SENATE AMENDED PRIOR PRINTER'S NOS. 1686, 2183, 3059 PRINTER'S NO. 3981
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, STEELMAN AND BELFANTI, APRIL 25, 2001
SENATOR THOMPSON, APPROPRIATIONS, IN SENATE, RE-REPORTED AS AMENDED, JUNE 10, 2002
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 PAYMENTS UNDER EXISTING PENSION PLANS <-- 5 AND for service increments to pensions of police and 6 firefighters. 7 The General Assembly of the Commonwealth of Pennsylvania 8 hereby enacts as follows: 9 Section 1. Sections 4303(b) and 4322(b) of the act of June <-- 10 23, 1931 (P.L.932, No.317), known as The Third Class City Code, 11 reenacted and amended June 28, 1951 (P.L.662, No.164), are 12 amended by adding clauses to read: 13 Section 4303. Allowances and Service Increments.--* * * 14 SECTION 1. SECTION 4303(A) OF THE ACT OF JUNE 23, 1931 <-- 15 (P.L.932, NO.317), KNOWN AS THE THIRD CLASS CITY CODE, REENACTED 16 AND AMENDED JUNE 28, 1951 (P.L.662, NO.164) AND AMENDED DECEMBER
1 17, 1990 (P.L.715, NO.178) IS AMENDED AND SUBSECTION (B) IS 2 AMENDED BY ADDING A CLAUSE TO READ: 3 SECTION 4303. ALLOWANCES AND SERVICE INCREMENTS.--(A) 4 PAYMENTS FOR ALLOWANCES SHALL NOT BE A CHARGE ON ANY OTHER FUND 5 IN THE TREASURY OF THE CITY OR UNDER ITS CONTROL SAVE THE POLICE 6 PENSION FUND HEREIN PROVIDED FOR. THE BASIS OF THE APPORTIONMENT 7 OF THE PENSION SHALL BE DETERMINED BY THE RATE OF THE MONTHLY 8 PAY OF THE MEMBER AT THE DATE OF INJURY, DEATH, HONORABLE 9 DISCHARGE, VESTING UNDER SECTION 4302.1 OR RETIREMENT, OR THE 10 HIGHEST AVERAGE ANNUAL SALARY WHICH THE MEMBER RECEIVED DURING 11 ANY FIVE YEARS OF SERVICE PRECEDING INJURY, DEATH, HONORABLE 12 DISCHARGE, VESTING UNDER SECTION 4302.1 OR RETIREMENT, WHICHEVER 13 IS THE HIGHER, AND EXCEPT AS TO SERVICE INCREMENTS PROVIDED FOR 14 IN SUBSECTION (B) OF THIS SECTION, SHALL [NOT IN ANY CASE EXCEED 15 IN ANY YEAR] BE NO LESS THAN ONE-HALF THE ANNUAL PAY OF SUCH 16 MEMBER COMPUTED AT SUCH MONTHLY OR AVERAGE ANNUAL RATE, 17 WHICHEVER IS THE HIGHER. 18 SECTION 1. SECTION 4303(B) OF THE ACT OF JUNE 23, 1931 <-- 19 (P.L.932, NO.317), KNOWN AS THE THIRD CLASS CITY CODE, REENACTED 20 AND AMENDED JUNE 28, 1951 (P.L.662, NO.164), IS AMENDED BY 21 ADDING A CLAUSE AND THE SECTION IS AMENDED BY ADDING A 22 SUBSECTION TO READ: 23 SECTION 4303. ALLOWANCES AND SERVICE INCREMENTS.--* * * 24 (A.1) THE PROVISIONS OF SUBSECTION (A) PROVIDING THAT THE 25 APPORTIONMENT OF THE PENSION SHALL NOT IN ANY CASE EXCEED IN ANY 26 YEAR ONE-HALF THE ANNUAL PAY OF SUCH MEMBER COMPUTED AT SUCH 27 MONTHLY OR AVERAGE ANNUAL RATE, WHICHEVER IS THE HIGHER, SHALL 28 NOT APPLY TO A CITY OF THE THIRD CLASS WHETHER OPERATING UNDER 29 AN OPTIONAL CHARTER ADOPTED IN ACCORDANCE WITH THE ACT OF JULY 30 15, 1957 (P.L.901, NO.399), KNOWN AS THE "OPTIONAL THIRD CLASS 20010H1363B3981 - 2 -
