PRINTER'S NO. 2184

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1820 Session of 1991


        INTRODUCED BY TIGUE, KUKOVICH, PESCI, ITKIN, JAROLIN, DALEY,
           KRUSZEWSKI, BELARDI, STEELMAN, RICHARDSON AND PISTELLA,
           JUNE 28, 1991

        REFERRED TO COMMITTEE ON URBAN AFFAIRS, JUNE 28, 1991

                                     AN ACT

     1  Amending the act of June 23, 1931 (P.L.932, No.317), entitled
     2     "An act relating to cities of the third class; and amending,
     3     revising, and consolidating the law relating thereto,"
     4     providing for vesting of retirement benefits by employees
     5     other than public safety employees.

     6     The General Assembly of the Commonwealth of Pennsylvania
     7  hereby enacts as follows:
     8     Section 1.  The act of June 23, 1931 (P.L.932, No.317), known
     9  as The Third Class City Code, reenacted and amended June 28,
    10  1951 (P.L.662, No.164), is amended by adding a section to read:
    11     Section 4343.2.  Vested Benefit.--(a)  The council may, by
    12  ordinance, provide for a vested benefit. Under the provisions of
    13  the benefit, an employe who has not satisfied the minimum age
    14  and service requirements established in this subdivision, but
    15  who has completed ten years of continuous service shall be
    16  entitled to vest his retirement allowance subject the following
    17  conditions:
    18     (1)  the employe must file with the pension board a written
    19  notice of his intention to vest;

     1     (2)  the employe must include in the notice, the date the
     2  employe intends to terminate his service as a city employe;
     3     (3)  the termination date shall be at least thirty days later
     4  than the date of notice to vest;
     5     (4)  the employe must be in good standing with the city on
     6  the date of notice to vest; and
     7     (5)  the pension board shall indicate on the notice to vest
     8  the rate of the monthly salary or wages of the employe as of the
     9  date of the notice to vest or the highest average annual salary
    10  or wages which the employe received during any five years of
    11  service preceding said date, whichever is the higher.
    12     (b)  Upon reaching the date which would have been the
    13  employe's retirement date had the employe continued his
    14  employment with the city, the employe shall notify the pension
    15  board, in writing, that the employe desires to collect his
    16  pension. The amount of the retirement allowance the employe
    17  shall be entitled to receive under this section shall be
    18  computed as follows:
    19     (1)  the initial determination of the employe's base
    20  retirement allowance shall be computed on the salary or wages
    21  indicated on the notice to vest; and
    22     (2)  the portion of the base retirement allowance due the
    23  employe shall be determined by applying to the base amount the
    24  percentage that the years of service actually rendered bears to
    25  the years of service which would have been rendered had the
    26  employe continued to be employed by the city until his minimum
    27  retirement date.
    28     Section 2.  This act shall take effect in 60 days.


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