied by each 8 year of total service, and, in addition thereto in the case of 9 an original member, one-one hundred twentieth of his final 10 salary multiplied by each year of prior service. At any time the 11 board by rule may, by increasing the county annuity, authorize 12 the payment of a minimum retirement allowance of one hundred 13 dollars ($100) per month to every beneficiary who shall thereby 14 retire for superannuation after twenty years service. 15 (c) Whenever the board has by rule authorized the members of 16 the retirement system to transfer from the one-one hundred 17 twentieth class to the one-one hundredth class, or whenever the 18 board shall hereafter by rule authorize the transfer to the one- 19 eightieth class, to the one-seventieth class or the one-sixtieth 20 class, the county annuity shall be calculated as follows: 21 (1) For service prior to the time of transfer, at the one- 22 one hundred twentieth rate, the one-one hundredth rate, the one- 23 eightieth rate, the one-seventieth rate or the one-sixtieth rate 24 as the case may be. 25 (2) For service subsequent to the time of transfer to the 26 time of retirement, or to the time of a subsequent transfer, at 27 the rate applicable during such period. 28 (3) For all service prior to the time of commencing 29 contribution, as the time he contributed at the one-one hundred 30 twentieth rate bears to the total time of contribution and as 19710H0590B0642 - 11 -
1 the time he contributed at any other rate herein provided for 2 bears to the total time of contribution. 3 Section 15. Options on Superannuation Retirement.--At the 4 time of his superannuation retirement, any retiree may elect to 5 receive either his retirement allowance payable throughout life, 6 or to receive the full amount of the accumulated deductions 7 standing to his individual credit in the members' annuity 8 reserve account at the time of his voluntary or involuntary 9 retirement, or he may in any event elect to receive the 10 actuarial equivalent of his member's and county annuity in a 11 lesser retirement allowance payable throughout life with 12 provisions that: 13 (1) Option One. If he dies before receiving in payments the 14 present value of his member's annuity and county annuity as it 15 was at the time of his retirement, the balance shall be paid to 16 his legal representative or to a person or persons having an 17 insurable interest in his life, as he shall nominate by written 18 designation, duly acknowledged and filed with the board at the 19 time of his retirement or at any time thereafter. 20 (2) Option Two. Upon his death his member's annuity and 21 county annuity shall be continued through the life of and paid 22 to such person having an insurable interest in his life as he 23 shall nominate by written designation, duly acknowledged and 24 filed with the board at the time of his retirement. 25 (3) Option Three. Upon his death one-half of his member's 26 and county annuity shall be continued through the life of and 27 paid to such person having an insurable interest in his life as 28 he shall nominate by written designation, duly acknowledged and 29 filed with the board at the time of his retirement. 30 Should a retiree select a retirement allowance payable 19710H0590B0642 - 12 -
1 throughout his life and fail to receive payments at least equal 2 to his accumulated deductions as of the date of retirement, an 3 amount equal to the balance of his accumulated deductions shall 4 be paid to his legal representative or to a person having an 5 insurable interest in his life, as he shall nominate by written 6 designation filed with the board. 7 Section 16. Involuntary Retirement Allowance; Voluntary 8 Retirement Allowance after Twenty Years of Service.--Should a 9 contributor be discontinued from service not voluntarily, or an 10 elected county officer complete his term of office and 11 discontinue service after having completed eight years of total 12 service, or voluntarily after having completed twenty years of 13 total service but before reaching superannuation retirement age, 14 except as herein provided for certain contributors who have 15 completed twenty years of total service, he shall be paid as he 16 may elect, as follows: 17 (1) The full amount of the accumulated deduction standing to 18 his credit in the members' annuity reserve account; or 19 (2) A member's annuity of equivalent actuarial value to his 20 accumulated deductions standing to his credit in the members' 21 annuity reserve account, and, in addition, a county annuity 22 which is the actuarial equivalent of a county annuity beginning 23 at superannuation retirement age but based on the period of 24 service up to the date of discontinuance from service and not on 25 the period of service required to reach superannuation 26 retirement age. The same options shall be available to retirees 27 in case of involuntary retirement as provided herein in the case 28 of superannuation retirement. In the event a contributor, after 29 having completed eight or more years of total service, 30 heretofore has or hereafter shall be discontinued from service 19710H0590B0642 - 13 -
