PRIOR PRINTER'S NO. 18 PRINTER'S NO. 2628
No. 16 Session of 1989
INTRODUCED BY LLOYD, HALUSKA, GIGLIOTTI, VEON, STABACK,
KOSINSKI, E. Z. TAYLOR, THOMAS, CIVERA, NOYE, CAWLEY, STUBAN,
DISTLER, ITKIN, GODSHALL, COLAIZZO AND CAPPABIANCA,
JANUARY 18, 1989
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
OCTOBER 17, 1989
AN ACT
1 Amending the act of August 31, 1971 (P.L.398, No.96), entitled
2 "An act providing for the creation, maintenance and operation
3 of a county employes' retirement system, and imposing certain
4 charges on counties and providing penalties," REGULATING <--
5 ADMINISTRATIVE EXPENSES; FURTHER PROVIDING FOR INTEREST ON
6 MEMBER CONTRIBUTION ACCOUNTS; AND authorizing members to
7 reduce their contributions.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 SECTION 1. SECTION 5 OF THE ACT OF AUGUST 31, 1971 (P.L.398, <--
11 NO.96), KNOWN AS THE COUNTY PENSION LAW, IS AMENDED TO READ:
12 SECTION 5. PERSONNEL; ADMINISTRATIVE EXPENSES.--THE BOARD
13 MAY APPOINT AND FIX THE COMPENSATION OF AN ACTUARY. THE COUNTY
14 CONTROLLER OR THE CHIEF CLERK OF THE COUNTY, AS THE CASE MAY BE,
15 SHALL BE THE SECRETARY OF THE BOARD. IN COUNTIES HAVING AN
16 OPTIONAL FORM OF GOVERNMENT, THE BOARD SHALL APPOINT A
17 SECRETARY. THE COMPENSATION OF THE SECRETARY SHALL BE FIXED BY
18 THE SALARY BOARD OR COUNCIL, AS THE CASE MAY BE. THE SECRETARY
19 SHALL KEEP A RECORD OF ALL OF THE PROCEEDINGS OF THE BOARD,
1 WHICH RECORD SHALL BE OPEN TO INSPECTION BY THE PUBLIC.
2 THE EXPENSE OF THE ADMINISTRATION OF THIS ACT, EXCLUSIVE OF
3 THE PAYMENT OF RETIREMENT ALLOWANCES, SHALL BE PAID BY THE
4 COUNTY BY APPROPRIATIONS MADE ON THE BASIS OF ESTIMATES
5 SUBMITTED BY THE BOARD. HOWEVER, SUCH ADMINISTRATIVE EXPENSES
6 MAY FROM YEAR TO YEAR BE PAID FROM THE FUND UNLESS IT IS
7 DETERMINED BY THE ACTUARY THAT SUCH PAYMENT WILL IMPAIR THE
8 ACTUARIAL SOUNDNESS OF THE FUND.
9 SECTION 2. SECTION 6 OF THE ACT, AMENDED JUNE 22, 1978
10 (P.L.495, NO.74), IS AMENDED TO READ:
11 SECTION 6. RULES AND REGULATIONS; ACTUARIAL DATA.--THE BOARD
12 SHALL, FROM TIME TO TIME, ESTABLISH SUCH RULES AND REGULATIONS
13 FOR MEETINGS OF THE BOARD AND FOR THE ADMINISTRATION OF THE
14 FUND, AND THE VARIOUS ACCOUNTS THEREOF, AS MAY BE DEEMED
15 NECESSARY. THE BOARD MAY, BY JANUARY 31 OF EACH YEAR, DETERMINE
16 THE RATE OF REGULAR INTEREST TO BE ALLOWED MEMBER CONTRIBUTION
17 ACCOUNTS FOR THE CURRENT CALENDAR YEAR, SUCH RATE OF REGULAR
18 INTEREST NOT TO BE LESS THAN FOUR PER CENT [NOR MORE THAN FIVE
19 AND ONE-HALF PER CENT] PER YEAR. IT SHALL KEEP SUCH DATA AS
20 SHALL BE NECESSARY FOR ACTUARIAL VALUATION PURPOSES. THE ACTUARY
21 OF THE BOARD SHALL (I) PERIODICALLY MAKE AN ACTUARIAL
22 INVESTIGATION INTO THE MORTALITY AND SERVICE EXPERIENCE OF THE
23 CONTRIBUTORS TO AND BENEFICIARIES OF THE FUND, (II) ADOPT FOR
24 THE RETIREMENT SYSTEM ONE OR MORE MORTALITY TABLES, AND (III)
25 CERTIFY TO THE BOARD ANNUALLY THE AMOUNT OF APPROPRIATION TO BE
26 MADE BY THE COUNTY TO THE FUND TO BUILD UP AND MAINTAIN ADEQUATE
27 RESERVES FOR THE PAYMENT OF THE COUNTY'S SHARE OF THE RETIREMENT
28 ALLOWANCES.
29 Section 1 3. Section 7(d) of the act of August 31, 1971 <--
30 (P.L.398, No.96), known as the County Pension Law, amended
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1 December 20, 1983 (P.L.282, No.75), is amended to read:
2 Section 7. County Employes' Retirement Fund; Transfers
3 Between Classes.--* * *
4 (d) Each member may elect to contribute an additional amount
5 not exceeding ten per cent more than the percentage herein
6 required. Each member may also elect to reduce his contribution
7 to any of the percentages required herein for any class lower
8 than the class otherwise designated by the board as applicable
9 to the retirement system to which the member belongs. Any such
10 election to contribute at the percentage of a lower class shall
11 in no way affect the calculation of the county annuity portion
12 of the member's retirement allowance as provided in section 14,
13 which county annuity portion shall be calculated as though the
14 member had not made that election. The contributions shall be
15 paid into the fund through payroll deductions in such manner as
16 the board may require. All contributions including optional
17 additional payments by members shall be credited to the members'
18 annuity reserve account. The board may at any time, by rule,
19 authorize members of the retirement system, whether original or
20 new members, to transfer from the one-one hundred twentieth
21 class, or from the one-one hundredth class, to the one-eightieth
22 class, to the one-seventieth class, or to the one-sixtieth
23 class. Whenever such transfers are authorized, salary deductions
24 or pickup contributions applicable to the transferred members
25 shall be based upon the per cent of salary deduction applicable
26 while in each class.
27 Section 2 4. This act shall take effect January 1, 1990. <--
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