HOUSE AMENDED
PRIOR PRINTER'S NOS. 10, 1039, 1217 PRINTER'S NO. 1585
No. 16 Session of 2001
INTRODUCED BY HOLL, TARTAGLIONE, CONTI, TOMLINSON, TILGHMAN,
STOUT, COSTA, DENT, BELL, PUNT, MUSTO, BOSCOLA, CORMAN,
GREENLEAF, KUKOVICH, O'PAKE, SCHWARTZ, LOGAN, LEMMOND, ORIE
AND STACK, JANUARY 22, 2001
AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF
REPRESENTATIVES, AS AMENDED, DECEMBER 5, 2001
AN ACT
1 Amending the act of May 29, 1956 (1955 P.L.1804, No.600),
2 entitled, as amended, "An act providing for the establishment
3 of police pension funds or pension annuities in certain
4 boroughs, towns and townships; authorizing the establishment
5 of police pension funds or pension annuities by regional
6 police departments; providing for the regulation and
7 maintenance of police pension funds or pension annuities;
8 providing for an actuary; continuance of existing funds or
9 transfer thereof to funds herein established; prescribing
10 rights of beneficiaries; contributions by members; providing
11 for expenses of administration; continuation of existing
12 authority to provide annuity contracts; credit for military
13 service; refunds; exempting allowances from judicial process;
14 and repealing certain acts," further providing for benefits
15 AND FOR PAYMENT INTO POLICE PENSION FUNDS BY MEMBERS. <--
16 The General Assembly of the Commonwealth of Pennsylvania
17 hereby enacts as follows:
18 Section 1. Section 1 of the act of May 29, 1956 (1955
19 P.L.1804, No.600), referred to as the Municipal Police Pension
20 Law, amended May 10, 1996 (P.L.162, No.33), is amended to read:
21 Section 1. (a) (1) Each borough, town and township of this
22 Commonwealth maintaining a police force of three or more full-
1 time members and each regional police department shall, and all
2 other boroughs, towns or townships may, establish, by ordinance
3 or resolution, a police pension fund or pension annuity to be
4 maintained by a charge against each member of the police force,
5 by annual appropriations made by the borough, town, township or
6 regional police department, by payments made by the State
7 Treasurer to the municipal treasurer from the moneys received
8 from taxes paid upon premiums by foreign casualty insurance
9 companies for purposes of pension retirement for policemen, and
10 by gifts, grants, devises or bequests granted to the pension
11 fund pursuant to section two of this act.
12 (2) Such fund shall be under the direction of the governing
13 body of the borough, town, township or regional police
14 department, and applied under such regulations as such governing
15 body, by ordinance or resolution, [may] shall prescribe for the <--
16 benefit of such members of the police force as shall receive
17 honorable discharge therefrom by reason of age and service, or
18 disability, and [may] shall prescribe for the benefit (i) of <--
19 widows, and if no widow survives or if she survives and
20 subsequently dies [or remarries], then (ii) of child or children
21 under OR ATTAINING the age of eighteen years or if attending <--
22 college, under the age of twenty-three years, of members of the
23 police force or of members retired on pension. For purposes of
24 implementing this section, as well as subsection (a)(4) CLAUSES <--
25 (4) AND (5), the phrase "attending college" shall mean that the <--
26 eligible children are registered at an accredited institution of
27 higher learning and are carrying a minimum course load of seven
28 credit hours per semester.
29 [(3) All such pensions as shall be allowed to those who are <--
30 retired by reason of disabilities shall be in conformity with a
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1 uniform scale.] <--
2 (3) (4) The widow of a member of the police force or a <--
3 member who retires on pension who dies or if no widow survives
4 or if she survives and subsequently dies [or remarries], then
5 the child or children under the age of eighteen years or if
6 attending college, until reaching UNDER OR ATTAINING the age of <--
7 twenty-three years, of a member of the police force or a member
8 who retires on pension who dies [on or after the effective date
9 of this amendment, may], shall, during her lifetime [or so long
10 as she does not remarry] in the case of a widow or until
11 reaching the age of eighteen years or if attending college,
12 until reaching UNDER OR ATTAINING the age of twenty-three years, <--
13 in the case of a child or children, be entitled to receive a
14 pension calculated at [the rate of] NO LESS THAN fifty per <--
15 centum of the pension the member was receiving or would have
16 been receiving had he been retired at the time of his death.
