PRINTER'S NO. 3330
No. 2438 Session of 1990
INTRODUCED BY MAYERNIK AND VEON, APRIL 4, 1990
REFERRED TO COMMITTEE ON STATE GOVERNMENT, APRIL 4, 1990
AN ACT
1 Amending the act of June 11, 1968 (P.L.149, No.84), entitled "An
2 act relating to volunteer firemen's relief associations,
3 clarifying their purposes and objectives, establishing
4 criteria and standards for the conduct of their affairs,
5 providing for their formation, recognition, continuing
6 operation, and for their dissolution in appropriate
7 circumstances and the distribution of their funds," further
8 providing for volunteer firefighters' retirement plans.
9 The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11 Section 1. Section 3 of the act of June 11, 1968 (P.L.149,
12 No.84), known as the Volunteer Firemen's Relief Association Act,
13 is amended to read:
14 Section 3. Statement of Purpose.--The purpose of the
15 Legislature in enacting this statute is to encourage individuals
16 to take part in the fire service as volunteer firemen, by
17 establishing criteria and standards for the orderly
18 administration and conduct of the affairs of firemen's relief
19 associations, so as to ensure, as far as circumstances will
20 reasonably permit, that funds shall be available for the
1 protection of volunteer firemen and their heirs:
2 (1) To provide financial assistance to volunteer firemen who
3 may suffer injury or misfortune by reason of their participation
4 in the fire service;
5 (2) To provide financial assistance to the widow, children,
6 and/or other dependents of volunteer firemen who lose their
7 lives as a result of their participation in the fire service;
8 (3) To provide, either by insurance or by the operation of a
9 beneficial fund, for the payment of a sum certain to the
10 designated beneficiaries of a participating member in such fund
11 following the death of such member for any cause, and to
12 establish criteria which members must meet in order to qualify
13 as participants in such death benefit fund;
14 (4) To provide safeguards for preserving life, health and
15 safety of volunteer firemen, so as to ensure their availability
16 to participate in the fire service;
17 (5) To provide financial assistance to volunteer firemen
18 who, after having actively participated in the fire service for
19 a specified minimum term, are no longer physically able to
20 continue such participation and are in need of financial
21 assistance;
22 (6) To provide funds to aid the rehabilitation of volunteer
23 firemen who have suffered an impairment of their physical
24 capacity to continue to perform their normal occupations; [and]
25 (6.1) To provide retirement benefits to current and future
26 active volunteer firemen upon their separation from active
27 participation in the fire service on account of attainment of a
28 designated age or acquisition of credit for a designated period
29 of service through the establishment and maintenance of a
30 volunteer firemen's retirement benefit plan; and
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1 (7) In any event, to provide sufficient funds to ensure the
2 efficient and economical handling of the business of the
3 association in accomplishing the objectives hereinabove set
4 forth.
5 Section 2. The act is amended by adding sections to read:
6 Section 3.1. Volunteer Firemen's Retirement Benefit Plan
7 Definitions and Minimum Standards.--As used in section 3(6.1),
8 this section and sections 3.2 through 3.6, unless the context
9 clearly indicates otherwise:
10 (1) Accrued retirement benefits is the amount of the
11 retirement benefit which would be payable to a volunteer fireman
12 if the fireman discontinued volunteer fire service based on the
13 defined benefit formula in effect or the individual account
14 balance, whichever is applicable, without reference to a minimum
15 vesting requirement or normal retirement age requirement.
16 (2) Chief administrator of the volunteer firemen's relief
17 association is the person who has primary responsibility for the
18 execution of the administrative, business or financial affairs
19 on behalf of the volunteer firemen's relief association, as
20 indicated by the factual situation or as designated by the
21 relief association.
22 (3) Defined benefit plan is a retirement benefit plan which
23 provides a retirement benefit that is definitely determinable
24 pursuant to the plan document without reference to the amount
25 contributed to the plan on the participant's behalf or to
26 income, expenses, gains or losses or forfeitures of other
27 participants covered by the plan.
