| SENATE AMENDED |
| PRIOR PRINTER'S NOS. 3722, 4059 | PRINTER'S NO. 4093 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY EACHUS AND D. EVANS, MAY 5, 2010 |
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| SENATOR CORMAN, APPROPRIATIONS, IN SENATE, RE-REPORTED AS AMENDED, JULY 2, 2010 |
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| AN ACT |
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1 | Amending the act of February 1, 1974 (P.L.34, No.15), entitled |
2 | "An act creating a Pennsylvania Municipal Retirement System |
3 | for the payment of retirement allowances to officers, |
4 | employes, firemen and police of political subdivisions and |
5 | municipal authorities and of institutions supported and |
6 | maintained by political subdivisions and municipal government |
7 | associations and providing for the administration of the same |
8 | by a board composed of the State Treasurer and others |
9 | appointed by the Governor; imposing certain duties on the |
10 | Pennsylvania Municipal Retirement Board and the actuary |
11 | thereof; providing the procedure whereby political |
12 | subdivisions and municipal authorities may join such system, |
13 | and imposing certain liabilities and obligations on such |
14 | political subdivisions and municipal authorities in |
15 | connection therewith, and as to certain existing retirement |
16 | and pension systems, and upon officers, employes, firemen and |
17 | police of such political subdivisions, institutions supported |
18 | and maintained by political subdivisions, and upon municipal |
19 | authorities; providing for the continuation of certain |
20 | municipal retirement systems now administered by the |
21 | Commonwealth; providing certain exemptions from taxation, |
22 | execution, attachment, levy and sale and providing for the |
23 | repeal of certain related acts," providing for implementation |
24 | provisions for Deferred Retirement Option Plans and, for | <-- |
25 | corrective measures for maintaining tax qualified status of |
26 | the Pennsylvania Municipal Retirement System and for | <-- |
27 | solicitation of political contributions; and making a related |
28 | repeal. |
29 | The General Assembly of the Commonwealth of Pennsylvania |
30 | hereby enacts as follows: |
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1 | Section 1. The definitions of "annuitant," "member" and |
2 | "regular interest" in section 102 of the act of February 1, 1974 |
3 | (P.L.34, No.15), known as the Pennsylvania Municipal Retirement |
4 | Law, are amended and the section is amended by adding |
5 | definitions to read: |
6 | Section 102. Definitions.--As used in this act: |
7 | * * * |
8 | "Alternate payee" means a spouse, former spouse, child or |
9 | dependent of a member, who is recognized by an approved domestic |
10 | relations order as having a right to receive all or a portion of |
11 | the money payable to the member under this act. |
12 | "Annuitant" means a [former contributor in receipt of a |
13 | superannuation retirement allowance or other benefit provided by |
14 | this act] member during the time period: |
15 | (1) beginning with the effective date of the member's |
16 | retirement; and |
17 | (2) ending on the date of termination of the member's |
18 | annuity. |
19 | "Approved domestic relations order" means a domestic |
20 | relations order which has been approved under this act. |
21 | * * * |
22 | "Compensation" means remuneration actually received for |
23 | services rendered as a municipal employee, municipal fire |
24 | fighter or municipal police officer, excluding reimbursement for |
25 | expenses incidental to employment. The following apply: |
26 | (1) Compensation shall be adjusted as appropriate to comply |
27 | with the terms of any contract entered into between the board |
28 | and the applicable municipality under Article IV. |
29 | (2) For members who are enrolled in a plan that has adopted |
30 | the provisions of section 414(h) of the Internal Revenue Code |
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1 | (26 U.S.C. § 414(h)), the term includes a contribution |
2 | designated as a pickup contribution. |
3 | (3) Notwithstanding any provision of this act to the |
4 | contrary, a member's compensation shall not exceed the |
5 | limitations under section 401(a)(17) of the Internal Revenue |
6 | Code (26 U.S.C. § 401(a)(17)), as adjusted in accordance with |
7 | section 401(a)(17)(B) of the Internal Revenue Code (26 U.S.C. § |
8 | 401(a)(17)(B)). |
9 | (i) The adjustment in effect for a calendar year applies to |
10 | a period: |
11 | (A) which begins in the calender year; |
12 | (B) which does not exceed twelve months; and |
13 | (C) over which compensation is determined. |
14 | (ii) If a determination period consists of fewer than twelve |
15 | months, the compensation limit shall be multiplied by a |
16 | fraction: |
17 | (A) the numerator of which is the number of months in the |
18 | determination period; and |
19 | (B) the denominator of which is twelve. |
20 | * * * |
21 | "Date of termination of service" means: |
22 | (1) for an active member, the last day of employment in a |
23 | status covered by the eligibility requirements of the pension |
24 | plan; and |
25 | (2) for an inactive member on leave without pay, the date of |
26 | resignation or the date employment is formally discontinued by |
27 | the municipality. |
28 | "Domestic relations order" means any judgment, decree or |
29 | order, including approval of a property settlement agreement, |
30 | entered on or after the effective date of this definition by a |
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1 | court of competent jurisdiction pursuant to a domestic relations |
2 | law which relates to the marital property rights of the spouse |
3 | or former spouse of a member, including the right to receive all |
4 | or a portion of the money payable to that member under this act, |
5 | in furtherance of the equitable distribution of marital assets. |
6 | The term includes an "order of support" under 23 Pa.C.S. § 4302 |
7 | (relating to definitions) and an order for the enforcement of |
8 | arrearages under 23 Pa.C.S. § 3703 (relating to enforcement of |
9 | arrearages). |
10 | "DROP" means the Deferred Retirement Option Plan established |
11 | by the board under this act and by a municipality under Chapter |
12 | 11 of the Municipal Pension Plan Funding Standard and Recovery |
13 | Act. |
14 | "DROP interest" means the actual rate earned and credited by |
15 | the board on the subsidiary DROP participant accounts, which |
16 | shall not be less than zero percent nor more than four and one- |
17 | half percent, annually. |
18 | "DROP participant" means an annuitant who has elected to |
19 | participate in the DROP. |
20 | "Effective date of retirement" means one of the following: |
21 | (1) For a member who files an application for an annuity |
22 | within ninety days after the date of termination of service, the |
23 | first day following the date of termination of service. |
24 | (2) For a member who does not file an application for an |
25 | annuity within ninety days after the date of termination of |
26 | service, the later of: |
27 | (i) the date the application is filed; or |
28 | (ii) the date specified on the application. |
29 | (3) For a member who applies for a disability retirement, |
30 | the date certified by the board as the effective date of |
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1 | disability. |
2 | (4) For a DROP participant, the day before the effective |
