1Amending the act of December 14, 1988 (P.L.1192, No.147),
2entitled "An act requiring municipal retirement systems to
3pay special ad hoc postretirement adjustments to certain
4retired police officers and firefighters; providing for the
5financing of these adjustments; providing for the
6administration of the Commonwealth's reimbursements for these
7adjustments; and making repeals," providing for a 2015
8special ad hoc municipal police and firefighter
9postretirement adjustment; and further providing for
10reimbursement by Commonwealth for special ad hoc adjustment,
11for municipal retirement system certification of adjustments
12paid and of reimbursable amounts, for Commonwealth
13disbursement of reimbursement payment and for municipal
14receipt of reimbursement payment.

15The General Assembly of the Commonwealth of Pennsylvania
16hereby enacts as follows:

17Section 1. The act of December 14, 1988 (P.L.1192, No.147),
18known as the Special Ad Hoc Municipal Police and Firefighter
19Postretirement Adjustment Act, is amended by adding a chapter to
20read:

21CHAPTER 4A

222015 SPECIAL AD HOC MUNICIPAL POLICE

23AND FIREFIGHTER POSTRETIREMENT ADJUSTMENT

1Section 4A01. Entitlement to 2015 special ad hoc postretirement
2adjustment.

3A municipal retirement system shall pay a retired police
4officer or firefighter a special ad hoc postretirement
5adjustment under this chapter if all of the following apply:

6(1) The retiree has terminated active employment with
7the municipality as a police officer or firefighter.

8(2) The retiree is receiving a retirement benefit from a
9municipal retirement system on the basis of active employment
10with the municipality as a police officer or firefighter.

11(3) The retiree began receiving the retirement benefit
12before January 1, 2010.

13Section 4A02. Amount of 2015 special ad hoc postretirement
14adjustment.

15(a) General rule.--Except as provided in subsections (b) and
16(c), a municipal retirement system shall pay a retired police
17officer or firefighter a monthly special ad hoc postretirement
18adjustment under section 4A01 that shall be calculated as
19follows:

20(1) The base adjustment shall be determined by
21multiplying 20¢ by the years of service and then multiplying
22that product by the years on retirement.

23(2) The longevity factor shall be determined as the sum
24of the products calculated by multiplying 0.025 by the years
25on retirement and 0.05 by the years on retirement in excess
26of 25 years, if any.

27(3) The longevity adjustment shall be determined by
28multiplying the base adjustment calculated under paragraph
29(1) by the longevity factor calculated under paragraph (2).

30(4) The special ad hoc postretirement adjustment payable

1under section 4A01 shall be the sum of the base adjustment
2calculated under paragraph (1) and the longevity adjustment
3calculated under paragraph (3).

4(b) Limitation.--If, under section 4A01, a retiree is
5entitled to be paid a special ad hoc postretirement adjustment
6by more than one municipal retirement system, the amount of the
7special ad hoc postretirement adjustment under subsection (a)
8shall be reduced so that the total of all these adjustments paid
9to the retiree does not exceed the amount specified in
10subsection (a).

11(c) Modification in amount of 2015 special ad hoc
12postretirement adjustment.--The amount of the special ad hoc
13postretirement adjustment calculated under subsection (a) shall
14be reduced annually by 65% of the total amount of any ad hoc or
15continuous postretirement adjustment provided to the retiree
16under the municipal retirement plan after January 1, 2004, and
17before December 31, 2014, and paid in the immediately preceding
18year. Lump sum payments to the retiree that do not constitute an
19ad hoc or continuous adjustment shall be excluded from this
20modification.

21Section 2. Sections 502.1, 901(a)(2), 902(b)(2) and 903(b)
22of the act, amended or added June 19, 2002 (P.L.434, No.64), are
23amended to read:

24Section 502.1. Reimbursement by Commonwealth for 2002 and 2015
25special ad hoc adjustment.

26(a) General rule.--

27(1) Except as provided in subsection (b), beginning in
28the year following the year in which the amortization
29contribution requirement attributable to a special ad hoc
30postretirement adjustment under Chapter 4 or 4A is first

1reflected in the financial requirements of the retirement
2system determined under Chapter 3 of the act of December 18,
31984 (P.L.1005, No.205), known as the Municipal Pension Plan
4Funding Standard and Recovery Act, the Auditor General shall
5determine the Commonwealth reimbursement payable to the
6municipality representing the amortization contribution
7requirement attributable to the special ad hoc postretirement
8adjustment under Chapter 4 or 4A that was paid with revenues
9of the municipality other than general municipal pension
10system State aid provided under the Municipal Pension Plan
11Funding Standard and Recovery Act.