28 (4) Defined contribution plan is a retirement benefit plan
29 which provides for an individual account for each participant
30 and for benefits which are based solely upon the amounts
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1 allocated to the accounts of participants and upon investment
2 income, administrative or realized expenses, gains and losses
3 which may be allocated to those accounts.
4 (5) Fair market value is the amount or price which, in all
5 reasonable probability, on a specified date, would have been
6 realized through the disposition of an investment in the course
7 of business by a willing seller to a willing buyer as indicated
8 in the most recent closing daily results of a national market or
9 exchange for that type of investment or, if no national market
10 or exchange exists, the book value or actual purchase price,
11 whichever is applicable, of the investment.
12 (6) Fiduciary is a person who exercises discretionary
13 authority or control with respect to the administration of the
14 plan or the management or disposition of plan assets or who
15 renders investment advice for a fee to the plan.
16 (7) Nonforfeitable right is the unconditionally and legally
17 enforceable entitlement to receive benefits from a retirement
18 benefit plan attributable to service as a volunteer fireman
19 participating in the plan.
20 (8) Normal retirement age is the earliest age at which a
21 former volunteer fireman who participated in the retirement
22 benefit plan and who has an entitlement to receive a retirement
23 benefit pursuant to the terms of the plan document may receive
24 that retirement benefit.
25 (9) Prior volunteer fire service is the service rendered by
26 a volunteer fireman to the applicable volunteer fire companies
27 associated with the volunteer firemen's relief association which
28 established and maintained the retirement benefit plan prior to
29 the establishment of that retirement benefit plan.
30 (10) Retirement benefit is the amount, at the time of
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1 retirement, payable or potentially payable to a former volunteer
2 fireman at or after normal retirement age, which (amount) is
3 computed pursuant to the applicable formula if the retirement
4 benefit plan is a defined benefit plan or which (amount) is the
5 balance of the account of the former volunteer fireman if the
6 retirement benefit plan is a defined contribution plan.
7 (11) Retirement benefit plan is the plan or program
8 established and maintained by a volunteer firemen's relief
9 association pursuant to this act to provide retirement benefit
10 coverage for volunteer firemen of the associated volunteer fire
11 companies, irrespective of the manner in which the plan is
12 administered.
13 (12) Survivor of a volunteer fireman is the surviving spouse
14 of the volunteer fireman at the time of the death of the
15 volunteer fireman, or if none, the natural or adopted children,
16 including posthumous children, of the volunteer fireman.
17 (13) Year of volunteer fire service is the twelve-month
18 period, which need not be twelve consecutive months, during
19 which a volunteer fireman who is eligible to participate in the
20 retirement benefit plan meets the minimum volunteer fire service
21 requirements established under section 3.6 and meets additional
22 minimum requirements established by the volunteer firemen's
23 relief association and during which the minimum obligation of
24 the volunteer firemen's relief association with respect to the
25 retirement benefit plan under section 3.5 has been met.
26 Section 3.2. Establishment of Volunteer Firemen's Retirement
27 Benefit Plan.--A volunteer firemen's relief association which
28 has met the requirements of section 6 may establish and maintain
29 a retirement benefit plan for the volunteer firemen who are
30 members of the relief association under this act. No volunteer
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1 firemen's relief association shall be required, under this act,
2 to establish a retirement benefit plan. No more than one
3 retirement benefit plan may be established or maintained by a
4 single volunteer firemen's relief association.
5 Section 3.3. Minimum Participating and Benefit Standards for
6 Volunteer Firemen's Retirement Benefit Plans.--(a) A retirement
7 benefit plan established and maintained under this act by a
8 volunteer firemen's relief association for volunteer firemen who
9 are members of the relief association and disbursements made by
10 a retirement benefit plan shall be governed by the applicable
11 provisions of this act.
12 (b) Eligibility to participate shall be as follows:
13 (1) A volunteer firemen's retirement benefit plan must
14 provide that each volunteer fireman who is a member of the
15 relief association and who has attained at least twenty-one
16 years of age and has completed at least one year of fire service
17 is eligible to participate in the retirement benefit plan.
