SENATE AMENDED
PRIOR PRINTER'S NOS. 1686, 2183, 3059 PRINTER'S NO. 3981
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 THOMPSON, APPROPRIATIONS, IN SENATE, RE-REPORTED AS
AMENDED, JUNE 10, 2002
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 PAYMENTS UNDER EXISTING PENSION PLANS <--
5 AND for service increments to pensions of police and
6 firefighters.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Sections 4303(b) and 4322(b) of the act of June <--
10 23, 1931 (P.L.932, No.317), known as The Third Class City Code,
11 reenacted and amended June 28, 1951 (P.L.662, No.164), are
12 amended by adding clauses to read:
13 Section 4303. Allowances and Service Increments.--* * *
14 SECTION 1. SECTION 4303(A) OF THE ACT OF JUNE 23, 1931 <--
15 (P.L.932, NO.317), KNOWN AS THE THIRD CLASS CITY CODE, REENACTED
16 AND AMENDED JUNE 28, 1951 (P.L.662, NO.164) AND AMENDED DECEMBER
1 17, 1990 (P.L.715, NO.178) IS AMENDED AND SUBSECTION (B) IS
2 AMENDED BY ADDING A CLAUSE TO READ:
3 SECTION 4303. ALLOWANCES AND SERVICE INCREMENTS.--(A)
4 PAYMENTS FOR ALLOWANCES SHALL NOT BE A CHARGE ON ANY OTHER FUND
5 IN THE TREASURY OF THE CITY OR UNDER ITS CONTROL SAVE THE POLICE
6 PENSION FUND HEREIN PROVIDED FOR. THE BASIS OF THE APPORTIONMENT
7 OF THE PENSION SHALL BE DETERMINED BY THE RATE OF THE MONTHLY
8 PAY OF THE MEMBER AT THE DATE OF INJURY, DEATH, HONORABLE
9 DISCHARGE, VESTING UNDER SECTION 4302.1 OR RETIREMENT, OR THE
10 HIGHEST AVERAGE ANNUAL SALARY WHICH THE MEMBER RECEIVED DURING
11 ANY FIVE YEARS OF SERVICE PRECEDING INJURY, DEATH, HONORABLE
12 DISCHARGE, VESTING UNDER SECTION 4302.1 OR RETIREMENT, WHICHEVER
13 IS THE HIGHER, AND EXCEPT AS TO SERVICE INCREMENTS PROVIDED FOR
14 IN SUBSECTION (B) OF THIS SECTION, SHALL [NOT IN ANY CASE EXCEED
15 IN ANY YEAR] BE NO LESS THAN ONE-HALF THE ANNUAL PAY OF SUCH
16 MEMBER COMPUTED AT SUCH MONTHLY OR AVERAGE ANNUAL RATE,
17 WHICHEVER IS THE HIGHER.
18 SECTION 1. SECTION 4303(B) OF THE ACT OF JUNE 23, 1931 <--
19 (P.L.932, NO.317), KNOWN AS THE THIRD CLASS CITY CODE, REENACTED
20 AND AMENDED JUNE 28, 1951 (P.L.662, NO.164), IS AMENDED BY
21 ADDING A CLAUSE AND THE SECTION IS AMENDED BY ADDING A
22 SUBSECTION TO READ:
23 SECTION 4303. ALLOWANCES AND SERVICE INCREMENTS.--* * *
24 (A.1) THE PROVISIONS OF SUBSECTION (A) PROVIDING THAT THE
25 APPORTIONMENT OF THE PENSION SHALL NOT IN ANY CASE EXCEED IN ANY
26 YEAR ONE-HALF THE ANNUAL PAY OF SUCH MEMBER COMPUTED AT SUCH
27 MONTHLY OR AVERAGE ANNUAL RATE, WHICHEVER IS THE HIGHER, SHALL
28 NOT APPLY TO A CITY OF THE THIRD CLASS WHETHER OPERATING UNDER
29 AN OPTIONAL CHARTER ADOPTED IN ACCORDANCE WITH THE ACT OF JULY
30 15, 1957 (P.L.901, NO.399), KNOWN AS THE "OPTIONAL THIRD CLASS
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1 CITY CHARTER LAW," OR UNDER A HOME RULE CHARTER ADOPTED IN
2 ACCORDANCE WITH 53 PA.C.S. PT. III SUBPT. E (RELATING TO HOME
3 RULE AND OPTIONAL PLAN GOVERNMENT), WHICH HAD IN EFFECT PENSION
4 PLANS PRIOR TO THE EFFECTIVE DATE OF THIS SUBSECTION THAT
5 PROVIDED PENSIONS IN AN AMOUNT GREATER THAN FIFTY PERCENTUM OF
6 SALARY.
7 (b) In addition to the retirement allowance which is
8 authorized to be paid from the police pension fund by this act,
9 and notwithstanding the limitations therein placed upon such
10 retirement allowances and upon contributions, every contributor
11 who shall become entitled to the retirement allowance shall also
12 be entitled to the payment of a "service increment" in
13 accordance with and subject to the conditions hereinafter set
14 forth.
