PRIOR PRINTER'S NOS. 642, 1360                PRINTER'S NO. 1451



No. 590 Session of 1971

           FOOR, MARCH 29, 1971

           JUNE 22, 1971

                                     AN ACT

     1  Providing for the creation, maintenance and operation of a
     2     county employes' retirement system, and imposing certain
     3     charges on counties and providing penalties.

     4     The General Assembly of the Commonwealth of Pennsylvania
     5  hereby enacts as follows:
     6     Section 1.  Short Title.--This act shall be known and may be
     7  cited as the "County Pension Law."
     8     Section 2.  Definitions.--As used in this act:
     9     (1)  "Board" means the County Retirement Board created by
    10  this act.
    11     (2)  "County employe" means any person, whether elected or
    12  appointed, who is employed by the county, the county institution
    13  district, in the county prison or in any other institution
    14  maintained by the county from county moneys, or who is employed
    15  by any county or State official and paid by such official from
    16  moneys appropriated by the county for such purpose, whose salary
    17  or compensation is paid in regular periodic installments or from
    18  fees collected by his office, but shall not, except as hereafter

     1  provided, include any person paid on a per diem basis, nor shall
     2  it include any person to the extent that the total of the salary
     3  and fees exceed the highest salary paid to any elected county
     4  official.
     5     (3)  "Fund" means the County Employes' Retirement Fund
     6  created by this act.
     7     (4)  "Accumulated deductions" means the total of the amounts
     8  deducted from the salary of a contributor and paid into the fund
     9  and standing to the credit of the members' annuity reserve
    10  account, together with the regular interest thereon.
    11     (5)  "Contributor" means any person who has accumulated
    12  deductions in the fund standing to the credit of the members'
    13  annuity reserve account.
    14     (6)  "Retiree" means any person in receipt of a retirement
    15  allowance under this act.
    16     (7)  "Prior service" means all service as a county employe
    17  served not later than December thirty-first, preceding the year
    18  the retirement system shall be established in any county.
    19     (8)  "Original member" means a member who was a county
    20  employe on the date of establishment of the retirement system in
    21  the county.
    22     (9)  "New member" means a member who shall have become a
    23  member of the retirement system after the establishment of the
    24  retirement system in said county.
    25     (10)  "Superannuation retirement age" means sixty years of
    26  age or upwards, except as applied to a contributor who has
    27  completed twenty years of total service, in which case
    28  superannuation retirement age means fifty-five years of age or
    29  upwards.
    30     (11)  "Final salary" means the average annual salary received
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     1  by the contributor for the three highest years of service in the
     2  employment of the county, or in the event a member has not
     3  served three FIVE years, the total salary received divided by     <--
     4  the number of years served.
     5     (12)  "Regular interest" means interest at the rate of four
     6  per cent compounded annually.
     7     (13)  "County annuity" means payments for life or during
     8  disability derived from contributions made by the county.
     9     (14)  "Member's annuity" means payments for life or during
    10  disability derived from contributions made by the contributor.
    11     (15)  "Retirement allowance" means the county annuity plus
    12  the member's annuity.
    13     (16)  "Vesting" means the right of a contributor who
    14  separates from service after having completed eight or more
    15  years of credited service to leave accumulated deductions
    16  credited to his account in the fund and upon reaching
    17  superannuation retirement age receive a superannuation
    18  retirement allowance.
    19     Section 3.  Applicability.--The provisions of this act shall
    20  apply to each county of the second class A, third class, fourth
    21  class, fifth class, sixth class, seventh class and eighth class
    22  which has or hereafter may establish a county employes'
    23  retirement system.
    24     Section 4.  County Retirement System; County Retirement
    25  Board.--(a) A retirement system may be established for county
    26  employes by resolution of the county commissioners in any county
    27  of the second class A, third class, fourth class, fifth class,
    28  sixth class, seventh class and eighth class. The retirement
    29  system shall be established on the first Monday of January of
    30  the year succeeding the one in which the resolution of the
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     1  county commissioners was adopted.
     2     (b)  The system, when established, shall be administered by a
     3  county retirement board, consisting of five members, three of
     4  whom shall be the county commissioners, the county controller
     5  and the county treasurer. In counties having no elected county
     6  controller, the chief clerk of the county shall be a member of
     7  the board. The chairman of the board of county commissioners
     8  shall be chairman of the board. Each member of the board shall
     9  take an oath of office that he will diligently and honestly
    10  administer the affairs of the board, and that he will not
    11  knowingly violate or permit to be violated any of the provisions
    12  of this act. Such oath shall be subscribed by the member taking
    13  it, and shall be filed among the records of the board. The
    14  members of the board shall not receive any compensation for
    15  their services, but shall be reimbursed for all expenses
    16  necessarily incurred in the performance of their duty. Three
    17  members of the board shall constitute a quorum.
    18     Section 5.  Personnel; Administrative Expenses.--The board
    19  may appoint and fix the compensation of an actuary. The county
    20  controller or the chief clerk of the county, as the case may be,
    21  shall be the secretary of the board. In counties having an
    22  optional form of government, the board shall appoint a
    23  secretary. The compensation of the secretary shall be fixed by
    24  the salary board or council, as the case may be. The secretary
    25  shall keep a record of all of the proceedings of the board,
    26  which record shall be open to inspection by the public.
    27     The expense of the administration of this act, exclusive of
    28  the payment of retirement allowances, shall be paid by the
    29  county by appropriations made on the basis of estimates
    30  submitted by the board.
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     1     Section 6.  Rules and Regulations; Actuarial Data.--The board
     2  shall, from time to time, establish such rules and regulations
     3  for meetings of the board and for the administration of the
     4  fund, and the various accounts thereof, as may be deemed
     5  necessary. It shall keep such data as shall be necessary for
     6  actuarial valuation purposes. The actuary of the board shall (i)
     7  periodically make an actuarial investigation into the mortality
     8  and service experience of the contributors to and beneficiaries
     9  of the fund, (ii) adopt for the retirement system one or more
    10  mortality tables, and (iii) certify to the board annually the
    11  amount of appropriation to be made by the county to the fund to
    12  build up and maintain adequate reserves for the payment of the
    13  county's share of the retirement allowances.
    14     Section 7.  County Employes' Retirement Fund; Transfers
    15  Between Classes.--There is hereby created in each county of the
    16  second class A, third class, fourth class, fifth class, sixth
    17  class, seventh class, and eighth class, in which a retirement
    18  system has been established, a County Employes' Retirement Fund
    19  which shall consist of all moneys arising from appropriations
    20  made by the county and from contributions made by the members of
    21  the County Employes' Retirement System and all interest earned
    22  by the investments of moneys of the fund. The moneys contributed
    23  by the county shall be credited to a county annuity reserve
    24  account; and, those contributed by the members shall be credited
    25  to a member's annuity reserve account. Upon the granting of a
    26  retirement allowance to any contributor, whether as a
    27  superannuation retirement allowance, an involuntary retirement
    28  allowance or a total disability retirement allowance, the amount
    29  of the contributor's accumulated deductions in the members'
    30  annuity reserve account shall lose their status as accumulated
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     1  contributions and shall be transferred to a retired members'
     2  reserve account. Regular interest shall be credited up to the
     3  date of retirement, death or withdrawal, to the members' annuity
     4  and county annuity and retired members' reserve accounts. Where
     5  a contributor separates from county service with vesting,
     6  regular interest shall be credited to all accumulated deductions
     7  credited to his account in the fund to the date on which he
     8  attains his superannuation retirement age. The actuary shall
     9  determine the present value of the liability on account of all
    10  county annuities payable to original members and the percentage
    11  of such liability which shall be contributed by the county each
    12  year over a period of fifteen years from the time the system is
    13  established until the accumulated reserve equals the present
    14  value of said liability. All such contributions shall be
    15  credited to the county annuity reserve account. The actuary
    16  shall also determine the amount which shall be contributed by
    17  the county into the fund periodically for credit to the county
    18  annuity reserve account on account of service of all new and
    19  original members subsequent to the time the retirement system is
    20  established.
    21     Each member of the retirement system shall be required to
    22  contribute to the fund such per cent of his salary determined as