18 (2) If the retirement benefit plan is a defined benefit
19 plan, the volunteer firemen's relief association may provide for
20 the exclusion from participation of a volunteer fireman who
21 initially begins to provide volunteer fire services for the
22 respective volunteer fire company at an age which is less than
23 five years prior to the normal retirement age of the retirement
24 benefit plan.
25 (3) A volunteer fireman, at the time of the establishment of
26 the plan or at the time of the commencement of volunteer fire
27 services, whichever occurs later, may elect not to participate
28 in the retirement benefit plan. The election not to participate
29 must be irrevocable.
30 (c) A volunteer fireman shall have a nonforfeitable right to
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1 a retirement benefit that is not less than a percentage
2 determined under the following table:
3 Years of Volunteer Nonforfeitable
4 Fire Service Percentage
5 Less than five Zero
6 Five or more One hundred
7 Notwithstanding the preceding table, a participant shall have a
8 one hundred percent nonforfeitable right to a retirement benefit
9 upon attainment of normal retirement age under the retirement
10 benefit plan. A volunteer firemen's relief association may
11 establish a percentage table that provides for a faster rate of
12 becoming nonforfeitable in the event of the death or disability
13 of a volunteer fireman.
14 (d) A retirement benefit plan shall provide that a volunteer
15 fireman who has acquired credit for a sufficient number of years
16 of volunteer fire service to obtain a nonforfeitable right to
17 all or a portion of the accrued retirement benefit and who has
18 terminated volunteer fire service with the applicable volunteer
19 fire company prior to attaining the applicable normal retirement
20 age is entitled to a deferred retirement benefit payable upon
21 application when the former volunteer fireman attains at least
22 the normal retirement age.
23 (e) Retirement benefit amount requirements are as follows:
24 (1) A volunteer firemen's retirement benefit plan shall be
25 subject to maximum retirement benefit requirements as specified
26 in subclause (i) or (ii), whichever is applicable.
27 (i) If the volunteer firemen's retirement benefit plan is a
28 defined benefit plan, the maximum benefit amount payable to a
29 participating volunteer fireman entitled to a benefit shall be
30 determined on the basis of an actuarial valuation which takes
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1 into account the age, and other factors as the actuary deems
2 appropriate, of the eligible participating firemen and the
3 amount of financing available per active covered fireman. The
4 maximum retirement benefit under a retirement benefit plan that
5 is a defined benefit plan shall not exceed ten dollars per month
6 for each year of fire service credited under the terms of the
7 plan.
8 (ii) If the volunteer firemen's retirement benefit plan is a
9 defined contribution plan, the maximum retirement income
10 contribution, exclusive of any investment earnings, for a
11 participating fireman shall not exceed one thousand dollars for
12 each year of fire service.
13 (2) A retirement benefit plan shall be funded in accordance
14 with the provisions of section 3.5 by the volunteer firemen's
15 relief association.
16 (3) Unless otherwise specified by the volunteer firemen's
17 relief association, all years of volunteer fire service for
18 retirement benefit amount purposes shall be years of volunteer
19 fire service completed after the establishment of the retirement
20 benefit plan and after completion of minimum eligibility
21 requirements to participate in the retirement benefit plan. If
22 the volunteer firemen's relief association so specifies, years
23 of volunteer fire service performed prior to the establishment
24 of the retirement benefit plan may be included as specified in
25 subclauses (i), (ii) and (iii) as follows:
26 (i) for those volunteer firemen who complete at least one
27 year of active service after establishment of the retirement
28 benefit plan, up to five years of prior service may be included;
29 (ii) for those volunteer firemen who complete at least two
30 years of active service after establishment of the retirement
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1 benefit plan, up to seven years of prior service may be
2 included; and
3 (iii) for those volunteer firemen who complete at least
4 three years of active service after establishment of the
5 retirement plan, up to nine years of prior service may be
6 included.
