PRINTER'S NO. 2894
No. 2123 Session of 1986
INTRODUCED BY MOWERY AND A. C. FOSTER, JR., FEBRUARY 11, 1986
REFERRED TO COMMITTEE ON URBAN AFFAIRS, FEBRUARY 11, 1986
AN ACT 1 Amending the act of August 1, 1975 (P.L.169, No.87), entitled 2 "An act relating to pensions for employees of the City of 3 Pittsburgh," further providing for the contribution rate of 4 members and contributions by the city; and requiring the 5 board to retain an actuary. 6 The General Assembly of the Commonwealth of Pennsylvania 7 hereby enacts as follows: 8 Section 1. The definition of "contribution rate" in section 9 1 of the act of August 1, 1975 (P.L.169, No.87), entitled "An 10 act relating to pensions for employees of the City of 11 Pittsburgh," is amended to read: 12 Section 1. Definitions.--The following terms shall have the 13 following respective meanings for the purposes of this act, 14 unless a different meaning is plainly required by the context. 15 * * * 16 "Contribution rate." [Five percent.] Except to the extent 17 that section 607(c) of the act of December 18, 1984 (P.L.1005, 18 No.205), known as the "Municipal Pension Plan Funding Standard 19 and Recovery Act," applies, five percent of salary or wages.
1 * * * 2 Section 2. Sections 2(e), 4(a), (b), (e) and (i) and 5 of 3 the act are amended to read: 4 Section 2. Administration.--* * * 5 (e) The members of the board may rely upon tables, 6 valuations and reports furnished by qualified professional 7 consultants. The board shall retain an approved actuary within 8 the meaning of that term pursuant to the act of December 18, 9 1984 (P.L.1005, No.205), known as the "Municipal Pension Plan 10 Funding Standard and Recovery Act," who shall assist the chief 11 administrative officer of the pension plan and of the city in 12 the preparation of actuarial valuation reports pursuant to that 13 act. 14 * * * 15 Section 4. Contributions by Members.--(a) Each member of 16 the fund who is making contributions hereunder on December 31, 17 1974, and each employee who becomes a member on or after January 18 1, 1975, shall contribute to the fund [5% of] an amount equal to 19 the contribution rate applied to his salary or wages. 20 (b) Any member who retires subsequent to January 1, 1975 but 21 prior to January 1, 1980 may elect to increase his average 22 monthly earnings by contributing [5% of] an amount equal to the 23 contribution rate applied to earnings in excess of $650 per 24 month for up to 36 months of service rendered prior to the 25 effective date of this act. 26 * * * 27 (e) Each person who becomes an employee of the city after 28 having been employed by the city in the bureau of fire or the 29 bureau of police, and who is not entitled to retirement benefits 30 for such service under another retirement system and who desires 19860H2123B2894 - 2 -
1 to have such service credited in the fund, shall be required to 2 pay to the fund an amount equal to [5% of] the contribution rate 3 applied to the total salary or wages received by him for each 4 month of service for which he wishes to receive credit together 5 with interest at the rate earned by the fund during the period 6 of such employment. Such amount shall be deducted from the 7 monthly salary or wages of the member over a period of two years 8 or in such manner and period as the board may determine. Upon 9 full payment of the amount due the member shall receive credit 10 for said period of service. If any member shall be injured while 11 in the actual performance of duty before he shall have made full 12 contribution for past service, so long as the disability 13 continues, he shall be eligible for pension under this act, but 14 any amount which he shall not yet have paid to the fund as a 15 contribution for past services under this section at the date of 16 his injury shall be paid, if the board, in its discretion, shall 17 so determine, in such monthly amounts as the board may 18 determine, which amounts shall be deducted from his or her 19 pension as and when monthly payments thereof shall be made. 20 * * * 21 (i) Any pensioner who had less than 20 years credited 22 service or who had elected to receive an early reduced pension 23 and who returns to service shall start contributing at [5% of] 24 an amount equal to the contribution rate applied to his salary 25 or wages and shall be entitled to have his subsequent retirement 26 pension be determined on the basis of this total service history 27 by restoring to the fund the total of the amount received in 28 pension payments. 29 Section 5. Contributions by the City.--(a) The public 30 officials of the city charged with the disbursements, 19860H2123B2894 - 3 -
1 expenditures, and appropriations, shall annually set aside, 2 apportion, and appropriate, out of all taxes and income of the 3 city, to the board, a sum sufficient to [maintain the pensions 4 due under this act. If the total disbursements from the fund for 5 the payment of pensions, refund of accumulated contributions of 6 members, and administration expenses shall exceed in any year 7 the total revenues of the fund from member contributions and the 8 interest and premiums on investments and bank deposits, then the 9 amount to be set aside, apportioned and appropriated by the 10 public officials of the city to the fund shall not be less than 11 the difference between the total disbursements and receipts of 12 the fund, as aforesaid.] meet the minimum obligation of the 13 municipality with respect to the pension plan pursuant to the 14 act of December 18, 1984 (P.L.1005, No.205), known as the 15 "Municipal Pension Plan Funding Standard and Recovery Act." 16 (b) Every authority or agency, whose employees are members 17 of the fund, shall be held liable for [the amount due to the 18 fund on account of benefits provided by this act which are paid 19 to employees of such authority or agency: Provided, however, 20 That where an employee of the authority or agency formerly 21 worked for the city, the authority or agency shall be held 22 liable for that proportionate part of the pension or other 23 benefits paid which the authority or agency service bears to the 24 total credited service] its proportional amount of the minimum 25 obligation of the municipality with respect to the pension plan 26 cited in subsection (a) as determined by the board. 27 Section 3. This act shall take effect immediately. A10L11RLC/19860H2123B2894 - 4 -