PRINTER'S NO. 728
No. 660 Session of 1997
INTRODUCED BY DeLUCA, BELARDI, WALKO, COY, CIVERA, NAILOR,
HERMAN, VAN HORNE, LUCYK, STERN, RUBLEY, SEMMEL, SCHULER,
BEBKO-JONES, STABACK, ROONEY, L. I. COHEN, CURRY, SURRA,
SHANER, SATHER, KIRKLAND, TRAVAGLIO, MIHALICH, BENNINGHOFF,
COLAIZZO AND LEVDANSKY, MARCH 3, 1997
REFERRED TO COMMITTEE ON VETERANS AFFAIRS AND EMERGENCY
PREPAREDNESS, MARCH 3, 1997
AN ACT
1 Amending the act of June 11, 1968 (P.L.149, No.84), entitled, as
2 amended, "An act relating to volunteer firefighters' relief
3 associations, clarifying their purposes and objectives,
4 establishing criteria and standards for the conduct of their
5 affairs, providing for their formation, recognition,
6 continuing operation, and for their dissolution in
7 appropriate circumstances and the distribution of their
8 funds," further providing for volunteer firefighters'
9 retirement plans.
10 The General Assembly of the Commonwealth of Pennsylvania
11 hereby enacts as follows:
12 Section 1. Section 3 of the act of June 11, 1968 (P.L.149,
13 No.84), known as the Volunteer Firefighters' Relief Association
14 Act, amended December 22, 1993 (P.L.547, No.78), is amended to
15 read:
16 Section 3. Statement of Purpose.--The purpose of the
17 Legislature in enacting this statute is to encourage individuals
18 to take part in the fire service as volunteer firefighters, by
19 establishing criteria and standards for the orderly
1 administration and conduct of the affairs of firefighters'
2 relief associations, so as to ensure, as far as circumstances
3 will reasonably permit, that funds shall be available for the
4 protection of volunteer firefighters and their heirs:
5 (1) To provide financial assistance to volunteer
6 firefighters who may suffer injury or misfortune by reason of
7 their participation in the fire service;
8 (2) To provide financial assistance to the widow, children,
9 and/or other dependents of volunteer firefighters who lose their
10 lives as a result of their participation in the fire service;
11 (3) To provide, either by insurance or by the operation of a
12 beneficial fund, for the payment of a sum certain to the
13 designated beneficiaries of a participating member in such fund
14 following the death of such member for any cause, and to
15 establish criteria which members must meet in order to qualify
16 as participants in such death benefit fund;
17 (4) To provide safeguards for preserving life, health and
18 safety of volunteer firefighters, so as to ensure their
19 availability to participate in the fire service;
20 (5) To provide financial assistance to volunteer
21 firefighters who, after having actively participated in the fire
22 service for a specified minimum term, are no longer physically
23 able to continue such participation and are in need of financial
24 assistance;
25 (6) To provide funds to aid the rehabilitation of volunteer
26 firefighters who have suffered an impairment of their physical
27 capacity to continue to perform their normal occupations; [and]
28 (6.1) To provide retirement benefits to current and future
29 active volunteer firefighters upon their separation from active
30 participation in the fire service on account of attainment of a
19970H0660B0728 - 2 -
1 designated age or acquisition of credit for a designated period
2 of service through the establishment and maintenance of a
3 volunteer firefighters' retirement benefit plan; and
4 (7) In any event, to provide sufficient funds to ensure the
5 efficient and economical handling of the business of the
6 association in accomplishing the objectives hereinabove set
7 forth.
8 Section 2. The act is amended by adding sections to read:
9 Section 3.1. Volunteer Firefighters' Retirement Benefit Plan
10 Definitions and Minimum Standards.--As used in section 3(6.1),
11 this section and sections 3.2 through 3.6, unless the context
12 clearly indicates otherwise:
13 (1) Accrued retirement benefits is the amount of the
14 retirement benefit which would be payable to a volunteer
15 firefighter if the firefighter discontinued volunteer fire
16 service based on the defined benefit formula in effect or the
17 individual account balance, whichever is applicable, without
18 reference to a minimum vesting requirement or normal retirement
19 age requirement.