7 (4) The provisions of this subsection, permitting the
8 inclusion of years of service accrued prior to the establishment
9 of a retirement benefit plan under this act, shall expire five
10 years after the effective date of this act, except that those
11 volunteer firemen who because of active service in the military
12 service of the United States, or who because of a physical
13 injury or disability cannot initiate active service as a
14 volunteer fireman during this five-year period, shall be
15 permitted to initiate the active volunteer fire service required
16 to be eligible for accrual of past service at any time during a
17 period commencing five years from discharge from the military
18 service or from the determination of a physician of the
19 volunteer fire company's choosing that the injured or disabled
20 volunteer fireman is able to perform the duties required of
21 active service defined in this act.
22 (5) If the volunteer firemen's relief association so
23 specifies, the retirement benefit accrual rate with respect to
24 years of volunteer fire service rendered prior to establishment
25 of a retirement benefit plan may be less than the retirement
26 benefit accrual rate with respect to years of volunteer fire
27 service rendered after the establishment of a retirement benefit
28 plan. A retirement benefit plan may be amended after its
29 establishment to increase or decrease the retirement benefit
30 accrual rate applicable to volunteer firemen with respect to
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1 years of volunteer fire service completed after the date of that
2 amendment. An amendment which decreases the retirement benefit
3 accrual rate may not affect benefits accrued prior to the
4 amendment; the amendment may only decrease prospectively the
5 retirement benefit accrual rate applicable to a volunteer
6 fireman under the retirement benefit plan prospectively.
7 (6) Notwithstanding any other provision of this section, no
8 volunteer fireman may receive credit for a year of volunteer
9 fire service in a retirement benefit plan which is a defined
10 benefit plan if the minimum funding requirements as set forth in
11 section 3.5 have not been met by the volunteer firemen's relief
12 association in a timely fashion.
13 (f) The volunteer firemen's relief association shall specify
14 the normal retirement age applicable to a retirement benefit
15 plan. The normal retirement age shall not be earlier than age
16 sixty. No retirement benefit plan may provide for the payment of
17 benefits prior to the date on which the person attains age
18 fifty-five, whether or not the benefits are reduced to take into
19 account payment before the normal retirement age, except in the
20 case of the death or disability of the volunteer fireman. A
21 retirement benefit plan may provide for the payment of
22 retirement benefits to an actively serving volunteer fireman who
23 has attained at least the normal retirement age specified in the
24 retirement benefit plan, but no additional years of volunteer
25 fire service may be credited to the volunteer fireman who is
26 receiving retirement benefits.
27 (g) In addition to retirement benefits, a volunteer
28 fireman's retirement benefit plan may provide for the payment of
29 benefits in the event of the disability or death of a volunteer
30 fireman who has become disabled or has died prior to beginning
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1 to receive benefits under a retirement benefit plan. Death
2 benefits may be either in the form of survivor annuity payments
3 or lump-sum benefits.
4 (h) A retirement benefit payable from a retirement benefit
5 plan to an individual receiving or entitled to receive a
6 retirement benefit may not be assigned by the volunteer fireman;
7 nor shall it be subject to garnishment, judgment, execution or
8 other legal process other than legally obligated support of
9 minor children or a spouse.
10 (i) Plan assets shall be held in trust by the volunteer
11 firemen's relief association or by a qualified third party under
12 contract with the volunteer firemen's relief association for the
13 purpose of providing benefits to participants and their
14 beneficiaries in conformance with this act or for the purpose of
15 defraying the necessary and reasonable expenses of the operation
16 and administration of the plan. If the retirement benefit plan
17 and the related trust are not tax qualified within the meaning
18 of sections 401 and 501 of the Internal Revenue Code of 1986
19 (Public Law 99-514, 26 U.S.C. §§ 401 and 501), the trust
20 referred to in this subsection may provide that the assets held
21 thereunder may be subject to the claims of general creditors, if
22 any, of the volunteer firemen's relief association or may
23 contain any other terms and provisions which are necessary to
24 insure that the participation by a volunteer fireman in the
25 retirement benefit plan does not result in taxable income under
26 the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C.