3 | date of DROP participation as determined in accordance with the |
4 | provisions of this act and Chapter 11 of the Municipal Pension |
5 | Funding Standard and Recovery Act. |
6 | * * * |
7 | "Internal Revenue Code" means the Internal Revenue Code of |
8 | 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.). |
9 | * * * |
10 | "Member" means an individual that is: |
11 | (1) a municipal officer, employe, fireman or policeman[,]; |
12 | or; |
13 | (2) an employe of a municipal government association who |
14 | [has become a member of the Pennsylvania Municipal Retirement |
15 | System created by this act] is an active member, inactive |
16 | member, annuitant, disability annuitant or vested member. |
17 | * * * |
18 | "Municipal Pension Funding Standard and Recovery Act" means |
19 | the act of December 18, 1984 (P.L.1005, No.205), known as the |
20 | Municipal Pension Plan Funding Standard and Recovery Act. |
21 | * * * |
22 | "Regular interest" means the rate fixed by the board, from |
23 | time to time, on the basis of earnings on investments to be |
24 | applied to the member's accounts, to the municipal accounts and |
25 | to the retired member's reserve account. |
26 | * * * |
27 | "Subsidiary DROP participant account" has the meaning given |
28 | in section 1102 of the Municipal Pension Funding Standard and |
29 | Recovery Act. |
30 | "Subsidiary DROP participant reserve account" means the |
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1 | account maintained for each subsidiary DROP participant account. |
2 | * * * |
3 | Section 2. Section 104(10), (12.1), (12.2) and (13) of the |
4 | act, amended May 17, 1980 (P.L.135, No.50), are amended and the |
5 | section is amended by adding clauses to read: |
6 | Section 104. General Powers of the Board.--The board shall: |
7 | * * * |
8 | (10) From time to time, with the advice of the Attorney |
9 | General and the actuary, to adopt and promulgate such rules and |
10 | regulations as may be required for the proper administration of |
11 | the fund created by this act and the several accounts |
12 | thereof[,]; to establish procedures which would permit an |
13 | eligible retired public safety officer to pay qualified |
14 | accident, health or long-term care insurance premiums as |
15 | permitted under section 402(l) of the Internal Revenue Code (26 |
16 | U.S.C. § 402(1)); and to provide for the transaction of the |
17 | business of the board; |
18 | * * * |
19 | (12.1) [From time to time, at the direction of |
20 | municipalities electing to] In accordance with the plan |
21 | contract, provide cost-of-living increases from [their] a plan's |
22 | share of excess investment earnings[, the board shall allocate |
23 | excess investment earnings to provide additional "cost-of- |
24 | living" pension benefits] to those members of such |
25 | municipalities who have already retired. Such allocations shall |
26 | be made, with the advice of the actuary, on a fully funded basis |
27 | employing actuarial assumptions which reflect the nature of the |
28 | liability. An award of excess interest shall not be made under | <-- |
29 | this paragraph if the plan is less than 95% funded as of the |
30 | plan's most recent filing of the actuarial report required under |
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1 | the act of December 18, 1984 (P.L.1005, No.205), known as the |
2 | "Municipal Pension Plan Funding Standard and Recovery Act." |
3 | (12.2) [From time to time, at the direction of |
4 | municipalities electing to apply their excess investment |
5 | earnings to member contributions] In accordance with the plan |
6 | contract, the board shall allocate excess investment earnings |
7 | for active members of such municipalities by applying such |
8 | allocation to member contributions. To the extent that |
9 | additional liabilities may accrue as a result of such |
10 | allocation, the actuary shall employ actuarial assumptions, on a |
11 | fully funded basis, to accurately reflect the nature of the |
12 | liability generated therefrom. An award of excess interest shall | <-- |
13 | not be made under this paragraph if the plan is less than 95% |
14 | funded as of the plan's most recent filing of the actuarial |
15 | report required under the "Municipal Pension Plan Funding |
16 | Standard and Recovery Act." |
17 | (12.3) Promulgate regulations required for the proper |
18 | administration of the DROP. |
19 | (12.4) Establish a subsidiary DROP participant account for |
20 | each DROP participant, provide for the separate investment and |
21 | funding of each account and establish a monthly rate of interest |
22 | to credit the money deposited in each account. |
23 | (13) Perform such other functions as are required for the |
24 | execution of the provisions of this act and of other Federal and |
25 | State law and administer and interpret this act to ensure that |
26 | the system is maintained as tax qualified under the Internal |
27 | Revenue Code. |
28 | Section 3. Section 108 of the act is amended to read: |
29 | Section 108. Retirement Funds and Accounts.--The |
30 | Pennsylvania Municipal Retirement Fund shall consist of the |
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1 | money received from municipalities arising from contributions by |
2 | municipalities, [and] from payroll deductions from salary or |
3 | compensation of members, and other contributions made by members |
4 | through the municipality to the system, from DROP participants |
5 | and from transfers made from municipal retirement or pension |
6 | systems and credited as provided in this act, and investment |
7 | earnings thereon. |
8 | The fund shall be a trust and the assets of the system shall |
9 | be held in trust. No part of the assets of the system shall be |
10 | used for or diverted to purposes other than for the exclusive |
11 | benefit of the members, their spouses or the members' |
12 | beneficiaries prior to the satisfaction of all liabilities of |
13 | the system with respect to them. The assets of the fund shall |
14 | only be used to pay: |
15 | (1) Benefits to members in accordance with this act. |
16 | (2) Necessary expenses of the system as established in this |
17 | act. |
18 | Contributions made by municipalities toward superannuation |
19 | retirement and death benefits of members shall be credited to |
20 | the municipal account of said fund, contributions made by |
21 | municipalities toward disability retirement of members shall be |
22 | credited to the total disability reserve account of said fund, |
23 | retirement benefits paid to DROP participants shall be credited |
24 | to the subsidiary DROP reserve account and payroll deductions |
25 | and other contributions of members shall be credited to the |
26 | member's account of said fund. Transfers made from existing |
27 | municipal retirement or pension systems shall be credited as |
28 | provided in this act. |
29 | The board shall keep separate accounts of each municipality |
30 | and for each separate class of employes enrolled by that |
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1 | municipality under the several articles of this act, except the |
2 | total disability reserve account and the retired member's |
3 | reserve account which shall be maintained as pooled accounts. |
4 | Each municipality and the members thereof shall be liable to the |
5 | board for the amount of contributions required to cover the cost |
6 | of the retirement allowance and other benefits payable to such |
7 | members. |
8 | Upon the granting of a superannuation or voluntary or |
