PRINTER'S NO. 2703
No. 2089 Session of 1999
INTRODUCED BY DeLUCA, PISTELLA, FRANKEL, READSHAW, ORIE, HABAY,
PETRONE, DERMODY, WALKO, GIGLIOTTI, PRESTON, ROBINSON,
TRELLO, COSTA, PIPPY, MAYERNIK, MARKOSEK, RUFFING, VAN HORNE,
WOJNAROSKI, KAISER, MICHLOVIC, LEVDANSKY AND STEVENSON,
NOVEMBER 17, 1999
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, NOVEMBER 17, 1999
AN ACT
1 Amending the act of December 14, 1988 (P.L.1192, No.147),
2 entitled "An act requiring municipal retirement systems to
3 pay special ad hoc postretirement adjustments to certain
4 retired police officers and firefighters; providing for the
5 financing of these adjustments; providing for the
6 administration of the Commonwealth's reimbursements for these
7 adjustments; and making repeals," extending the provisions of
8 the act to include survivors of police officers and
9 firefighters.
10 The General Assembly of the Commonwealth of Pennsylvania
11 hereby enacts as follows:
12 Section 1. Section 102 of the act of December 14, 1988
13 (P.L.1192, No.147), known as the Special Ad Hoc Municipal Police
14 and Firefighter Postretirement Adjustment Act, is amended by
15 adding a definition to read:
16 Section 102. Definitions.
17 The following words and phrases when used in this act shall
18 have the meanings given to them in this section unless the
19 context clearly indicates otherwise:
20 * * *
1 "Survivor." A person who is a widowed spouse of a police
2 officer or firefighter and who is entitled to survivor benefits
3 from a public employee retirement system.
4 Section 2. Section 301 of the act is amended to read:
5 Section 301. Entitlement to special ad hoc adjustment.
6 A municipal retirement system shall pay a retired police
7 officer or firefighter or the survivor of a deceased police
8 officer or firefighter a special ad hoc municipal police and
9 firefighter postretirement adjustment under this chapter if all
10 of the following apply:
11 (1) [The retiree has terminated active] Active
12 employment with the municipality as a police officer or
13 firefighter has terminated by reason of retirement or death.
14 (2) The retiree [is receiving] or survivor is entitled
15 to a retirement annuity, retirement benefit, service pension,
16 survivor benefit or disability pension benefit from a
17 municipal retirement system on the basis of active employment
18 with a municipality as a police officer or firefighter.
19 (3) The retiree began receiving the retirement annuity,
20 retirement benefit, service pension or disability pension
21 benefit before January 1, 1985.
22 Section 3. Section 302 of the act, amended December 18, 1996
23 (P.L.993, No.152), is amended to read:
24 Section 302. Amount of special ad hoc adjustment.
25 (a) General rule.--Except as provided in subsections [(b)
26 and] (c) and (d), a municipal retirement system shall pay a
27 retired police officer or firefighter or their survivors a
28 special ad hoc municipal police and firefighter postretirement
29 adjustment under section 301, as follows:
30 [(1) The sum of $25 a month, if on January 1, 1989, the
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1 retiree has been retired at least five years but less than
2 ten years.
3 (2) The sum of $50 a month, if on January 1, 1989, the
4 retiree is totally disabled and has been retired less than
5 ten years.
6 (3) The sum of $75 a month, if on January 1, 1989, the
7 retiree has been retired at least ten years but less than 20
8 years.
9 (4) The sum of $150 a month, if on January 1, 1989, the
10 retiree has been retired at least 20 years.]
11 (1) The sum of $150 a month for those widows and
12 survivors whose monthly pension is $350 or less.
13 (2) The sum of $125 a month for those widows and
14 survivors whose monthly pension is $400 or less.
15 (3) The sum of $100 a month for those widows and
16 survivors whose monthly pension is $500 or less.
17 (4) The sum of $75 a month for those widows and
18 survivors whose monthly pension is $650 or less.
19 (5) The sum of $50 a month for those widows and
20 survivors whose monthly pension is $800 or less.
21 (6) The sum of $25 a month for those widows and
22 survivors whose monthly pension is $1,000 or less.
23 (b) Retirement date.--In the case of a special ad hoc
24 postretirement adjustment payable to a survivor, the benefit
25 amounts shall be based on the date upon which the survivor began
26 receiving survivor benefits of the retiree.
27 [(b)] (c) Limitation.--If, under section 301, a retiree is
28 entitled to be paid a special ad hoc municipal police and
29 firefighter postretirement adjustment by more than one municipal
30 retirement system, the amount of the special ad hoc adjustment
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1 under subsection (a) shall be reduced so that the total of all
2 these adjustments paid to the retiree or survivor does not
3 exceed the amount specified in subsection (a).
