PRINTER'S NO. 728
No. 660 Session of 1997
INTRODUCED BY DeLUCA, BELARDI, WALKO, COY, CIVERA, NAILOR, HERMAN, VAN HORNE, LUCYK, STERN, RUBLEY, SEMMEL, SCHULER, BEBKO-JONES, STABACK, ROONEY, L. I. COHEN, CURRY, SURRA, SHANER, SATHER, KIRKLAND, TRAVAGLIO, MIHALICH, BENNINGHOFF, COLAIZZO AND LEVDANSKY, MARCH 3, 1997
REFERRED TO COMMITTEE ON VETERANS AFFAIRS AND EMERGENCY PREPAREDNESS, MARCH 3, 1997
AN ACT 1 Amending the act of June 11, 1968 (P.L.149, No.84), entitled, as 2 amended, "An act relating to volunteer firefighters' relief 3 associations, clarifying their purposes and objectives, 4 establishing criteria and standards for the conduct of their 5 affairs, providing for their formation, recognition, 6 continuing operation, and for their dissolution in 7 appropriate circumstances and the distribution of their 8 funds," further providing for volunteer firefighters' 9 retirement plans. 10 The General Assembly of the Commonwealth of Pennsylvania 11 hereby enacts as follows: 12 Section 1. Section 3 of the act of June 11, 1968 (P.L.149, 13 No.84), known as the Volunteer Firefighters' Relief Association 14 Act, amended December 22, 1993 (P.L.547, No.78), is amended to 15 read: 16 Section 3. Statement of Purpose.--The purpose of the 17 Legislature in enacting this statute is to encourage individuals 18 to take part in the fire service as volunteer firefighters, by 19 establishing criteria and standards for the orderly
1 administration and conduct of the affairs of firefighters' 2 relief associations, so as to ensure, as far as circumstances 3 will reasonably permit, that funds shall be available for the 4 protection of volunteer firefighters and their heirs: 5 (1) To provide financial assistance to volunteer 6 firefighters who may suffer injury or misfortune by reason of 7 their participation in the fire service; 8 (2) To provide financial assistance to the widow, children, 9 and/or other dependents of volunteer firefighters who lose their 10 lives as a result of their participation in the fire service; 11 (3) To provide, either by insurance or by the operation of a 12 beneficial fund, for the payment of a sum certain to the 13 designated beneficiaries of a participating member in such fund 14 following the death of such member for any cause, and to 15 establish criteria which members must meet in order to qualify 16 as participants in such death benefit fund; 17 (4) To provide safeguards for preserving life, health and 18 safety of volunteer firefighters, so as to ensure their 19 availability to participate in the fire service; 20 (5) To provide financial assistance to volunteer 21 firefighters who, after having actively participated in the fire 22 service for a specified minimum term, are no longer physically 23 able to continue such participation and are in need of financial 24 assistance; 25 (6) To provide funds to aid the rehabilitation of volunteer 26 firefighters who have suffered an impairment of their physical 27 capacity to continue to perform their normal occupations; [and] 28 (6.1) To provide retirement benefits to current and future 29 active volunteer firefighters upon their separation from active 30 participation in the fire service on account of attainment of a 19970H0660B0728 - 2 -
1 designated age or acquisition of credit for a designated period 2 of service through the establishment and maintenance of a 3 volunteer firefighters' retirement benefit plan; and 4 (7) In any event, to provide sufficient funds to ensure the 5 efficient and economical handling of the business of the 6 association in accomplishing the objectives hereinabove set 7 forth. 8 Section 2. The act is amended by adding sections to read: 9 Section 3.1. Volunteer Firefighters' Retirement Benefit Plan 10 Definitions and Minimum Standards.--As used in section 3(6.1), 11 this section and sections 3.2 through 3.6, unless the context 12 clearly indicates otherwise: 13 (1) Accrued retirement benefits is the amount of the 14 retirement benefit which would be payable to a volunteer 15 firefighter if the firefighter discontinued volunteer fire 16 service based on the defined benefit formula in effect or the 17 individual account balance, whichever is applicable, without 18 reference to a minimum vesting requirement or normal retirement 19 age requirement. 20 (2) Chief administrator of the volunteer firefighters' 21 relief association is the person who has primary responsibility 22 for the execution of the administrative, business or financial 23 affairs on behalf of the volunteer firefighters' relief 24 association, as indicated by the factual situation or as 25 designated by the relief association. 26 (3) Defined benefit plan is a retirement benefit plan which 27 provides a retirement benefit that is definitely determinable 28 pursuant to the plan document without reference to the amount 29 contributed to the plan on the participant's behalf or to 30 income, expenses, gains or losses or forfeitures of other 19970H0660B0728 - 3 -
