PRINTER'S NO. 1818
No. 1557 Session of 1989
INTRODUCED BY VEON, LETTERMAN, MRKONIC, COHEN, JOHNSON, COWELL,
KOSINSKI, CESSAR, MORRIS, KUKOVICH, LESCOVITZ, TIGUE,
TANGRETTI, HASAY, VAN HORNE, COLAIZZO, PHILLIPS, FOX,
McVERRY, STABACK, JACKSON, BILLOW, BUSH, MARSICO, NAILOR,
COLAFELLA, COLE, COY, HAGARTY, McCALL, TRELLO, GIGLIOTTI,
DIETTERICK, DeLUCA, LEVDANSKY, BELFANTI, RAYMOND, HERMAN,
LAUGHLIN, LASHINGER, BUNT, REBER, SERAFINI, D. W. SNYDER,
WOZNIAK, CIVERA, CARLSON, PISTELLA, E. Z. TAYLOR, BOYES,
TRICH, BATTISTO, BELARDI, MARKOSEK, ARGALL, LEH, HALUSKA,
MICOZZIE, OLASZ, NOYE, NAHILL, MELIO, FREIND, FLICK AND
FLEAGLE, MAY 23, 1989
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, MAY 23, 1989
AN ACT
1 Amending the act of June 11, 1968 (P.L.149, No.84), entitled "An
2 act relating to volunteer firemen's relief associations,
3 clarifying their purposes and objectives, establishing
4 criteria and standards for the conduct of their affairs,
5 providing for their formation, recognition, continuing
6 operation, and for their dissolution in appropriate
7 circumstances and the distribution of their funds," further
8 providing for volunteer firefighters' retirement plans.
9 The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11 Section 1. Section 3 of the act of June 11, 1968 (P.L.149,
12 No.84), known as the Volunteer Firemen's Relief Association Act,
13 is amended to read:
14 Section 3. Statement of Purpose.--The purpose of the
15 Legislature in enacting this statute is to encourage individuals
16 to take part in the fire service as volunteer firemen, by
1 establishing criteria and standards for the orderly
2 administration and conduct of the affairs of firemen's relief
3 associations, so as to ensure, as far as circumstances will
4 reasonably permit, that funds shall be available for the
5 protection of volunteer firemen and their heirs:
6 (1) To provide financial assistance to volunteer firemen who
7 may suffer injury or misfortune by reason of their participation
8 in the fire service;
9 (2) To provide financial assistance to the widow, children,
10 and/or other dependents of volunteer firemen who lose their
11 lives as a result of their participation in the fire service;
12 (3) To provide, either by insurance or by the operation of a
13 beneficial fund, for the payment of a sum certain to the
14 designated beneficiaries of a participating member in such fund
15 following the death of such member for any cause, and to
16 establish criteria which members must meet in order to qualify
17 as participants in such death benefit fund;
18 (4) To provide safeguards for preserving life, health and
19 safety of volunteer firemen, so as to ensure their availability
20 to participate in the fire service;
21 (5) To provide financial assistance to volunteer firemen
22 who, after having actively participated in the fire service for
23 a specified minimum term, are no longer physically able to
24 continue such participation and are in need of financial
25 assistance;
26 (6) To provide funds to aid the rehabilitation of volunteer
27 firemen who have suffered an impairment of their physical
28 capacity to continue to perform their normal occupations; [and]
29 (6.1) To provide retirement benefits to current and future
30 active volunteer firemen upon their separation from active
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1 participation in the fire service on account of attainment of a
2 designated age or acquisition of credit for a designated period
3 of service through the establishment and maintenance of a
4 volunteer firemen's retirement benefit plan; and
5 (7) In any event, to provide sufficient funds to ensure the
6 efficient and economical handling of the business of the
7 association in accomplishing the objectives hereinabove set
8 forth.
9 Section 2. The act is amended by adding sections to read:
10 Section 3.1 Volunteer Firemen's Retirement Benefit Plan
11 Definitions and Minimum Standards.--As used in section 3(6.1),
12 this section and sections 3.2 through 3.6, unless the context
13 clearly indicates otherwise:
14 (1) Accrued retirement benefits are the amounts of the
15 retirement benefits which would be payable to a volunteer
16 fireman if the fireman discontinued volunteer fire service based
17 on the defined benefit formula in effect or the individual
18 account balance, whichever is applicable, without reference to a
19 minimum vesting requirement or normal retirement age
20 requirement.
21 (2) Chief administrator of the volunteer firemen's relief
22 association is the person who has primary responsibility for the
23 execution of the administrative, business or financial affairs
24 on behalf of the volunteer firemen's relief association, as
25 indicated by the factual situation or as designated by the
26 relief association.
