PRINTER'S NO. 3555
No. 2593 Session of 1988
INTRODUCED BY PISTELLA, JUNE 27, 1988
REFERRED TO COMMITTEE ON URBAN AFFAIRS, JUNE 27, 1988
AN ACT
1 Amending the act of August 1, 1975 (P.L.169, No.87), entitled,
2 "An act relating to pensions for employees of the City of
3 Pittsburgh," repealing provisions relating to reduction of
4 amount of pension.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Section 8(a) of the act of August 1, 1975
8 (P.L.169, No.87), entitled, "An act relating to pensions for
9 employees of the City of Pittsburgh," is amended to read:
10 Section 8. Pension Allowance.--(a) The amount of the monthly
11 pension shall be calculated by multiplying the amount determined
12 in paragraph (1) by the fraction determined in paragraph (2) and
13 if applicable, by adding a service increment in accordance with
14 paragraph (3) and where applicable by applying the reduction
15 determined in paragraph (4).
16 (1) If the average monthly earnings of an employee who
17 became a member prior to January 1, 1975 are less than $450, 60%
18 of such earnings but not less than $130 per month; if the
1 average monthly earnings of an employee who became a member
2 prior to January 1, 1975 are $450 or more; then 55% of the first
3 $650 of such earnings plus 30% of the excess of such earnings
4 but not less than $270 per month; if the employee became a
5 member on or after January 1, 1975, 50% of the member's average
6 monthly earnings.
7 (2) The ratio that the member's years of credited service
8 (years and completed months to two decimals) up to a maximum of
9 20 is to 20.
10 (3) A service increment which shall be 1% of the member's
11 average monthly earnings for each full year of credited service
12 in excess of 20 and rendered prior to age 65. Such increment
13 shall be limited to a maximum of $100 per month.
14 [(4) If the member has no credited service prior to January
15 1, 1975, his pension shall be reduced upon his attainment of age
16 65 by an amount equal to 50% of the primary insurance amount
17 paid or payable to him and subject to the following provisions:
18 (i) The eligibility of such member for the old-age insurance
19 benefit and the amount of such benefit upon which the reduction
20 in his pension shall be based shall be determined by the board
21 in accordance with the provisions of the Federal Social Security
22 Act, 42 U.S.C. §§ 301 et seq., in effect at the date his pension
23 payments begin, except that in determining such eligibility and
24 such amount only wages or compensation for services covered by
25 this fund shall be included.
26 (ii) Whenever the amount of the reduction from the pension
27 shall have been once determined, it shall remain fixed for the
28 duration of the pension except that any decrease in the old-age
29 insurance benefit under the Federal Social Security Act, 42
30 U.S.C §§ 301 et seq., shall result in a corresponding decrease
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1 in the amount of the reduction from the pension.
2 (iii) The reduction shall not be more than one-half of the
3 pension to which the member is otherwise entitled under the
4 provisions of this act.]
5 * * *
6 Section 2. This act shall take effect immediately.
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