    23  follows:
    24     (1)  Class 1-120                5%
    25     (2)  Class 1-100                6%
    26     (3)  Class 1-80                 7%
    27     (4)  Class 1-70                 8%
    28     (5)  Class 1-60                 9%
    29  Each member may elect to contribute an additional amount not
    30  exceeding ten per cent more than the percentage herein required.
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     1  The contributions shall be paid into the fund through payroll
     2  deductions in such manner as the board may require. All
     3  contributions including optional additional payments by members
     4  shall be credited to the members' annuity reserve account.
     5     The board may at any time, by rule, authorize members of the
     6  retirement system, whether original or new members, to transfer
     7  from the one-one hundred twentieth class, or from the one-one
     8  hundredth class, to the one-eightieth class, to the one-
     9  seventieth class, or to the one-sixtieth class. Whenever such
    10  transfers are authorized, salary deductions applicable to the
    11  transferred members shall be based upon the per cent of salary
    12  deduction applicable while in each class.
    13     Section 8.  Custody of Fund; Payments.--All moneys and
    14  securities in the fund shall be placed in the custody of the
    15  county treasurer for safekeeping; and, all payments from the
    16  fund shall be made only on requisition signed by the chairman
    17  and secretary of the board.
    18     Section 9.  Management and Investment of Fund.--The members
    19  of the board shall be trustees of the fund, and shall have
    20  exclusive management of the fund with full power to invest the
    21  moneys therein subject to the terms, conditions, limitations and
    22  restrictions imposed by law upon fiduciaries. Subject to like
    23  terms, conditions, limitations and restrictions, the trustees
    24  shall have power to hold, purchase, sell, assign, transfer or
    25  dispose of any of the securities and investments in the funds,
    26  as well as the proceeds of investments and of the moneys
    27  belonging to the fund.
    28     The board shall annually allow regular interest on the mean
    29  amount for the preceding year to the credit of each of the
    30  accounts. The amount so allowed shall be credited to each
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     1  contributor's account.
     2     Section 10.  Compulsory Membership.--Each county officer may
     3  and all other county employes shall be required to become a
     4  member of the retirement system established by this act at the
     5  date specified in the resolution establishing the retirement
     6  system, and thereafter when first becoming a county employe.
     7  Those becoming members who have been at any time county employes
     8  prior to the first Monday of January of the year the retirement
     9  system is established shall be known as original members; and,
    10  those becoming members after that date as new members. Any
    11  person who becomes a county employe subsequent to the time the
    12  system was established, and who has been an employe of the
    13  county at any time theretofore, shall receive credit for the
    14  service prior to the time the system was established, and shall
    15  be known as an original member if he shall contribute to the
    16  fund the amount which he would have contributed if the
    17  retirement system had been in effect during such previous
    18  employment; in which event, the county shall contribute for each
    19  employe the amount which it would have contributed if the
    20  retirement system had been in effect during such previous
    21  employment.
    22     Section 11.  County Guarantee; Annual Budgets.--The regular
    23  interest charges payable, the creation and maintenance of the
    24  necessary reserves for the payment of the county and members'
    25  annuities in accordance with this act, and the additional
    26  retirement benefits, are hereby made obligations of the county.
    27  The board shall prepare and submit to the county commissioners,
    28  on or before the first day of November of each year, an itemized
    29  estimate of the amounts necessary to be appropriated by the
    30  county to complete the payment of the obligations of the county
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     1  during the next fiscal year.
     2     Section 12.  Service Allowance.--In computing the length of
     3  service of a contributor for retirement purposes, full credit
     4  shall be given to each original member for each year of service
     5  rendered to the county prior to January first of the year the
     6  retirement system was established. This shall include the
     7  services of a county official whose compensation was in the form
     8  of fees collected by his office, and shall also include the
     9  services of employes paid directly by such county official out
    10  of such fees. Full credit shall also be given for each year of
    11  service of a contributor who was a per diem employe of the
    12  county for a period of at least five years prior to the time the
    13  system became effective and who averaged at least two hundred
    14  days of employment in each of such years. As soon as
    15  practicable, the board shall issue to each original member a
    16  certificate certifying the aggregate length of his service prior
    17  to January first of the year the retirement system was
    18  established. Such certificate shall be final and conclusive as
    19  to his prior service, unless thereafter modified by the board
    20  upon application of the member. The board may also give credit
    21  to any person who was a county employe for each year that he was
    22  employed for at least two hundred days per year on a per diem
    23  basis for the purpose of the computation of his retirement
    24  credit upon payment by the employe of the amount which the board
    25  determines should have been his contribution during such period.
    26  Such payment may be made in installments over a period fixed by
    27  the board. The time during which a member is absent from service
    28  without pay may be counted in computing the service of a
    29  contributor, if allowed by the county commissioners and approved
    30  by the board and if the employe pays both his personal
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     1  contribution and the county's contribution into the fund based
     2  upon the contributions made the year immediately preceding the
     3  leave of absence.
     4     Section 13.  Credit for Military Service; Payments into Fund;
     5  Reimbursement.--Any county employe who, on or after September
     6  16, 1940 has been employed by the county for a period of six
     7  months and who, on or subsequent to such date, shall have
     8  enlisted or been inducted into the military service of the
     9  United States in time of war, armed conflict or national
    10  emergency, so proclaimed by the President or the Congress of the
    11  United States, shall have credited to his employment record, for
    12  retirement benefits, all of the time spent by him in such
    13  military service during the continuance of such war, armed
    14  conflict or national emergency; and, such payments as were
    15  heretofore or shall hereafter be required to be made during such
    16  period by such county employe into the fund shall be paid into
    17  the fund by the county. Any employes who have made payments into
    18  the fund for which payments the county is liable shall be
    19  reimbursed by the county to the full extent of such payments, or
    20  be given credit towards future employe payments.
    21     Section 14.  Superannuation Retirement Allowance.--(a) Any
    22  contributor who has reached superannuation retirement age may
    23  retire for superannuation by filing with the board a written
    24  statement duly signed by the contributor setting forth at what
    25  time he desires to be retired. The application shall retire the
    26  contributor at the time so specified.
    27     (b)  On retirement for superannuation, a retiree shall
    28  receive a retirement allowance which shall consist of: (i) a
    29  member's annuity which shall be the actuarial equivalent of his
    30  accumulated deductions standing to his credits in the members'
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     1  annuity reserve account, and (ii) a county annuity equal to one-
     2  one hundred twentieth of his final salary multiplied by each
     3  year of total service, and, in addition thereto in the case of
     4  an original member, one-one hundred twentieth of his final
     5  salary multiplied by each year of prior service. At any time the
     6  board by rule may, by increasing the county annuity, authorize
     7  the payment of a minimum retirement allowance of one hundred
     8  dollars ($100) per month to every beneficiary who shall thereby
     9  retire for superannuation after twenty years service.
    10     (c)  Whenever the board has by rule authorized the members of
    11  the retirement system to transfer from the one-one hundred
    12  twentieth class to the one-one hundredth class, or whenever the
    13  board shall hereafter by rule authorize the transfer to the one-
    14  eightieth class, to the one-seventieth class or the one-sixtieth
    15  class, the county annuity shall be calculated as follows:
    16     (1)  For service prior to the time of transfer, at the one-
    17  one hundred twentieth rate, the one-one hundredth rate, the one-
    18  eightieth rate, the one-seventieth rate or the one-sixtieth rate
    19  as the case may be.
    20     (2)  For service subsequent to the time of transfer to the
    21  time of retirement, or to the time of a subsequent transfer, at
    22  the rate applicable during such period.
    23     (3)  For all service prior to the time of commencing
    24  contribution, as the time he contributed at the one-one hundred
    25  twentieth rate bears to the total time of contribution and as
    26  the time he contributed at any other rate herein provided for
    27  bears to the total time of contribution.
    28     Section 15.  Options on Superannuation Retirement.--At the
    29  time of his superannuation retirement, any retiree may elect to
    30  receive either his retirement allowance payable throughout life,
    19710H0590B1451                 - 11 -

