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        PRIOR PRINTER'S NO. 1013                      PRINTER'S NO. 2631

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 895 Session of 1989


        INTRODUCED BY MAYERNIK, BURD, KOSINSKI, TIGUE, MRKONIC, TRELLO,
           FOX, GODSHALL, BILLOW, JOHNSON, MORRIS, CESSAR, STABACK,
           McCALL, JAROLIN, LEVDANSKY, RAYMOND, LAUGHLIN, SCHULER,
           REBER, CAWLEY, PISTELLA, E. Z. TAYLOR, CORNELL, MARSICO,
           LASHINGER, MICOZZIE, McVERRY AND GIGLIOTTI, APRIL 3, 1989

        AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF
           REPRESENTATIVES, AS AMENDED, OCTOBER 17, 1989

                                     AN ACT

     1  Amending the act of May 29, 1956 (1955 P.L.1804, No.600),
     2     entitled "An act providing for the establishment of police
     3     pension funds or pension annuities in certain boroughs, towns
     4     and townships, and the regulation and maintenance thereof;
     5     providing for an actuary; continuance of existing funds or
     6     transfer thereof to funds herein established; prescribing
     7     rights of beneficiaries; contributions by members; providing
     8     for expenses of administration; continuation of existing
     9     authority to provide annuity contracts; credit for military
    10     service; refunds; exempting allowances from judicial process;
    11     and repealing certain acts," FURTHER providing for credit for  <--
    12     military service.

    13     The General Assembly of the Commonwealth of Pennsylvania
    14  hereby enacts as follows:
    15     Section 1.  Section 3 4 of the act of May 29, 1956 (1955       <--
    16  P.L.1804, No.600), referred to as the Municipal Police Pension
    17  Law, amended October 21, 1965 (P.L.643, No.317), is amended to    <--
    18  read:
    19     Section 3.  Each ordinance or resolution establishing a        <--
    20  police pension fund shall prescribe a minimum period of total
    21  service in the aggregate of twenty-five years in the same

     1  borough, town or township and shall fix the age of the members
     2  of the force at fifty-five years, or, if an actuarial study of
     3  the cost shows that such reduction in age is feasible, may fix
     4  the age of the members of the force at fifty years, after which
     5  they may retire from active duty, and such members as are
     6  retired shall be subject to service, from time to time, as a
     7  police reserve, in cases of riot, tumult or preservation of the
     8  public peace until unfitted for such service, when they may be
     9  finally discharged by reason of age or disability. Such service
    10  and any service required to be eligible for disability pension
    11  shall include service, not to exceed three years, in the armed
    12  forces of the United States or active service in the
    13  Pennsylvania National Guard or the Pennsylvania State Militia
    14  when the national guard or militia has been mobilized for
    15  internal police duty, whether such armed forces, national guard
    16  or militia service occurs prior to or during such police
    17  service. Each member desiring such credit shall be required to
    18  pay to the fund an amount equal to five per centum of the salary
    19  or wages he would have earned had he been a member of the police
    20  force during the period of military service, with interest at
    21  the rate of five per centum of the amount paid into the fund.
    22     SECTION 4.  (A)  ANY MEMBER OF THE POLICE FORCE EMPLOYED BY A  <--
    23  BOROUGH, TOWN OR TOWNSHIP, WHO HAS BEEN A REGULARLY APPOINTED
    24  EMPLOYE OF ANY SUCH POLITICAL SUBDIVISION FOR A PERIOD OF AT
    25  LEAST SIX MONTHS AND WHO THEREAFTER SHALL ENTER INTO THE
    26  MILITARY SERVICE OF THE UNITED STATES, SHALL HAVE CREDITED TO
    27  HIS EMPLOYMENT RECORD FOR PENSION OR RETIREMENT BENEFITS ALL OF
    28  THE TIME SPENT BY HIM IN SUCH MILITARY SERVICE, IF SUCH PERSON
    29  RETURNS OR HAS HERETOFORE RETURNED TO HIS EMPLOYMENT WITHIN SIX
    30  MONTHS AFTER HIS SEPARATION FROM THE SERVICE.
    19890H0895B2631                  - 2 -