1 CITY CHARTER LAW," OR UNDER A HOME RULE CHARTER ADOPTED IN 2 ACCORDANCE WITH 53 PA.C.S. PT. III SUBPT. E (RELATING TO HOME 3 RULE AND OPTIONAL PLAN GOVERNMENT), WHICH HAD IN EFFECT PENSION 4 PLANS PRIOR TO THE EFFECTIVE DATE OF THIS SUBSECTION THAT 5 PROVIDED PENSIONS IN AN AMOUNT GREATER THAN FIFTY PERCENTUM OF 6 SALARY. 7 (b) In addition to the retirement allowance which is 8 authorized to be paid from the police pension fund by this act, 9 and notwithstanding the limitations therein placed upon such 10 retirement allowances and upon contributions, every contributor 11 who shall become entitled to the retirement allowance shall also 12 be entitled to the payment of a "service increment" in 13 accordance with and subject to the conditions hereinafter set 14 forth. 15 * * * 16 (6) After the effective date of this clause, a city may 17 agree to make service increment payments in excess of one 18 hundred dollars ($100) per month, as long as such payments do 19 not exceed five hundred dollars ($500) per month, and in 20 computing such service increments no employment after the 21 contributor has reached the age of sixty-five years shall be 22 included: Provided, That any agreement to provide an increase in 23 service increment payments shall include a proportionate 24 increase in the amount each contributor shall pay into the 25 retirement fund under clause (2), not to exceed five dollars 26 ($5) per month. 27 * * * 28 Section 4322. Pensions and Service Increments.--* * * <-- 29 SECTION 2. SECTION 4322(A) OF THE ACT, AMENDED JUNE 16, 1993 <-- 30 (P.L.97, NO.21), IS AMENDED AND SUBSECTION (B) IS AMENDED BY 20010H1363B3981 - 3 -
1 ADDING A CLAUSE TO READ: 2 SECTION 4322. PENSIONS AND SERVICE INCREMENTS.--(A) 3 PAYMENTS OF PENSIONS SHALL NOT BE A CHARGE ON ANY FUND IN THE 4 TREASURY OF THE CITY OR UNDER ITS CONTROL SAVE THE FIREMEN'S 5 PENSION FUND HEREIN PROVIDED FOR. THE BASIS OF THE PENSION OF A 6 MEMBER SHALL BE DETERMINED BY THE MONTHLY SALARY OF THE MEMBER 7 AT THE DATE OF VESTING UNDER SECTION 4320.1 OR RETIREMENT, OR 8 THE HIGHEST AVERAGE ANNUAL SALARY WHICH HE RECEIVED DURING ANY 9 FIVE YEARS OF SERVICE PRECEDING RETIREMENT, WHICHEVER IS THE 10 HIGHER, WHETHER FOR DISABILITY, OR BY REASON OF AGE OR SERVICE, 11 AND EXCEPT AS TO SERVICE INCREMENTS PROVIDED FOR IN SUBSECTION 12 (B) OF THIS SECTION, SHALL BE NO LESS THAN ONE-HALF THE ANNUAL 13 SALARY OF SUCH MEMBER AT THE TIME OF VESTING UNDER SECTION 14 4320.1 OR RETIREMENT COMPUTED AT SUCH MONTHLY OR AVERAGE ANNUAL 15 RATE, WHICHEVER IS THE HIGHER. IN THE CASE OF THE PAYMENT OF 16 PENSIONS TO MEMBERS FOR PERMANENT INJURY INCURRED IN SERVICE, 17 AND TO FAMILIES OF MEMBERS KILLED OR WHO DIE IN SERVICE, THE 18 AMOUNT AND COMMENCEMENT OF THE PAYMENT OF PENSIONS SHALL BE 19 FIXED BY REGULATIONS OF THE BOARD. SUCH REGULATIONS SHALL NOT 20 TAKE INTO CONSIDERATION THE AMOUNT AND DURATION OF WORKMEN'S 21 COMPENSATION ALLOWED BY LAW. PAYMENTS TO SURVIVING SPOUSES OF 22 MEMBERS RETIRED ON PENSION OR KILLED IN THE SERVICE ON OR AFTER 23 JANUARY 1, 1960, OR WHO DIE IN THE SERVICE ON OR AFTER JANUARY 24 1, 1968, SHALL BE THE AMOUNT PAYABLE TO THE MEMBER OR WHICH 25 WOULD HAVE BEEN PAYABLE HAD HE BEEN RETIRED AT THE TIME OF HIS 26 DEATH. 27 SECTION 2. SECTION 4322(B) OF THE ACT IS AMENDED BY ADDING A <-- 28 CLAUSE AND THE SECTION IS AMENDED BY ADDING A SUBSECTION TO 29 READ: 30 SECTION 4322. PENSIONS AND SERVICE INCREMENTS.--* * * 20010H1363B3981 - 4 -