     1  or to receive the full amount of the accumulated deductions
     2  standing to his individual credit in the members' annuity
     3  reserve account at the time of his voluntary or involuntary
     4  retirement, or he may in any event elect to receive the
     5  actuarial equivalent of his member's and county annuity in a
     6  lesser retirement allowance payable throughout life with
     7  provisions that:
     8     (1)  Option One.  If he dies before receiving in payments the
     9  present value of his member's annuity and county annuity as it
    10  was at the time of his retirement, the balance shall be paid to
    11  his legal representative or to a person or persons having an
    12  insurable interest in his life, as he shall nominate by written
    13  designation, duly acknowledged and filed with the board at the
    14  time of his retirement or at any time thereafter.
    15     (2)  Option Two.  Upon his death his member's annuity and
    16  county annuity shall be continued through the life of and paid
    17  to such person having an insurable interest in his life as he
    18  shall nominate by written designation, duly acknowledged and
    19  filed with the board at the time of his retirement.
    20     (3)  Option Three.  Upon his death one-half of his member's
    21  and county annuity shall be continued through the life of and
    22  paid to such person having an insurable interest in his life as
    23  he shall nominate by written designation, duly acknowledged and
    24  filed with the board at the time of his retirement.
    25     Should a retiree select a retirement allowance payable
    26  throughout his life and fail to receive payments at least equal
    27  to his accumulated deductions as of the date of retirement, an
    28  amount equal to the balance of his accumulated deductions shall
    29  be paid to his legal representative or to a person having an
    30  insurable interest in his life, as he shall nominate by written
    19710H0590B1451                 - 12 -