9 | involuntary withdrawal retirement allowance to any contributor, |
10 | the amount of such contributor's accumulated deductions in the |
11 | member's account shall lose their status as accumulated |
12 | deductions and shall be transferred to the retired member's |
13 | reserve account and the actuarial equivalent of the municipal |
14 | annuity shall be similarly transferred from the municipal |
15 | account to the retired member's reserve account. |
16 | Upon the granting of a superannuation retirement allowance to |
17 | any DROP participant, the full amount of the DROP participant's |
18 | monthly retirement benefit shall be deposited monthly to a |
19 | subsidiary DROP participant account in the subsidiary DROP |
20 | participant reserve account until the DROP participant |
21 | terminates employment. |
22 | Upon the granting of a disability retirement allowance to any |
23 | contributor, there shall be transferred to the retired member's |
24 | reserve account the amount of the contributor's accumulated |
25 | deductions in the member's account, the amount of the equivalent |
26 | actuarial value to the municipal annuity, and such additional |
27 | amount from the total disability reserve account as is needed in |
28 | addition thereto to provide the actuarial equivalent of the |
29 | total disability allowance to which the contributor is entitled. |
30 | Section 4. Section 110 of the act, amended May 17, 1980 |
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1 | (P.L.135, No.50), is amended to read: |
2 | Section 110. Management and Investment of Fund; Interest |
3 | Credits.--(a) The members of the board shall be trustees of the |
4 | fund, and shall have the exclusive management of said fund, with |
5 | full power to invest the moneys therein, subject to the terms, |
6 | conditions, limitations and restrictions imposed by law upon |
7 | fiduciaries. The said trustees shall have power to hold, |
8 | purchase, sell, assign, transfer and dispose of any securities |
9 | and investments in said fund, as well as the proceeds of such |
10 | investments, and of the money belonging to such fund. |
11 | (b) The board shall annually allow regular interest to the |
12 | credit on each contributor's account, municipal account, the |
13 | retired members reserve account and the total disability reserve |
14 | account. [In addition, the board shall, after paying expenses, |
15 | annually allow such excess interest as each municipality deems |
16 | appropriate to the credit of the municipal accounts, member's |
17 | accounts, the member's excess investment accounts, retired |
18 | members reserve accounts and total disability reserve accounts.] |
19 | The board shall monthly credit DROP interest to the subsidiary |
20 | DROP participant accounts in accordance with established |
21 | procedures. |
22 | (c) The board shall, after deducting money to pay for the |
23 | appropriate expenses, allow excess interest as each contract |
24 | provides to the credit of the municipal accounts, member's |
25 | accounts, the member's excess investment accounts and retired |
26 | members reserve accounts. Except as provided in a contract, the |
27 | board shall credit the excess interest to the plan's municipal |
28 | account. |
29 | Section 4.1. The act is amended by adding a section to read: | <-- |
30 | Section 110.1. Solicitation of Political Contributions.--(a) |
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1 | This section applies to a person or an affiliated entity that |
2 | does any of the following: |
3 | (1) Enters into a professional services contract with the |
4 | system or any municipal pension system in this Commonwealth. |
5 | (2) Submits an offer for or bids on a professional services |
6 | contract with the system or any municipal pension system in this |
7 | Commonwealth. |
8 | (3) Responds to a request for proposal on a professional |
9 | services contract with the system or any municipal pension |
10 | system in this Commonwealth. |
11 | (4) Otherwise solicits a professional services contract with |
12 | the system or any municipal pension system in this Commonwealth. |
13 | (b) A person or an affiliated entity subject to subsection |
14 | (a) may not solicit a contribution to a municipal official or |
15 | candidate for municipal office where the municipal pension |
16 | system is organized or to the political action committee of that | <-- |
17 | official or candidate. The prohibition under this subsection | <-- |
18 | applies to any agent, officer, director or employee of the |
19 | person or affiliated entity. |
20 | (c) Definitions.--As used in this section: |
21 | "Affiliated entity" has the meaning given in section 701-A of |
22 | the act of December 18, 1984 (P.L.1005, No.205), known as the |
23 | Municipal Pension Plan Funding Standard and Recovery Act. |
24 | "Professional services contract" has the meaning given in |
25 | section 701-A of the Municipal Pension Plan Funding Standard and |
26 | Recovery Act. |
27 | Section 5. Section 111 of the act is amended to read: |
28 | Section 111. Municipal Guarantee.--The regular interest |
29 | charges payable, the DROP interest charges payable and the |
30 | creation and maintenance of the necessary reserves for the |
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1 | payment of the municipal and member's annuities, as to any |
2 | municipality in accordance with this act, are hereby made the |
3 | obligation of that municipality. |
4 | In the case of the failure of a municipality to make payments |
5 | as required by this act, the Commonwealth shall withhold payment |
6 | to the municipality of any funds to which the municipality may |
7 | be entitled for pension purposes. The board may recover any sums |
8 | due to the fund by suit at law, or other appropriate remedy. |
9 | Section 6. Section 112 of the act, amended July 5, 2005 |
10 | (P.L.50, No.16), is amended to read: |
11 | Section 112. Annual Estimates to Municipalities; |
12 | Administrative Expenses.--The board shall prepare and submit to |
13 | each municipality, on or before the first day of the third month |
14 | preceding the commencing of each municipality's fiscal year, an |
15 | itemized estimate of the amounts necessary to be appropriated by |
16 | the municipality to complete the payments of the obligations of |
17 | the municipality to the fund during its next fiscal year. |
18 | The board shall annually prepare and approve a budget |
19 | covering the administrative expenses of this act. Such expenses |
20 | as approved by the board shall be paid from receipts from |
21 | assessments made against each municipality for administrative |
22 | expenses. This assessment shall be based on the number of |
23 | members in each municipality and shall not exceed the sum of |
24 | twenty dollars ($20) per member per year. If, in [the calendar |
25 | years 1995 through 2005] any calendar year, the amount received |
26 | from such assessments, when imposed at the maximum rate, is not |
27 | sufficient to cover the administrative expenses, then the |
28 | balance of such expenses shall be paid from interest earnings on |
29 | the fund in excess of the regular interest credited to the |
30 | municipal, members' and retired members' reserve accounts and |
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1 | DROP interest credited to the subsidiary DROP participant |
2 | reserve account and shall not, in any year, exceed six-tenths of |
3 | one per cent of the total asset value of the fund as of the |
