SENATE AMENDED PRIOR PRINTER'S NOS. 1686, 2183 PRINTER'S NO. 3059
No. 1363 Session of 2001
INTRODUCED BY S. H. SMITH, STABACK, NICKOL, SCHULER, McILHATTAN, FICHTER, GEORGE, CAPPELLI, ARMSTRONG, PERZEL, LAUGHLIN, WILT, CREIGHTON, SOLOBAY, DALEY, GEIST, CALTAGIRONE, YOUNGBLOOD, BASTIAN, WOJNAROSKI, C. WILLIAMS, THOMAS, LEWIS, PETRARCA, GRUCELA, BUNT, CURRY, JAMES, TRELLO, HUTCHINSON, GABIG, COLAFELLA, STEELMAN AND BELFANTI, APRIL 25, 2001
SENATOR EARLL, FINANCE, AS AMENDED, DECEMBER 11, 2001
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 further providing for service increments to pensions of 5 police and firefighters. 6 The General Assembly of the Commonwealth of Pennsylvania 7 hereby enacts as follows: 8 Section 1. Sections 4303(b) and 4322(b) of the act of June <-- 9 23, 1931 (P.L.932, No.317), known as The Third Class City Code, 10 reenacted and amended June 28, 1951 (P.L.662, No.164), are 11 amended by adding clauses to read: 12 Section 4303. Allowances and Service Increments.--* * * 13 SECTION 1. SECTION 4303(A) OF THE ACT OF JUNE 23, 1931 <-- 14 (P.L.932, NO.317), KNOWN AS THE THIRD CLASS CITY CODE, REENACTED 15 AND AMENDED JUNE 28, 1951 (P.L.662, NO.164) AND AMENDED DECEMBER 16 17, 1990 (P.L.715, NO.178) IS AMENDED AND SUBSECTION (B) IS
1 AMENDED BY ADDING A CLAUSE TO READ: 2 SECTION 4303. ALLOWANCES AND SERVICE INCREMENTS.--(A) 3 PAYMENTS FOR ALLOWANCES SHALL NOT BE A CHARGE ON ANY OTHER FUND 4 IN THE TREASURY OF THE CITY OR UNDER ITS CONTROL SAVE THE POLICE 5 PENSION FUND HEREIN PROVIDED FOR. THE BASIS OF THE APPORTIONMENT 6 OF THE PENSION SHALL BE DETERMINED BY THE RATE OF THE MONTHLY 7 PAY OF THE MEMBER AT THE DATE OF INJURY, DEATH, HONORABLE 8 DISCHARGE, VESTING UNDER SECTION 4302.1 OR RETIREMENT, OR THE 9 HIGHEST AVERAGE ANNUAL SALARY WHICH THE MEMBER RECEIVED DURING 10 ANY FIVE YEARS OF SERVICE PRECEDING INJURY, DEATH, HONORABLE 11 DISCHARGE, VESTING UNDER SECTION 4302.1 OR RETIREMENT, WHICHEVER 12 IS THE HIGHER, AND EXCEPT AS TO SERVICE INCREMENTS PROVIDED FOR 13 IN SUBSECTION (B) OF THIS SECTION, SHALL [NOT IN ANY CASE EXCEED 14 IN ANY YEAR] BE NO LESS THAN ONE-HALF THE ANNUAL PAY OF SUCH 15 MEMBER COMPUTED AT SUCH MONTHLY OR AVERAGE ANNUAL RATE, 16 WHICHEVER IS THE HIGHER. 17 (b) In addition to the retirement allowance which is 18 authorized to be paid from the police pension fund by this act, 19 and notwithstanding the limitations therein placed upon such 20 retirement allowances and upon contributions, every contributor 21 who shall become entitled to the retirement allowance shall also 22 be entitled to the payment of a "service increment" in 23 accordance with and subject to the conditions hereinafter set 24 forth. 25 * * * 26 (6) After the effective date of this clause, a city may 27 agree to make service increment payments in excess of one 28 hundred dollars ($100) per month, as long as such payments do 29 not exceed five hundred dollars ($500) per month, and in 30 computing such service increments no employment after the 20010H1363B3059 - 2 -
1 contributor has reached the age of sixty-five years shall be 2 included: Provided, That any agreement to provide an increase in 3 service increment payments shall include a proportionate 4 increase in the amount each contributor shall pay into the 5 retirement fund under clause (2), not to exceed five dollars 6 ($5) per month. 7 * * * 8 Section 4322. Pensions and Service Increments.--* * * <-- 9 SECTION 2. SECTION 4322(A) OF THE ACT, AMENDED JUNE 16, 1993 <-- 10 (P.L.97, NO.21), IS AMENDED AND SUBSECTION (B) IS AMENDED BY 11 ADDING A CLAUSE TO READ: 12 SECTION 4322. PENSIONS AND SERVICE INCREMENTS.