27 § 1 et seq.) prior to the payment of retirement benefits.
28 (j) A fiduciary of a retirement benefit plan shall act
29 solely in the interest of the plan's participants and
30 beneficiaries. Subject only to the provisions of this act and
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1 the plan document, a fiduciary may accept, hold, invest in and
2 retain an investment as long as the fiduciary exercises the
3 degree of judgment and care, under the circumstances then
4 prevailing, which persons of prudence and intelligence exercise
5 in the management of their own affairs, not in regard to
6 speculation but in regard to permanent disposition of their
7 funds, considering the probable income to be derived and the
8 probable safety of the capital.
9 (k) The volunteer firemen's relief association or the
10 designated plan administrator, whichever is applicable, shall
11 provide volunteer firemen who participate in a retirement
12 benefit plan maintained under this act with a summary of the
13 plan's provisions, including the plan's provisions relating to
14 the participation requirements; the rate at which a
15 nonforfeitable right in plan benefits is obtained and increases;
16 and the plans's retirement benefit or contribution formula. This
17 summary shall be provided to each retirement benefit plan
18 participant within six months from the date on which plan
19 participation commences. In addition, a material modification to
20 the plan provisions shall be provided in writing to each
21 participant within six months after the date the modification is
22 adopted or the date on which it is effective, whichever is
23 later. A copy of the plan, the summary of the plan, and relevant
24 documents related to the funding or investment of the assets of
25 the plan and of contracts or agreements with service providers
26 to the plan shall be made available for inspection or copying by
27 a plan participant, a beneficiary or a member of the public at
28 the office of the volunteer firemen's relief association.
29 Section 3.4. Volunteer Firemen's Retirement Benefit Plan
30 Actuarial Reporting.--(a) Actuarial reporting shall be as
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1 follows:
2 (1) The plan administrator defined in the retirement benefit
3 plan document or the chief administrator of the volunteer
4 firemen's relief association, if no plan administrator is
5 defined in the plan document, shall, every three years, cause
6 actuarial reporting for the retirement benefit plan to be
7 prepared and to be provided to the Department of the Auditor
8 General in conjunction with the routine audits performed under
9 section 7. A copy of the report shall be submitted to the
10 governing body or chief elected official of the municipality
11 where the volunteer fire company is located at the same time the
12 report is transmitted to the Auditor General. Actuarial
13 reporting is a public record and shall be made available to
14 active members or benefit recipients of the retirement benefit
15 plan. Under a defined benefit plan, the report shall disclose
16 the actuarial assumptions and methods used in determining
17 actuarial costs and liabilities.
18 (2) The actuarial reporting for retirement benefit plans
19 which are defined benefit plans shall be pursuant to subsection
20 (c). The actuarial reporting for retirement benefit plans which
21 are defined contribution plans shall be pursuant to subsection
22 (d).
23 (b) If a retirement benefit plan fails to comply with this
24 section, allocation of proceeds of the premium tax on foreign
25 fire insurance pursuant to Chapter 7 of the act of December 18,
26 1984 (P.L.1005, No.205), known as the "Municipal Pension Plan
27 Funding Standard and Recovery Act," otherwise payable with
28 respect to the relief association shall be withheld until
29 compliance occurs.
30 (c) The actuarial reporting for a retirement benefit plan,
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1 which is a defined benefit plan, shall be as follows:
2 (1) The actuarial reporting shall be prepared and certified
3 by a certified actuary.