4 | beginning of the calendar year. The administration of the |
5 | Pennsylvania Municipal Retirement System shall be audited |
6 | annually and a report of this audit shall be made annually to |
7 | the General Assembly. |
8 | The secretary of the board shall submit a proposed budget for |
9 | the following fiscal year to the Senate and House Local |
10 | Government Committees no later than November 1 of the year |
11 | preceding that for which the budget is being prepared. The |
12 | respective committees shall meet and review such budget |
13 | document. If the committees take no action within sixty days of |
14 | said November 1, the budget for the following calendar year |
15 | shall be deemed approved. |
16 | Section 7. Section 114 of the act is amended to read: |
17 | Section 114. Monthly Payments.--[Any] (a) (1) Except as |
18 | provided under clause (2), any retirement allowance created |
19 | under the provisions of this act shall be paid in equal monthly |
20 | installments and shall not be increased, decreased, revoked or |
21 | repealed, except where specifically otherwise provided by this |
22 | act. |
23 | (2) Notwithstanding clause (1), if the annuitant is a DROP |
24 | participant, the equal monthly installment shall be deposited to |
25 | the subsidiary DROP participant account and paid out in |
26 | accordance with the DROP program. |
27 | (b) The annual retirement benefit payable to a member shall |
28 | not exceed the annual dollar limitation under section 415(b)(1) |
29 | (A) of the Internal Revenue Code (26 U.S.C. § 415(b)(1)(A)), as |
30 | may be adjusted under section 415(d) of the Internal Revenue |
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1 | Code (26 U.S.C. § 415(d)). If an adjustment is required due to |
2 | the Internal Revenue Code, regulations or other publications |
3 | issued by the Internal Revenue Service, the adjustment shall |
4 | only apply to the dollar limitation specified in this section. |
5 | Section 8. Section 115 of the act, repealed in part April |
6 | 28, 1978 (P.L.202, No.53), is amended to read: |
7 | Section 115. Exemption of Retirement Allowance.--(a) The |
8 | retirement allowance and the contributions of members to the |
9 | fund, all contributions returned to contributors under the |
10 | provisions of this act and the moneys in the fund created by |
11 | this act, shall be exempt from any State or municipal tax and |
12 | shall be unassignable except to a beneficiary. |
13 | (b) Rights under this act shall be subject to all of the |
14 | following: |
15 | (1) Attachment in favor of an alternate payee as set forth |
16 | in an approved domestic relations order. |
17 | (2) Forfeiture as provided by the act of July 8, 1978 |
18 | (P.L.752, No.140), known as the "Public Employee Pension |
19 | Forfeiture Act." Forfeitures under this clause or under any |
20 | other provision of law may not be applied to increase the |
21 | benefits that any member would otherwise receive under this act. |
22 | (c) Notwithstanding any other provision of this section, a |
23 | distributee may elect, at the time and in the manner prescribed |
24 | by the board, to have any portion of an eligible rollover |
25 | distribution paid directly to an eligible retirement plan |
26 | utilizing a direct rollover. |
27 | (d) For purposes of this section, the following words shall |
28 | have the following meanings: |
29 | "Distributee." A member, a member's surviving spouse or a |
30 | member's former spouse who is an alternate payee under an |
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1 | approved domestic relations order. |
2 | "Eligible retirement plan." (1) Except as provided under |
3 | clause (2), the term shall have the meaning given to it in |
4 | section 402(c)(8)(B) of the Internal Revenue Code (26 U.S.C. § |
5 | 402(c)(8)(B)). |
6 | (2) The term shall include a qualified trust in section |
7 | 402(c)(8)(B)(iii) of the Internal Revenue Code only if the |
8 | qualified trust accepts the distributee's eligible rollover |
9 | distribution. If the eligible rollover distribution is made to a |
10 | nonspousal beneficiary, an eligible retirement plan shall be |
11 | deemed an "individual retirement account" or an "individual |
12 | retirement annuity" as defined in section 408(a) and (b) of the |
13 | Internal Revenue Code (26 U.S.C. § 408(a) and (b)). |
14 | "Eligible rollover distribution." The term shall have the |
15 | meaning given to it in section 402(f)(2)(A) of the Internal |
16 | Revenue Code (26 U.S.C. § 402(f)(2)(A)). |
17 | Section 9. The act is amended by adding sections to read: |
18 | Section 118. Approval of Domestic Relations Orders.--(a) A |
19 | domestic relations order shall be certified as an approved |
20 | domestic relations order by the secretary of the board or the |
21 | secretary's designated representative only if the order meets |
22 | all of the following: |
23 | (1) Requires the system to provide a type or form of benefit |
24 | or an option already provided under this act. |
25 | (2) Requires the system to provide no more than the total |
26 | amount of benefits that the member would otherwise receive, |
27 | determined on the basis of actuarial value, unless increased |
28 | benefits are paid to the member or, if the order provides, to |
29 | the alternate payee based upon cost-of-living increases or |
30 | increases based on other than actuarial value. |
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1 | (3) Specifies the amount or percentage of the member's |
2 | benefits to be paid by the system to each alternate payee or the |
3 | manner in which the amount or percentage is to be determined. |
4 | (4) Specifies the retirement option to be selected by the |
5 | member upon retirement or states that the member may select any |
6 | retirement option offered by this act upon retirement. |
7 | (5) Specifies the name and last known mailing address of the |
8 | member and the name and last known mailing address of each |
9 | alternate payee covered by the order and states that it is the |
10 | responsibility of each alternate payee to keep a current mailing |
11 | address on file with the system. |
12 | (6) Does not grant an alternate payee any of the rights, |
13 | options or privileges of a member under this act. |
14 | (7) Requires the member to execute an authorization allowing |
15 | each alternate payee to monitor the member's compliance with the |
16 | terms of the domestic relations order through access to |
17 | information concerning the member maintained by the system. |
18 | (b) The following apply: |
19 | (1) Upon receipt of a proposed domestic relations order, the |
20 | secretary of the board or the secretary's designated |
21 | representative shall determine whether the proposed order shall |
22 | be deemed an approved domestic relations order and shall notify |
23 | the member and each alternate payee of this determination. |
24 | (2) Notwithstanding any other provision of law, the |
25 | exclusive remedy of any member or alternate payee aggrieved by a |
26 | decision of the secretary of the board or the secretary's |
27 | designated representative shall be the right to an adjudication |
28 | by the board under 2 Pa.C.S. Ch. 5 Subch. A (relating to |
29 | practice and procedure of Commonwealth agencies) with appeal to |
30 | the Commonwealth Court under 2 Pa.C.S. Ch. 7 Subch. A (relating |
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1 | to judicial review of Commonwealth agency action) and 42 Pa.C.S. |
2 | § 763(a)(1) (relating to direct appeals from government |