1 participants covered by the plan. 2 (4) Defined contribution plan is a retirement benefit plan 3 which provides for an individual account for each participant 4 and for benefits which are based solely upon the amounts 5 allocated to the accounts of participants and upon investment 6 income, administrative or realized expenses, gains and losses 7 which may be allocated to those accounts. 8 (5) Fair market value is the amount or price which, in all 9 reasonable probability, on a specified date, would have been 10 realized through the disposition of an investment in the course 11 of business by a willing seller to a willing buyer as indicated 12 in the most recent closing daily results of a national market or 13 exchange for that type of investment or, if no national market 14 or exchange exists, the book value or actual purchase price, 15 whichever is applicable, of the investment. 16 (6) Fiduciary is a person who exercises discretionary 17 authority or control with respect to the administration of the 18 plan or the management or disposition of plan assets or who 19 renders investment advice for a fee to the plan. 20 (7) Nonforfeitable right is the unconditionally and legally 21 enforceable entitlement to receive benefits from a retirement 22 benefit plan attributable to service as a volunteer firefighter 23 participating in the plan. 24 (8) Normal retirement age is the earliest age at which a 25 former volunteer firefighter who participated in the retirement 26 benefit plan and who has an entitlement to receive a retirement 27 benefit pursuant to the terms of the plan document may receive 28 that retirement benefit. 29 (9) Prior volunteer fire service is the service rendered by 30 a volunteer firefighter to the applicable volunteer fire 19970H0660B0728 - 4 -
1 companies associated with the volunteer firefighters' relief 2 association which established and maintained the retirement 3 benefit plan prior to the establishment of that retirement 4 benefit plan. 5 (10) Retirement benefit is the amount, at the time of 6 retirement, payable or potentially payable to a former volunteer 7 firefighter at or after normal retirement age, which amount is 8 computed pursuant to the applicable formula if the retirement 9 benefit plan is a defined benefit plan or which amount is the 10 balance of the account of the former volunteer firefighter if 11 the retirement benefit plan is a defined contribution plan. 12 (11) Retirement benefit plan is the plan or program 13 established and maintained by a volunteer firefighters' relief 14 association pursuant to this act to provide retirement benefit 15 coverage for volunteer firefighter of the associated volunteer 16 fire companies, irrespective of the manner in which the plan is 17 administered. 18 (12) Survivor of a volunteer firefighter is the surviving 19 spouse of the volunteer firefighter at the time of the death of 20 the volunteer firefighter, or if none, the natural or adopted 21 children, including posthumous children, of the volunteer 22 firefighter. 23 (13) Year of volunteer fire service is the twelve-month 24 period, which need not be twelve consecutive months, during 25 which a volunteer firefighter who is eligible to participate in 26 the retirement benefit plan meets the minimum volunteer fire 27 service requirements established under section 9(c) and meets 28 additional minimum requirements established by the volunteer 29 firefighters' relief association and during which the minimum 30 obligation of the volunteer firefighters' relief association 19970H0660B0728 - 5 -