17 (4) (i) The widow of: <--
18 (A) a member of the police force who dies on or after the
19 effective date of this clause;
20 (B) a member who was eligible for a pension but had not
21 begun collecting a pension who dies on or after the effective
22 date of this clause; or
23 (C) a member who retires on pension who dies on or after the
24 effective date of this clause
25 shall, during her lifetime, be entitled to receive a pension
26 calculated at the rate of fifty per centum of the pension the
27 member was receiving or would have been receiving had he been
28 retired at the time of his death, except that if the market
29 value of the assets of the pension fund exceed the present value
30 of future benefits as reported in the last actuarial valuation
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1 report filed with and accepted by the Public Employee Retirement
2 Commission under the act of December 18, 1984 (P.L.1005,
3 No.205), known as the "Municipal Pension Plan Funding Standard
4 and Recovery Act," both before and after the actuary has costed
5 out a joint and one hundred per centum survivorship retirement
6 benefit, the entitlement shall be calculated at one hundred per
7 centum of the pension the member was receiving or would have
8 been receiving had he been retired at the time of his death for
9 all members who retire, or who die but were eligible to retire,
10 during the period the assets of the pension fund exceed the
11 present value of future benefits as set forth above.
12 (ii) If no widow survives or if she survives and
13 subsequently dies, then the child or children of the member
14 shall be entitled to receive a pension as set forth above until
15 reaching the age of eighteen years or if attending college,
16 until reaching the age of twenty-three years.
17 (5) All such pensions as shall be allowed to those who are
18 retired by reason of disabilities shall be in conformity with a
19 uniform scale.
20 (6) The widow of a member of the police force who dies before
21 his pension has vested or if no widow survives or if she
22 survives and subsequently dies, the child or children under the
23 age of eighteen years, or if attending college, under the age of
24 twenty-three years, of the member of the police force, shall be
25 entitled to receive repayment of all money which the member
26 invested in the pension fund plus interest or other increases in
27 value of the member's investment in the pension fund, unless the
28 member has designated another beneficiary for this purpose.
29 (5) THE WIDOW OF A MEMBER OF THE POLICE FORCE WHO DIES <--
30 BEFORE HIS PENSION HAS VESTED OR IF NO WIDOW SURVIVES OR IF SHE
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1 SURVIVES AND SUBSEQUENTLY DIES, THE CHILD OR CHILDREN UNDER THE
2 AGE OF EIGHTEEN YEARS, OR IF ATTENDING COLLEGE, UNDER OR
3 ATTAINING THE AGE OF TWENTY-THREE YEARS, OF THE MEMBER OF THE
4 POLICE FORCE SHALL BE ENTITLED TO RECEIVE REPAYMENT OF ALL MONEY
5 WHICH THE MEMBER INVESTED IN THE PENSION FUND PLUS INTEREST OR
6 OTHER INCREASES IN VALUE OF THE MEMBER'S INVESTMENT IN THE
7 PENSION FUND, UNLESS THE MEMBER HAS DESIGNATED ANOTHER
8 BENEFICIARY FOR THIS PURPOSE.
9 (b) For purposes of this act, the term "regional police
10 department" shall mean a municipal police force organized and
11 operated in combination by two or more municipalities through an
12 intermunicipal agreement [under the act of July 12, 1972 <--
13 (P.L.762, No.180), referred to as the Intergovernmental
14 Cooperation Law]. <--
15 Section 2. Section 5(e) of the act, amended February 18,
16 1998 (P.L.158, No.24), is amended to read:
17 Section 5. * * *
18 (e) (1) In the case of the payment of pensions for
19 permanent injuries incurred in service [and to families of
20 members killed in service], the amount and commencement of the
21 payments shall be fixed by regulations of the governing body of
22 the borough, town, township or regional police department[.] and
23 shall be calculated at a rate no less than fifty per centum of
24 the member's salary at the time the disability was incurred,
25 provided that any member who receives benefits for the same
26 injuries under the Social Security Act (49 Stat. 620, 42 U.S.C.
27 § 301 et seq.) shall have his disability benefits offset or
28 reduced by the amount of such benefits.
29 (2) Pensions for the families of members killed in service
30 shall be calculated at one hundred per centum of the member's
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1 salary at the time of death.