     1  designation filed with the board.
     2     Section 16.  Involuntary Retirement Allowance; Voluntary
     3  Retirement Allowance after Twenty Years of Service.--Should a
     4  contributor be discontinued from service not voluntarily, or an
     5  elected county officer complete his term of office and
     6  discontinue service after having completed eight years of total
     7  service, or voluntarily after having completed twenty years of
     8  total service but before reaching superannuation retirement age,
     9  except as herein provided for certain contributors who have
    10  completed twenty years of total service, he shall be paid as he
    11  may elect, as follows:
    12     (1)  The full amount of the accumulated deduction standing to
    13  his credit in the members' annuity reserve account; or
    14     (2)  A member's annuity of equivalent actuarial value to his
    15  accumulated deductions standing to his credit in the members'
    16  annuity reserve account, and, in addition, a county annuity
    17  which is the actuarial equivalent of a county annuity beginning
    18  at superannuation retirement age but based on the period of
    19  service up to the date of discontinuance from service and not on
    20  the period of service required to reach superannuation
    21  retirement age. The same options shall be available to retirees
    22  in case of involuntary retirement as provided herein in the case
    23  of superannuation retirement. In the event a contributor, after
    24  having completed eight or more years of total service,
    25  heretofore has or hereafter shall be discontinued from service
    26  because of appointment or election to a position incompatible
    27  with his service as a county employe or officer and such employe
    28  or officer has not reached the superannuation retirement age,
    29  such withdrawal shall be considered involuntary and the
    30  contributions of the contributor and the county, at the option
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     1  of the employe or officer, shall remain in the fund until
     2  superannuation age has been reached. In the event a refund of
     3  accumulated contributions has been made and the county's
     4  accumulated contributions have been withdrawn under the above
     5  circumstances, the employe or officer shall be permitted to
     6  repay into and the county shall be required to reimburse the
     7  fund the amounts paid out, with interest to the date of
     8  repayment, thereby reestablishing the rights of the contributor
     9  in said fund even though superannuation retirement age has been
    10  reached and benefits shall be paid as if the original severance
    11  had been involuntary.
    12     Any contributor who has completed twenty years of total
    13  service and who has reached the superannuation retirement age
    14  shall be entitled to the superannuation retirement allowance
    15  provided in section 14.
    16     Section 17.  Retirement as of Time of Death.--Any contributor
    17  who would be entitled to a retirement allowance because of being
    18  involuntarily retired after having completed ten years of total
    19  service, or by reason of having reached superannuation
    20  retirement age may file with the board a written application for
    21  retirement in the form required for such application, but
    22  requesting that such retirement shall become effective as of the
    23  time of his death, electing Option One or Option Two provided in
    24  section 15 and nominating a beneficiary under the option.
    25     In all such cases, the application shall be held by the board
    26  until the contributor shall file a later application in the
    27  usual manner for retirement, or until the death of the
    28  contributor occurring while in county service at which time his
    29  retirement shall become effective with the same benefits to the
    30  designated beneficiary as if the contributor had retired on the
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     1  day of death.
     2     Section 18.  Retirement While in County Service.--Any
     3  contributor who is or was entitled to a retirement allowance
     4  because of being involuntarily retired after having completed
     5  ten years of total service or by reason of having reached
     6  superannuation retirement age and who shall die while in county
     7  service before filing with the board a written application for
     8  retirement, or has died and whose payments into the fund have
     9  not been withdrawn, shall be considered as having elected Option
    10  One as of the date of his death. In such event, payment under
    11  Option One shall be made to the beneficiary designated in the
    12  nomination of beneficiary form on file with the board. If the
    13  beneficiary has predeceased the contributor, payment under
    14  Option One shall be made to the legal representative of the
    15  contributor.
    16     Section 19.  Additional Retirement Benefits.--In addition to
    17  the retirement allowance, the board may grant to retired
    18  employes insurance or other similar benefits that the county has
    19  granted to other county employes.
    20     Section 20.  Total Disability Retirement Allowance.--If a
    21  contributor after five years of service as a county employe and
    22  before reaching superannuation retirement age is disabled while
    23  in service and is unable to continue as a county employe, as
    24  shown by medical examination, he shall be paid a retirement
    25  allowance consisting of a county annuity of twenty-five per cent
    26  of his final salary which shall include the member's annuity
    27  calculated in accordance with section 14.
    28     Section 21.  Payment of Balances Where Disability Annuitant
    29  Dies.--Should a person receiving a disability retirement
    30  allowance die before receiving total payments equal to the
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     1  amount standing to his credit in the members' annuity reserve
     2  account at the time of retirement, there shall be paid to his
     3  estate or beneficiary the difference between such credit and the
     4  total payments received.
     5     Section 22.  Monthly Payments of Retirement Allowances.--The
     6  retirement allowances granted under the provisions of this act
     7  shall be paid in equal monthly installments and shall not be
     8  increased, decreased, revoked or repealed, except as otherwise
     9  provided in this act. This section shall not be construed to
    10  prohibit the board from granting to retired employes insurance
    11  or other similar benefits granted to other county employes.
    12     Section 23.  Refunds.--(a) Where a contributor terminates
    13  service before qualifying for a retirement allowance or where a
    14  contributor has died before completing ten years of total
    15  service, the amount standing to the credit of the contributor in
    16  the members' annuity reserve account shall be paid to him or his
    17  estate or to the person or persons named in any beneficiary
    18  certificate filed by the contributor with the board. When a
    19  contributor or a beneficiary has died and there shall be due to
    20  the estate of such contributor or beneficiary a sum less than
    21  one hundred dollars ($100), and letters testamentary or of
    22  administration have not been taken out on the estate of such
    23  contributor or beneficiary within six months of death, the board
    24  may pay the amount due on the claim of the undertaker or to any
    25  person or persons or political subdivision who or which shall
    26  have paid the claim of the undertaker.
    27     (b)  Where a contributor terminates service after completing
    28  eight years of service, he may elect to have the board pay to
    29  him the amount standing to his credit in the members' annuity
    30  reserve account or, elect vesting and keep his accumulated
    19710H0590B1451                 - 16 -