--(A) 13 PAYMENTS OF PENSIONS SHALL NOT BE A CHARGE ON ANY FUND IN THE 14 TREASURY OF THE CITY OR UNDER ITS CONTROL SAVE THE FIREMEN'S 15 PENSION FUND HEREIN PROVIDED FOR. THE BASIS OF THE PENSION OF A 16 MEMBER SHALL BE DETERMINED BY THE MONTHLY SALARY OF THE MEMBER 17 AT THE DATE OF VESTING UNDER SECTION 4320.1 OR RETIREMENT, OR 18 THE HIGHEST AVERAGE ANNUAL SALARY WHICH HE RECEIVED DURING ANY 19 FIVE YEARS OF SERVICE PRECEDING RETIREMENT, WHICHEVER IS THE 20 HIGHER, WHETHER FOR DISABILITY, OR BY REASON OF AGE OR SERVICE, 21 AND EXCEPT AS TO SERVICE INCREMENTS PROVIDED FOR IN SUBSECTION 22 (B) OF THIS SECTION, SHALL BE NO LESS THAN ONE-HALF THE ANNUAL 23 SALARY OF SUCH MEMBER AT THE TIME OF VESTING UNDER SECTION 24 4320.1 OR RETIREMENT COMPUTED AT SUCH MONTHLY OR AVERAGE ANNUAL 25 RATE, WHICHEVER IS THE HIGHER. IN THE CASE OF THE PAYMENT OF 26 PENSIONS TO MEMBERS FOR PERMANENT INJURY INCURRED IN SERVICE, 27 AND TO FAMILIES OF MEMBERS KILLED OR WHO DIE IN SERVICE, THE 28 AMOUNT AND COMMENCEMENT OF THE PAYMENT OF PENSIONS SHALL BE 29 FIXED BY REGULATIONS OF THE BOARD. SUCH REGULATIONS SHALL NOT 30 TAKE INTO CONSIDERATION THE AMOUNT AND DURATION OF WORKMEN'S 20010H1363B3059 - 3 -
1 COMPENSATION ALLOWED BY LAW. PAYMENTS TO SURVIVING SPOUSES OF 2 MEMBERS RETIRED ON PENSION OR KILLED IN THE SERVICE ON OR AFTER 3 JANUARY 1, 1960, OR WHO DIE IN THE SERVICE ON OR AFTER JANUARY 4 1, 1968, SHALL BE THE AMOUNT PAYABLE TO THE MEMBER OR WHICH 5 WOULD HAVE BEEN PAYABLE HAD HE BEEN RETIRED AT THE TIME OF HIS 6 DEATH. 7 (b) In addition to the pension which is authorized to be 8 paid from the firemen's pension fund by this act and 9 notwithstanding the limitations therein placed upon such 10 pensions and upon contributions, every contributor who shall 11 become entitled to the pension shall also be entitled to the 12 payment of a "service increment" in accordance with and subject 13 to the conditions hereinafter set forth. 14 * * * 15 (6) After the effective date of this clause, a city may 16 agree to make service increment payments in excess of one 17 hundred dollars ($100) per month, as long as such payments do 18 not exceed five hundred dollars ($500) per month, and in 19 computing such service increments no employment after the 20 contributor has reached the age of sixty-five years shall be 21 included: Provided, That any agreement to provide an increase in 22 service increment payments shall include a proportionate 23 increase in the amount each contributor shall pay into the 24 retirement fund under clause (2), not to exceed five dollars 25 ($5) per month. 26 Section 2. This act shall take effect in 60 days. <-- 27 SECTION 3. INCREASES IN THE RETIREMENT ALLOWANCES OF MEMBERS <-- 28 RESULTING FROM THE AMENDMENT OF SECTIONS 4303(A) AND 4322(A) OF 29 THE ACT, WHICH EXCEED IN ANY YEAR ONE-HALF THE ANNUAL PAY OF THE 30 MEMBER COMPUTED AT THE MONTHLY OR AVERAGE ANNUAL RATE, WHICHEVER 20010H1363B3059 - 4 -
1 IS THE HIGHER, AND THE USE OF ASSETS OF THE POLICE PENSION FUND 2 OR FIREMAN'S PENSION FUND TO PROVIDE, IN WHOLE OR IN PART, TO 3 RETIRED POLICE OFFICERS, FIREMAN OR THEIR DEPENDENTS, MAY NOT BE 4 IMPLEMENTED EXCEPT UPON THE DETERMINATION BY THE PENSION FUND 5 ACTUARY THAT CURRENT ASSETS OF THE PENSION FUND ARE, PURSUANT TO 6 THE ACT OF DECEMBER 18, 1984 (P.L.1005, NO.205), KNOWN AS THE 7 MUNICIPAL PENSION PLAN FUNDING STANDARD AND RECOVERY ACT, 8 SUFFICIENT TO PROVIDE THE INCREASE IN THE RETIREMENT ALLOWANCE 9 OF MEMBERS, WITHOUT CREATING A CURRENT OR FUTURE UNFUNDED 10 LIABILITY; AND THE FURTHER DETERMINATION OF THE PENSION FUND 11 ACTUARY THAT, BASED UPON THE APPLICATION OF STANDARDS WIDELY 12 ACCEPTED WITHIN THE ACTUARIAL INDUSTRY, THERE IS A DE MINIMIS 13 RISK THAT THE PROPOSED INCREASES IN THE RETIREMENT ALLOWANCES OF 14 MEMBERS WILL RESULT IN A FUTURE REQUIREMENT THAT THE CITY 15 INCREASE PAYMENTS TO THE PENSION FUND IN ORDER TO MEET THE 16 FUNDING REQUIREMENTS OF THE MUNICIPAL PENSION PLAN FUNDING 17 STANDARD AND RECOVERY ACT. 18 SECTION 4. THIS ACT SHALL TAKE EFFECT IMMEDIATELY. D23L11DMS/20010H1363B3059 - 5 -