PRINTER'S NO. 1841
No. 1519 Session of 1997
INTRODUCED BY PISTELLA, WALKO, THOMAS, McCALL, WOJNAROSKI,
HENNESSEY, SANTONI, OLASZ, PETRARCA, SERAFINI, TIGUE,
BELARDI, ITKIN, DeLUCA, BOSCOLA, SAINATO, VAN HORNE, DALEY,
SURRA, STABACK, A. H. WILLIAMS, TRELLO, JAMES, STEELMAN,
YOUNGBLOOD AND CURRY, MAY 15, 1997
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, MAY 15, 1997
AN ACT
1 Amending the act of December 14, 1988 (P.L.1192, No.147),
2 entitled "An act requiring municipal retirement systems to
3 pay special ad hoc postretirement adjustments to certain
4 retired police officers and firefighters; providing for the
5 financing of these adjustments; providing for the
6 administration of the Commonwealth's reimbursements for these
7 adjustments; and making repeals," extending the provisions of
8 the act to include survivors of police officers and
9 firefighters; and further providing for special ad hoc
10 postretirement adjustments to certain persons, for financing
11 and certification of payments and for Commonwealth
12 reimbursement.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Section 102 of the act of December 14, 1988
16 (P.L.1192, No.147), known as the Special Ad Hoc Municipal Police
17 and Firefighter Postretirement Adjustment Act, is amended by
18 adding a definition to read:
19 Section 102. Definitions.
20 The following words and phrases when used in this act shall
21 have the meanings given to them in this section unless the
1 context clearly indicates otherwise:
2 * * *
3 "Survivor." A person who is a widowed spouse of a police
4 officer or firefighter and who is receiving survivor benefits
5 from a public employee retirement system.
6 Section 2. Section 301 of the act is amended to read:
7 Section 301. Entitlement to special ad hoc adjustment.
8 A municipal retirement system shall pay a retired police
9 officer or firefighter or the survivor of a deceased police
10 officer or firefighter a special ad hoc municipal police and
11 firefighter postretirement adjustment under this chapter if all
12 of the following apply:
13 (1) [The retiree has terminated active] Active
14 employment with the municipality as a police officer or
15 firefighter has terminated by reason of retirement or death.
16 (2) The retiree or survivor is receiving a retirement
17 annuity, retirement benefit, service pension, survivor
18 benefit or disability pension benefit from a municipal
19 retirement system on the basis of active employment with a
20 municipality as a police officer or firefighter.
21 (3) The retiree or survivor began receiving the
22 retirement annuity, retirement benefit, service pension,
23 survivor benefit or disability pension benefit before January
24 1, [1985] 1992.
25 Section 3. Section 302 of the act, amended December 18, 1996
26 (P.L.993, No.152), is amended to read:
27 Section 302. Amount of special ad hoc adjustment.
28 (a) General rule.--Except as provided in subsections [(b)
29 and] (c) and (d), a municipal retirement system shall pay a
30 retired police officer or firefighter or their survivors a
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1 special ad hoc municipal police and firefighter postretirement
2 adjustment under section 301, as follows:
3 (1) The sum of $25 a month, if on January 1, [1989]
4 1996, the retiree has been retired at least five years but
5 less than ten years.
6 (2) The sum of $50 a month, if on January 1, [1989]
7 1996, the retiree is totally disabled and has been retired
8 less than ten years.
9 (3) The sum of $75 a month, if on January 1, [1989]
10 1996, the retiree has been retired at least ten years but
11 less than 20 years.
12 (4) The sum of $150 a month, if on January 1, [1989]
13 1996, the retiree has been retired at least 20 years.
14 (b) Retirement date.--In the case of a special ad hoc
15 postretirement adjustment payable to a survivor, the benefit
16 amounts shall be based on the date upon which the survivor began
17 receiving survivor benefits of the retiree.
18 [(b)] (c) Limitation.--If, under section 301, a retiree or
19 survivor is entitled to be paid a special ad hoc municipal
20 police and firefighter postretirement adjustment by more than
21 one municipal retirement system, the amount of the special ad
22 hoc adjustment under subsection (a) shall be reduced so that the
23 total of all these adjustments paid to the retiree or survivor
24 does not exceed the amount specified in subsection (a).
25 [(c)] (d) Modification in amount of postretirement
26 adjustment.--In a municipality where, as of the most recent
27 actuarial valuation prepared under the act of December 18, 1984
28 (P.L.1005, No.205), known as the Municipal Pension Plan Funding
29 Standard and Recovery Act, the actuarial value of aggregated
30 assets as a percentage of the aggregated actuarial accrued
19970H1519B1841 - 3 -
1 liabilities of the municipality's retirement systems is less
2 than 50%, if a retiree or survivor entitled to receive a special
3 ad hoc municipal police and firefighters postretirement
4 adjustment will receive a postretirement adjustment from the
5 applicable municipal police or paid firefighters retirement
6 system after the effective date of this act, the amount of the
7 special ad hoc postretirement adjustment under subsection (a)
8 shall be reduced by the total amount of any municipal
9 postretirement adjustment.
