PRIOR PRINTER'S NO. 645 PRINTER'S NO. 1042
No. 596 Session of 1987
INTRODUCED BY VAN HORNE, TRELLO, IRVIS, MOWERY, FOSTER, NOYE, KUKOVICH, VEON, GODSHALL, HECKLER, PRESTON, BURD, HALUSKA, OLASZ, FARGO, SEVENTY, COLAFELLA AND WOZNIAK, MARCH 2, 1987
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES, AS AMENDED, APRIL 6, 1987
AN ACT 1 Amending the act of May 25, 1933 (P.L.1050, No.242), entitled 2 "An act creating and establishing a fund for the care, 3 maintenance, and relief of aged, retired and disabled 4 employes of the bureau of fire in cities of the second class; 5 creating a board for the management thereof; providing the 6 mode and manner of payment to beneficiaries, and for the care 7 and disposition of its funds; and providing for the transfer 8 and payment of all moneys and securities in existing funds in 9 similar boards superseded by the fund and board herein 10 created," further providing for payments by the city and 11 members into the pension fund and for payment of dues to 12 certain members. 13 The General Assembly of the Commonwealth of Pennsylvania 14 hereby enacts as follows: 15 Section 1. Sections 2 and 7 of the act of May 25, 1933 16 (P.L.1050, No.242), referred to as the Second Class City Firemen 17 Relief Law, are amended to read: 18 Section 2. Such fund shall consist of, and to it shall be 19 transferred-- 20 (1) All moneys and securities held by similar boards 21 existing by virtue of any law or ordinance in such city, which 22 fund or funds were held for purposes similar to the purpose of
1 the fund created by this act with respect to the city employes 2 covered by the provisions of this act. 3 (2) All fines imposed upon the firemen of such city, which, 4 by virtue of any law or ordinance referring to such city, are 5 required to be paid by the proper authorities to a fund of this 6 nature. 7 (3) All donations of money from whatever source which have 8 been or shall be made to the fund. 9 (4) The income from any and all trust funds which now or may 10 hereafter be established by gift for the benefit of such persons 11 as are eligible to be beneficiaries under the fund. 12 (5) The dues of the members of the fund, as hereinafter 13 stipulated. 14 (6) Such moneys as the city shall pay into the fund from 15 time to time, as provided by ordinance, in an amount sufficient 16 to meet the minimum obligation of the municipality with respect 17 to the pension plan pursuant to the act of December 18, 1984 18 (P.L.1005, No.205), known as the "Municipal Pension Plan Funding 19 Standard and Recovery Act," and as may be necessary to carry out 20 the provisions of this act. 21 Section 7. (a) The board shall designate and choose such 22 bank or banks, trust company or trust companies, in such city, 23 in which the moneys of the fund shall be deposited, and such 24 bank or banks, trust company or trust companies, shall be 25 selected annually after the board shall have received written 26 proposals as to the rate of interest which shall be paid on such 27 deposits, and the bank or banks, trust company or trust 28 companies, offering to pay the highest rate of interest shall be 29 chosen as the depository or depositories of the fund if the 30 board be satisfied of the soundness of such institution or 19870H0596B1042 - 2 -
1 institutions. 2 (b) The [board shall create and establish a sinking fund 3 into which shall be paid all moneys remaining to the credit of 4 the fund and the depositories of the fund on the first day of 5 each year and after all claims and running expenses of the prior 6 year have been paid; and the moneys in the sinking fund shall 7 not be used for any purpose excepting by a two-thirds vote of 8 the board, but the interest accruing on the moneys in such 9 sinking fund may be used for the] payment of the necessary 10 expenses for the operation of the fund shall be payable MAY BE <-- 11 PAID from the assets of the fund. 12 (c) The board may invest the moneys of the fund [and of the 13 sinking fund] in such State, county, or municipal bonds of the 14 State of Pennsylvania, or in bonds of the United States 15 Government, as they may deem to the best interest of the 16 respective funds. All such investments shall be made in the name 17 of the respective fund. The accounts of the fund shall be 18 audited annually by the city controller, or oftener if the board 19 requests the same to be done, and a copy of the audit furnished 20 to the council of the city. 21 Section 2. Sections 9, 9.5 and 12.4 of the act, amended 22 October 10, 1974 (P.L.730, No.247), are amended to read: 23 Section 9. (a) Any individual eligible to membership in 24 such fund, as aforesaid, shall be required-- 25 (1) To sign an acceptance of the provisions of this act, 26 which acceptance shall contain an agreement, on the part of the 27 one so signing, that upon resignation or dismissal from the 28 employ of said bureau of fire, he shall thereby relinquish and 29 forfeit all rights to participate in said fund; and no 30 employment shall be granted an applicant to a position which 19870H0596B1042 - 3 -