3 | agencies). |
4 | (c) The following apply: |
5 | (1) The requirements for approval under subsection (a) shall |
6 | not apply to any domestic relations order which is an "order of |
7 | support" under 23 Pa.C.S. § 4302 (relating to definitions) or an |
8 | order for the enforcement of arrearages under 23 Pa.C.S. § 3703 |
9 | (relating to enforcement of arrearages). |
10 | (2) Orders under clause (1) shall be approved to the extent |
11 | that they do not attach money in excess of the limits on |
12 | attachments as established by the Federal or State law. |
13 | (d) Only the requirements of this section and regulations |
14 | promulgated under this act shall be used to govern the approval |
15 | or disapproval of a domestic relations order. If the secretary |
16 | of the board or the secretary's designated representative acts |
17 | in accordance with this act and regulations promulgated under |
18 | this act in approving or disapproving a domestic relations |
19 | order, the obligations of the system with respect to the |
20 | approval or disapproval shall be discharged. |
21 | Section 119. Amendment of Approved Domestic Relations |
22 | Orders.--(a) If an alternate payee of an approved domestic |
23 | relations order predeceases the member and there are benefits |
24 | payable to the alternate payee, the court may amend the approved |
25 | domestic relations order to substitute a person for the deceased |
26 | alternate payee to receive benefits payable to the deceased |
27 | alternate payee. |
28 | (b) If a court amends an approved domestic relations order, |
29 | the amended order must be submitted for recertification as an |
30 | approved domestic relations order as provided in this act. |
|
1 | Section 120. Irrevocable Beneficiary.--Notwithstanding any |
2 | other provision of this act, a domestic relations order may |
3 | provide for an irrevocable beneficiary. A domestic relations |
4 | order requiring the nomination of an irrevocable beneficiary |
5 | shall be deemed to be one that requires a member to nominate an |
6 | alternate payee as a beneficiary and that prohibits the removal |
7 | or change of that beneficiary without approval of a court of |
8 | competent jurisdiction, except by operation of law. A domestic |
9 | relations order subject to this section may be certified as an |
10 | approved domestic relations order by the secretary of the board |
11 | or the secretary's designated representative after the member |
12 | makes the nomination, in which case the irrevocable beneficiary |
13 | ordered by the court may not be changed by the member without |
14 | approval of the court. |
15 | Section 121. Irrevocable Survivor Annuitant.-- |
16 | Notwithstanding any other provision of this act, a domestic |
17 | relations order may provide for an irrevocable survivor |
18 | annuitant. A domestic relations order requiring the designation |
19 | of an irrevocable survivor annuitant shall be deemed to be one |
20 | that requires a member to designate an alternate payee as a |
21 | survivor annuitant and that prohibits the removal or change of |
22 | that survivor annuitant without approval of a court of competent |
23 | jurisdiction, except by operation of law. A domestic relations |
24 | order subject to this section may be certified as an approved |
25 | domestic relations order by the secretary of the board or the |
26 | secretary's designated representative, in which case the |
27 | irrevocable survivor annuitant ordered by the court may not be |
28 | changed by the member without approval of the court. A person |
29 | ineligible to be designated as a survivor annuitant may not be |
30 | designated an irrevocable survivor annuitant. |
|
1 | Section 10. Section 207(c) of the act, amended November 29, |
2 | 2004 (P.L.1331, No.169), is amended and the section is amended |
3 | by adding a subsection to read: |
4 | Section 207. Withdrawal; Return to Service; Death in |
5 | Service.--* * * |
6 | (c) (1) Should a person who has been retired on a |
7 | retirement under this act, return to employment on a regular |
8 | full-time basis in the same municipality, his retirement |
9 | allowance shall cease, and in the case of an annuity, other than |
10 | a disability annuity, the present value of such annuity shall be |
11 | frozen as of the date such annuity ceases. Upon subsequent |
12 | discontinuance of service, such member, other than a former |
13 | disability annuitant, shall be entitled to an annuity which is |
14 | actuarially equivalent to the sum of the present value of the |
15 | annuity previously being paid and the present value of the |
16 | annuity earned by further service and further deductions added |
17 | upon reemployment. |
18 | (2) For the purposes of this section if a person is |
19 | reemployed [on a temporary, seasonal or part-time basis and his |
20 | gross post-retirement earnings from such reemployment during the |
21 | calendar year are less than five thousand dollars ($5,000) or |
22 | such other maximum as the board may establish, he shall not be |
23 | deemed reemployed, but if and when his gross post-retirement |
24 | earnings exceed five thousand dollars ($5,000) or such other |
25 | maximum as the board may establish in any calendar year he shall |
26 | not be entitled to receive his retirement allowance for that |
27 | month or any subsequent month in the calendar year in which he |
28 | continues in service.] following commencement of his retirement |
29 | allowance, he shall not be entitled to receive his retirement |
30 | allowance for that month or any subsequent month in which he |
|
1 | continues in service. |
2 | (3) Notwithstanding clause (2), if the person is otherwise |
3 | eligible to receive an in-service distribution of his retirement |
4 | benefit by attainment of normal retirement age as defined in |
5 | section 411(a)(8) of the Internal Revenue Code (26 U.S.C. § |
6 | 411(a)(8)), operation of section 401(a)(36) of the Internal |
7 | Revenue Code (26 U.S.C. § 401(a)(36)) or operation of any other |
8 | provision as may be adopted by the board and consistent with the |
9 | tax-qualification provisions of the Internal Revenue Code, the |
10 | person's retirement allowance shall continue to be paid through |
11 | the period of reemployment. |
12 | (4) The municipality is required to notify the board |
13 | immediately of the reemployment status of any retired former |
14 | employe and file separate monthly reports of his gross earnings |
15 | as prescribed by the board. |
16 | * * * |
17 | (e) If a member dies while performing qualified military |
18 | service, as defined in section 414(u)(5) of the Internal Revenue |
19 | Code (26 U.S.C. § 414(u)(5)), the survivors of the member shall |
20 | be entitled to receive any additional benefits, other than |
21 | benefit accruals relating to the period of qualified military |
22 | service, as though the member had returned to service and then |
23 | terminated employment on account of death. |
24 | Section 11. Section 211 of the act, amended June 10, 1982 |
25 | (P.L.446, No.131), is amended to read: |
26 | Section 211. Options on Superannuation or Early |
27 | Retirement.--(a) At the time of his superannuation or early |
28 | retirement, a contributor may elect to receive his benefits in a |
29 | retirement allowance payable throughout his life, which shall be |
30 | known as a single life annuity. In the event of the death of an |
|
1 | annuitant who has elected to receive the maximum single life |
2 | annuity before he has received in annuity payments the full |