     1  deductions in the members' annuity reserve account and apply for
     2  retirement benefits upon reaching superannuation retirement age.
     3     Section 24.  Simultaneous Payments of Salary and Retirement
     4  Allowance.--Should a retiree receiving a retirement allowance be
     5  reemployed by the county as a salaried employe or as an elected
     6  official, the retirement allowance of such person shall
     7  immediately cease. Such person shall thereupon be reinstated as
     8  a contributor; and, there shall be restored to his credit as
     9  accumulated deductions the actuarial value of his member's
    10  annuity computed as of the date of his reemployment. Should he
    11  refuse to surrender his right to retirement allowance as of the
    12  date of his reemployment, it shall be unlawful for the county to
    13  reemploy him. For the purposes of this section if a person
    14  serves as a juror, master, or arbitrator or is employed on a per
    15  diem basis for thirty days or less per year he shall not be
    16  deemed reemployed, but if employed on a per diem basis for more
    17  than thirty days a year the retirement allowance shall cease
    18  during the additional service.
    19     Section 25.  Subsequent Admissions to Retirement System.--Any
    20  county officer whose term of office began after the
    21  establishment of the retirement system and who did not become a
    22  member of the retirement system when his term of office began,
    23  shall be permitted to become a member of the retirement system
    24  at any time and shall receive a retirement allowance based upon
    25  service as a county employe rendered after such date of
    26  membership; however, if membership is consummated within one
    27  year from the beginning of such term of office and such sums as
    28  would have been deducted from his salary had he become a member
    29  at the time of the commencement of such term of office shall
    30  have been paid into the retirement system, he shall thereupon
    19710H0590B1451                 - 17 -