1 with respect to the retirement benefit plan under section 3.5 2 has been met. 3 Section 3.2. Establishment of Volunteer Firefighters' 4 Retirement Benefit Plan.--A volunteer firefighters' relief 5 association which has met the requirements of section 6 may 6 establish and maintain a retirement benefit plan for the 7 volunteer firefighters who are members of the relief association 8 under this act. No volunteer firefighters' relief association 9 shall be required, under this act, to establish a retirement 10 benefit plan. No more than one retirement benefit plan may be 11 established or maintained by a single volunteer firefighters' 12 relief association. 13 Section 3.3. Minimum Participating and Benefit Standards for 14 Volunteer Firefighters' Retirement Benefit Plans.--(a) A 15 retirement benefit plan established and maintained under this 16 act by a volunteer firefighters' relief association for 17 volunteer firefighters who are members of the relief association 18 and disbursements made by a retirement benefit plan shall be 19 governed by the applicable provisions of this act. 20 (b) Eligibility to participate shall be as follows: 21 (1) A volunteer firefighters' retirement benefit plan must 22 provide that each volunteer firefighter who is a member of the 23 relief association and who has attained at least twenty-one 24 years of age and has completed at least one year of fire service 25 is eligible to participate in the retirement benefit plan. 26 (2) If the retirement benefit plan is a defined benefit 27 plan, the volunteer firefighters' relief association may provide 28 for the exclusion from participation of a volunteer firefighter 29 who initially begins to provide volunteer fire services for the 30 respective volunteer fire company at an age which is less than 19970H0660B0728 - 6 -
1 five years prior to the normal retirement age of the retirement 2 benefit plan. 3 (3) A volunteer firefighter, at the time of the 4 establishment of the plan or at the time of the commencement of 5 volunteer fire services, whichever occurs later, may elect not 6 to participate in the retirement benefit plan. The election not 7 to participate shall be irrevocable. 8 (c) A volunteer firefighter shall have a nonforfeitable 9 right to a retirement benefit that is not less than a percentage 10 determined under the following table: 11 Years of Volunteer Nonforfeitable 12 Fire Service Percentage 13 Less than five Zero 14 Five or more One hundred 15 Notwithstanding the preceding table, a participant shall have a 16 one hundred per cent nonforfeitable right to a retirement 17 benefit upon attainment of normal retirement age, death or 18 disability under the retirement benefit plan. A volunteer 19 firefighters' relief association may establish a percentage 20 table that provides for a faster rate of becoming nonforfeitable 21 in the event of the death or disability of a volunteer 22 firefighter. 23 (d) A retirement benefit plan shall provide that a volunteer 24 firefighter who has acquired credit for a sufficient number of 25 years of volunteer fire service to obtain a nonforfeitable right 26 to all or a portion of the accrued retirement benefit and who 27 has terminated volunteer fire service with the applicable 28 volunteer fire company prior to attaining the applicable normal 29 retirement age is entitled to a deferred retirement benefit 30 payable upon application when the former volunteer firefighter 19970H0660B0728 - 7 -
1 attains at least the normal retirement age. 2 (e) Retirement benefit amount requirements are as follows: 3 (1) A volunteer firefighters' retirement benefit plan shall 4 be subject to maximum retirement benefit requirements as 5 specified in subclause (i) or (ii), whichever is applicable. 6 (i) If the volunteer firefighters' retirement benefit plan 7 is a defined benefit plan, the maximum benefit amount payable to 8 a participating volunteer firefighter entitled to a benefit 9 shall be determined on the basis of an actuarial valuation which 10 takes into account the age, and other factors as the actuary 11 deems appropriate, of the eligible participating firefighter and 12 the amount of financing available per active covered 13 firefighter. The maximum retirement benefit under a retirement 14 benefit plan that is a defined benefit plan shall not exceed 15 twenty dollars per month for each year of fire service credited 16 under the terms of the plan. 17 (ii) If the volunteer firefighters' retirement benefit plan 18 is a defined contribution plan, the maximum retirement income 19 contribution, exclusive of any investment earnings, for a 20 participating firefighter shall not exceed four hundred eighty 21 dollars for each year of fire service. 22 (2) A retirement benefit plan shall be funded in accordance 23 with the provisions of section 3.5 by the volunteer 24 firefighters' relief association. 25 (3) Unless otherwise specified by the volunteer 26 firefighters' relief association, all years of volunteer fire 27 service for retirement benefit amount purposes shall be years of 28 volunteer fire service completed after the establishment of the 29 retirement benefit plan and after completion of minimum 30 eligibility requirements to participate in the retirement 19970H0660B0728 - 8 -