20 (2) Chief administrator of the volunteer firefighters'
21 relief association is the person who has primary responsibility
22 for the execution of the administrative, business or financial
23 affairs on behalf of the volunteer firefighters' relief
24 association, as indicated by the factual situation or as
25 designated by the relief association.
26 (3) Defined benefit plan is a retirement benefit plan which
27 provides a retirement benefit that is definitely determinable
28 pursuant to the plan document without reference to the amount
29 contributed to the plan on the participant's behalf or to
30 income, expenses, gains or losses or forfeitures of other
19970H0660B0728 - 3 -
1 participants covered by the plan.
2 (4) Defined contribution plan is a retirement benefit plan
3 which provides for an individual account for each participant
4 and for benefits which are based solely upon the amounts
5 allocated to the accounts of participants and upon investment
6 income, administrative or realized expenses, gains and losses
7 which may be allocated to those accounts.
8 (5) Fair market value is the amount or price which, in all
9 reasonable probability, on a specified date, would have been
10 realized through the disposition of an investment in the course
11 of business by a willing seller to a willing buyer as indicated
12 in the most recent closing daily results of a national market or
13 exchange for that type of investment or, if no national market
14 or exchange exists, the book value or actual purchase price,
15 whichever is applicable, of the investment.
16 (6) Fiduciary is a person who exercises discretionary
17 authority or control with respect to the administration of the
18 plan or the management or disposition of plan assets or who
19 renders investment advice for a fee to the plan.
20 (7) Nonforfeitable right is the unconditionally and legally
21 enforceable entitlement to receive benefits from a retirement
22 benefit plan attributable to service as a volunteer firefighter
23 participating in the plan.
24 (8) Normal retirement age is the earliest age at which a
25 former volunteer firefighter who participated in the retirement
26 benefit plan and who has an entitlement to receive a retirement
27 benefit pursuant to the terms of the plan document may receive
28 that retirement benefit.
29 (9) Prior volunteer fire service is the service rendered by
30 a volunteer firefighter to the applicable volunteer fire
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1 companies associated with the volunteer firefighters' relief
2 association which established and maintained the retirement
3 benefit plan prior to the establishment of that retirement
4 benefit plan.
5 (10) Retirement benefit is the amount, at the time of
6 retirement, payable or potentially payable to a former volunteer
7 firefighter at or after normal retirement age, which amount is
8 computed pursuant to the applicable formula if the retirement
9 benefit plan is a defined benefit plan or which amount is the
10 balance of the account of the former volunteer firefighter if
11 the retirement benefit plan is a defined contribution plan.
12 (11) Retirement benefit plan is the plan or program
13 established and maintained by a volunteer firefighters' relief
14 association pursuant to this act to provide retirement benefit
15 coverage for volunteer firefighter of the associated volunteer
16 fire companies, irrespective of the manner in which the plan is
17 administered.
18 (12) Survivor of a volunteer firefighter is the surviving
19 spouse of the volunteer firefighter at the time of the death of
20 the volunteer firefighter, or if none, the natural or adopted
21 children, including posthumous children, of the volunteer
22 firefighter.
23 (13) Year of volunteer fire service is the twelve-month
24 period, which need not be twelve consecutive months, during
25 which a volunteer firefighter who is eligible to participate in
26 the retirement benefit plan meets the minimum volunteer fire
27 service requirements established under section 9(c) and meets
28 additional minimum requirements established by the volunteer
29 firefighters' relief association and during which the minimum
30 obligation of the volunteer firefighters' relief association
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1 with respect to the retirement benefit plan under section 3.5
2 has been met.