15 * * *
16 (6) After the effective date of this clause, a city may
17 agree to make service increment payments in excess of one
18 hundred dollars ($100) per month, as long as such payments do
19 not exceed five hundred dollars ($500) per month, and in
20 computing such service increments no employment after the
21 contributor has reached the age of sixty-five years shall be
22 included: Provided, That any agreement to provide an increase in
23 service increment payments shall include a proportionate
24 increase in the amount each contributor shall pay into the
25 retirement fund under clause (2), not to exceed five dollars
26 ($5) per month.
27 * * *
28 Section 4322. Pensions and Service Increments.--* * * <--
29 SECTION 2. SECTION 4322(A) OF THE ACT, AMENDED JUNE 16, 1993 <--
30 (P.L.97, NO.21), IS AMENDED AND SUBSECTION (B) IS AMENDED BY
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1 ADDING A CLAUSE TO READ:
2 SECTION 4322. PENSIONS AND SERVICE INCREMENTS.--(A)
3 PAYMENTS OF PENSIONS SHALL NOT BE A CHARGE ON ANY FUND IN THE
4 TREASURY OF THE CITY OR UNDER ITS CONTROL SAVE THE FIREMEN'S
5 PENSION FUND HEREIN PROVIDED FOR. THE BASIS OF THE PENSION OF A
6 MEMBER SHALL BE DETERMINED BY THE MONTHLY SALARY OF THE MEMBER
7 AT THE DATE OF VESTING UNDER SECTION 4320.1 OR RETIREMENT, OR
8 THE HIGHEST AVERAGE ANNUAL SALARY WHICH HE RECEIVED DURING ANY
9 FIVE YEARS OF SERVICE PRECEDING RETIREMENT, WHICHEVER IS THE
10 HIGHER, WHETHER FOR DISABILITY, OR BY REASON OF AGE OR SERVICE,
11 AND EXCEPT AS TO SERVICE INCREMENTS PROVIDED FOR IN SUBSECTION
12 (B) OF THIS SECTION, SHALL BE NO LESS THAN ONE-HALF THE ANNUAL
13 SALARY OF SUCH MEMBER AT THE TIME OF VESTING UNDER SECTION
14 4320.1 OR RETIREMENT COMPUTED AT SUCH MONTHLY OR AVERAGE ANNUAL
15 RATE, WHICHEVER IS THE HIGHER. IN THE CASE OF THE PAYMENT OF
16 PENSIONS TO MEMBERS FOR PERMANENT INJURY INCURRED IN SERVICE,
17 AND TO FAMILIES OF MEMBERS KILLED OR WHO DIE IN SERVICE, THE
18 AMOUNT AND COMMENCEMENT OF THE PAYMENT OF PENSIONS SHALL BE
19 FIXED BY REGULATIONS OF THE BOARD. SUCH REGULATIONS SHALL NOT
20 TAKE INTO CONSIDERATION THE AMOUNT AND DURATION OF WORKMEN'S
21 COMPENSATION ALLOWED BY LAW. PAYMENTS TO SURVIVING SPOUSES OF
22 MEMBERS RETIRED ON PENSION OR KILLED IN THE SERVICE ON OR AFTER
23 JANUARY 1, 1960, OR WHO DIE IN THE SERVICE ON OR AFTER JANUARY
24 1, 1968, SHALL BE THE AMOUNT PAYABLE TO THE MEMBER OR WHICH
25 WOULD HAVE BEEN PAYABLE HAD HE BEEN RETIRED AT THE TIME OF HIS
26 DEATH.
27 SECTION 2. SECTION 4322(B) OF THE ACT IS AMENDED BY ADDING A <--
28 CLAUSE AND THE SECTION IS AMENDED BY ADDING A SUBSECTION TO
29 READ:
30 SECTION 4322. PENSIONS AND SERVICE INCREMENTS.--* * *
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1 (A.1) THE PROVISIONS OF SUBSECTION (A) PROVIDING THAT THE
2 BASIS OF THE PENSION SHALL BE ONE-HALF THE ANNUAL SALARY OF SUCH
3 MEMBER AT THE TIME OF VESTING UNDER SECTION 4320.1 OR RETIREMENT
4 COMPUTED AT SUCH MONTHLY OR AVERAGE ANNUAL RATE, WHICHEVER IS
5 THE HIGHER, SHALL NOT APPLY TO A CITY OF THE THIRD CLASS WHETHER