3 | amount of the total accumulated deductions standing to his |
4 | credit on the effective date of retirement, the balance shall be |
5 | paid to his designated beneficiary, or instead, he may elect to |
6 | receive the equivalent actuarial value at that time of his |
7 | retirement allowance in a lesser allowance, payable throughout |
8 | life with provisions that: |
9 | (1) Option 1. If he shall die before receiving in payments |
10 | the present value of his retirement allowance as it was at the |
11 | time of his retirement, the balance, if less than five thousand |
12 | dollars ($5,000), shall be paid in a lump sum to his legal |
13 | representative, or to or in trust for his beneficiary. If the |
14 | balance is five thousand dollars ($5,000) or more, the |
15 | beneficiary may elect by application duly acknowledged and filed |
16 | with the board to receive payment of such balance according to |
17 | any one of the following provisions: (i) a lump sum payment; |
18 | (ii) an annuity having a present value equal to the balance |
19 | payable; (iii) a lump sum payment and an annuity. Such annuity |
20 | shall be of equivalent actuarial value to the balance payable |
21 | less the amount of the lump sum payment specified by the |
22 | beneficiary. |
23 | (2) Option 2. Upon his death, his retirement allowance |
24 | shall be continued throughout the life of and paid to his |
25 | survivor annuitant, if then living. |
26 | (3) Option 3. Upon his death, one-half of his retirement |
27 | allowance shall be continued throughout the life of and paid to |
28 | his survivor annuitant, if then living. |
29 | (b) A member or beneficiary shall not be entitled to a form |
30 | of benefit which commences or is payable over a period which |
|
1 | fails to satisfy the required distributions of section 401(a)(9) |
2 | of the Internal Revenue Code (26 U.S.C. § 401(a)(9)). |
3 | Section 12. Section 213 of the act is amended by adding a |
4 | subsection to read: |
5 | Section 213. Vesting.--* * * |
6 | (e) Upon the termination of the retirement plan, all |
7 | members, regardless of credited service, shall be deemed fully |
8 | vested in their accrued benefit to the extent the benefits |
9 | provided under the plan are funded as of the date of |
10 | termination. |
11 | Section 13. Section 308 of the act, amended May 17, 1980 |
12 | (P.L.135, No.50) and June 10, 1982 (P.L.446, No.131), is amended |
13 | to read: |
14 | Section 308. Withdrawal; Return to Service; Death in |
15 | Service.--(a) Should a contributor, before reaching |
16 | superannuation retirement age, for any reason cease to be a |
17 | municipal fireman or a municipal policeman, he shall be paid by |
18 | the board the full amount of the accumulated deductions standing |
19 | to his credit in the member's account, unless he is entitled to |
20 | vesting rights or to a retirement allowance for retirement not |
21 | voluntarily, and elects to exercise such vesting rights or take |
22 | such retirement allowance. Should such former contributor |
23 | thereafter return to the service of the same municipality and |
24 | restore to the fund, in such manner as may be agreed upon by |
25 | such person and the board, his withdrawn accumulated deductions |
26 | as they were at the time of his separation from service, his |
27 | annuity rights as they existed at the time of separation from |
28 | service shall be restored and his obligations as a member shall |
29 | begin again. |
30 | (b) Should a contributor, having attained or passed |
|
1 | superannuation age, elect, upon leaving the service of the |
2 | municipality, not to claim the retirement allowance to which he |
3 | is entitled, he shall, upon written application, be paid by the |
4 | board the full amount of the accumulated deductions standing to |
5 | his credit in the member's account, and the balance in the |
6 | member's excess investment account. |
7 | (c) (1) Should a person who has been retired on a |
8 | retirement allowance under this act, return to employment on a |
9 | regular full-time basis in the same municipality, his retirement |
10 | allowance shall cease, and in the case of an annuity, other than |
11 | a disability annuity, the present value of such annuity shall be |
12 | frozen as of the date such annuity ceases. Upon subsequent |
13 | discontinuance of service, such member, other than a former |
14 | disability annuitant, shall be entitled to an annuity which is |
15 | actuarially equivalent to the sum of the present value of the |
16 | annuity previously being paid and the present value of the |
17 | annuity earned by further service and further deductions added |
18 | upon reemployment. |
19 | (2) For the purposes of this section if a person is |
20 | reemployed [on a temporary or seasonal basis and his gross post- |
21 | retirement earnings from such reemployment during the calendar |
22 | year are less than five thousand dollars ($5,000) or such other |
23 | maximum as the board may establish, he shall not be deemed |
24 | reemployed, but if and when his gross post-retirement earnings |
25 | exceed five thousand dollars ($5,000) or such other maximum as |
26 | the board may establish in any calendar year he shall not be |
27 | entitled to receive his retirement allowance for that month or |
28 | any subsequent month in the calendar year in which he continues |
29 | in service.] following commencement of his retirement allowance |
30 | in a capacity other than as a DROP participant, the person shall |
|
1 | not be entitled to receive his retirement allowance for that |
2 | month or any subsequent month in which he continues in service. |
3 | (3) Notwithstanding clause (2), if the person is otherwise |
4 | eligible to receive an in-service distribution of his retirement |
5 | benefit by attainment of normal retirement age as defined in |
6 | section 411(a)(8) of the Internal Revenue Code (26 U.S.C. § |
7 | 411(a)(8)), operation of section 401(a)(36) of the Internal |
8 | Revenue Code (26 U.S.C. § 401(a)(36)) or operation of any other |
9 | provision as may be adopted by the board and consistent with the |
10 | tax-qualification provisions of the Internal Revenue Code, the |
11 | person's retirement allowance shall continue to be paid through |
12 | the period of reemployment. The municipality is required to |
13 | notify the board immediately of the reemployment status of any |
14 | retired former employe and file separate monthly reports of his |
15 | gross earnings as prescribed by the board. |
16 | (d) Should a contributor die while in service, prior to |
17 | becoming eligible for a retirement allowance, his accumulated |
18 | deductions shall be paid to his estate, or to such person, if |
19 | living, as he shall have designated, in writing, filed with the |
20 | board as his beneficiary. In case any contributor has failed to |
21 | designate a beneficiary, or if the named beneficiary has |
22 | predeceased the member and no successor beneficiary has been |
23 | named, and upon the death in service shall have less than one |
24 | hundred dollars ($100) in accumulated deductions standing to his |
25 | credit, the board may, if letters testamentary or of |
26 | administration have not been taken out on his estate within six |
27 | months after his death, pay such accumulated deductions on the |
28 | claim of the undertaker, or to such person or municipality which |
29 | shall have paid the claim of the undertaker. |
30 | (e) If a member dies while performing qualified military |
|
1 | service, as defined in section 414(u)(5) of the Internal Revenue |