27 (3) Defined benefit plan is a retirement benefit plan which
28 provides a retirement benefit that is definitely determinable
29 pursuant to the plan document without reference to the amount
30 contributed to the plan on the participant's behalf or to
19890H1557B1818 - 3 -
1 income, expenses, gains or losses or forfeitures of other
2 participants covered by the plan.
3 (4) Defined contribution plan is a retirement benefit plan
4 which provides for an individual account for each participant
5 and for benefits which are based solely upon the amounts
6 allocated to the accounts of participants and upon investment
7 income, administrative or realized expenses, gains and losses
8 which may be allocated to those accounts.
9 (5) Fair market value is the amount or price which, in all
10 reasonable probability, on a specified date, would have been
11 realized through the disposition of an investment in the course
12 of business by a willing seller to a willing buyer as indicated
13 in the most recent closing daily results of a national market or
14 exchange for that type of investment or, if no national market
15 or exchange exists, the book value or actual purchase price,
16 whichever is applicable, of the investment.
17 (6) Fiduciary is a person who exercises discretionary
18 authority or control with respect to the administration of the
19 plan or the management or disposition of plan assets or who
20 renders investment advice for a fee to the plan.
21 (7) Nonforfeitable right is the unconditionally and legally
22 enforceable entitlement to receive benefits from a retirement
23 benefit plan attributable to service as a volunteer fireman
24 participating in the plan.
25 (8) Normal retirement age is the earliest age at which a
26 former volunteer fireman who participated in the retirement
27 benefit plan and who has an entitlement to receive a retirement
28 benefit pursuant to the terms of the plan document may receive
29 that retirement benefit.
30 (9) Prior volunteer fire service is the service rendered by
19890H1557B1818 - 4 -
1 a volunteer fireman to the applicable volunteer fire companies
2 associated with the volunteer firemen's relief association which
3 established and maintained the retirement benefit plan prior to
4 the establishment of that retirement benefit plan.
5 (10) Retirement benefit is the amount, at the time of
6 retirement, payable or potentially payable to a former volunteer
7 fireman 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 fireman if the
11 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 firemen's relief
14 association pursuant to this act to provide retirement benefit
15 coverage for volunteer firemen of the associated volunteer fire
16 companies, irrespective of the manner in which the plan is
17 administered.
18 (12) Survivor of a volunteer fireman is the surviving spouse
19 of the volunteer fireman at the time of the death of the
20 volunteer fireman, or if none, the natural or adopted children,
21 including posthumous children, of the volunteer fireman.
22 (13) Year of volunteer fire service is the twelve-month
23 period, which need not be twelve consecutive months, during
24 which a volunteer fireman who is eligible to participate in the
25 retirement benefit plan meets the minimum volunteer fire service
26 requirements established under section 3.6 and meets additional
27 minimum requirements established by the volunteer firemen's
28 relief association and during which the minimum obligation of
29 the volunteer firemen's relief association with respect to the
30 retirement benefit plan under section 3.5 has been met.
19890H1557B1818 - 5 -
1 Section 3.2. Establishment of Volunteer Firemen's Retirement
2 Benefit Plan.--A volunteer firemen's relief association which
3 has met the requirements of section 6 may establish and maintain
4 a retirement benefit plan for the volunteer firemen who are
5 members of the relief association under this act. No volunteer
6 firemen's relief association shall be required, under this act,
7 to establish a retirement benefit plan. No more than one
8 retirement benefit plan may be established or maintained by a
9 single volunteer firemen's relief association.
10 Section 3.3. Minimum Participating and Benefit Standards for
11 Volunteer Firemen's Retirement Benefit Plans.--(a) A retirement
12 benefit plan established and maintained under this act by a
13 volunteer firemen's relief association for volunteer firemen who
14 are members of the relief association and disbursements made by
15 a retirement benefit plan shall be governed by the applicable
16 provisions of this act.
17 (b) Eligibility to participate shall be as follows:
18 (1) A volunteer firemen's retirement benefit plan must
19 provide that each volunteer fireman who is a member of the
20 relief association and who has attained at least twenty-one
21 years of age and has completed at least one year of fire service
22 is eligible to participate in the retirement benefit plan.
23 (2) If the retirement benefit plan is a defined benefit
24 plan, the volunteer firemen's relief association may provide for
25 the exclusion from participation of a volunteer fireman who
26 initially begins to provide volunteer fire services for the
27 respective volunteer fire company at an age which is less than
28 five years prior to the normal retirement age of the retirement
29 benefit plan.
30 (3) A volunteer fireman, at the time of the establishment of
19890H1557B1818 - 6 -
1 the plan or at the time of the commencement of volunteer fire
2 services, whichever occurs later, may elect not to participate
3 in the retirement benefit plan. The election not to participate
4 must be irrevocable.
