PRINTER'S NO. 358
No. 349 Session of 1981
INTRODUCED BY LEVI, FRYER, A. C. FOSTER, JR., GAMBLE AND MERRY,
FEBRUARY 2, 1981
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, FEBRUARY 2, 1981
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," providing for the custody of
24 and payments from the fund; for the payment of administration
25 funds from excess interest earnings; authorizing increased
26 earnings on a temporary or seasonal basis and eliminating
27 certain offset payments.
28 The General Assembly of the Commonwealth of Pennsylvania
29 hereby enacts as follows:
30 Section 1. Section 109, act of February 1, 1974 (P.L.34,
1 No.15), known as the "Pennsylvania Municipal Retirement Law," is
2 amended to read:
3 Section 109. Custody of and Payments from Fund.--All moneys
4 and securities in the fund shall be placed in the custody [of
5 the State Treasurer for safekeeping] of the money manager, and
6 all payments on account of retirement allowances shall be made
7 on requisition signed by the [chairman and] secretary of the
8 board to the financial institution or money manager approved and
9 appointed by the board for complete management and custody of
10 securities for the Pennsylvania Municipal Retirement System.
11 Section 2. Section 112, subsection (c) of section 207,
12 clause (3) of subsection (b) of section 212, subsection (c) of
13 section 308, clause (3) of subsection (b) of section 313 and
14 subsection (c) of section 406 of the act, amended May 17, 1980
15 (No.50), are amended to read:
16 Section 112. Annual Estimates to Municipalities;
17 Administrative Expenses.--The board shall prepare and submit to
18 each municipality, on or before the first day of the third month
19 preceding the commencing of each municipality's fiscal year, an
20 itemized estimate of the amounts necessary to be appropriated by
21 the municipality to complete the payments of the obligations of
22 the municipality to the fund during its next fiscal year.
23 The board shall annually prepare and approve a budget
24 covering the administrative expenses of this act. Such expenses
25 as approved by the board shall be paid from receipts from
26 assessments made against each municipality for administrative
27 expenses. This assessment shall be based on the number of
28 members in each municipality and shall not exceed the sum of
29 twenty dollars ($20) per member per year. If, in the calendar
30 years [1980 and 1981] 1982, 1983 and 1984 the amount received
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1 from such assessments, when imposed at the maximum rate, is not
2 sufficient to cover the administrative expenses, then the
3 balance of such expenses shall be paid from interest earnings on
4 the fund in excess of the regular interest credited to the
5 municipal and member's accounts and shall not, in any year,
6 exceed three-quarters of one per cent of the total asset value
7 of the fund as of the beginning of the calendar year. The
8 administration of the Pennsylvania Municipal Retirement System
9 shall be audited annually and a report of this audit shall be
10 made annually to the General Assembly.
11 Section 207. Withdrawal; Return to Service; Death in
12 Service.--* * *
13 (c) Should a person who has been retired on a retirement
14 allowance under this act, return to employment on a regular
15 full-time basis in the same municipality, his retirement
16 allowance shall cease, and in the case of an annuity, other than
17 a disability annuity, the present value of such annuity shall be
18 frozen as of the date such annuity ceases. Upon subsequent
19 discontinuance of service, such member, other than a former
20 disability annuitant, shall be entitled to an annuity which is
21 actuarially equivalent to the sum of the present value of the
22 annuity previously being paid and the present value of the
23 annuity earned by further service and further deductions added
24 upon reemployment. For the purposes of this section if a person
25 is reemployed on a temporary or seasonal basis and his gross
26 post-retirement earnings from such reemployment during the
27 calendar year are less than [two thousand five hundred twenty
28 dollars ($2,520)] five thousand dollars ($5,000) or such other
29 maximum as the board may establish, he shall not be deemed
30 reemployed, but if and when his gross post-retirement earnings
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1 exceed [two thousand five hundred twenty dollars ($2,520)] five
2 thousand dollars ($5,000) or such other maximum as the board may
3 establish in any calendar year he shall not be entitled to
4 receive his retirement allowance for that month or any
5 subsequent month in the calendar year in which he continues in
6 service. The municipality is required to notify the board
7 immediately of the reemployment status of any retired former
8 employe and file separate monthly reports of his gross earnings
9 as prescribed by the board.
10 * * *
11 Section 212. Disability Retirement.--* * *
12 (b) On retirement for disability a member shall receive a
13 retirement allowance which shall consist of:
14 * * *
15 (3) A disability annuity payable from the total disability
16 reserve account which, together with the member's annuity and
17 the municipal annuity, shall be sufficient to produce a
18 retirement allowance of thirty per cent of the final salary.