3 Section 3.2. Establishment of Volunteer Firefighters'
4 Retirement Benefit Plan.--A volunteer firefighters' relief
5 association which has met the requirements of section 6 may
6 establish and maintain a retirement benefit plan for the
7 volunteer firefighters who are members of the relief association
8 under this act. No volunteer firefighters' relief association
9 shall be required, under this act, to establish a retirement
10 benefit plan. No more than one retirement benefit plan may be
11 established or maintained by a single volunteer firefighters'
12 relief association.
13 Section 3.3. Minimum Participating and Benefit Standards for
14 Volunteer Firefighters' Retirement Benefit Plans.--(a) A
15 retirement benefit plan established and maintained under this
16 act by a volunteer firefighters' relief association for
17 volunteer firefighters who are members of the relief association
18 and disbursements made by a retirement benefit plan shall be
19 governed by the applicable provisions of this act.
20 (b) Eligibility to participate shall be as follows:
21 (1) A volunteer firefighters' retirement benefit plan must
22 provide that each volunteer firefighter who is a member of the
23 relief association and who has attained at least twenty-one
24 years of age and has completed at least one year of fire service
25 is eligible to participate in the retirement benefit plan.
26 (2) If the retirement benefit plan is a defined benefit
27 plan, the volunteer firefighters' relief association may provide
28 for the exclusion from participation of a volunteer firefighter
29 who initially begins to provide volunteer fire services for the
30 respective volunteer fire company at an age which is less than
19970H0660B0728 - 6 -
1 five years prior to the normal retirement age of the retirement
2 benefit plan.
3 (3) A volunteer firefighter, at the time of the
4 establishment of the plan or at the time of the commencement of
5 volunteer fire services, whichever occurs later, may elect not
6 to participate in the retirement benefit plan. The election not
7 to participate shall be irrevocable.
8 (c) A volunteer firefighter shall have a nonforfeitable
9 right to a retirement benefit that is not less than a percentage
10 determined under the following table:
11 Years of Volunteer Nonforfeitable
12 Fire Service Percentage
13 Less than five Zero
14 Five or more One hundred
15 Notwithstanding the preceding table, a participant shall have a
16 one hundred per cent nonforfeitable right to a retirement
17 benefit upon attainment of normal retirement age, death or
18 disability under the retirement benefit plan. A volunteer
19 firefighters' relief association may establish a percentage
20 table that provides for a faster rate of becoming nonforfeitable
21 in the event of the death or disability of a volunteer
22 firefighter.
23 (d) A retirement benefit plan shall provide that a volunteer
24 firefighter who has acquired credit for a sufficient number of
25 years of volunteer fire service to obtain a nonforfeitable right
26 to all or a portion of the accrued retirement benefit and who
27 has terminated volunteer fire service with the applicable
28 volunteer fire company prior to attaining the applicable normal
29 retirement age is entitled to a deferred retirement benefit
30 payable upon application when the former volunteer firefighter
19970H0660B0728 - 7 -
1 attains at least the normal retirement age.
2 (e) Retirement benefit amount requirements are as follows:
3 (1) A volunteer firefighters' retirement benefit plan shall
4 be subject to maximum retirement benefit requirements as
5 specified in subclause (i) or (ii), whichever is applicable.
6 (i) If the volunteer firefighters' retirement benefit plan
7 is a defined benefit plan, the maximum benefit amount payable to
8 a participating volunteer firefighter entitled to a benefit
9 shall be determined on the basis of an actuarial valuation which
10 takes into account the age, and other factors as the actuary
11 deems appropriate, of the eligible participating firefighter and
12 the amount of financing available per active covered
13 firefighter. The maximum retirement benefit under a retirement
14 benefit plan that is a defined benefit plan shall not exceed
15 twenty dollars per month for each year of fire service credited
16 under the terms of the plan.
17 (ii) If the volunteer firefighters' retirement benefit plan
18 is a defined contribution plan, the maximum retirement income
19 contribution, exclusive of any investment earnings, for a
20 participating firefighter shall not exceed four hundred eighty
21 dollars for each year of fire service.