6 OPERATING UNDER AN OPTIONAL CHARTER ADOPTED IN ACCORDANCE WITH
7 THE ACT OF JULY 15, 1957 (P.L.901, NO.399), KNOWN AS THE
8 "OPTIONAL THIRD CLASS CITY CHARTER LAW," OR UNDER A HOME RULE
9 CHARTER ADOPTED IN ACCORDANCE WITH 53 PA.C.S PT. III SUBPT. E
10 (RELATING TO HOME RULE AND OPTIONAL PLAN GOVERNMENT), WHICH HAD
11 IN EFFECT PENSION PLANS PRIOR TO THE EFFECTIVE DATE OF THIS
12 SUBSECTION THAT PROVIDED PENSIONS IN AN AMOUNT GREATER THAN
13 FIFTY PERCENTUM OF SALARY.
14 * * *
15 (b) In addition to the pension which is authorized to be
16 paid from the firemen's pension fund by this act and
17 notwithstanding the limitations therein placed upon such
18 pensions and upon contributions, every contributor who shall
19 become entitled to the pension shall also be entitled to the
20 payment of a "service increment" in accordance with and subject
21 to the conditions hereinafter set forth.
22 * * *
23 (6) After the effective date of this clause, a city may
24 agree to make service increment payments in excess of one
25 hundred dollars ($100) per month, as long as such payments do
26 not exceed five hundred dollars ($500) per month, and in
27 computing such service increments no employment after the
28 contributor has reached the age of sixty-five years shall be
29 included: Provided, That any agreement to provide an increase in
30 service increment payments shall include a proportionate
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1 increase in the amount each contributor shall pay into the
2 retirement fund under clause (2), not to exceed five dollars
3 ($5) per month.
4 Section 2. This act shall take effect in 60 days. <--
5 SECTION 3. INCREASES IN THE RETIREMENT ALLOWANCES OF MEMBERS <--
6 RESULTING FROM THE AMENDMENT OF SECTIONS 4303(A) AND 4322(A) OF
7 THE ACT, WHICH EXCEED IN ANY YEAR ONE-HALF THE ANNUAL PAY OF THE
8 MEMBER COMPUTED AT THE MONTHLY OR AVERAGE ANNUAL RATE, WHICHEVER
9 IS THE HIGHER, AND THE USE OF ASSETS OF THE POLICE PENSION FUND
10 OR FIREMAN'S PENSION FUND TO PROVIDE, IN WHOLE OR IN PART, TO
11 RETIRED POLICE OFFICERS, FIREMAN OR THEIR DEPENDENTS, MAY NOT BE
12 IMPLEMENTED EXCEPT UPON THE DETERMINATION BY THE PENSION FUND
13 ACTUARY THAT CURRENT ASSETS OF THE PENSION FUND ARE, PURSUANT TO
14 THE ACT OF DECEMBER 18, 1984 (P.L.1005, NO.205), KNOWN AS THE
15 MUNICIPAL PENSION PLAN FUNDING STANDARD AND RECOVERY ACT,
16 SUFFICIENT TO PROVIDE THE INCREASE IN THE RETIREMENT ALLOWANCE
17 OF MEMBERS, WITHOUT CREATING A CURRENT OR FUTURE UNFUNDED
18 LIABILITY; AND THE FURTHER DETERMINATION OF THE PENSION FUND
19 ACTUARY THAT, BASED UPON THE APPLICATION OF STANDARDS WIDELY
20 ACCEPTED WITHIN THE ACTUARIAL INDUSTRY, THERE IS A DE MINIMIS
21 RISK THAT THE PROPOSED INCREASES IN THE RETIREMENT ALLOWANCES OF
22 MEMBERS WILL RESULT IN A FUTURE REQUIREMENT THAT THE CITY
23 INCREASE PAYMENTS TO THE PENSION FUND IN ORDER TO MEET THE
24 FUNDING REQUIREMENTS OF THE MUNICIPAL PENSION PLAN FUNDING
25 STANDARD AND RECOVERY ACT.
26 SECTION 4 3. THIS ACT SHALL TAKE EFFECT IMMEDIATELY. <--
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