1 would make him eligible as a member of said fund until such 2 acceptance and agreement is signed by him. 3 (2) [To] Except to the extent that subsection (c) of section 4 607 of the act of December 18, 1984 (P.L.1005, No.205), known as 5 the "Municipal Pension Plan Funding Standard and Recovery Act," 6 applies to contribute to said fund six per centum of his rated 7 monthly wages, which shall be deducted from his wages by the 8 city controller from the payroll for the last pay period of each 9 month, and paid into the fund. All beneficiaries of the fund 10 shall, in addition thereto, pay the sum of one dollar a month 11 into the said fund, and in the case of active members, the city 12 controller shall deduct said contribution from the payroll of 13 the last pay period of each month and the secretary of the fund 14 shall deduct the sum of one dollar from the pension paid each 15 pensioner. The amount so collected shall be paid into the 16 firemen's relief and pension fund and out of the funds of the 17 firemen's relief and pension fund there shall be paid to the 18 beneficiary of any deceased member of the fund, the sum of one 19 thousand two hundred dollars. 20 (b) When any member of the fund shall resign or be dismissed 21 from service and no pension benefit is payable, there shall be 22 paid to him from the fund a sum of money equal to all dues paid 23 by him into the fund, without interest. When any member of the 24 fund shall die in active service there shall be paid from the 25 fund a sum of money equal to all dues paid by him into the fund, 26 without interest, to his widow, if there be such widow, or in 27 the absence of such widow to such person or persons as he shall 28 have designated on a form prepared and approved by the board for 29 such purpose, or in the absence of such widow and such 30 designation to his estate. When any beneficiary shall die before 19870H0596B1042 - 4 -
1 he has received pension payments equal in amount to his total 2 contributions to the fund, there shall be paid a sum of money 3 equal to the difference between the amount of his said 4 contributions and the amount he shall have received as pension 5 payments, without interest, to his widow, if there be such widow 6 or in the absence of such widow to such person or persons as he 7 shall have designated on a form prepared and approved by the 8 board for such purpose, or in the absence of such widow and such 9 designation to his estate. 10 (c) In addition when any member of the fund shall die as a 11 result of injuries incurred while in the performance of his 12 duties, there shall be paid to his widow from the fund monthly 13 sums in amounts which, together with any payments received under 14 "The Pennsylvania Workmen's Compensation Act" or "The 15 Pennsylvania Occupational Disease Act," will be equal to fifty 16 per centum of his salary at the time of his death. Such monthly 17 payments shall continue for five hundred weeks, or until the 18 widow shall remarry, or until her death, whichever shall first 19 occur. 20 (d) In the event there are surviving children but no widow, 21 or after the payments herein provided for the widow have been 22 discontinued by reason of the end of the five hundred week 23 period or her remarriage or death, each unmarried child of the 24 deceased member under the age of eighteen years shall thereafter 25 receive payments equal to twenty-five per centum of the payments 26 above provided for the widow, but in no case shall total 27 payments to one family be more than fifty per centum of his 28 salary at the time of his death. Where there is only one child, 29 the minimum monthly payments shall be sixty dollars. Where the 30 maximum amount is payable, it shall be divided equally among the 19870H0596B1042 - 5 -