4 (2) The actuarial reporting shall be prepared in accordance
5 with the frozen entry age actuarial cost method with costs
6 allocated on the basis of future years of fire service of plan
7 participants. The actuarial cost method shall be used to value
8 all aspects of the retirement benefit plan. The actuarial
9 reporting shall use actuarial assumptions which are, in the
10 judgment of the actuary and the governing body of the plan,
11 reasonable in the aggregate: Provided, however, That with regard
12 to economic actuarial assumptions involving investment earnings,
13 asset appreciation or depreciation and determination of the
14 actuarial value of assets used in the preparation of actuarial
15 valuations of the retirement benefit plan, the actuary and the
16 governing body of the plan shall use economic actuarial
17 assumptions issued by the Public Employee Retirement Study
18 Commission for municipal pension plans pursuant to the
19 "Municipal Pension Plan Funding Standard and Recovery Act." The
20 actuarial reporting shall measure the aspects of the retirement
21 benefit plan in accordance with modifications in plan benefits
22 which, as of the valuation date, are known or can reasonably be
23 expected to be in force during the ensuing year. The actuarial
24 reporting shall contain (i) an exhibit setting forth the normal
25 cost accrual rate and the amount for each plan year; (ii) in the
26 case of a retirement benefit plan that provides for credit for
27 years of fire service prior to the effective date of the
28 retirement benefit plan for the purpose of computing the amount
29 of benefits under the plan or for amendments increasing
30 benefits, a separate statement of the retirement benefit plan's
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1 actuarial accrued liability; (iii) an exhibit of the total
2 administrative cost of the retirement benefit plan for the
3 preceding year; (iv) an exhibit summarizing the actuarial cost
4 methods and the actuarial assumptions used in preparation of the
5 actuarial exhibits; (v) an exhibit of the present value of
6 accumulated plan benefits; (vi) an exhibit of the assets of the
7 plan at fair market value or, if the assets are valued
8 differently from fair market value, a statement of the basis for
9 determining the value of assets for purposes of this section and
10 section 3.5; (vii) a summary of the pertinent participant data;
11 and (viii) a summary of the principal provisions of the benefits
12 of the retirement benefit plan upon which the actuarial exhibit
13 is based.
14 (d) The actuarial reporting for a retirement benefit plan
15 which is a defined contribution plan shall include the total
16 balance of any member account applicable to the retirement
17 benefit plan, the procedures for establishing contribution rates
18 or requirements, the procedures for allocating amounts to member
19 accounts and additional relevant information.
20 Section 3.5. Volunteer Firemen's Retirement Benefit Plan
21 Minimum Funding Standard.--(a) The plan administrator or chief
22 administrator of the volunteer firemen's relief association
23 shall annually determine the financial requirements of the
24 retirement benefit plan for the following year on the basis of
25 the most recent actuarial reporting, and shall certify those
26 requirements to the governing body of the volunteer firemen's
27 relief association which maintains the retirement benefit plan.
28 The requirements shall be certified no later than two months
29 prior to the start of the next following year.
30 (b) If the retirement benefit plan is a defined benefit plan
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1 providing monthly benefits for the life of the recipients, the
2 financial requirement of the retirement benefit plan shall be
3 the normal cost plus, in the case of a defined benefit plan that
4 provides benefits based on years of fire service prior to the
5 effective date of the plan, the cost to amortize a liability
6 attributable to fire service over a period not to exceed ten
7 years from the plan's effective date or, in the case of an
8 amendment increasing benefits, ten years from the date of the
9 amendment.
10 (c) If the retirement benefit plan is a defined benefit plan
11 allowing lump-sum benefits to recipients, the financial
12 requirements shall be the greater of the requirements
13 established in subsection (b) or an amount determined by an
14 actuary which will provide lump-sum benefits for all
15 participants retiring during the current year.
16 (d) If the retirement benefit plan is a defined contribution
17 plan, the financial requirements of the retirement benefit plan
18 shall be determined pursuant to the terms of the retirement
19 benefit plan or instrument establishing the retirement benefit
20 plan. The Department of the Auditor General may specify
21 procedures for determining the financial requirements of
22 retirement benefit plans to which this subsection is applicable
23 as need arises if those procedures are consistent with this act.