     1     (B)  ANY MEMBER OF THE POLICE FORCE WHO WAS NOT EMPLOYED BY
     2  THE POLITICAL SUBDIVISION PRIOR TO SUCH MILITARY SERVICE SHALL
     3  BE ENTITLED TO HAVE FULL SERVICE CREDIT FOR EACH YEAR OR
     4  FRACTION THEREOF, NOT TO EXCEED FIVE YEARS WITH THE EXCEPTION OF
     5  MEMBERS ELIGIBLE TO RECEIVE OR RECEIVING MILITARY RETIREMENT PAY
     6  EARNED BY A COMBINATION OF ACTIVE DUTY AND NONACTIVE DUTY WITH A
     7  RESERVE OR NATIONAL GUARD COMPONENT OF THE ARMED FORCES WHICH
     8  RETIREMENT PAY IS PAYABLE ONLY UPON THE ATTAINMENT OF A
     9  SPECIFIED AGE AND PERIOD OF SERVICE UNDER 10 U.S.C. CH. 67
    10  (RELATING TO RETIRED PAY FOR NON-REGULAR SERVICE). THE AMOUNT
    11  DUE FOR THE PURCHASE OF CREDIT FOR MILITARY SERVICE OTHER THAN
    12  INTERVENING MILITARY SERVICE SHALL BE COMPUTED BY APPLYING THE
    13  AVERAGE NORMAL COST RATE FOR BOROUGH AND TOWNSHIP POLICE PENSION
    14  PLANS AS CERTIFIED BY THE PUBLIC EMPLOYEE RETIREMENT STUDY
    15  COMMISSION, BUT NOT TO EXCEED TEN PER CENTUM, TO THE MEMBER'S
    16  AVERAGE ANNUAL RATE OF COMPENSATION OVER THE FIRST THREE YEARS
    17  OF MUNICIPAL SERVICE AND MULTIPLYING THE RESULT BY THE NUMBER OF
    18  YEARS AND FRACTIONAL PART OF A YEAR OF CREDITABLE NONINTERVENING
    19  MILITARY SERVICE BEING PURCHASED TOGETHER WITH INTEREST AT THE
    20  RATE OF FOUR AND THREE-QUARTERS PER CENTUM COMPOUNDED ANNUALLY
    21  FROM THE DATE OF INITIAL ENTRY INTO MUNICIPAL SERVICE TO THE
    22  DATE OF PAYMENT.
    23     (C)  ANY MEMBER OF THE POLICE FORCE SHALL BE ELIGIBLE TO
    24  RECEIVE SERVICE CREDIT FOR INTERVENING OR NONINTERVENING
    25  MILITARY SERVICE AS PROVIDED IN SUBSECTIONS (A) AND (B) PROVIDED
    26  THAT HE IS NOT ENTITLED TO RECEIVE, ELIGIBLE TO RECEIVE NOW OR
    27  IN THE FUTURE, OR IS RECEIVING RETIREMENT BENEFITS FOR SUCH
    28  SERVICE UNDER A RETIREMENT SYSTEM ADMINISTERED AND WHOLLY OR
    29  PARTIALLY PAID FOR BY ANY OTHER GOVERNMENTAL AGENCY WITH THE
    30  EXCEPTION OF A MEMBER ELIGIBLE TO RECEIVE OR RECEIVING MILITARY
    19890H0895B2631                  - 3 -

     1  RETIREMENT PAY EARNED BY A COMBINATION OF ACTIVE DUTY AND
     2  NONACTIVE DUTY WITH A RESERVE OR NATIONAL GUARD COMPONENT OF THE
     3  ARMED FORCES WHICH RETIREMENT PAY IS PAYABLE ONLY UPON THE
     4  ATTAINMENT OF A SPECIFIED AGE AND PERIOD OF SERVICE UNDER 10
     5  U.S.C. CH. 67 (RELATING TO RETIRED PAY FOR NON-REGULAR SERVICE).
     6     Section 2.  This act shall take effect in 60 days.
















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