22 (2) A retirement benefit plan shall be funded in accordance
23 with the provisions of section 3.5 by the volunteer
24 firefighters' relief association.
25 (3) Unless otherwise specified by the volunteer
26 firefighters' relief association, all years of volunteer fire
27 service for retirement benefit amount purposes shall be years of
28 volunteer fire service completed after the establishment of the
29 retirement benefit plan and after completion of minimum
30 eligibility requirements to participate in the retirement
19970H0660B0728 - 8 -
1 benefit plan. If the volunteer firefighters' relief association
2 so specifies, years of volunteer fire service for retirement
3 benefit amount purposes may include up to ten years of volunteer
4 fire service prior to the establishment of the retirement
5 benefit plan, but only with respect to those volunteer
6 firefighter who complete at least one year of volunteer fire
7 service after establishment of the retirement benefit plan. If
8 the volunteer firefighters' relief association so specifies, the
9 retirement benefit accrual rate with respect to years of
10 volunteer fire service rendered prior to establishment of a
11 retirement benefit plan may be less than the retirement benefit
12 accrual rate with respect to years of volunteer fire service
13 rendered after the establishment of a retirement benefit plan. A
14 retirement benefit plan may be amended after its establishment
15 to increase or decrease the retirement benefit accrual rate
16 applicable to volunteer firefighter with respect to years of
17 volunteer fire service completed after the date of that
18 amendment. An amendment which decreases the retirement benefit
19 accrual rate may not affect benefits accrued prior to the
20 amendment; the amendment may only decrease prospectively the
21 retirement benefit accrual rate applicable to a volunteer
22 firefighter under the retirement benefit plan.
23 (4) Notwithstanding any other provision of this section, no
24 volunteer firefighter may receive credit for a year of volunteer
25 fire service in a retirement benefit plan which is a defined
26 benefit plan if the minimum funding requirements as set forth in
27 section 3.5 have not been met by the volunteer firefighters'
28 relief association in a timely fashion.
29 (f) The volunteer firefighters' relief association shall
30 specify the normal retirement age applicable to a retirement
19970H0660B0728 - 9 -
1 benefit plan. The normal retirement age shall not be earlier
2 than age fifty-five. No retirement benefit plan may provide for
3 the payment of benefits prior to the date on which the person
4 attains age fifty-five, whether or not the benefits are reduced
5 to take into account payment before the normal retirement age,
6 except in the case of the death or disability of the volunteer
7 firefighter. A retirement benefit plan may provide for the
8 payment of retirement benefits to an actively serving volunteer
9 firefighter who has attained at least the normal retirement age
10 specified in the retirement benefit plan, but no additional
11 years of volunteer fire service may be credited to the volunteer
12 firefighter who is receiving retirement benefits.
13 (g) In addition to retirement benefits, a volunteer
14 firefighter's retirement benefit plan may provide for the
15 payment of benefits in the event of the disability or death of a
16 volunteer firefighter who has become disabled or has died prior
17 to beginning to receive benefits under a retirement benefit
18 plan. Death benefits may be either in the form of survivor
19 annuity payments or lump-sum benefits.
20 (h) A retirement benefit payable from a retirement benefit
21 plan to an individual receiving or entitled to receive a
22 retirement benefit may not be assigned by the volunteer
23 firefighter; nor shall it be subject to garnishment, judgment,
24 execution or other legal process other than legally obligated
25 support of minor children or a spouse.