24 (e) The minimum financial requirements of the retirement
25 benefit plan shall be the obligation of the volunteer firemen's
26 relief association. The minimum financial requirements of the
27 retirement benefit plan shall be due no later than twelve months
28 following the start of the year. An amount of the minimum
29 financial requirements of the retirement benefit plan which
30 remains unpaid by the volunteer firemen's relief association
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1 which maintains the retirement benefit, as of twelve months
2 after the date on which the minimum financial requirements are
3 due, shall be added to the minimum financial requirement for the
4 current year, with interest, until the payment is made at the
5 actuarial valuation rate. If the amount applicable to the prior
6 year is not paid by the close of the current year, the
7 retirement benefit plan shall be liquidated; and no further
8 benefits may be earned by any volunteer fireman thereafter. Upon
9 liquidation of the plan, the assets shall be allocated among the
10 participants and beneficiaries of the plan in the following
11 order:
12 (1) In the case of benefits payable as an annuity, (i) in
13 the case of the benefit of a participant or beneficiary which
14 was in pay status as of the beginning of the three-year period
15 ending on the date the plan is liquidated, the lowest benefit
16 based on the provisions of the plan as in effect during the
17 five-year period ending on the date the plan is liquidated; and
18 (ii) in the case of a benefit of a participant or beneficiary
19 other than a benefit described in subclause (i) which
20 (participant or beneficiary) would have been in pay status as of
21 the beginning of the three-year period ending on the date the
22 plan is liquidated if the participant had retired prior to the
23 beginning of that period, the lowest benefit based on the
24 provisions of the plan, as in effect during the five-year period
25 ending on the date the plan is liquidated.
26 (2) In the case of other benefits, assets remaining after
27 the liabilities of the plan to participants and their
28 beneficiaries have been satisfied may be returned to the
29 volunteer firemen's relief association.
30 (f) If a retirement benefit plan is liquidated under this
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1 section, the volunteer firemen's relief association that
2 previously sponsored the plan may not sponsor a retirement
3 benefit plan described in section 3(6.1) for the period of at
4 least ten years from the date the plan was liquidated. A plan
5 that is established after the ten-year period referred to in
6 this subsection may not credit as years of fire service years
7 during the ten-year period following the liquidation of the
8 plan.
9 (g) Except as provided in this act, a retirement benefit
10 plan established under this act shall not be subject to Chapters
11 1 through 6 or 8 of the act of December 18, 1984 (P.L.1005,
12 No.205), known as the "Municipal Pension Plan Funding Standard
13 and Recovery Act."
14 (h) Notwithstanding any provisions of this act to the
15 contrary, no benefits accruing to any member of a volunteer
16 firemen's retirement benefit plan established under this act
17 shall become the contractual obligation or liability of the
18 Commonwealth or any of its political subdivisions.
19 Section 3.6. Standards for Years of Fire Service.--(a) A
20 year of fire service shall be credited under a retirement
21 benefit plan for each year after the establishment of the plan
22 in which an active volunteer fireman accumulates at least fifty
23 points. Points shall be granted in accordance with a system
24 adopted by each volunteer company covered by a plan established
25 by the volunteer firemen's relief association. The system shall
26 provide that points shall be granted for activities designated
27 by each volunteer company covered by a plan established by the
28 volunteer firemen's relief association. Activities shall be
29 selected from the following:
30 (1) Training courses, a maximum of twenty-five points shall
19900H2438B3330 - 18 -
1 be awarded as follows: (i) courses under twenty hours' duration,
2 one point per hour, with a maximum of five points; (ii) courses
3 of twenty to forty-five hours' duration, one point per hour for
4 each hour over initial twenty hours, with a maximum of ten
5 points; and (iii) courses over forty-five hours' duration,
6 fifteen points per course.
7 (2) Drills of at least two hours, a maximum of twenty points
8 shall be awarded, one point per drill (minimum two-hour drill).
9 (3) Sleep-in or standby, a maximum of twenty points shall be
10 awarded for (i) sleep-in, one point each full night; (ii)
11 standby, which is line-of-duty activity of the volunteer fire
12 company, lasting for four hours, not falling under one of the
13 other categories in this subsection, one point for each four
14 hours.
15 (4) Elected or appointed position, a maximum of twenty-five
16 points shall be awarded for (i) completion of one-year term in
17 an elected or appointed position, and (ii) being elected, as an
18 active volunteer fireman, to serve as a delegate to a firemen's
19 convention.