1 (A.1) THE PROVISIONS OF SUBSECTION (A) PROVIDING THAT THE 2 BASIS OF THE PENSION SHALL BE ONE-HALF THE ANNUAL SALARY OF SUCH 3 MEMBER AT THE TIME OF VESTING UNDER SECTION 4320.1 OR RETIREMENT 4 COMPUTED AT SUCH MONTHLY OR AVERAGE ANNUAL RATE, WHICHEVER IS 5 THE HIGHER, SHALL NOT APPLY TO A CITY OF THE THIRD CLASS WHETHER 6 OPERATING UNDER AN OPTIONAL CHARTER ADOPTED IN ACCORDANCE WITH 7 THE ACT OF JULY 15, 1957 (P.L.901, NO.399), KNOWN AS THE 8 "OPTIONAL THIRD CLASS CITY CHARTER LAW," OR UNDER A HOME RULE 9 CHARTER ADOPTED IN ACCORDANCE WITH 53 PA.C.S PT. III SUBPT. E 10 (RELATING TO HOME RULE AND OPTIONAL PLAN GOVERNMENT), WHICH HAD 11 IN EFFECT PENSION PLANS PRIOR TO THE EFFECTIVE DATE OF THIS 12 SUBSECTION THAT PROVIDED PENSIONS IN AN AMOUNT GREATER THAN 13 FIFTY PERCENTUM OF SALARY. 14 * * * 15 (b) In addition to the pension which is authorized to be 16 paid from the firemen's pension fund by this act and 17 notwithstanding the limitations therein placed upon such 18 pensions and upon contributions, every contributor who shall 19 become entitled to the pension shall also be entitled to the 20 payment of a "service increment" in accordance with and subject 21 to the conditions hereinafter set forth. 22 * * * 23 (6) After the effective date of this clause, a city may 24 agree to make service increment payments in excess of one 25 hundred dollars ($100) per month, as long as such payments do 26 not exceed five hundred dollars ($500) per month, and in 27 computing such service increments no employment after the 28 contributor has reached the age of sixty-five years shall be 29 included: Provided, That any agreement to provide an increase in 30 service increment payments shall include a proportionate 20010H1363B3981 - 5 -
1 increase in the amount each contributor shall pay into the 2 retirement fund under clause (2), not to exceed five dollars 3 ($5) per month. 4 Section 2. This act shall take effect in 60 days. <-- 5 SECTION 3. INCREASES IN THE RETIREMENT ALLOWANCES OF MEMBERS <-- 6 RESULTING FROM THE AMENDMENT OF SECTIONS 4303(A) AND 4322(A) OF 7 THE ACT, WHICH EXCEED IN ANY YEAR ONE-HALF THE ANNUAL PAY OF THE 8 MEMBER COMPUTED AT THE MONTHLY OR AVERAGE ANNUAL RATE, WHICHEVER 9 IS THE HIGHER, AND THE USE OF ASSETS OF THE POLICE PENSION FUND 10 OR FIREMAN'S PENSION FUND TO PROVIDE, IN WHOLE OR IN PART, TO 11 RETIRED POLICE OFFICERS, FIREMAN OR THEIR DEPENDENTS, MAY NOT BE 12 IMPLEMENTED EXCEPT UPON THE DETERMINATION BY THE PENSION FUND 13 ACTUARY THAT CURRENT ASSETS OF THE PENSION FUND ARE, PURSUANT TO 14 THE ACT OF DECEMBER 18, 1984 (P.L.1005, NO.205), KNOWN AS THE 15 MUNICIPAL PENSION PLAN FUNDING STANDARD AND RECOVERY ACT, 16 SUFFICIENT TO PROVIDE THE INCREASE IN THE RETIREMENT ALLOWANCE 17 OF MEMBERS, WITHOUT CREATING A CURRENT OR FUTURE UNFUNDED 18 LIABILITY; AND THE FURTHER DETERMINATION OF THE PENSION FUND 19 ACTUARY THAT, BASED UPON THE APPLICATION OF STANDARDS WIDELY 20 ACCEPTED WITHIN THE ACTUARIAL INDUSTRY, THERE IS A DE MINIMIS 21 RISK THAT THE PROPOSED INCREASES IN THE RETIREMENT ALLOWANCES OF 22 MEMBERS WILL RESULT IN A FUTURE REQUIREMENT THAT THE CITY 23 INCREASE PAYMENTS TO THE PENSION FUND IN ORDER TO MEET THE 24 FUNDING REQUIREMENTS OF THE MUNICIPAL PENSION PLAN FUNDING 25 STANDARD AND RECOVERY ACT. 26 SECTION 4 3. THIS ACT SHALL TAKE EFFECT IMMEDIATELY. <-- D23L11DMS/20010H1363B3981 - 6 -