     1  become entitled to all the rights and privileges in the
     2  retirement system as would have been vested in him had he become
     3  a member and contributor at the time his term of office began.
     4     Any county officer who has not become a member of the
     5  retirement system but who was employed as an elected officer
     6  prior to January first of the year that the retirement system
     7  was established and who held such office at the time that the
     8  retirement system was established and has continuously held such
     9  office, shall be permitted to become a member of the retirement
    10  system, shall be known as an original member, and shall receive
    11  full credit for each year of service rendered by him prior to
    12  January first of the year the retirement system was established
    13  and for each year of service rendered by him thereafter, if such
    14  county officer shall contribute to the fund the amount which he
    15  would have contributed if he had become a member of the
    16  retirement system when it was established; in which event, the
    17  county shall contribute to his credit in the fund the amount it
    18  would have contributed if he had become a member of the
    19  retirement system when it was established; and, he shall
    20  thereupon become entitled to all the rights and privileges in
    21  the retirement system as would have vested in him had he become
    22  a member and contributor at the time the retirement system was
    23  established.
    24     Section 26.  Reinstatement on Return to County Employment.--
    25  Any contributor separated from county employment by dismissal,
    26  resignation, or any other reason, except retirement, or any
    27  county officer having legally withdrawn from the retirement
    28  system, who returns to county employment and restores to the
    29  fund to the credit of the members' annuity reserve account his
    30  accumulated deductions as they were at the time of separation,
    19710H0590B1451                 - 18 -