1 benefit plan. If the volunteer firefighters' relief association 2 so specifies, years of volunteer fire service for retirement 3 benefit amount purposes may include up to ten years of volunteer 4 fire service prior to the establishment of the retirement 5 benefit plan, but only with respect to those volunteer 6 firefighter who complete at least one year of volunteer fire 7 service after establishment of the retirement benefit plan. If 8 the volunteer firefighters' relief association so specifies, the 9 retirement benefit accrual rate with respect to years of 10 volunteer fire service rendered prior to establishment of a 11 retirement benefit plan may be less than the retirement benefit 12 accrual rate with respect to years of volunteer fire service 13 rendered after the establishment of a retirement benefit plan. A 14 retirement benefit plan may be amended after its establishment 15 to increase or decrease the retirement benefit accrual rate 16 applicable to volunteer firefighter with respect to years of 17 volunteer fire service completed after the date of that 18 amendment. An amendment which decreases the retirement benefit 19 accrual rate may not affect benefits accrued prior to the 20 amendment; the amendment may only decrease prospectively the 21 retirement benefit accrual rate applicable to a volunteer 22 firefighter under the retirement benefit plan. 23 (4) Notwithstanding any other provision of this section, no 24 volunteer firefighter may receive credit for a year of volunteer 25 fire service in a retirement benefit plan which is a defined 26 benefit plan if the minimum funding requirements as set forth in 27 section 3.5 have not been met by the volunteer firefighters' 28 relief association in a timely fashion. 29 (f) The volunteer firefighters' relief association shall 30 specify the normal retirement age applicable to a retirement 19970H0660B0728 - 9 -
1 benefit plan. The normal retirement age shall not be earlier 2 than age fifty-five. No retirement benefit plan may provide for 3 the payment of benefits prior to the date on which the person 4 attains age fifty-five, whether or not the benefits are reduced 5 to take into account payment before the normal retirement age, 6 except in the case of the death or disability of the volunteer 7 firefighter. A retirement benefit plan may provide for the 8 payment of retirement benefits to an actively serving volunteer 9 firefighter who has attained at least the normal retirement age 10 specified in the retirement benefit plan, but no additional 11 years of volunteer fire service may be credited to the volunteer 12 firefighter who is receiving retirement benefits. 13 (g) In addition to retirement benefits, a volunteer 14 firefighter's retirement benefit plan may provide for the 15 payment of benefits in the event of the disability or death of a 16 volunteer firefighter who has become disabled or has died prior 17 to beginning to receive benefits under a retirement benefit 18 plan. Death benefits may be either in the form of survivor 19 annuity payments or lump-sum benefits. 20 (h) A retirement benefit payable from a retirement benefit 21 plan to an individual receiving or entitled to receive a 22 retirement benefit may not be assigned by the volunteer 23 firefighter; nor shall it be subject to garnishment, judgment, 24 execution or other legal process other than legally obligated 25 support of minor children or a spouse. 26 (i) Plan assets shall be held in trust by the volunteer 27 firefighters' relief association or by a qualified third party 28 under contract with the volunteer firefighters' relief 29 association for the purpose of providing benefits to 30 participants and their beneficiaries in conformance with this 19970H0660B0728 - 10 -