26 (i) Plan assets shall be held in trust by the volunteer
27 firefighters' relief association or by a qualified third party
28 under contract with the volunteer firefighters' relief
29 association for the purpose of providing benefits to
30 participants and their beneficiaries in conformance with this
19970H0660B0728 - 10 -
1 act or for the purpose of defraying the necessary and reasonable
2 expenses of the operation and administration of the plan. If the
3 retirement benefit plan and the related trust are not tax
4 qualified within the meaning of sections 401 and 501 of the
5 Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §§
6 401 and 501), the trust referred to in this subsection may
7 provide that the assets held thereunder may be subject to the
8 claims of general creditors, if any, of the volunteer
9 firefighters' relief association or may contain any other terms
10 and provisions which are necessary to insure that the
11 participation by a volunteer firefighter in the retirement
12 benefit plan does not result in taxable income under the
13 Internal Revenue Code of 1986 prior to the payment of retirement
14 benefits.
15 (j) A fiduciary of a retirement benefit plan shall act
16 solely in the interest of the plan's participants and
17 beneficiaries. Subject only to the provisions of this act and
18 the plan document, a fiduciary may accept, hold, invest in and
19 retain an investment as long as the fiduciary exercises the
20 degree of judgment and care, under the circumstances then
21 prevailing, which persons of prudence and intelligence exercise
22 in the management of their own affairs, not in regard to
23 speculation but in regard to permanent disposition of their
24 funds, considering the probable income to be derived and the
25 probable safety of the capital.
26 (k) The volunteer firefighters' relief association or the
27 designated plan administrator, whichever is applicable, shall
28 provide volunteer firefighters who participate in a retirement
29 benefit plan maintained under this act with a summary of the
30 plan's provisions, including the plan's provisions relating to
19970H0660B0728 - 11 -
1 the participation requirements; the rate at which a
2 nonforfeitable right in plan benefits is obtained and increases;
3 and the plan's retirement benefit or contribution formula. This
4 summary shall be provided to each retirement benefit plan
5 participant within six months from the date on which plan
6 participation commences. In addition, a material modification to
7 the plan provisions shall be provided in writing to each
8 participant within six months after the date the modification is
9 adopted or the date on which it is effective, whichever is
10 later. A copy of the plan, the summary of the plan, and relevant
11 documents related to the funding or investment of the assets of
12 the plan and of contracts or agreements with service providers
13 to the plan shall be made available for inspection or copying by
14 a plan participant, a beneficiary or a member of the public at
15 the office of the volunteer firefighters' relief association.
16 Section 3.4. Volunteer Firefighters' Retirement Benefit Plan
17 Actuarial Reporting.--(a) Actuarial reporting shall be as
18 follows:
19 (1) The plan administrator defined in the retirement benefit
20 plan document or the chief administrator of the volunteer
21 firefighters' relief association, if no plan administrator is
22 defined in the plan document, shall, every three years, cause
23 actuarial reporting for the retirement benefit plan to be
24 prepared and to be provided to the Department of the Auditor
25 General in conjunction with the routine audits performed under
26 section 7. A copy of the report shall be submitted to the
27 governing body or chief elected official of the municipality
28 where the volunteer fire company is located at the same time the
29 report is transmitted to the Auditor General. Actuarial
30 reporting is a public record and shall be made available to
19970H0660B0728 - 12 -
1 active members or benefit recipients of the retirement benefit
2 plan. Under a defined benefit plan, the report shall disclose
3 the actuarial assumptions and methods used in determining
4 actuarial costs and liabilities.
5 (2) The actuarial reporting for retirement benefit plans
6 which are defined benefit plans shall be pursuant to subsection
7 (c). The actuarial reporting for retirement benefit plans which
8 are defined contribution plans shall be pursuant to subsection
9 (d).
10 (b) If a retirement benefit plan fails to comply with this
11 section, allocation of proceeds of the premium tax on foreign
12 fire insurance pursuant to Chapter 7 of the act of December 18,
13 1984 (P.L.1005, No.205), known as the "Municipal Pension Plan
14 Funding Standard and Recovery Act," otherwise payable with
15 respect to the relief association shall be withheld until
16 compliance occurs.
17 (c) The actuarial reporting for a retirement benefit plan,
18 which is a defined benefit plan, shall be as follows:
19 (1) The actuarial reporting shall be prepared and certified
20 by an enrolled actuary.