     1  shall have the annuity rights forfeited by him restored.
     2  Payments may be made either in a lump sum or by installments;
     3  but, in no event shall the installments be less than sufficient
     4  to pay such amount by the time the member attains superannuation
     5  retirement age.
     6     Section 27.  Exemption from Taxation and Execution, Etc.--The
     7  right to a member's annuity, or a county annuity, or to the
     8  return of contributions, shall be exempt from any State or
     9  municipal tax and from levy, sale, garnishment, attachment or
    10  any other process whatsoever and shall be unassignable, except
    11  for any indebtedness due the county or the institution district
    12  arising out of embezzlement or fraudulent conversion by a member
    13  of the fund against the respective county or the institution
    14  district of which the same member is employed.
    15     Section 28.  Fraud; Correction of Errors.--Any person who
    16  shall knowingly make any false statement, or shall falsify or
    17  permit to be falsified, any record or records of the retirement
    18  system herein established in any attempt to defraud such system,
    19  shall be guilty of a misdemeanor, and, upon conviction thereof,
    20  shall be sentenced to pay a fine not exceeding one thousand
    21  dollars ($1,000), or undergo imprisonment not exceeding one
    22  year, or both.
    23     Should any such change in records fraudulently made, or any
    24  mistake in records inadvertently made, result in any contributor
    25  or beneficiary receiving more or less than he would have been
    26  entitled to had the records been correct, on the discovery of
    27  the error, the board shall correct the error, and shall adjust
    28  the payments which shall be made to the contributor or annuitant
    29  in such manner that the actuarial equivalent of the benefit to
    30  which he was correctly entitled shall be paid.
    19710H0590B1451                 - 19 -