1 act or for the purpose of defraying the necessary and reasonable 2 expenses of the operation and administration of the plan. If the 3 retirement benefit plan and the related trust are not tax 4 qualified within the meaning of sections 401 and 501 of the 5 Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §§ 6 401 and 501), the trust referred to in this subsection may 7 provide that the assets held thereunder may be subject to the 8 claims of general creditors, if any, of the volunteer 9 firefighters' relief association or may contain any other terms 10 and provisions which are necessary to insure that the 11 participation by a volunteer firefighter in the retirement 12 benefit plan does not result in taxable income under the 13 Internal Revenue Code of 1986 prior to the payment of retirement 14 benefits. 15 (j) A fiduciary of a retirement benefit plan shall act 16 solely in the interest of the plan's participants and 17 beneficiaries. Subject only to the provisions of this act and 18 the plan document, a fiduciary may accept, hold, invest in and 19 retain an investment as long as the fiduciary exercises the 20 degree of judgment and care, under the circumstances then 21 prevailing, which persons of prudence and intelligence exercise 22 in the management of their own affairs, not in regard to 23 speculation but in regard to permanent disposition of their 24 funds, considering the probable income to be derived and the 25 probable safety of the capital. 26 (k) The volunteer firefighters' relief association or the 27 designated plan administrator, whichever is applicable, shall 28 provide volunteer firefighters who participate in a retirement 29 benefit plan maintained under this act with a summary of the 30 plan's provisions, including the plan's provisions relating to 19970H0660B0728 - 11 -
1 the participation requirements; the rate at which a 2 nonforfeitable right in plan benefits is obtained and increases; 3 and the plan's retirement benefit or contribution formula. This 4 summary shall be provided to each retirement benefit plan 5 participant within six months from the date on which plan 6 participation commences. In addition, a material modification to 7 the plan provisions shall be provided in writing to each 8 participant within six months after the date the modification is 9 adopted or the date on which it is effective, whichever is 10 later. A copy of the plan, the summary of the plan, and relevant 11 documents related to the funding or investment of the assets of 12 the plan and of contracts or agreements with service providers 13 to the plan shall be made available for inspection or copying by 14 a plan participant, a beneficiary or a member of the public at 15 the office of the volunteer firefighters' relief association. 16 Section 3.4. Volunteer Firefighters' Retirement Benefit Plan 17 Actuarial Reporting.--(a) Actuarial reporting shall be as 18 follows: 19 (1) The plan administrator defined in the retirement benefit 20 plan document or the chief administrator of the volunteer 21 firefighters' relief association, if no plan administrator is 22 defined in the plan document, shall, every three years, cause 23 actuarial reporting for the retirement benefit plan to be 24 prepared and to be provided to the Department of the Auditor 25 General in conjunction with the routine audits performed under 26 section 7. A copy of the report shall be submitted to the 27 governing body or chief elected official of the municipality 28 where the volunteer fire company is located at the same time the 29 report is transmitted to the Auditor General. Actuarial 30 reporting is a public record and shall be made available to 19970H0660B0728 - 12 -
1 active members or benefit recipients of the retirement benefit 2 plan. Under a defined benefit plan, the report shall disclose 3 the actuarial assumptions and methods used in determining 4 actuarial costs and liabilities. 5 (2) The actuarial reporting for retirement benefit plans 6 which are defined benefit plans shall be pursuant to subsection 7 (c). The actuarial reporting for retirement benefit plans which 8 are defined contribution plans shall be pursuant to subsection 9 (d). 10 (b) If a retirement benefit plan fails to comply with this 11 section, allocation of proceeds of the premium tax on foreign 12 fire insurance pursuant to Chapter 7 of the act of December 18, 13 1984 (P.L.1005, No.205), known as the "Municipal Pension Plan 14 Funding Standard and Recovery Act," otherwise payable with 15 respect to the relief association shall be withheld until 16 compliance occurs. 