21 (2) The actuarial reporting shall be prepared in accordance
22 with the frozen entry age actuarial cost method with costs
23 allocated on the basis of future years of fire service of plan
24 participants. The actuarial cost method shall be used to value
25 all aspects of the retirement benefit plan. The actuarial
26 reporting shall use actuarial assumptions which are, in the
27 judgment of the actuary and the governing body of the plan,
28 reasonable in the aggregate. The actuarial reporting shall
29 measure the aspects of the retirement benefit plan in accordance
30 with modifications in plan benefits which, as of the valuation
19970H0660B0728 - 13 -
1 date, are known or can reasonably be expected to be in force
2 during the ensuing year. The actuarial reporting shall contain
3 (i) an exhibit setting forth the normal cost accrual rate and
4 the amount for each plan year; (ii) in the case of a retirement
5 benefit plan that provides for credit for years of fire service
6 prior to the effective date of the retirement benefit plan for
7 the purpose of computing the amount of benefits under the plan
8 or for amendments increasing benefits, a separate statement of
9 the retirement benefit plan's actuarial accrued liability; (iii)
10 an exhibit of the total administrative cost of the retirement
11 benefit plan for the preceding year; (iv) an exhibit summarizing
12 the actuarial cost methods and the actuarial assumptions used in
13 preparation of the actuarial exhibits; (v) an exhibit of the
14 present value of accumulated plan benefits; (vi) an exhibit of
15 the assets of the plan at fair market value or, if the assets
16 are valued differently from fair market value, a statement of
17 the basis for determining the value of assets for purposes of
18 this section and section 3.5; (vii) a summary of the pertinent
19 participant data; and (viii) a summary of the principal
20 provisions of the benefits of the retirement benefit plan upon
21 which the actuarial exhibit is based.
22 (d) The actuarial reporting for a retirement benefit plan
23 which is a defined contribution plan shall include the total
24 balance of any member account applicable to the retirement
25 benefit plan, the procedures for establishing contribution rates
26 or requirements, the procedures for allocating amounts to member
27 accounts and additional relevant information.
28 Section 3.5. Volunteer Firefighters' Retirement Benefit Plan
29 Minimum Funding Standard.--(a) The plan administrator or chief
30 administrator of the volunteer firefighters' relief association
19970H0660B0728 - 14 -
1 shall annually determine the financial requirements of the
2 retirement benefit plan for the following year on the basis of
3 the most recent actuarial reporting, and shall certify those
4 requirements to the governing body of the volunteer
5 firefighters' relief association which maintains the retirement
6 benefit plan. The requirements shall be certified no later than
7 two months prior to the start of the next following year.
8 (b) If the retirement benefit plan is a defined benefit plan
9 providing monthly benefits for the life of the recipients, the
10 financial requirement of the retirement benefit plan shall be
11 the normal cost plus, in the case of a defined benefit plan that
12 provides benefits based on years of fire service prior to the
13 effective date of the plan, the cost to amortize a liability
14 attributable to fire service over a period not to exceed ten
15 years from the plan's effective date or, in the case of an
16 amendment increasing benefits, ten years from the date of the
17 amendment.
18 (c) If the retirement benefit plan is a defined benefit plan
19 allowing lump-sum benefits to recipients, the financial
20 requirements shall be the greater of the requirements
21 established in subsection (b) or an amount determined by an
22 actuary which will provide lump-sum benefits for all
23 participants retiring during the current year.
24 (d) If the retirement benefit plan is a defined contribution
25 plan, the financial requirements of the retirement benefit plan
26 shall be determined pursuant to the terms of the retirement
27 benefit plan or instrument establishing the retirement benefit
28 plan. The Department of the Auditor General may specify
29 procedures for determining the financial requirements of
30 retirement benefit plans to which this subsection is applicable
19970H0660B0728 - 15 -
1 as need arises if those procedures are consistent with this act.
