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        PRIOR PRINTER'S NO. 1686                      PRINTER'S NO. 2183

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1363 Session of 2001


        INTRODUCED BY S. H. SMITH, STABACK, NICKOL, SCHULER, McILHATTAN,
           FICHTER, GEORGE, CAPPELLI, ARMSTRONG, PERZEL, LAUGHLIN, WILT,
           CREIGHTON, SOLOBAY, DALEY, GEIST, CALTAGIRONE, YOUNGBLOOD,
           BASTIAN, WOJNAROSKI, C. WILLIAMS, THOMAS, LEWIS, PETRARCA,
           GRUCELA, BUNT, CURRY, JAMES, TRELLO, HUTCHINSON, GABIG,
           COLAFELLA AND STEELMAN, APRIL 25, 2001

        AS REPORTED FROM COMMITTEE ON URBAN AFFAIRS, HOUSE OF
           REPRESENTATIVES, AS AMENDED, JUNE 12, 2001

                                     AN ACT

     1  Amending the act of June 23, 1931 (P.L.932, No.317), entitled
     2     "An act relating to cities of the third class; and amending,
     3     revising, and consolidating the law relating thereto,"
     4     further providing for service increments to pensions of
     5     police and firefighters.

     6     The General Assembly of the Commonwealth of Pennsylvania
     7  hereby enacts as follows:
     8     Section 1.  Section 4303(b)(1) and (2) of the act of June 23,  <--
     9  1931 (P.L.932, No.317), known as The Third Class City Code,
    10  reenacted and amended June 28, 1951 (P.L.662, No.164) and
    11  amended or added January 18, 1952 (1951 P.L.2105, No.596) and
    12  November 25, 1970 (P.L.754, No.246), are amended to read:
    13     SECTION 1.  SECTIONS 4303(B) AND 4322(B) OF THE ACT OF JUNE    <--
    14  23, 1931 (P.L.932, NO.317), KNOWN AS THE THIRD CLASS CITY CODE,
    15  REENACTED AND AMENDED JUNE 28, 1951 (P.L.662, NO.164), ARE
    16  AMENDED BY ADDING CLAUSES TO READ:

     1     Section 4303.  Allowances and Service Increments.--* * *
     2     (b)  In addition to the retirement allowance which is
     3  authorized to be paid from the police pension fund by this act,
     4  and notwithstanding the limitations therein placed upon such
     5  retirement allowances and upon contributions, every contributor
     6  who shall become entitled to the retirement allowance shall also
     7  be entitled to the payment of a "service increment" in
     8  accordance with and subject to the conditions hereinafter set
     9  forth.
    10     (1)  Service increment shall be the sum obtained by computing  <--
    11  the number of whole years after having served the minimum
    12  required by this act during which a contributor has been
    13  employed by such city and paid out of the city treasury,
    14  including credit for military service as provided in section
    15  4302, and multiplying the said number of years so computed by an
    16  amount equal to one-fortieth of the retirement allowance which
    17  has become payable to such contributor in accordance with the
    18  provisions of this act. In computing the service increment, no
    19  employment after the contributor has reached the age of sixty-
    20  five years shall be included, and no service increment shall be
    21  paid in excess of [one hundred dollars ($100.00)] five hundred
    22  dollars ($500.00) per month.
    23     (2)  Each contributor, from and after the effective date of
    24  this amendment, shall pay into the retirement fund a monthly sum
    25  in addition to his or her retirement contribution, which shall
    26  be equal to one-half of one per centum of his or her salary:
    27  Provided, That such payment shall not exceed the sum of [one
    28  dollar ($1.00)] five dollars ($5.00) per month: And provided,
    29  That such service increment contribution shall not be paid after
    30  a contributor has reached the age of sixty-five years.
    20010H1363B2183                  - 2 -