17 (c) The actuarial reporting for a retirement benefit plan, 18 which is a defined benefit plan, shall be as follows: 19 (1) The actuarial reporting shall be prepared and certified 20 by an enrolled actuary. 21 (2) The actuarial reporting shall be prepared in accordance 22 with the frozen entry age actuarial cost method with costs 23 allocated on the basis of future years of fire service of plan 24 participants. The actuarial cost method shall be used to value 25 all aspects of the retirement benefit plan. The actuarial 26 reporting shall use actuarial assumptions which are, in the 27 judgment of the actuary and the governing body of the plan, 28 reasonable in the aggregate. The actuarial reporting shall 29 measure the aspects of the retirement benefit plan in accordance 30 with modifications in plan benefits which, as of the valuation 19970H0660B0728 - 13 -
1 date, are known or can reasonably be expected to be in force 2 during the ensuing year. The actuarial reporting shall contain 3 (i) an exhibit setting forth the normal cost accrual rate and 4 the amount for each plan year; (ii) in the case of a retirement 5 benefit plan that provides for credit for years of fire service 6 prior to the effective date of the retirement benefit plan for 7 the purpose of computing the amount of benefits under the plan 8 or for amendments increasing benefits, a separate statement of 9 the retirement benefit plan's actuarial accrued liability; (iii) 10 an exhibit of the total administrative cost of the retirement 11 benefit plan for the preceding year; (iv) an exhibit summarizing 12 the actuarial cost methods and the actuarial assumptions used in 13 preparation of the actuarial exhibits; (v) an exhibit of the 14 present value of accumulated plan benefits; (vi) an exhibit of 15 the assets of the plan at fair market value or, if the assets 16 are valued differently from fair market value, a statement of 17 the basis for determining the value of assets for purposes of 18 this section and section 3.5; (vii) a summary of the pertinent 19 participant data; and (viii) a summary of the principal 20 provisions of the benefits of the retirement benefit plan upon 21 which the actuarial exhibit is based. 22 (d) The actuarial reporting for a retirement benefit plan 23 which is a defined contribution plan shall include the total 24 balance of any member account applicable to the retirement 25 benefit plan, the procedures for establishing contribution rates 26 or requirements, the procedures for allocating amounts to member 27 accounts and additional relevant information. 28 Section 3.5. Volunteer Firefighters' Retirement Benefit Plan 29 Minimum Funding Standard.--(a) The plan administrator or chief 30 administrator of the volunteer firefighters' relief association 19970H0660B0728 - 14 -
1 shall annually determine the financial requirements of the 2 retirement benefit plan for the following year on the basis of 3 the most recent actuarial reporting, and shall certify those 4 requirements to the governing body of the volunteer 5 firefighters' relief association which maintains the retirement 6 benefit plan. The requirements shall be certified no later than 7 two months prior to the start of the next following year. 8 (b) If the retirement benefit plan is a defined benefit plan 9 providing monthly benefits for the life of the recipients, the 10 financial requirement of the retirement benefit plan shall be 11 the normal cost plus, in the case of a defined benefit plan that 12 provides benefits based on years of fire service prior to the 13 effective date of the plan, the cost to amortize a liability 14 attributable to fire service over a period not to exceed ten 15 years from the plan's effective date or, in the case of an 16 amendment increasing benefits, ten years from the date of the 17 amendment. 18 (c) If the retirement benefit plan is a defined benefit plan 19 allowing lump-sum benefits to recipients, the financial 20 requirements shall be the greater of the requirements 21 established in subsection (b) or an amount determined by an 22 actuary which will provide lump-sum benefits for all 23 participants retiring during the current year. 24 (d) If the retirement benefit plan is a defined contribution 25 plan, the financial requirements of the retirement benefit plan 26 shall be determined pursuant to the terms of the retirement 27 benefit plan or instrument establishing the retirement benefit 28 plan. The Department of the Auditor General may specify 29 procedures for determining the financial requirements of 30 retirement benefit plans to which this subsection is applicable 19970H0660B0728 - 15 -
