PRINTER'S NO. 281
No. 253 Session of 1989
INTRODUCED BY CALTAGIRONE, PRESSMANN, CESSAR, TRELLO, KENNEY,
ANGSTADT, STABACK, BELARDI, VAN HORNE, VEON, MRKONIC,
LaGROTTA AND DALEY, FEBRUARY 6, 1989
REFERRED TO COMMITTEE ON URBAN AFFAIRS, FEBRUARY 6, 1989
AN ACT
1 Amending the act of June 23, 1931 (P.L.932, No.317), entitled,
2 as reenacted and amended, "An act relating to cities of the
3 third class; and amending, revising, and consolidating the
4 law relating thereto," permitting interests in police pension
5 funds to vest after 12 years under certain conditions;
6 providing for the amount of the retirement allowance benefit
7 vested; and adding a definition.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. The act of June 23, 1931 (P.L.932, No.317), known
11 as The Third Class City Code, reenacted and amended June 28,
12 1951 (P.L.662, No.164), is amended by adding a section to read:
13 Section 4302.1. Limited Vested Benefit.--(a) The ordinance
14 may provide for a limited vested benefit if such would conform
15 to section 305 of the act of December 18, 1984 (P.L.1005,
16 No.205), known as the "Municipal Pension Plan Funding Standard
17 and Recovery Act." Under the provisions of the benefit, should a
18 member of the police pension fund, before completing the minimum
19 age and minimum period of continuous service requirements but
20 after having completed twelve years of full-time service, the
1 member shall be entitled to vest his or her retirement benefits
2 subject to the following conditions:
3 (1) the member must file with the management board of the
4 police pension fund a written notice of his or her intention to
5 vest;
6 (2) the member must include in the notice, the date the
7 member intends to terminate his or her service as a full-time
8 police officer;
9 (3) the termination date shall be at least thirty days later
10 than the date of notice to vest;
11 (4) the member must be in good standing with the police
12 department on the date of notice to vest; and
13 (5) the board shall indicate on the notice to vest the rate
14 of the monthly pay of the member as of the date of said notice
15 to vest or the highest average annual salary which the member
16 received during any five years of service preceding said date,
17 whichever is the higher.
18 (b) Upon reaching the date which would have been the
19 member's retirement date had the member continued his or her
20 full-time employment with the police department, the member
21 shall notify the board, in writing, that the member desires to
22 collect his or her pension. The amount of retirement benefits
23 the member is entitled to receive under this section shall be
24 computed as follows:
25 (1) the initial determination of the member's base
26 retirement benefits shall be computed on the salary indicated on
27 the notice to vest; and
28 (2) the portion of the base retirement benefits due the
29 member shall be determined by applying to the base amount the
30 percentage that his or her years of service actually rendered
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1 bears to the years of service which would have been rendered had
2 the member continued to be employed by the department until his
3 or her minimum retirement date.
4 Section 2. Section 4303(a) of the act, amended May 9, 1961
5 (P.L.178, No.88), is amended to read:
6 Section 4303. Allowances and Service Increments.--(a)
7 Payments for allowances shall not be a charge on any other fund
8 in the treasury of the city or under its control save the police
9 pension fund herein provided for. The basis of the apportionment
10 of the pension shall be determined by the rate of the monthly
11 pay of the member at the date of injury, death, honorable
12 discharge, vesting under section 4302.1 or retirement, or the
13 highest average annual salary which the member received during
14 any five years of service preceding injury, death, honorable
15 discharge, vesting under section 4302.1 or retirement, whichever
16 is the higher, and except as to service increments provided for
17 in subsection (b) of this section, shall not in any case exceed
18 in any year one-half the annual pay of such member computed at
19 such monthly or average annual rate, whichever is the higher.
20 * * *
21 Section 3. The act is amended by adding a section to read:
22 Section 4309. Definitions.--As used in this subdivision the
23 term "salary" is defined as the total income paid to the member
24 by the city from which pension contributions have been deducted.
25 Section 4. This act shall take effect in 60 days.
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