2 | Code (26 U.S.C. § 414(u)(5)), the survivors of the member shall |
3 | be entitled to receive any additional benefits, other than |
4 | benefit accruals relating to the period of qualified military |
5 | service, as though the member had returned to service and then |
6 | terminated employment on account of death. |
7 | Section 14. Section 312 of the act, amended June 10, 1982 |
8 | (P.L.446, No.131), is amended to read: |
9 | Section 312. Options on Superannuation or Early |
10 | Retirement.--(a) At the time of his superannuation or early |
11 | retirement, a contributor may elect to receive his benefits in a |
12 | retirement allowance payable throughout his life, which shall be |
13 | known as a single life annuity. In the event of the death of an |
14 | annuitant who has elected to receive the maximum single life |
15 | annuity before he has received in annuity payments the full |
16 | amount of the total accumulated deductions standing to his |
17 | credit on the effective date of retirement, the balance shall be |
18 | paid to his designated beneficiary, or instead, he may elect, to |
19 | receive the actuarial equivalent value at that time of his |
20 | retirement allowance in a lesser allowance, payable throughout |
21 | life with provisions that: |
22 | (1) Option 1. If he shall die before receiving in payments |
23 | the present value of his retirement allowance as it was at the |
24 | time of his retirement, the balance, if less than five thousand |
25 | dollars ($5,000) shall be paid in a lump sum to his legal |
26 | representative, or to or in trust for his beneficiary. If the |
27 | balance is five thousand dollars ($5,000) or more, the |
28 | beneficiary may elect by application duly acknowledged and filed |
29 | with the board to receive payment of such balance according to |
30 | any of the following provisions: (i) a lump sum payment, (ii) an |
|
1 | annuity having a present value equal to the balance payable, |
2 | (iii) a lump sum payment and an annuity. Such annuity shall be |
3 | of equivalent actuarial value to the balance payable less the |
4 | amount of the lump sum payment specified by the beneficiary. |
5 | (2) Option 2. Upon his death his retirement allowance shall |
6 | be continued throughout the life of and paid to his survivor |
7 | annuitant, if then living. |
8 | (3) Option 3. Upon his death, one-half of his retirement |
9 | allowance shall be continued throughout the life of and paid to |
10 | his survivor annuitant, if then living. |
11 | (b) A member or beneficiary shall not be entitled to a form |
12 | of benefit which commences or is payable over a period which |
13 | fails to satisfy the required distributions of section 401(a)(9) |
14 | of the Internal Revenue Code (26 U.S.C. § 401(a)(9)). |
15 | Section 15. Section 314 of the act is amended by adding a |
16 | subsection to read: |
17 | Section 314. Vesting.--* * * |
18 | (e) Upon the termination of the retirement plan, all |
19 | members, regardless of credited service, shall be deemed fully |
20 | vested in their accrued benefit to the extent the benefits |
21 | provided under the plan are funded as of the date of |
22 | termination. |
23 | Section 16. Section 403(8) and (14) of the act, amended May |
24 | 17, 1980 (P.L.135, No.50), are amended to read: |
25 | Section 403. Contract Provisions.--Any contract for an |
26 | optional retirement plan entered into between a municipality and |
27 | the board shall not provide for any benefits in excess of or |
28 | minimum member's contribution rates less than those available to |
29 | that municipality for that class of employes under any existing |
30 | law pertaining to the establishment of a retirement or pension |
|
1 | system, except to the extent that excess investment earnings are |
2 | allocated to provide for additional pension benefits or member |
3 | accruals as otherwise provided in this law. |
4 | The contract shall specifically state the following terms and |
5 | conditions: |
6 | * * * |
7 | (8) A description of any optional methods of payment of |
8 | retirement allowances available to a member, including the |
9 | availability of the DROP. |
10 | * * * |
11 | (14) Any other information which might have a bearing on the |
12 | costs or benefits of the retirement plan which might be required |
13 | by the board in the administration of the plan, including |
14 | whether the municipality will permit an eligible retired public |
15 | safety officer to direct that a portion of his annuity be used |
16 | to pay qualified accident, health or long-term care insurance |
17 | premiums as remitted under section 402(l) of the Internal |
18 | Revenue Code (26 U.S.C. § 402(l)). |
19 | Section 17. Section 406(c) of the act, amended November 29, |
20 | 2004 (P.L.1331, No.169), is amended and the section is amended |
21 | by adding a subsection to read: |
22 | Section 406. Withdrawal; Return to Service; Death in |
23 | Service.--* * * |
24 | (c) (1) Should a person who has been retired on a |
25 | retirement allowance under this act and who is not a DROP |
26 | participant, return to employment on a regular full-time basis |
27 | in the same municipality, his retirement allowance shall cease, |
28 | and in the case of an annuity, other than a disability annuity, |
29 | the present value of such annuity shall be frozen as of the date |
30 | such annuity ceases. Upon subsequent discontinuance of service, |
|
1 | such member, other than a former disability annuitant, shall be |
2 | entitled to an annuity which is actuarially equivalent to the |
3 | sum of the present value of the annuity previously being paid |
4 | and the present value of the annuity earned by further service |
5 | and further deductions added upon reemployment. |
6 | (2) For the purposes of this section if a person [is |
7 | reemployed on a temporary, seasonal or part-time basis and his |
8 | gross post-retirement earnings from such reemployment during the |
9 | calendar year are less than five thousand dollars ($5,000) or |
10 | such other maximum as the board may establish, he shall not be |
11 | deemed reemployed, but if and when his gross post-retirement |
12 | earnings exceed five thousand dollars ($5,000) or such other |
13 | maximum as the board may establish in any calendar year he shall |
14 | not be entitled to receive his retirement allowance for that |
15 | month or any subsequent month in the calendar year in which he |
16 | continues in service.], other than a DROP participant, is |
17 | reemployed following commencement of his retirement allowance, |
18 | the person shall not be entitled to receive the person's |
19 | retirement allowance for that month or any subsequent month in |
20 | which he continues in service. |
21 | (3) Notwithstanding clause (2), if the person is otherwise |
22 | eligible to receive an in-service distribution of his retirement |
23 | benefit by attainment of normal retirement age as defined in |
24 | section 411(a)(8) of the Internal Revenue Code (26 U.S.C. § |
25 | 411(a)(8)), operation of section 401(a)(36) of the Internal |
26 | Revenue Code (26 U.S.C. § 401(a)(36)) or operation of any other |
27 | provision as may be adopted by the board and consistent with the |
28 | tax-qualification provisions of the Internal Revenue Code, the |
29 | person's retirement allowance shall continue to be paid through |
30 | the period of reemployment. The municipality is required to |
|
1 | notify the board immediately of the reemployment status of any |
2 | retired former employe and file separate monthly reports of his |