1 because of appointment or election to a position incompatible 2 with his service as a county employe or officer and such employe 3 or officer has not reached the superannuation retirement age, 4 such withdrawal shall be considered involuntary and the 5 contributions of the contributor and the county, at the option 6 of the employe or officer, shall remain in the fund until 7 superannuation age has been reached. In the event a refund of 8 accumulated contributions has been made and the county's 9 accumulated contributions have been withdrawn under the above 10 circumstances, the employe or officer shall be permitted to 11 repay into and the county shall be required to reimburse the 12 fund the amounts paid out, with interest to the date of 13 repayment, thereby reestablishing the rights of the contributor 14 in said fund even though superannuation retirement age has been 15 reached and benefits shall be paid as if the original severance 16 had been involuntary. 17 Any contributor who has completed twenty years of total 18 service and who has reached the superannuation retirement age 19 shall be entitled to the superannuation retirement allowance 20 provided in section 14. 21 Section 17. Retirement as of Time of Death.--Any contributor 22 who would be entitled to a retirement allowance because of being 23 involuntarily retired after having completed ten years of total 24 service, or by reason of having reached superannuation 25 retirement age may file with the board a written application for 26 retirement in the form required for such application, but 27 requesting that such retirement shall become effective as of the 28 time of his death, electing Option One or Option Two provided in 29 section 15 and nominating a beneficiary under the option. 30 In all such cases, the application shall be held by the board 19710H0590B0642 - 14 -
1 until the contributor shall file a later application in the 2 usual manner for retirement, or until the death of the 3 contributor occurring while in county service at which time his 4 retirement shall become effective with the same benefits to the 5 designated beneficiary as if the contributor had retired on the 6 day of death. 7 Section 18. Retirement While in County Service.--Any 8 contributor who is or was entitled to a retirement allowance 9 because of being involuntarily retired after having completed 10 ten years of total service or by reason of having reached 11 superannuation retirement age and who shall die while in county 12 service before filing with the board a written application for 13 retirement, or has died and whose payments into the fund have 14 not been withdrawn, shall be considered as having elected Option 15 One as of the date of his death. In such event, payment under 16 Option One shall be made to the beneficiary designated in the 17 nomination of beneficiary form on file with the board. If the 18 beneficiary has predeceased the contributor, payment under 19 Option One shall be made to the legal representative of the 20 contributor. 21 Section 19. Additional Retirement Benefits.--In addition to 22 the retirement allowance, the board may grant to retired 23 employes insurance or other similar benefits that the county has 24 granted to other county employes. 25 Section 20. Total Disability Retirement Allowance.--If a 26 contributor after five years of service as a county employe and 27 before reaching superannuation retirement age is disabled while 28 in service and is unable to continue as a county employe, as 29 shown by medical examination, he shall be paid a retirement 30 allowance consisting of a county annuity of twenty-five per cent 19710H0590B0642 - 15 -
1 of his final salary which shall include the member's annuity 2 calculated in accordance with section 14. 3 Section 21. Payment of Balances Where Disability Annuitant 4 Dies.--Should a person receiving a disability retirement 5 allowance die before receiving total payments equal to the 6 amount standing to his credit in the members' annuity reserve 7 account at the time of retirement, there shall be paid to his 8 estate or beneficiary the difference between such credit and the 9 total payments received. 10 Section 22. Monthly Payments of Retirement Allowances.--The 11 retirement allowances granted under the provisions of this act 12 shall be paid in equal monthly installments and shall not be 13 increased, decreased, revoked or repealed, except as otherwise 14 provided in this act. This section shall not be construed to 15 prohibit the board from granting to retired employes insurance 16 or other similar benefits granted to other county employes. 17 Section 23. Refunds.--(a) Where a contributor terminates 18 service before qualifying for a retirement allowance or where a 19 contributor has died before completing ten years of total 20 service, the amount standing to the credit of the contributor in 21 the members' annuity reserve account shall be paid to him or his 22 estate or to the person or persons named in any beneficiary 23 certificate filed by the contributor with the board. When a 24 contributor or a beneficiary has died and there shall be due to 25 the estate of such contributor or beneficiary a sum less than 26 one hundred dollars ($100), and letters testamentary or of 27 administration have not been taken out on the estate of such 28 contributor or beneficiary within six months of death, the board 29 may pay the amount due on the claim of the undertaker or to any 30 person or persons or political subdivision who or which shall 19710H0590B0642 - 16 -