     1     Section 29.  Designation of Deposit Administrator.--The board
     2  shall be permitted to contract with any insurance company which
     3  has qualified and is authorized by the Insurance Department of
     4  the Commonwealth of Pennsylvania to transact business in the
     5  Commonwealth of Pennsylvania, or with any bank or trust company
     6  approved by the Department of Banking of the Commonwealth of
     7  Pennsylvania, to be designated as a deposit administrator. The
     8  deposit administrator may be given the power to administer the
     9  funds in its entirety, including the power to receive and invest
    10  all moneys deposited in the fund and such other powers as are
    11  vested in the board. In addition to the options provided in the
    12  act upon retirement, disability withdrawal or death of a
    13  contributor, the deposit administrator, if an insurance company,
    14  may provide additional options to the contributors or
    15  beneficiaries.
    16     Section 30.  Supplemental Benefits.--(a) Every member who is
    17  in receipt of a member's annuity shall receive annually a cost-
    18  of-living increase which shall be the product of the retirement
    19  allowance determined at the time of retirement and prior to
    20  optional modification or minimum allowance and the following
    21  percentages as determined by the calendar year in which
    22  retirement became effective:

    19710H0590B1451                 - 20 -

     1     Year of        Percentage     Year of        Percentage
     2    Retirement        Factor      Retirement        Factor
     3      1938             136%         1953              23%
     4      1939             135%         1954              23%
     5      1940             134%         1955              22%
     6      1941             122%         1956              20%
     7      1942             100%         1957              16%
     8      1943              89%         1958              14%
     9      1944              86%         1959              12%
    10      1945              82%         1960              10%
    11      1946              68%         1961               9%
    12      1947              47%         1962               8%
    13      1948              37%         1963               7%
    14      1949              37%         1964               6%
    15      1950              36%         1965               4%
    16      1951              26%         1966               1%
    17      1952              24%
    18     (b)  The cost-of-living increase shall be reviewed at least
    19  once in every three years by the board which may adjust the
    20  percentages in accordance with cost-of-living index at the time
    21  of review.
    22     Section 31.  Saving Clause.--(a) This act shall not impair or
    23  affect any act done, offense committed, or right accruing,
    24  accrued, or acquired, or liability, duty, obligation, penalty,
    25  judgment or punishment incurred under the provisions of any
    26  prior act providing for the creation, maintenance and operation
    27  of a county employes' retirement system.
    28     (b)  The provisions of all acts which are repealed by this
    29  act shall be considered as remaining continuously in force so
    30  far as concerns all rights vested and accrued, and liabilities,
    19710H0590B1451                 - 21 -

     1  duties and obligations incurred under such provisions before the
     2  effective date of this act.
     3     Section 32.  Repeals.--The following acts and parts of acts
     4  are repealed absolutely:
     5     (1)  The act of June 4, 1937 (P.L.1625), entitled "An act
     6  providing for the creation, maintenance and operation of a
     7  county employes retirement system in counties of the third
     8  class; and imposing certain charges on counties."
     9     (2)  The act of July 8, 1941 (P.L.298), known as the "Fourth
    10  Class County Retirement Law."
    11     (3)  The act of August 5, 1941 (P.L.803), entitled, as
    12  amended, "An act providing for the creation, maintenance and
    13  operation of a county employes' retirement system in counties of
    14  the fifth, sixth, seventh and eighth class; imposing certain
    15  charges on counties, and prescribing penalties."
    16     (4)  Section 1717, act of July 28, 1953 (P.L.723), known as
    17  the "Second Class County Code."
    18     Section 33.  Effective Date.--This act shall take effect
    19  immediately.

    C16L47JR/19710H0590B1451        - 22 -