3 | gross earnings as prescribed by the board. |
4 | * * * |
5 | (f) If a member dies while performing qualified military |
6 | service, as defined in section 414(u)(5) of the Internal Revenue |
7 | Code (26 U.S.C. § 414(u)(5)), the survivors of the member shall |
8 | be entitled to receive any additional benefits, other than |
9 | benefit accruals relating to the period of qualified military |
10 | service, as though the member had returned to service and then |
11 | terminated employment on account of death. |
12 | Section 18. Section 409 of the act, amended June 10, 1982 |
13 | (P.L.446, No.131), is amended to read: |
14 | Section 409. Options on Superannuation or Early |
15 | Retirement.--(a) At the time of his superannuation or early |
16 | retirement, a contributor may elect to receive his benefits in a |
17 | retirement allowance payable throughout his life, which shall be |
18 | known as a single life annuity. In the event of the death of an |
19 | annuitant who has elected to receive the maximum single life |
20 | annuity before he has received in annuity payments the full |
21 | amount of the total accumulated deductions standing to his |
22 | credit on the effective date of retirement, the balance shall be |
23 | paid to his designated beneficiary, or instead, he may elect to |
24 | receive the actuarial equivalent at that time of his retirement |
25 | allowance in a lesser allowance, payable throughout life with |
26 | provisions that: |
27 | (1) Option 1. If he shall die before receiving in payments |
28 | the present value of his retirement allowance as it was at the |
29 | time of his retirement, the balance, if less than five thousand |
30 | dollars ($5,000), shall be paid in a lump sum to his legal |
|
1 | representative, or to or in trust for his beneficiary. If the |
2 | balance is five thousand dollars ($5,000) or more, the |
3 | beneficiary may elect by application duly acknowledged and filed |
4 | with the board to receive payment of such balance according to |
5 | any one of the following provisions: (i) a lump sum payment, |
6 | (ii) an annuity having a present value equal to the balance |
7 | payable, (iii) a lump sum payment and an annuity. Such annuity |
8 | shall be of equivalent actuarial value to the balance payable |
9 | less the amount of the lump sum payment specified by the |
10 | beneficiary. |
11 | (2) Option 2. Upon his death, his retirement allowance |
12 | shall be continued throughout the life of and paid to his |
13 | survivor annuitant, if then living. |
14 | (3) Option 3. Upon his death, one-half of his retirement |
15 | allowance shall be continued throughout the life of and paid to |
16 | his survivor annuitant, if then living. |
17 | (4) Option 4. Any other optional form of payment contained |
18 | in the contract. |
19 | (b) A member or beneficiary shall not be entitled to a form |
20 | of benefit which commences or is payable over a period which |
21 | fails to satisfy the required distribution provisions of section |
22 | 401(a)(9) of the Internal Revenue Code (26 U.S.C. § 401(a)(9)), |
23 | including the incidental benefit distribution requirements. |
24 | Section 19. Section 410 of the act, amended January 4, 1978 |
25 | (P.L.1, No.1), is amended to read: |
26 | Section 410. Vesting.--(a) Provisions for vesting may be |
27 | included in the contract between the municipality and the board. |
28 | When such provision is made it shall mean that a contributor who |
29 | terminates his employment with the municipality after a |
30 | stipulated age or length of service, or both, may, if he so |
|
1 | elects in writing, leave his contributions, plus interest, as |
2 | credited to his account, in the fund, and, upon reaching |
3 | superannuation retirement age, receive a superannuation |
4 | retirement allowance and accumulated deductions would include |
5 | interest from date of termination until the earlier of the date |
6 | of commencement of the annuity or the date of payment of member |
7 | contributions. |
8 | (b) Upon the termination of the retirement plan, all |
9 | members, regardless of credited service, shall be deemed fully |
10 | vested in their accrued benefit to the extent the benefits |
11 | provided under the plan are funded as of the date of |
12 | termination. |
13 | Section 20. Section 412 of the act, amended May 17, 1980, |
14 | P.L.135, No.50), is amended to read: |
15 | Section 412. Withdrawal Provisions.--A municipality which |
16 | has joined the retirement system created or continued under this |
17 | Article IV may, for good and stated cause, file an application |
18 | with the board for permission to withdraw from the system if it |
19 | meets all of the following requirements: |
20 | (1) The municipality has been enrolled in the system for a |
21 | period of at least five years. |
22 | (2) The municipality has met all of its financial |
23 | obligations to the system. |
24 | (3) The legislative body of the municipality has passed an |
25 | ordinance or resolution signifying its intention to withdraw |
26 | from the system. |
27 | (4) The municipality has certified to the board that an |
28 | affirmative vote approving withdrawal from the system had been |
29 | obtained from at least seventy-five per cent of all of the |
30 | municipal employes affected by the ordinance or resolution. |
|
1 | The board shall within ninety days of its receipt, take |
2 | action on an application filed by a municipality for permission |
3 | to withdraw from the system. If the application is approved the |
4 | withdrawing municipality shall be entitled to receive a net |
5 | refund of the amounts then standing to the credit of the |
6 | municipality in the member's account, the member's excess |
7 | investment account, the municipal account, the subsidiary DROP |
8 | participant reserve account and the retired member's reserve |
9 | accounts of the system. In no event shall the total amount of |
10 | the net refund to the municipality exceed the pro rata interest |
11 | of the withdrawing municipality in the net assets of the entire |
12 | fund based on the market value of the investments of the fund as |
13 | of the date of receipt of the application for permission to |
14 | withdraw. The liability for the continuation of retirement or |
15 | disability allowances being paid from the fund shall attach |
16 | against the withdrawing municipality and be paid from funds |
17 | transferred to a retirement system established subsequent to its |
18 | withdrawal from the system or from moneys appropriated annually |
19 | from tax revenues sufficient to pay the same. If the board |
20 | disapproves the application of the municipality for permission |
21 | to withdraw from the system the board shall promptly notify the |
22 | municipality of its decision and advise the municipality of the |
23 | board's reason or reasons for disapproval. The board shall |
24 | establish rules and regulations, in accordance with the |
25 | provisions of clause (10) of section 104 of this act, governing |
26 | the details of the procedures to be followed in the withdrawal |
27 | of municipalities from the system. |
28 | Section 21. Repeals are as follows: | <-- |
29 | (1) The General Assembly declares that the repeal under |
30 | paragraph (2) is necessary to effectuate the addition of |
|
1 | section 110.1 of the act. |
2 | (2) Section 703-A(b) of the act of December 18, 1984 |
3 | (P.L.1005, No.205), known as the Municipal Pension Plan |
4 | Funding Standard and Recovery Act, is repealed. |
5 | Section 21 22. This act shall take effect immediately. | <-- |
|