1 have paid the claim of the undertaker. 2 (b) Where a contributor terminates service after completing 3 eight years of service, he may elect to have the board pay to 4 him the amount standing to his credit in the members' annuity 5 reserve account or, elect vesting and keep his accumulated 6 deductions in the members' annuity reserve account and apply for 7 retirement benefits upon reaching superannuation retirement age. 8 Section 24. Simultaneous Payments of Salary and Retirement 9 Allowance.--Should a retiree receiving a retirement allowance be 10 reemployed by the county as a salaried employe or as an elected 11 official, the retirement allowance of such person shall 12 immediately cease. Such person shall thereupon be reinstated as 13 a contributor; and, there shall be restored to his credit as 14 accumulated deductions the actuarial value of his member's 15 annuity computed as of the date of his reemployment. Should he 16 refuse to surrender his right to retirement allowance as of the 17 date of his reemployment, it shall be unlawful for the county to 18 reemploy him. For the purposes of this section if a person 19 serves as a juror, master, or arbitrator or is employed on a per 20 diem basis for thirty days or less per year he shall not be 21 deemed reemployed, but if employed on a per diem basis for more 22 than thirty days a year the retirement allowance shall cease 23 during the additional service. 24 Section 25. Subsequent Admissions to Retirement System.--Any 25 county officer whose term of office began after the 26 establishment of the retirement system and who did not become a 27 member of the retirement system when his term of office began, 28 shall be permitted to become a member of the retirement system 29 at any time and shall receive a retirement allowance based upon 30 service as a county employe rendered after such date of 19710H0590B0642 - 17 -
1 membership; however, if membership is consummated within one 2 year from the beginning of such term of office and such sums as 3 would have been deducted from his salary had he become a member 4 at the time of the commencement of such term of office shall 5 have been paid into the retirement system, he shall thereupon 6 become entitled to all the rights and privileges in the 7 retirement system as would have been vested in him had he become 8 a member and contributor at the time his term of office began. 9 Any county officer who has not become a member of the 10 retirement system but who was employed as an elected officer 11 prior to January first of the year that the retirement system 12 was established and who held such office at the time that the 13 retirement system was established and has continuously held such 14 office, shall be permitted to become a member of the retirement 15 system, shall be known as an original member, and shall receive 16 full credit for each year of service rendered by him prior to 17 January first of the year the retirement system was established 18 and for each year of service rendered by him thereafter, if such 19 county officer shall contribute to the fund the amount which he 20 would have contributed if he had become a member of the 21 retirement system when it was established; in which event, the 22 county shall contribute to his credit in the fund the amount it 23 would have contributed if he had become a member of the 24 retirement system when it was established; and, he shall 25 thereupon become entitled to all the rights and privileges in 26 the retirement system as would have vested in him had he become 27 a member and contributor at the time the retirement system was 28 established. 29 Section 26. Reinstatement on Return to County Employment.-- 30 Any contributor separated from county employment by dismissal, 19710H0590B0642 - 18 -