10 [(d)] (e) Construction.--Subsections [(b) and (c)] (c) and
11 (d) shall not be construed to reduce the amount of any
12 retirement annuity, retirement benefit, service pension [or],
13 disability pension benefit or survivor benefit payable to a
14 retiree or survivor immediately prior to the effective date of
15 this act.
16 Section 4. Sections 303, 502 and 702 of the act are amended
17 to read:
18 Section 303. Payment of special ad hoc adjustment.
19 (a) Payment of special ad hoc adjustment to retirees.--The
20 special ad hoc adjustment for retirees is effective on the date
21 of the first payment of the retiree's retirement annuity,
22 retirement benefit, service pension or disability pension
23 benefit due after December 31, [1988] 1995. The municipal
24 retirement system shall pay this as soon as practicable after
25 that and shall include in the first payment any omitted amount
26 payable between the effective date of the adjustment and the
27 date of the first payment.
28 (b) Payment of special ad hoc adjustment to survivors.--The
29 special ad hoc adjustment for survivors is effective on the date
30 of the first payment of the survivor's annuity, survivor's
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1 benefit or survivor's pension benefit due after December 31,
2 1996. The municipal retirement system shall pay this adjustment
3 as soon as practicable after that date and shall include in the
4 first payment any omitted amount payable between the effective
5 date of the adjustment and the date of the first payment.
6 Section 502. Reimbursement by Commonwealth.
7 (a) General rule.--Except as provided in subsection (b),
8 beginning January 1, [1990] 1997, the Commonwealth shall
9 reimburse a municipality, from the special account established
10 under section 701, for the actual special ad hoc adjustment paid
11 during the previous calendar year.
12 (b) Limitation.--The Commonwealth shall not reimburse any
13 municipality if the information required under section 901
14 either was not certified to the Auditor General or was certified
15 after April 1 of the year the certification was due.
16 Section 702. Deposits into special account.
17 Notwithstanding any applicable provision of the act of May
18 12, 1943 (P.L.259, No.120), referred to as the Foreign Casualty
19 Insurance Premium Tax Allocation Law, or any applicable
20 provisions of the act of March 4, 1971 (P.L.6, No.2), known as
21 the Tax Reform Code of 1971, or the provisions of sections
22 402(b) and 803(c) of the act of December 18, 1984 (P.L.1005,
23 No.205), known as the Municipal Pension Plan Funding Standard
24 and Recovery Act, beginning on January 1, 1990, prior to the
25 deposit of the proceeds of the insurance premium tax on foreign
26 casualty insurance premiums into the General Municipal Pension
27 System State Aid Program revenue account, an amount sufficient
28 to provide for the Commonwealth's reimbursement payments to
29 municipalities for special ad hoc adjustments [under this act]
30 provided to retirees under section 302 and any supplemental
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1 amount necessary in accordance with section 703(b) shall be
2 deposited in the separate account created under section 701.
3 Section 5. The act is amended by adding a section to read:
4 Section 703. Supplement from General Fund.
5 (a) Reimbursement amount.--An amount sufficient to reimburse
6 municipalities for special ad hoc adjustments provided to
7 survivors under section 302 in 1997 shall be paid from the
8 General Fund.
9 (b) Supplemental amounts.--Should the amount required to
10 reimburse municipalities for special ad hoc adjustments to
11 retirees under section 302 decrease after 1997, an amount from
12 the proceeds of the insurance premium tax on foreign casualty
13 insurance premiums that is equal to the lesser of the decrease
14 or of the amount necessary to reimburse municipalities for
15 provision of adjustments to survivors under section 302 shall be
16 deposited in the separate account created under section 701 and
17 shall be used to reimburse municipalities for special ad hoc
18 adjustments provided to survivors under section 302. If the
19 amount of this deposit is not sufficient to reimburse
20 municipalities for provision of adjustments to survivors under
21 section 302, the difference between the amount of this deposit
22 and the amount required shall be paid from the General Fund,
23 subject to appropriation by the General Assembly.
24 Section 6. Sections 901(a) and 902(a) of the act are amended
25 to read:
26 Section 901. Municipal retirement system certification of
27 adjustments paid.
28 (a) Certification.--Beginning January 1, [1989] 1996, the
29 chief administrative officer of a municipal retirement system
30 that pays a special ad hoc adjustment [in that year] shall
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1 certify the total of all adjustments paid during [that] each
2 year to the Auditor General not later than April 1 of the
3 following year. The adjustments paid to retirees and survivors
4 under section 302 shall be certified separately.
5 * * *
6 Section 902. Commonwealth disbursement of reimbursement
7 payment.
8 (a) Payment to account.--Not later than June 1 of the year
9 in which the form is due, the Auditor General shall certify to
10 the State Treasurer the amount to be deposited into the special
11 account created in section 701 and the amount to be paid from
12 the General Fund, subject to appropriation by the General
13 Assembly, and shall draw a warrant, payable to the treasurer of
14 the municipality, on the State Treasurer from the special
15 account created in section 701 for the amount certified under
16 section 901(a).
17 * * *
18 Section 7. This act shall take effect January 1, 1998.
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