12(2) The determination of the reimbursable amount of the
13amortization contribution requirement attributable to the
14special ad hoc postretirement adjustment under Chapter 4 or 
154A in any year shall be calculated as the amortization
16contribution requirement attributable to the special ad hoc
17postretirement adjustments under Chapter 4 or 4A and
18reflected in the determination of the financial requirements
19of the pension plan under Chapter 3 of the Municipal Pension
20Plan Funding Standard and Recovery Act for the immediate
21prior year less the product of that amortization contribution
22requirement multiplied by the ratio of the amount of general
23municipal pension system State aid allocated to the
24retirement system in the immediate prior year to the total
25amount of municipal contributions made to the retirement
26system from all sources other than employee contributions in
27the immediate prior year. Where a municipality has issued
28bonds or notes to fund an unfunded actuarial accrued
29liability under 53 Pa.C.S. Pt. V Subpt. B (relating to
30indebtedness and borrowing) or under other laws applicable to

1the municipality, the general municipal pension system State
2aid and municipal contributions used by the municipality to
3make debt service payments on the bonds or notes, or both,
4issued to fund an unfunded actuarial accrued liability shall
5be included in the calculation of the ratio applied to the
6amortization contribution requirement.

7(3) The Commonwealth shall reimburse a municipality,
8from the special account established under section 701, for
9the reimbursable amount determined for each year under this
10paragraph.

11(b) Limitation of eligibility.--

12(1) The Commonwealth shall not reimburse any
13municipality for a special ad hoc adjustment paid under
14Chapter 4 or 4A if the information required under section
15901(a)(2) either was not certified to the Auditor General or
16was certified after April 1 of the year the certification was
17due.

18(2) The Commonwealth shall not reimburse a municipality
19for the reimbursable amount of the amortization contribution
20requirement attributable to the special ad hoc postretirement
21adjustment under Chapter 4 or 4A if the municipality fails to
22submit a complete certification of the reimbursable amount of
23the amortization contribution requirement determined under
24subsection (a) to the Auditor General before April 1 of the
25year in which the reimbursement is payable.

26(c) Variable definition of amortization contribution
27requirement.--For purposes of this section, the term
28"amortization contribution requirement" shall have the meaning
29specified in this subsection as follows:

30(1) In a municipal pension plan with defined benefits

1for which the municipality determines the financial
2requirements of the pension plan under section 302 of the
3Municipal Pension Plan Funding Standard and Recovery Act, the
4term "amortization contribution requirement" shall mean the
5amortization contribution requirement attributable to the
6special ad hoc postretirement adjustments under Chapter 4 or 
74A that was reflected in the financial requirements of the
8pension plan determined for the immediate prior year.

9(2) In a municipal pension plan without defined benefits
10for which the municipality determines the financial
11requirements of the pension plan under section 303 of the
12Municipal Pension Plan Funding Standard and Recovery Act, the
13term "amortization contribution requirement" shall mean the
14sum of the payments made to the retirement system in the
15immediate prior year in order to provide the special ad hoc
16postretirement adjustments under Chapter 4 or 4A in that
17year.

18Section 901. Municipal retirement system certification of
19adjustments paid and of reimbursable amounts.

20(a) Certification.--

21* * *

22(2) Beginning in the year 2002, a municipality with a
23retirement system that pays a special ad hoc postretirement
24adjustment under Chapter 4 or 4A in a year shall certify its
25reimbursable amount under section 502.1(a) to the Auditor
26General not later than April 1 of the following year.

27* * *

28Section 902. Commonwealth disbursement of reimbursement
29payment.

30* * *

1(b) Disbursements.--

2* * *

3(2) Not later than the first business day of October of
4the year in which the certification form is due, the State
5Treasurer shall disburse the reimbursement payment for the
6postretirement adjustments under Chapter 4 or 4A out of the
7special account created in section 701.

8Section 903. Municipal receipt of reimbursement payment.

9* * *

10(b) 2002 or 2015 postretirement adjustment reimbursement.--
11Upon receipt of the reimbursement payment from the Commonwealth
12for the postretirement adjustments under Chapter 4 or 4A, the
13treasurer of the municipality shall deposit the reimbursement
14payment into the municipality's general fund.

15Section 3. The special ad hoc postretirement adjustment
16under section 4A01 of the act is effective on the date of the
17first retirement benefit made after January 1, 2015. If the
18special ad hoc postretirement adjustment under section 4A01 of
19the act is not included in the initial retirement benefit
20payment occurring after January 1, 2015, the special ad hoc
21postretirement adjustment shall be included as soon as
22practicable in the retirement benefit payment of the retiree,
23and the initial retirement benefit payment that includes the
24special ad hoc postretirement adjustment also shall include the
25total amount of the special ad hoc postretirement adjustments
26previously omitted from the retirement benefit payments made
27after January 1, 2015.

28Section 4. This act shall take effect immediately.