19 Where the disability of the member is determined to be service-
20 connected, as defined in this act, the retirement allowance
21 shall equal fifty per cent of his final salary. [The disability
22 annuity shall be reduced by the amount of any payments for which
23 the member shall be eligible under the act of June 2, 1915
24 (P.L.736, No.338), known as "The Pennsylvania Workmen's
25 Compensation Act," or the act of June 21, 1939 (P.L.566,
26 No.284), known as "The Pennsylvania Occupational Disease Act."]
27 * * *
28 Section 308. Withdrawal; Return to Service; Death in
29 Service.--* * *
30 (c) Should a person who has been retired on a retirement
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1 allowance under this act, return to employment on a regular
2 full-time basis in the same municipality, his retirement
3 allowance shall cease, and in the case of an annuity, other than
4 a disability annuity, the present value of such annuity shall be
5 frozen as of the date such annuity ceases. Upon subsequent
6 discontinuance of service, such member, other than a former
7 disability annuitant, shall be entitled to an annuity which is
8 actuarially equivalent to the sum of the present value of the
9 annuity previously being paid and the present value of the
10 annuity earned by further service and further deductions added
11 upon reemployment. For the purposes of this section if a person
12 is reemployed on a temporary or seasonal basis and his gross
13 post-retirement earnings from such reemployment during the
14 calendar year are less than [two thousand five hundred twenty
15 dollars ($2,520)] five thousand dollars ($5,000) or such other
16 maximum as the board may establish, he shall not be deemed
17 reemployed, but if and when his gross post-retirement earnings
18 exceed [two thousand five hundred twenty dollars ($2,520)] five
19 thousand dollars ($5,000) or such other maximum as the board may
20 establish in any calendar year he shall not be entitled to
21 receive his retirement allowance for that month or any
22 subsequent month in the calendar year in which he continues in
23 service. The municipality is required to notify the board
24 immediately of the reemployment status of any retired former
25 employe and file separate monthly reports of his gross earnings
26 as prescribed by the board.
27 * * *
28 Section 313. Disability Retirement.--* * *
29 (b) On retirement for disability, a member shall receive a
30 retirement allowance which shall consist of:
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1 (3) A disability annuity payable from the total disability
2 reserve account which, together with the member's annuity and
3 the municipal annuity, shall be sufficient to produce a
4 retirement allowance of thirty per cent of the contributor's
5 final salary. Where the disability of the member is determined
6 to be service-connected, as defined in this act, the retirement
7 allowance shall equal fifty per cent of his final salary. [The
8 disability annuity shall be reduced by the amount of any
9 payments for which the member shall be eligible under the act of
10 June 2, 1915 (P.L.736, No.338), known as "The Pennsylvania
11 Workmen's Compensation Act," or the act of June 21, 1939
12 (P.L.566, No.284), known as "The Pennsylvania Occupational
13 Disease Act."]
14 * * *
15 Section 406. Withdrawal; Return to Service; Death in
16 Service.--* * *
17 (c) Should a person who has been retired on a retirement
18 allowance under this act, return to employment on a regular
19 full-time basis in the same municipality, his retirement
20 allowance shall cease, and in the case of an annuity, other than
21 a disability annuity, the present value of such annuity shall be
22 frozen as of the date such annuity ceases. Upon subsequent
23 discontinuance of service, such member, other than a former
24 disability annuitant, shall be entitled to an annuity which is
25 actuarially equivalent to the sum of the present value of the
26 annuity previously being paid and the present value of the
27 annuity earned by further service and further deductions added
28 upon reemployment. For the purposes of this section if a person
29 is reemployed on a temporary or seasonal basis and his gross
30 post-retirement earnings from such reemployment during the
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1 calendar year are less than [two thousand five hundred twenty
2 dollars ($2,520)] five thousand dollars ($5,000) or such other
3 maximum as the board may establish, he shall not be deemed
4 reemployed, but if and when his gross post-retirement earnings
5 exceed [two thousand five hundred twenty dollars ($2,520)] five
6 thousand dollars ($5,000) or such other maximum as the board may
7 establish in any calendar year he shall not be entitled to
8 receive his retirement allowance for that month or any
9 subsequent month in the calendar year in which he continues in
10 service. The municipality is required to notify the board
11 immediately of the reemployment status of any retired former
12 employe and file separate monthly reports of his gross earnings
13 as prescribed by the board.
14 * * *
15 Section 3. This act shall take effect immediately.
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