1 resignation, or any other reason, except retirement, or any 2 county officer having legally withdrawn from the retirement 3 system, who returns to county employment and restores to the 4 fund to the credit of the members' annuity reserve account his 5 accumulated deductions as they were at the time of separation, 6 shall have the annuity rights forfeited by him restored. 7 Payments may be made either in a lump sum or by installments; 8 but, in no event shall the installments be less than sufficient 9 to pay such amount by the time the member attains superannuation 10 retirement age. 11 Section 27. Exemption from Taxation and Execution, Etc.--The 12 right to a member's annuity, or a county annuity, or to the 13 return of contributions, shall be exempt from any State or 14 municipal tax and from levy, sale, garnishment, attachment or 15 any other process whatsoever and shall be unassignable, except 16 for any indebtedness due the county or the institution district 17 arising out of embezzlement or fraudulent conversion by a member 18 of the fund against the respective county or the institution 19 district of which the same member is employed. 20 Section 28. Fraud; Correction of Errors.--Any person who 21 shall knowingly make any false statement, or shall falsify or 22 permit to be falsified, any record or records of the retirement 23 system herein established in any attempt to defraud such system, 24 shall be guilty of a misdemeanor, and, upon conviction thereof, 25 shall be sentenced to pay a fine not exceeding one thousand 26 dollars ($1,000), or undergo imprisonment not exceeding one 27 year, or both. 28 Should any such change in records fraudulently made, or any 29 mistake in records inadvertently made, result in any contributor 30 or beneficiary receiving more or less than he would have been 19710H0590B0642 - 19 -
1 entitled to had the records been correct, on the discovery of 2 the error, the board shall correct the error, and shall adjust 3 the payments which shall be made to the contributor or annuitant 4 in such manner that the actuarial equivalent of the benefit to 5 which he was correctly entitled shall be paid. 6 Section 29. Designation of Deposit Administrator.--The board 7 shall be permitted to contract with any insurance company which 8 has qualified and is authorized by the Insurance Department of 9 the Commonwealth of Pennsylvania to transact business in the 10 Commonwealth of Pennsylvania, or with any bank or trust company 11 approved by the Department of Banking of the Commonwealth of 12 Pennsylvania, to be designated as a deposit administrator. The 13 deposit administrator may be given the power to administer the 14 funds in its entirety, including the power to receive and invest 15 all moneys deposited in the fund and such other powers as are 16 vested in the board. In addition to the options provided in the 17 act upon retirement, disability withdrawal or death of a 18 contributor, the deposit administrator, if an insurance company, 19 may provide additional options to the contributors or 20 beneficiaries. 21 Section 30. Supplemental Benefits.--(a) Every member who is 22 in receipt of a member's annuity shall receive annually a cost- 23 of-living increase which shall be the product of the retirement 24 allowance determined at the time of retirement and prior to 25 optional modification or minimum allowance and the following 26 percentages as determined by the calendar year in which 27 retirement became effective: 19710H0590B0642 - 20 -
1 Year of Percentage Year of Percentage 2 Retirement Factor Retirement Factor 3 1938 136% 1953 23% 4 1939 135% 1954 23% 5 1940 134% 1955 22% 6 1941 122% 1956 20% 7 1942 100% 1957 16% 8 1943 89% 1958 14% 9 1944 86% 1959 12% 10 1945 82% 1960 10% 11 1946 68% 1961 9% 12 1947 47% 1962 8% 13 1948 37% 1963 7% 14 1949 37% 1964 6% 15 1950 36% 1965 4% 16 1951 26% 1966 1% 17 1952 24% 18 (b) The cost-of-living increase shall be reviewed at least 19 once in every three years by the board which may adjust the 20 percentages in accordance with cost-of-living index at the time 21 of review. 22 Section 31. Saving Clause.--(a) This act shall not impair or 23 affect any act done, offense committed, or right accruing, 24 accrued, or acquired, or liability, duty, obligation, penalty, 25 judgment or punishment incurred under the provisions of any 26 prior act providing for the creation, maintenance and operation 27 of a county employes' retirement system. 28 (b) The provisions of all acts which are repealed by this 29 act shall be considered as remaining continuously in force so 30 far as concerns all rights vested and accrued, and liabilities, 19710H0590B0642 - 21 -
1 duties and obligations incurred under such provisions before the 2 effective date of this act. 3 Section 32. Repeals.--The following acts and parts of acts 4 are repealed absolutely: 5 (1) The act of June 4, 1937 (P.L.1625), entitled "An act 6 providing for the creation, maintenance and operation of a 7 county employes retirement system in counties of the third 8 class; and imposing certain charges on counties." 9 (2) The act of July 8, 1941 (P.L.298), known as the "Fourth 10 Class County Retirement Law." 11 (3) The act of August 5, 1941 (P.L.803), entitled, as 12 amended, "An act providing for the creation, maintenance and 13 operation of a county employes' retirement system in counties of 14 the fifth, sixth, seventh and eighth class; imposing certain 15 charges on counties, and prescribing penalties." 16 (4) Section 1717, act of July 28, 1953 (P.L.723), known as 17 the "Second Class County Code." 18 Section 33. Effective Date.--This act shall take effect 19 immediately. C16L47JR/19710H0590B0642 - 22 -