     1     * * *
     2     Section 2.  Section 4322(b)(1) and (2) of the act, amended
     3  October 4, 1978 (P.L.950, No.188), are amended to read:
     4     * * *                                                          <--
     5     (6)  AFTER THE EFFECTIVE DATE OF THIS CLAUSE, A CITY MAY
     6  AGREE TO MAKE SERVICE INCREMENT PAYMENTS IN EXCESS OF ONE
     7  HUNDRED DOLLARS ($100) PER MONTH, AS LONG AS SUCH PAYMENTS DO
     8  NOT EXCEED FIVE HUNDRED DOLLARS ($500) PER MONTH, AND IN
     9  COMPUTING SUCH SERVICE INCREMENTS NO EMPLOYMENT AFTER THE
    10  CONTRIBUTOR HAS REACHED THE AGE OF SIXTY-FIVE YEARS SHALL BE
    11  INCLUDED: PROVIDED, THAT ANY AGREEMENT TO PROVIDE AN INCREASE IN
    12  SERVICE INCREMENT PAYMENTS SHALL INCLUDE A PROPORTIONATE
    13  INCREASE IN THE AMOUNT EACH CONTRIBUTOR SHALL PAY INTO THE
    14  RETIREMENT FUND UNDER CLAUSE (2), NOT TO EXCEED FIVE DOLLARS
    15  ($5) PER MONTH.
    16     * * *
    17     Section 4322.  Pensions and Service Increments.--* * *
    18     (b)  In addition to the pension which is authorized to be
    19  paid from the firemen's pension fund by this act and
    20  notwithstanding the limitations therein placed upon such
    21  pensions and upon contributions, every contributor who shall
    22  become entitled to the pension shall also be entitled to the
    23  payment of a "service increment" in accordance with and subject
    24  to the conditions hereinafter set forth.
    25     (1)  Service increment shall be the sum obtained by computing  <--
    26  the number of whole years after having served the minimum
    27  required by this act during which a contributor has been
    28  employed by such city and paid out of the city treasury,
    29  including credit for military service as provided in section
    30  4321, and multiplying the said number of years so computed by an
    20010H1363B2183                  - 3 -

     1  amount equal to one-fortieth of the retirement allowance which
     2  has become payable to such contributor in accordance with the
     3  provisions of this act. In computing the service increment, no
     4  employment after the contributor has reached the age of sixty-
     5  five years shall be included, and no service increment shall be
     6  paid in excess of [one hundred dollars ($100)] five hundred
     7  dollars ($500) per month.
     8     (2)  Each contributor, from and after the effective date of
     9  this amendment, shall pay into the pension fund a monthly sum in
    10  addition to his pension contribution, which shall not exceed the
    11  sum of [one dollar ($1)] five dollars ($5) per month: And
    12  provided, That such service increment contribution shall not be
    13  paid after a contributor has reached the age of sixty-five
    14  years.
    15     * * *
    16     * * *                                                          <--
    17     (6)  AFTER THE EFFECTIVE DATE OF THIS CLAUSE, A CITY MAY
    18  AGREE TO MAKE SERVICE INCREMENT PAYMENTS IN EXCESS OF ONE
    19  HUNDRED DOLLARS ($100) PER MONTH, AS LONG AS SUCH PAYMENTS DO
    20  NOT EXCEED FIVE HUNDRED DOLLARS ($500) PER MONTH, AND IN
    21  COMPUTING SUCH SERVICE INCREMENTS NO EMPLOYMENT AFTER THE
    22  CONTRIBUTOR HAS REACHED THE AGE OF SIXTY-FIVE YEARS SHALL BE
    23  INCLUDED: PROVIDED, THAT ANY AGREEMENT TO PROVIDE AN INCREASE IN
    24  SERVICE INCREMENT PAYMENTS SHALL INCLUDE A PROPORTIONATE
    25  INCREASE IN THE AMOUNT EACH CONTRIBUTOR SHALL PAY INTO THE
    26  RETIREMENT FUND UNDER CLAUSE (2), NOT TO EXCEED FIVE DOLLARS
    27  ($5) PER MONTH.
    28     Section 3 2.  This act shall take effect in 60 days.           <--


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