1 as need arises if those procedures are consistent with this act. 2 (e) The minimum financial requirements of the retirement 3 benefit plan shall be the obligation of the volunteer 4 firefighters' relief association. The minimum financial 5 requirements of the retirement benefit plan shall be due no 6 later than twelve months following the start of the year. Any 7 amount of the minimum financial requirements of the retirement 8 benefit plan which remains unpaid by the volunteer firefighters' 9 relief association which maintains the retirement benefit, as of 10 twelve months after the date on which the minimum financial 11 requirements are due, shall be added to the minimum financial 12 requirement for the current year, with interest, until the 13 payment is made at the actuarial valuation rate. If the amount 14 applicable to the prior year is not paid by the close of the 15 current year, the retirement benefit plan shall be liquidated 16 and no further benefits may be earned by any volunteer 17 firefighter thereafter. Upon liquidation of the plan, the assets 18 shall be allocated among the participants and beneficiaries of 19 the plan in the following order: 20 (1) In the case of benefits payable as an annuity, (i) in 21 the case of the benefit of a participant or beneficiary which 22 was in pay status as of the beginning of the three-year period 23 ending on the date the plan is liquidated, the lowest benefit 24 based on the provisions of the plan as in effect during the 25 five-year period ending on the date the plan is liquidated; and 26 (ii) in the case of a benefit of a participant or beneficiary 27 other than a benefit described in subclause (i) which 28 participant or beneficiary would have been in pay status as of 29 the beginning of the three-year period ending on the date the 30 plan is liquidated if the participant had retired prior to the 19970H0660B0728 - 16 -
1 beginning of that period, the lowest benefit based on the 2 provisions of the plan, as in effect during the five-year period 3 ending on the date the plan is liquidated. 4 (2) In the case of other benefits, assets remaining after 5 the liabilities of the plan to participants and their 6 beneficiaries have been satisfied may be returned to the 7 volunteer firefighters' relief association. 8 (f) If a retirement benefit plan is liquidated under this 9 section, the volunteer firefighters' relief association that 10 previously sponsored the plan may not sponsor a retirement 11 benefit plan described in section 3(6.1) for the period of at 12 least ten years from the date the plan was liquidated. A plan 13 that is established after the ten-year period referred to in 14 this subsection may not credit as years of fire service years 15 during the ten-year period following the liquidation of the 16 plan. 17 (g) Except as provided in this act, a retirement benefit 18 plan established under this act shall not be subject to Chapters 19 1 through 6 or 8 of the act of December 18, 1984 (P.L.1005, 20 No.205), known as the "Municipal Pension Plan Funding Standard 21 and Recovery Act." 22 Section 3.6. Standards for Years of Fire Service.--(a) A 23 year of fire service shall be credited under a retirement 24 benefit plan for each year after the establishment of the plan 25 in which an active volunteer firefighter accumulates at least 26 fifty points. Points shall be granted in accordance with a 27 system adopted by each volunteer company covered by a plan 28 established by the volunteer firefighters' relief association. 29 The system shall provide that points shall be granted for 30 activities designated by each volunteer company covered by a 19970H0660B0728 - 17 -
