THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY CASORIO, BELFANTI, BRENNAN, D. COSTA, DONATUCCI, GEORGE, GOODMAN, GRUCELA, HARHAI, HARKINS, MAHONEY, MANN, McILVAINE SMITH, MUNDY, MURT, M. O'BRIEN, PALLONE, READSHAW, SIPTROTH, SOLOBAY, STABACK, J. TAYLOR, WALKO, YOUNGBLOOD, SCAVELLO, PETRARCA, FABRIZIO, DEASY, KULA AND GIBBONS, APRIL 3, 2009

REFERRED TO COMMITTEE ON FINANCE, APRIL 3, 2009  

AN ACT

Amending the act of May 29, 1956 (1955 P.L.1804, No.600),

entitled, as amended, "An act providing for the establishment

of police pension funds or pension annuities in certain

boroughs, towns and townships; authorizing the establishment

of police pension funds or pension annuities by regional

police departments; providing for the regulation and

maintenance of police pension funds or pension annuities;

providing for an actuary; continuance of existing funds or

transfer thereof to funds herein established; prescribing

rights of beneficiaries; contributions by members; providing

for expenses of administration; continuation of existing

authority to provide annuity contracts; credit for military

service; refunds; exempting allowances from judicial process;

and repealing certain acts," further regulating pension

calculations.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 1(a)(4) of the act of May 29, 1956 (1955

P.L.1804, No.600), referred to as the Municipal Police Pension

Law, amended October 8, 2008 (P.L.1095, No.92), is amended to

read:

Section 1.  (a) * * *

(4)  The surviving spouse of a member of the police force or

a former member of the police force who, prior to April 18,

2002, retired on pension and dies subsequent to retirement or

who, after April 16, 2002, retires on pension and dies

subsequent to retirement, or if no spouse survives or if he or

she survives and subsequently dies, then the child or children

under the age of eighteen years or, if attending college, under

or attaining the age of twenty-three years, of a member of the

police force or a member who retires on pension who dies, shall,

during her lifetime in the case of a surviving spouse or until

reaching the age of eighteen years or, if attending college,

under or attaining the age of twenty-three years in the case of

a child or children, be entitled to receive a pension calculated

at no less than [fifty] sixty per centum of the pension the

member was receiving or would have been receiving had he been

retired at the time of his death.

* * *

Section 2.  Section 5(c), (f) and (g)(1) of the act, amended

February 18, 1998 (P.L.158, No.24) and December 22, 2005

(P.L.466, No.89), are amended to read:

Section 5.  * * *

(c)  Monthly pension or retirement benefits other than length

of service increments shall be computed at one-half the monthly

average salary of such member during not more than the last

sixty nor less than the last [thirty-six] twenty-four months of

employment. Such pension or retirement benefits for any month

shall be computed as the sum of (1) any pension benefits from

pension plans heretofore established by a private organization

or association for the members of the police force but only to

the extent that this Commonwealth or any of its municipalities

shall have contributed to such pension plan moneys raised by

taxation; (2) if positions covered by the fund are included in

an agreement under the Federal Social Security Act, up to

seventy-five per centum of his full social security old-age

insurance benefit calculated in accordance with the provisions

of the Federal Social Security Act in effect on the date of his

termination of employment, except that such amount shall be

included only upon attainment of the age at which the officer

would be eligible to receive full social security old-age

insurance benefits and in determining such eligibility and such

amount only compensation for services actually rendered by the

officer and covered by the police pension fund shall be

included; and (3) benefits from the police pension fund

established pursuant to this act to the extent necessary to

bring the total benefits in any month up to one-half the

aforesaid monthly average salary except that any officer who

receives pension or retirement benefits from any plan

established at any time pursuant to this act and who is also

entitled to receive social security old-age insurance benefits

shall not regardless of when the officer retired from active

service have his pension or retirement benefits offset or

reduced by more than seventy-five per centum of the social

security old-age insurance benefits which he receives.

* * *

(f)  Any borough, town, township or regional police

department may establish and pay length of service increments

for years of service beyond twenty-five years for each completed

year of service in excess of twenty-five years, not to exceed

one hundred dollars ($100) per month for each completed year of

service in excess of twenty-five years up to a maximum of [five

hundred dollars ($500)] six hundred dollars ($600) per month

after five completed years of service in excess of twenty-five

years. Such length of service increments may be paid in addition

to other monthly pension or retirement allowances.

(g) (1)  The ordinance or resolution establishing the police

pension fund may provide for a cost of living increase for

members of the police force receiving retirement benefits. The

cost of living increase shall not exceed the percentage increase

in the Consumer Price Index from the year in which the police

member last worked, shall not cause the total police pension

benefits to exceed [seventy-five] eighty per centum of the

salary for computing retirement benefits and shall not cause the

total cost of living increase to exceed thirty per centum. No

cost of living increase shall be granted which would impair the

actuarial soundness of the pension fund.

* * *

Section 3.  This act shall take effect in 60 days.