2 (e) The minimum financial requirements of the retirement
3 benefit plan shall be the obligation of the volunteer
4 firefighters' relief association. The minimum financial
5 requirements of the retirement benefit plan shall be due no
6 later than twelve months following the start of the year. Any
7 amount of the minimum financial requirements of the retirement
8 benefit plan which remains unpaid by the volunteer firefighters'
9 relief association which maintains the retirement benefit, as of
10 twelve months after the date on which the minimum financial
11 requirements are due, shall be added to the minimum financial
12 requirement for the current year, with interest, until the
13 payment is made at the actuarial valuation rate. If the amount
14 applicable to the prior year is not paid by the close of the
15 current year, the retirement benefit plan shall be liquidated
16 and no further benefits may be earned by any volunteer
17 firefighter thereafter. Upon liquidation of the plan, the assets
18 shall be allocated among the participants and beneficiaries of
19 the plan in the following order:
20 (1) In the case of benefits payable as an annuity, (i) in
21 the case of the benefit of a participant or beneficiary which
22 was in pay status as of the beginning of the three-year period
23 ending on the date the plan is liquidated, the lowest benefit
24 based on the provisions of the plan as in effect during the
25 five-year period ending on the date the plan is liquidated; and
26 (ii) in the case of a benefit of a participant or beneficiary
27 other than a benefit described in subclause (i) which
28 participant or beneficiary would have been in pay status as of
29 the beginning of the three-year period ending on the date the
30 plan is liquidated if the participant had retired prior to the
19970H0660B0728 - 16 -
1 beginning of that period, the lowest benefit based on the
2 provisions of the plan, as in effect during the five-year period
3 ending on the date the plan is liquidated.
4 (2) In the case of other benefits, assets remaining after
5 the liabilities of the plan to participants and their
6 beneficiaries have been satisfied may be returned to the
7 volunteer firefighters' relief association.
8 (f) If a retirement benefit plan is liquidated under this
9 section, the volunteer firefighters' relief association that
10 previously sponsored the plan may not sponsor a retirement
11 benefit plan described in section 3(6.1) for the period of at
12 least ten years from the date the plan was liquidated. A plan
13 that is established after the ten-year period referred to in
14 this subsection may not credit as years of fire service years
15 during the ten-year period following the liquidation of the
16 plan.
17 (g) Except as provided in this act, a retirement benefit
18 plan established under this act shall not be subject to Chapters
19 1 through 6 or 8 of the act of December 18, 1984 (P.L.1005,
20 No.205), known as the "Municipal Pension Plan Funding Standard
21 and Recovery Act."
22 Section 3.6. Standards for Years of Fire Service.--(a) A
23 year of fire service shall be credited under a retirement
24 benefit plan for each year after the establishment of the plan
25 in which an active volunteer firefighter accumulates at least
26 fifty points. Points shall be granted in accordance with a
27 system adopted by each volunteer company covered by a plan
28 established by the volunteer firefighters' relief association.
29 The system shall provide that points shall be granted for
30 activities designated by each volunteer company covered by a
19970H0660B0728 - 17 -
1 plan established by the volunteer firefighters' relief
2 association. Activities shall be selected from the following:
3 (1) Training courses, a maximum of twenty-five points shall
4 be awarded as follows: (i) courses under twenty hours' duration,
5 one point per hour, with a maximum of five points; (ii) courses
6 of twenty to forty-five hours' duration, one point per hour for
7 each hour over initial twenty hours, with a maximum of ten
8 points; and (iii) courses over forty-five hours' duration,
9 fifteen points per course.
10 (2) Drills of at least two hours, a maximum of twenty points
11 shall be awarded, one point per drill (minimum two-hour drill).
12 (3) Sleep-in or standby, a maximum of twenty points shall be
13 awarded for (i) sleep-in, one point each full night; and (ii)
14 standby, which is line-of-duty activity of the volunteer fire
15 company, lasting for four hours, not falling under one of the
16 other categories in this subsection, one point for each four
17 hours.