1 children entitled thereto. The payments for each child shall 2 terminate upon his reaching the age of eighteen years or his 3 marriage or death: Provided, That the board may continue 4 indefinitely payments to a dependent incompetent child. These 5 payments shall consist of any payments received under "The 6 Pennsylvania Workmen's Compensation Act" or "The Pennsylvania 7 Occupational Disease Act," supplemented by the necessary amounts 8 from the pension fund. In the event there are no surviving 9 children or no widow entitled to receive the payments provided 10 for in this act, any dependent parents of the member shall 11 receive the payments the widow would have received had she 12 survived and not remarried. 13 (e) Regular employes shall serve at least fifteen days in 14 each month and appear on all payrolls of said bureau of fire in 15 said month in order to be credited for one month's service for 16 pension under this act. In the event, however, that such regular 17 employe served one or more days in any month while serving as a 18 substitute employe prior to becoming a regular employe, such 19 regular employe shall be given a full month's credit for the day 20 or days in every month so served as a substitute: Provided, That 21 the dues for each month so credited are paid in full. 22 (f) Payments to the widows and children of members killed 23 while on duty shall first be made on and after July 1, 1959. 24 Section 9.5. [Each] Except to the extent that subsection (c) 25 of section 607 of the act of December 18, 1984 (P.L.1005, 26 No.205), known as the "Municipal Pension Plan Funding Standard 27 and Recovery Act," applies, each member who elects to be 28 governed under the provisions of this amendment shall agree to 29 contribute one-half of one per centum of his rated monthly wages 30 in addition to all other required contributions as set forth in 19870H0596B1042 - 6 -
1 this act. 2 Section 12.4. In every city of the second class, in addition 3 to the pension which is authorized by law, every contributor who 4 shall have otherwise become entitled to the pension and who has 5 reached the age of fifty years, shall also be entitled to the 6 payment of a service increment in accordance with and subject to 7 the conditions hereinafter set forth: 8 (1) Service increment shall be the sum obtained by computing 9 the number of whole years after the completion of twenty years' 10 service while a contributor has been employed by the bureau of 11 fire or the city, and paid out of the city treasury, and 12 multiplying the number of years so computed by an amount equal 13 to ten dollars for each month of service beyond twenty years of 14 service. This sum shall be divided by twelve to arrive at the 15 monthly increment payment. In computing the service increment, 16 no employment, after the contributor has reached the age of 17 sixty-five years shall be included. 18 (2) [Each] Except to the extent that subsection (c) of 19 section 607 of the act of December 18, 1984 (P.L.1005, No.205), 20 known as the "Municipal Pension Plan Funding Standard and 21 Recovery Act," applies, each contributor, from and after the 22 effective date of this amendment, shall pay into the retirement 23 fund as the contribution to the increment fund, a monthly sum in 24 addition to his or her retirement contribution which shall be 25 equal to one-half of one per centum of his or her wages. Such 26 payment shall not exceed the sum of one dollar per month. The 27 service increment contribution shall not be paid after a 28 contributor has reached the age of sixty-five years. 29 (3) Persons who are contributors on the effective date of 30 this amendment who have already reached the age of sixty-five 19870H0596B1042 - 7 -
1 years shall have his or her service increment computed on the 2 years of employment prior to the date of reaching his or her 3 sixty-fifth birthday. Such person, however, shall be entitled to 4 the increment only by paying in the one dollar per month 5 contribution for the number of months his or her service exceeds 6 twenty years, but such contribution shall not exceed a total of 7 one hundred dollars. 8 (4) Service increment contributions shall be paid at the 9 same time and in the same manner as pension contributions, and 10 may be withdrawn in full without interest by persons who leave 11 the employment of the bureau of fire subject to the same 12 conditions by which pension contributions may be withdrawn, or 13 by persons who retire before becoming entitled to any service 14 increment. When any person is re-employed by the bureau of fire 15 after withdrawal of pension contributions, his or her prior 16 service shall not be used in the computation of service 17 increment unless the amount of such contributions be repaid into 18 the pension fund subject to the same conditions by which pension 19 fund withdrawals are permitted to be repaid. 20 (5) All employes of the bureau of fire who are now 21 contributors to the pension fund, and all persons who are 22 employed by the bureau of fire after the effective date of this 23 amendment, who are required to become contributors to the 24 pension fund, shall be subject to the provisions of this 25 section. 26 Section 3. This act shall take effect immediately. A23L11DGS/19870H0596B1042 - 8 -