PRIOR PRINTER'S NOS. 428, 2509 PRINTER'S NO. 3146
No. 388 Session of 1989
INTRODUCED BY DOMBROWSKI, FEE, CAPPABIANCA, VAN HORNE,
CALTAGIRONE AND LEVDANSKY, FEBRUARY 13, 1989
AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
REPRESENTATIVES, AS AMENDED, MARCH 13, 1990
AN ACT
1 Amending the act of May 23, 1945 (P.L.903, No.362), entitled "An
2 act authorizing cities of the third class to establish an
3 optional retirement system for officers and employes
4 independently of any pension system or systems existing in
5 such cities," further providing for membership on retirement
6 boards; and authorizing cost-of-living increases.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Section 3 of the act of May 23, 1945 (P.L.903,
10 No.362), entitled "An act authorizing cities of the third class
11 to establish an optional retirement system for officers and
12 employes independently of any pension system or systems existing
13 in such cities," amended July 18, 1986 (P.L.1413, No.128), is
14 amended to read:
15 Section 3. In any such city which creates such retirement
16 system there shall be created a board to be known as the
17 "Officers and Employes Retirement Board," consisting of the
18 mayor, the city controller, the director of finance, two
19 employes to be chosen by the employes contributing to the
1 retirement fund, a retired city employe chosen by the
2 association of retired city employes and, if members of council
3 participate in the retirement fund and are members of the fund,
4 a member of council, chosen by council. It shall be the duty of
5 said board to register all persons employed by the said city,
6 and to administer the collections and distribution of the fund,
7 herein provided for, and make such reasonable rules in the
8 premises as such board may deem necessary to carry into effect
9 the provisions of this act.
10 Section 2. The act is amended by adding a section to read:
11 Section 4.1. (a) The board may, subject to the approval
12 required under subsection (b), increase the compensation of
13 persons receiving compensation of any kind from the fund by
14 reason of and after the termination of the services of any
15 member of the fund. Such increases shall be in conformity with a
16 uniform scale, which shall be based on the cost of living <--
17 CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS CALCULATED BY THE <--
18 BUREAU OF LABOR STATISTICS OF THE UNITED STATES DEPARTMENT OF
19 LABOR, but the total of any such allowance shall not at any time
20 exceed one-half of the current salary being paid to nonuniformed
21 employes of the highest pay grade. No cost-of-living increase
22 shall be granted which would impair the actuarial soundness of
23 the fund.
24 (b) The board may recommend the increase described in
25 subsection (a) to the city council at any time. The PROVIDED <--
26 THAT THE PROVISIONS OF SECTION 305 OF THE ACT OF DECEMBER 18,
27 1984 (P.L.1005, NO.205), KNOWN AS THE "MUNICIPAL PENSION PLAN
28 FUNDING STANDARD AND RECOVERY ACT," HAVE BEEN SATISFIED, THE
29 council may, by ordinance, approve this increase subject,
30 however, to the approval of the mayor.
19890H0388B3146 - 2 -
1 Section 3. This act shall take effect in 60 days.
A10L11RZ/19890H0388B3146 - 3 -