18 (4) Elected or appointed position, a maximum of twenty-five
19 points shall be awarded for (i) completion of one-year term in
20 an elected or appointed position; and (ii) being elected, as an
21 active volunteer firefighter, to serve as a delegate to a
22 firefighters' convention.
23 (5) Attendance at meetings, a maximum of twenty points shall
24 be awarded for attendance at an official meeting of the
25 volunteer fire company, at the rate of one point per meeting.
26 (6) Participation in department responses, fifteen points
27 for responding on the minimum number of calls shall be awarded
28 as outlined below:
29 Total number of calls Minimum number of calls
30 volunteer fire company volunteer firefighter must
19970H0660B0728 - 18 -
1 responds to annually run annually in order
2 other than emergency to receive fifteen
3 rescue and first aid points credit
4 squad calls (ambulance
5 calls)
6 0 to 500 10%
7 500 to 1000 7.5%
8 1000 to 1500 5%
9 1500 and up 2.5%
10 Total number of calls Minimum number of calls
11 emergency rescue and volunteer firefighter must
12 first aid squad run annually in order
13 (ambulance) responds receive fifteen
14 to annually points credit
15 0 to 500 10%
16 500 to 1000 7.5%
17 1000 to 1500 5%
18 1500 and up 2.5%
19 (7) Miscellaneous activities, a maximum of fifteen points
20 shall be awarded for participation in inspections or other
21 activities described in section 1 of the act of June 24, 1976
22 (P.L.424, No.101), referred to as the Emergency and Law
23 Enforcement Personnel Death Benefits Act, and not otherwise
24 listed at the rate of one point per activity.
25 (b) Each volunteer company covered by a plan established by
26 the Volunteer Firefighters' Relief Association may designate
27 less than all the activities specified in subsection (a) as
28 activities for which points may be earned.
29 (c) Notwithstanding any other provision of this section, a
30 volunteer firefighter may not accumulate more than the maximum
19970H0660B0728 - 19 -
1 number of points with respect to activities described in
2 subsection (a) in any one year under any single retirement
3 benefit plan, even if the firefighter performs such activities
4 as a member of different volunteer fire companies under a plan
5 established by the volunteer firefighters' relief association.
6 Section 3. Section 6(e) of the act is amended by adding a
7 clause to read:
8 Section 6. Funds.--* * *
9 (e) The funds of any volunteer firefighters' relief
10 association may be spent:
11 * * *
12 (17) To establish and maintain a retirement benefit plan as
13 defined in section 3.1. Prior to the establishment of a
14 retirement benefit plan under this clause, the volunteer
15 firefighters' relief association shall provide the following
16 minimum benefits: an accidental death benefit of thirty thousand
17 dollars and a weekly disability income benefit of one hundred
18 dollars for accidental deaths and disabilities suffered by
19 member volunteer firefighters and resulting from the performance
20 of their duties with a volunteer fire company.
21 Section 4. Section 7(a) of the act, amended December 22,
22 1993 (P.L.547, No.78), is amended to read:
23 Section 7. Audits.--(a) The Department of the Auditor
24 General shall have the power, and its duty shall be, to audit
25 the accounts and records of every volunteer firefighters' relief
26 association receiving any money under Chapter 7 of the act of
27 December 18, 1984 (P.L.1005, No.205), known as the "Municipal
28 Pension Plan Funding Standard and Recovery Act," as amended, as
29 far as may be necessary to satisfy the department that the money
30 received was expended or is being expended for no purpose other
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1 than that authorized by this act. Copies of all such audits
2 shall be furnished to the Governor. Audits shall include
3 expenditures relating to retirement benefit plans either solely
4 or partially funded by funds obtained under the "Municipal
5 Pension Plan Funding Standard and Recovery Act."
6 * * *
7 Section 5. This act shall take effect immediately.
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