4 [(c)] (d) Modification in amount of postretirement
5 adjustment.-- In a municipality where, as of the most recent
6 actuarial valuation prepared under the act of December 18, 1984
7 (P.L.1005, No.205), known as the Municipal Pension Plan Funding
8 Standard and Recovery Act, the actuarial value of aggregated
9 assets as a percentage of the aggregated actuarial accrued
10 liabilities of the municipality's retirement systems is less
11 than 50%, if a retiree entitled to receive a special ad hoc
12 municipal police and firefighters postretirement adjustment will
13 receive a postretirement adjustment from the applicable
14 municipal police or paid firefighters retirement system after
15 the effective date of this act, the amount of the special ad hoc
16 postretirement adjustment under subsection (a) shall be reduced
17 by the total amount of any municipal postretirement adjustment.
18 [(d)] (e) Construction.--Subsections [(b) and (c)] (c) and
19 (d) shall not be construed to reduce the amount of any
20 retirement annuity, retirement benefit, service pension [or],
21 disability pension benefit or survivor benefit payable to a
22 retiree or survivor immediately prior to the effective date of
23 this act.
24 Section 4. Sections 303 and 702 of the act are amended to
25 read:
26 Section 303. Payment of special ad hoc adjustment.
27 (a) Payment of special ad hoc adjustment to retirees.--The
28 special ad hoc adjustment for retirees is effective on the date
29 of the first payment of the retiree's retirement annuity,
30 retirement benefit, service pension or disability pension
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1 benefit due after December 31, 1988. The municipal retirement
2 system shall pay this as soon as practicable after that and
3 shall include in the first payment any omitted amount payable
4 between the effective date of the adjustment and the date of the
5 first payment.
6 (b) Payment of special ad hoc adjustments to survivors.--The
7 special ad hoc adjustment for survivors is effective on the date
8 of the first payment of the survivor's annuity, survivor's
9 benefit or survivor's pension benefit due after December 31,
10 1999. The municipal retirement system shall pay this adjustment
11 as soon as practicable after that date and shall include in the
12 first payment any omitted amount payable between the effective
13 date of the adjustment and the date of the first payment.
14 Section 702. Deposits into special account.
15 Notwithstanding any applicable provision of the act of May
16 12, 1943 (P.L.259, No.120), referred to as the Foreign Casualty
17 Insurance Premium Tax Allocation Law, or any applicable
18 provisions of the act of March 4, 1971 (P.L.6, No.2), known as
19 the Tax Reform Code of 1971, or the provisions of sections
20 402(b) and 803(c) of the act of December 18, 1984 (P.L.1005,
21 No.205), known as the Municipal Pension Plan Funding Standard
22 and Recovery Act, beginning on January 1, 1990, prior to the
23 deposit of the proceeds of the insurance premium tax on foreign
24 casualty insurance premiums into the General Municipal Pension
25 System State Aid Program revenue account, an amount sufficient
26 to provide for the Commonwealth's reimbursement payments to
27 municipalities for special ad hoc adjustments [under this act]
28 provided to retirees under section 302 and any supplemental
29 amount necessary in accordance with section 703(b) shall be
30 deposited in the separate account created under section 701.
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1 Section 5. The act is amended by adding a section to read:
2 Section 703. Supplement from General Fund.
3 (a) Reimbursement amount.--An amount sufficient to reimburse
4 municipalities for special ad hoc adjustments provided to
5 survivors under section 302 in 2000 shall be paid from the
6 General Fund.
7 (b) Supplemental amounts.--Should the amount required to
8 reimburse municipalities for special ad hoc adjustments to
9 retirees under section 302 decrease after an amount from the
10 proceeds of the insurance premium tax on foreign casualty
11 insurance premiums that is equal to the lesser of the decrease
12 or of the amount necessary to reimburse municipalities for
13 provision of adjustments to survivors under section 302 shall be
14 deposited in the separate account created under section 701 and
15 shall be used to reimburse municipalities for special ad hoc
16 adjustments provided to survivors under section 302. If the
17 amount of this deposit is not sufficient to reimburse
18 municipalities for provision of adjustments to survivors under
19 section 302, the difference between the amount of this deposit
20 and the amount required shall be paid from the General Fund,
21 subject to an appropriation by the General Assembly.
22 Section 6. Sections 901(a) and 902(a) of the act are amended
23 to read:
24 Section 901. Municipal retirement system certification of
25 adjustments paid.
26 (a) Certification.--Beginning January 1, 1989, the chief
27 administrative officer of a municipal retirement system that
28 pays a special ad hoc adjustment [in that year] shall certify
29 the total of all adjustments paid during [that] each year to the
30 Auditor General not later than April 1 of the following year.
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1 The adjustments paid to retirees and survivors under section 302
2 shall be certified separately.
3 * * *
4 Section 902. Commonwealth disbursement of reimbursement
5 payment.
6 (a) Payment to account.--Not later than June 1 of the year
7 in which the form is due, the Auditor General shall certify to
8 the State Treasurer the amount to be deposited into the special
9 account created in section 701 and the amount to be paid from
10 the General Fund, subject to an appropriation by the General
11 Assembly, and shall draw a warrant, payable to the treasurer of
12 the municipality, on the State Treasurer from the special
13 account created in section 701 for the amount certified under
14 section 901(a).
15 * * *
16 Section 7. This act shall take effect January 1, 2000.
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