2 * * *
3 SECTION 3. SECTION 6 OF THE ACT, AMENDED JUNE 30, 1995 <--
4 (P.L.162, NO.22) AND MAY 10, 1996 (P.L.162, NO.33), IS AMENDED
5 TO READ:
6 SECTION 6. (A) MEMBERS SHALL PAY INTO THE FUND, MONTHLY, AN
7 AMOUNT EQUAL TO NOT LESS THAN FIVE PER CENTUM NOR MORE THAN
8 EIGHT PER CENTUM OF MONTHLY COMPENSATION. WHERE POSITIONS
9 COVERED BY THE FUND ARE INCLUDED IN AN AGREEMENT UNDER THE
10 FEDERAL SOCIAL SECURITY ACT, MEMBERS SHALL PAY INTO THE FUND,
11 MONTHLY, AN AMOUNT DETERMINED AS FOLLOWS: (1) IF THE PENSION
12 PLAN ESTABLISHED UNDER THE PROVISIONS OF THIS ACT PROVIDES FOR
13 NO OFFSET UNDER CLAUSE (2) OF SUBSECTION (C) OF SECTION 5, FIVE
14 PER CENTUM OF TOTAL COMPENSATION; OR (2) IF SUCH PENSION PLAN
15 PROVIDES FOR AN OFFSET UNDER CLAUSE (2) OF SUBSECTION (C) OF
16 SECTION 5: (I) ON COMPENSATION ON WHICH SOCIAL SECURITY TAXES
17 ARE PAYABLE, AT A RATE CALCULATED BY SUBTRACTING FROM FIVE PER
18 CENTUM THE PRODUCT OBTAINED BY MULTIPLYING THREE PER CENTUM BY
19 SUCH OFFSET PERCENTAGE; AND (II) ON COMPENSATION IN EXCESS OF
20 THAT ON WHICH SOCIAL SECURITY TAXES ARE PAYABLE, IF ANY, FIVE
21 PER CENTUM.
22 (B) THE REMAINDER OF THE NEEDED ANNUAL CONTRIBUTIONS, AS
23 DETERMINED BY THE ACTUARY, SHALL BECOME THE OBLIGATION OF THE
24 BOROUGH, TOWN, TOWNSHIP OR REGIONAL POLICE DEPARTMENT, AND SHALL
25 BE PAID BY IT TO THE PENSION FUND BY ANNUAL APPROPRIATIONS.
26 (C) [IF AN ACTUARIAL STUDY SHOWS THAT THE CONDITION OF THE
27 POLICE PENSION FUND OF ANY BOROUGH, TOWN, TOWNSHIP OR REGIONAL
28 POLICE DEPARTMENT IS SUCH THAT PAYMENTS INTO THE FUND BY MEMBERS
29 MAY BE REDUCED BELOW THE MINIMUM PERCENTAGES HEREINBEFORE
30 PRESCRIBED, OR ELIMINATED, AND THAT IF SUCH PAYMENTS ARE REDUCED
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1 OR ELIMINATED CONTRIBUTIONS BY THE BOROUGH, TOWN, TOWNSHIP OR
2 REGIONAL POLICE DEPARTMENT WILL NOT BE REQUIRED TO KEEP THE FUND
3 ACTUARIALLY SOUND, THE] THE GOVERNING BODY OF THE BOROUGH, TOWN,
4 TOWNSHIP OR REGIONAL POLICE DEPARTMENT MAY, ON AN ANNUAL BASIS,
5 BY ORDINANCE OR RESOLUTION, REDUCE OR ELIMINATE PAYMENTS INTO
6 THE FUND BY MEMBERS. EXCEPT AS OTHERWISE PROVIDED IN THIS
7 SUBSECTION, REDUCTION OR ELIMINATION OF MEMBER CONTRIBUTIONS
8 SHALL NOT PERMIT THE RETURN OF CONTRIBUTIONS OR ANY INTEREST OR
9 FUND EARNINGS TO BE MADE TO MEMBERS WHILE ACTIVELY EMPLOYED AS A
10 POLICE OFFICER BY ANY BOROUGH, TOWN OR TOWNSHIP SUBJECT TO THIS
11 ACT. WHERE AN AGREEMENT, COLLECTIVELY BARGAINED OR OTHERWISE,
12 ARBITRATION AWARD OR COURT DECISION WAS AGREED TO, ISSUED OR
13 RENDERED ON OR PRIOR TO FEBRUARY 23, 1994, WHICH PROVIDED FOR A
14 RETURN OF CONTRIBUTIONS, WITH OR WITHOUT INTEREST, OR FUND
15 EARNINGS TO MEMBERS, A RETURN OF CONTRIBUTIONS, WITH OR WITHOUT
16 INTEREST, OR FUND EARNINGS SHALL BE MADE TO MEMBERS AND ANY SUCH
17 RETURN OF CONTRIBUTIONS SHALL REDUCE OR ELIMINATE ANY
18 ENTITLEMENT TO REFUNDS PURSUANT TO SECTION 9. NO BOROUGH, TOWN
19 OR TOWNSHIP MAKING SUCH RETURN OR MEMBER RECEIVING SUCH RETURN
20 SHALL BE REQUIRED TO RESTORE TO THE FUND ANY SUCH CONTRIBUTIONS,
21 INTEREST OR FUND EARNINGS.
22 Section 3 4. The amendment of section 1(a)(2) and (3) (4) <--
23 insofar as the amendment affects the benefits available to
24 widows shall apply to widows whose spouse died on or before the
25 effective date of this act and who were not remarried as of said
26 date.
27 Section 4. This act shall take effect in 90 days. <--
28 SECTION 5. THIS ACT SHALL TAKE EFFECT IMMEDIATELY. <--
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