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                                                       PRINTER'S NO. 174

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 186 Session of 1999


        INTRODUCED BY O'BRIEN, BUXTON, READSHAW, LEDERER, BELFANTI,
           WOGAN, STAIRS, LAUGHLIN, CURRY, STABACK, COY, WOJNAROSKI,
           E. Z. TAYLOR, MICHLOVIC, COLAFELLA, TRELLO, CASORIO,
           VAN HORNE, RAMOS, PESCI, GIGLIOTTI, KENNEY, J. TAYLOR,
           C. WILLIAMS, McCALL, SOLOBAY, M. COHEN, McNAUGHTON, BARD,
           SEYFERT, L. I. COHEN, FREEMAN, SAINATO, ORIE, PLATTS,
           McGEEHAN, HARHAI, YOUNGBLOOD, DeLUCA, BUNT, PIPPY, BROWNE,
           PETRARCA, JAMES, CIVERA AND BELARDI, JANUARY 27, 1999

        REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JANUARY 27, 1999

                                     AN ACT

     1  Amending the act of December 14, 1988 (P.L.1192, No.147),
     2     entitled "An act requiring municipal retirement systems to
     3     pay special ad hoc postretirement adjustments to certain
     4     retired police officers and firefighters; providing for the
     5     financing of these adjustments; providing for the
     6     administration of the Commonwealth's reimbursements for these
     7     adjustments; and making repeals," further defining "special
     8     ad hoc municipal police and firefighter postretirement
     9     adjustment"; and further providing for special ad hoc
    10     adjustments.

    11     The General Assembly of the Commonwealth of Pennsylvania
    12  hereby enacts as follows:
    13     Section 1.  The definition of "special ad hoc municipal
    14  police and firefighter postretirement adjustment" in section 102
    15  of the act of December 14, 1988 (P.L.1192, No.147), known as the
    16  Special Ad Hoc Municipal Police and Firefighter Postretirement
    17  Adjustment Act, is amended to read:
    18  Section 102.  Definitions.
    19     The following words and phrases when used in this act shall

     1  have the meanings given to them in this section unless the
     2  context clearly indicates otherwise:
     3     * * *
     4     "Special ad hoc municipal police and firefighter
     5  postretirement adjustment."  An increase in or change in the
     6  amount of a retirement annuity, retirement benefit, service
     7  pension or disability pension benefit granted or effective after
     8  active employment ceases[, as provided for on a one-time basis
     9  under this statute].
    10     Section 2.  Section 301 of the act is amended to read:
    11  Section 301.  Entitlement to special ad hoc [adjustment]
    12  adjustments.
    13     A municipal retirement system shall pay a retired police
    14  officer or firefighter [a] special ad hoc municipal police and
    15  firefighter postretirement [adjustment] adjustments under this
    16  chapter if all of the following apply:
    17         (1)  The retiree has terminated active employment with
    18     the municipality as a police officer or firefighter.
    19         (2)  The retiree is receiving a retirement annuity,
    20     retirement benefit, service pension or disability pension
    21     benefit from a municipal retirement system on the basis of
    22     active employment with a municipality as a police officer or
    23     firefighter.
    24         (3)  [The] (i)  With respect to eligibility for the first
    25         special ad hoc adjustment under section 302, the retiree
    26         began receiving the retirement annuity, retirement
    27         benefit, service pension or disability pension benefit
    28         before January 1, 1985.
    29             (ii)  With respect to eligibility for the second
    30         special ad hoc adjustment under section 302.1, the
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     1         retiree began receiving the retirement annuity,
     2         retirement benefit, service pension or disability pension
     3         benefit before January 1, 1994.
     4     Section 3.  The heading of section 302 of the act is amended
     5  to read:
     6  Section 302.  Amount of first special ad hoc adjustment.
     7     * * *
     8     Section 4.  The act is amended by adding a section to read:
     9  Section 302.1.  Amount of second special ad hoc adjustment.
    10     (a)  General rule.--Except as provided in subsections (b) and
    11  (c), a municipal retirement system shall pay a retired police
    12  officer or firefighter a special ad hoc municipal police and
    13  firefighter postretirement adjustment under section 301, as
    14  follows:
    15         (1)  The sum of $25 a month, if on January 1, 1998, the
    16     retiree has been retired at least five years but less than
    17     ten years.
    18         (2)  The sum of $50 a month, if on January 1, 1998, the
    19     retiree is totally disabled and has been retired less than
    20     ten years.
    21         (3)  The sum of $75 a month, if on January 1, 1998, the
    22     retiree has been retired at least ten years but less than 20
    23     years.
    24         (4)  The sum of $150 a month, if on January 1, 1998, the
    25     retiree has been retired at least 20 years.
    26     (b)  Limitation.--If, under section 301, a retiree is
    27  entitled to be paid a special ad hoc municipal police and
    28  firefighter postretirement adjustment by more than one municipal
    29  retirement system, the amount of the special ad hoc adjustment
    30  under subsection (a) shall be reduced so that the total of all
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     1  these adjustments paid to the retiree does not exceed the amount
     2  specified in subsection (a).
     3     (c)  Modification in amount of postretirement adjustment.--In
     4  a municipality where, as of the most recent actuarial valuation
     5  prepared under the act of December 18, 1984 (P.L.1005, No.205),
     6  known as the Municipal Pension Plan Funding Standard and
     7  Recovery Act, the actuarial value of aggregated assets as a
     8  percentage of the aggregated actuarial accrued liabilities of
     9  the municipality's retirement systems is less than 50%, if a
    10  retiree entitled to receive a special ad hoc municipal police
    11  and firefighters postretirement adjustment receives a
    12  postretirement adjustment from the applicable municipal police
    13  or paid firefighters retirement system after the effective date
    14  of this section, the amount of the special ad hoc postretirement
    15  adjustment under subsection (a) shall be reduced by the total
    16  amount of any municipal postretirement adjustment.
    17     (d)  Construction.--Nothing in subsections (b) and (c) shall
    18  be construed to reduce the amount of any retirement annuity,
    19  retirement benefit, service pension or disability pension
    20  benefit payable to a retiree immediately prior to the effective
    21  date of this section.
    22     Section 5.  Section 303 of the act is amended to read:
    23  Section 303.  Payment of special ad hoc [adjustment]
    24  adjustments.
    25     [The special ad hoc adjustment is] Special ad hoc adjustments
    26  shall be effective on the date of the first payment of the
    27  retiree's retirement annuity, retirement benefit, service
    28  pension or disability pension benefit due after December 31,
    29  1988[.], with respect to the first special ad hoc adjustment and
    30  after December 31, 1997, with respect to the second special ad
    19990H0186B0174                  - 4 -

     1  hoc adjustment. The municipal retirement system shall pay this
     2  as soon as practicable after that and shall include in the first
     3  payment any omitted amount payable between the effective date of
     4  the adjustment and the date of the first payment.
     5     Section 6.  The amendment or addition of sections 102, 301,
     6  302, 302.1 and 303 of the act shall be retroactive to January 1,
     7  1998.
     8     Section 7.  This act shall take effect immediately.















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