1 plan established by the volunteer firefighters' relief 2 association. Activities shall be selected from the following: 3 (1) Training courses, a maximum of twenty-five points shall 4 be awarded as follows: (i) courses under twenty hours' duration, 5 one point per hour, with a maximum of five points; (ii) courses 6 of twenty to forty-five hours' duration, one point per hour for 7 each hour over initial twenty hours, with a maximum of ten 8 points; and (iii) courses over forty-five hours' duration, 9 fifteen points per course. 10 (2) Drills of at least two hours, a maximum of twenty points 11 shall be awarded, one point per drill (minimum two-hour drill). 12 (3) Sleep-in or standby, a maximum of twenty points shall be 13 awarded for (i) sleep-in, one point each full night; and (ii) 14 standby, which is line-of-duty activity of the volunteer fire 15 company, lasting for four hours, not falling under one of the 16 other categories in this subsection, one point for each four 17 hours. 18 (4) Elected or appointed position, a maximum of twenty-five 19 points shall be awarded for (i) completion of one-year term in 20 an elected or appointed position; and (ii) being elected, as an 21 active volunteer firefighter, to serve as a delegate to a 22 firefighters' convention. 23 (5) Attendance at meetings, a maximum of twenty points shall 24 be awarded for attendance at an official meeting of the 25 volunteer fire company, at the rate of one point per meeting. 26 (6) Participation in department responses, fifteen points 27 for responding on the minimum number of calls shall be awarded 28 as outlined below: 29 Total number of calls Minimum number of calls 30 volunteer fire company volunteer firefighter must 19970H0660B0728 - 18 -
1 responds to annually run annually in order 2 other than emergency to receive fifteen 3 rescue and first aid points credit 4 squad calls (ambulance 5 calls) 6 0 to 500 10% 7 500 to 1000 7.5% 8 1000 to 1500 5% 9 1500 and up 2.5% 10 Total number of calls Minimum number of calls 11 emergency rescue and volunteer firefighter must 12 first aid squad run annually in order 13 (ambulance) responds receive fifteen 14 to annually points credit 15 0 to 500 10% 16 500 to 1000 7.5% 17 1000 to 1500 5% 18 1500 and up 2.5% 19 (7) Miscellaneous activities, a maximum of fifteen points 20 shall be awarded for participation in inspections or other 21 activities described in section 1 of the act of June 24, 1976 22 (P.L.424, No.101), referred to as the Emergency and Law 23 Enforcement Personnel Death Benefits Act, and not otherwise 24 listed at the rate of one point per activity. 25 (b) Each volunteer company covered by a plan established by 26 the Volunteer Firefighters' Relief Association may designate 27 less than all the activities specified in subsection (a) as 28 activities for which points may be earned. 29 (c) Notwithstanding any other provision of this section, a 30 volunteer firefighter may not accumulate more than the maximum 19970H0660B0728 - 19 -
1 number of points with respect to activities described in 2 subsection (a) in any one year under any single retirement 3 benefit plan, even if the firefighter performs such activities 4 as a member of different volunteer fire companies under a plan 5 established by the volunteer firefighters' relief association. 6 Section 3. Section 6(e) of the act is amended by adding a 7 clause to read: 8 Section 6. Funds.--* * * 9 (e) The funds of any volunteer firefighters' relief 10 association may be spent: 11 * * * 12 (17) To establish and maintain a retirement benefit plan as 13 defined in section 3.1. Prior to the establishment of a 14 retirement benefit plan under this clause, the volunteer 15 firefighters' relief association shall provide the following 16 minimum benefits: an accidental death benefit of thirty thousand 17 dollars and a weekly disability income benefit of one hundred 18 dollars for accidental deaths and disabilities suffered by 19 member volunteer firefighters and resulting from the performance 20 of their duties with a volunteer fire company. 21 Section 4. Section 7(a) of the act, amended December 22, 22 1993 (P.L.547, No.78), is amended to read: 23 Section 7. Audits.--(a) The Department of the Auditor 24 General shall have the power, and its duty shall be, to audit 25 the accounts and records of every volunteer firefighters' relief 26 association receiving any money under Chapter 7 of the act of 27 December 18, 1984 (P.L.1005, No.205), known as the "Municipal 28 Pension Plan Funding Standard and Recovery Act," as amended, as 29 far as may be necessary to satisfy the department that the money 30 received was expended or is being expended for no purpose other 19970H0660B0728 - 20 -
1 than that authorized by this act. Copies of all such audits 2 shall be furnished to the Governor. Audits shall include 3 expenditures relating to retirement benefit plans either solely 4 or partially funded by funds obtained under the "Municipal 5 Pension Plan Funding Standard and Recovery Act." 6 * * * 7 Section 5. This act shall take effect immediately. A7L53JLW/19970H0660B0728 - 21 -