20 (5) Attendance at meetings, a maximum of twenty points shall
21 be awarded for attendance at an official meeting of the
22 volunteer fire company, at the rate of one point per meeting.
23 (6) Participation in department responses, fifteen points
24 for responding on the minimum number of calls shall be awarded
25 as outlined below:
26 Total number of calls Minimum number of calls
27 volunteer fire company volunteer fireman must
28 responds to annually run annually in order
29 other than emergency to receive fifteen
30 rescue and first aid points credit
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1 squad calls (ambulance
2 calls)
3 0 to 500 10%
4 500 to 1000 7.5%
5 1000 to 1500 5%
6 1500 and up 2.5%
7 Total number of calls Minimum number of calls
8 emergency rescue and volunteer fireman must
9 first aid squad run annually in order
10 (ambulance) responds receive fifteen
11 to annually points credit
12 0 to 500 10%
13 500 to 1000 7.5%
14 1000 to 1500 5%
15 1500 and up 2.5%
16 (7) Miscellaneous activities, a maximum of fifteen points
17 shall be awarded for participation in inspections or other
18 activities described in section 1 of the act of June 24, 1976
19 (P.L.424, No.101), referred to as the Emergency and Law
20 Enforcement Personnel Death Benefits Act, and not otherwise
21 listed at the rate of one point per activity.
22 (b) Each volunteer company covered by a plan established by
23 the Volunteer Firemen's Relief Association may designate less
24 than all the activities specified in subsection (a) as
25 activities for which points may be earned.
26 (c) Notwithstanding any other provision of this section, a
27 volunteer fireman may not accumulate more than the maximum
28 number of points with respect to activities described in
29 subsection (a) in any one year under any single retirement
30 benefit plan, even if the fireman performs such activities as a
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1 member of different volunteer fire companies under a plan
2 established by the volunteer firemen's relief association.
3 Section 3. Section 6(e) of the act is amended by adding a
4 clause to read:
5 Section 6. * * *
6 (e) The funds of any volunteer firemen's relief association
7 may be spent:
8 * * *
9 (13) To establish and maintain a retirement benefit plan as
10 defined in section 3.1. Prior to the establishment of a
11 retirement benefit plan under this clause, the volunteer
12 firemen's relief association shall provide the following minimum
13 benefits: an accidental death benefit of thirty thousand dollars
14 and a weekly disability income benefit of one hundred dollars
15 for accidental deaths and disabilities suffered by member
16 volunteer firemen and resulting from the performance of their
17 duties with a volunteer fire company.
18 Section 4. Section 7(a) of the act is amended to read:
19 Section 7. Audits.--(a) The Department of the Auditor
20 General shall have the power, and its duty shall be, to audit
21 the accounts and records of every volunteer firemen's relief
22 association receiving any money under [the act of June 28, 1895
23 (P.L.408), as amended,] Chapter 7 of the act of December 18,
24 1984 (P.L.1005, No.205), known as the "Municipal Pension Plan
25 Funding Standard and Recovery Act," as far as may be necessary
26 to satisfy the department that the money received was expended
27 or is being expended for no purpose other than that authorized
28 by this act. Copies of all such audits shall be furnished to the
29 Governor. Audits shall include expenditures relating to
30 retirement benefit plans either solely or partially funded by
19900H2438B3330 - 21 -
1 funds obtained under the "Municipal Pension Plan Funding
2 Standard and Recovery Act."
3 * * *
4 Section 5. The act is amended by adding a section to read:
5 Section 7.1. Nonbinding referendum.--Whenever a volunteer
6 firemen's relief association requests the governing body of any
7 municipality to contribute moneys to fund a retirement benefit
8 plan established under this act, the governing body may prepare
9 a nonbinding, advisory referendum question on this issue and
10 submit the question to the county board of elections. The county
11 board of elections shall place this question before the voters
12 of the municipality at the next primary, municipal, or general
13 election occurring at least ninety days after receipt of the
14 question from the governing body.
15 Section 6. This act shall take effect immediately.
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