5 (c) A volunteer fireman shall have a nonforfeitable right to
6 a retirement benefit that is not less than a percentage
7 determined under the following table:
8 Years of Volunteer Nonforfeitable
9 Fire Service Percentage
10 Less than five Zero
11 Five or more One hundred
12 Notwithstanding the preceding table, a participant shall have a
13 one hundred percent nonforfeitable right to a retirement benefit
14 upon attainment of normal retirement age under the retirement
15 benefit plan. A volunteer firemen's relief association may
16 establish a percentage table that provides for a faster rate of
17 becoming nonforfeitable in the event of the death or disability
18 of a volunteer fireman.
19 (d) A retirement benefit plan shall provide that a volunteer
20 fireman who has acquired credit for a sufficient number of years
21 of volunteer fire service to obtain a nonforfeitable right to
22 all or a portion of the accrued retirement benefit and who has
23 terminated volunteer fire service with the applicable volunteer
24 fire company prior to attaining the applicable normal retirement
25 age is entitled to a deferred retirement benefit payable upon
26 application when the former volunteer fireman attains at least
27 the normal retirement age.
28 (e) Retirement benefit amount requirements are as follows:
29 (1) A volunteer firemen's retirement benefit plan shall be
30 subject to maximum retirement benefit requirements as specified
19890H1557B1818 - 7 -
1 in subclause (i) or (ii), whichever is applicable. In
2 determining whether the maximum benefit requirements have been
3 satisfied, all benefits provided under all retirement benefit
4 plans sponsored by a volunteer firemen's relief association
5 which allocates funds to the company under Chapter 7 of the act
6 of December 18, 1984 (P.L.1005, No.205), known as the "Municipal
7 Pension Plan Funding Standard and Recovery Act," shall be
8 considered as one plan.
9 (i) If the volunteer firemen's retirement benefit plan is a
10 defined benefit plan, the maximum benefit amount payable to a
11 participating volunteer fireman entitled to a benefit shall be
12 determined on the basis of an actuarial valuation which takes
13 into account the age, and other factors as the actuary deems
14 appropriate, of the eligible participating firemen and the
15 amount of financing available per active covered fireman. The
16 maximum retirement benefit under a retirement benefit plan that
17 is a defined benefit plan shall not exceed twenty dollars per
18 month for each year of fire service credited under the terms of
19 the plan.
20 (ii) If the volunteer firemen's retirement benefit plan is a
21 defined contribution plan, the maximum retirement income
22 contribution, exclusive of any investment earnings, for a
23 participating fireman shall not exceed two thousand dollars for
24 each year of fire service.
25 (2) A retirement benefit plan shall be funded in accordance
26 with the provisions of section 3.5 by the volunteer firemen's
27 relief association.
28 (3) Unless otherwise specified by the volunteer firemen's
29 relief association, all years of volunteer fire service for
30 retirement benefit amount purposes shall be years of volunteer
19890H1557B1818 - 8 -
1 fire service completed after the establishment of the retirement
2 benefit plan and after completion of minimum eligibility
3 requirements to participate in the retirement benefit plan. If
4 the volunteer firemen's relief association so specifies, years
5 of volunteer fire service for retirement benefit amount purposes
6 may include up to ten years of volunteer fire service prior to
7 the establishment of the retirement benefit plan. If the
8 volunteer firemen's 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 firemen 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 fireman under the retirement benefit plan prospectively.
23 (4) Notwithstanding any other provision of this section, no
24 volunteer fireman 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 firemen's relief
28 association in a timely fashion.
29 (f) The volunteer firemen's relief association shall specify
30 the normal retirement age applicable to a retirement benefit
19890H1557B1818 - 9 -
1 plan. The normal retirement age shall not be earlier than age
2 fifty-five. No retirement benefit plan may provide for the
3 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 fireman. A retirement benefit plan may provide for the payment
8 of retirement benefits to an actively serving volunteer fireman
9 who has attained at least the normal retirement age specified in
10 the retirement benefit plan, but no additional years of
11 volunteer fire service may be credited to the volunteer fireman
12 who is receiving retirement benefits.
13 (g) In addition to retirement benefits, a volunteer
14 fireman's retirement benefit plan may provide for the payment of
15 benefits in the event of the disability or death of a volunteer
16 fireman who has become disabled or has died prior to beginning
17 to receive benefits under a retirement benefit plan. Death
18 benefits may be either in the form of survivor annuity payments
19 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 fireman;
23 nor shall it be subject to garnishment, judgment, execution or
24 other legal process other than legally obligated support of
25 minor children or a spouse.
26 (i) Plan assets shall be held in trust by the volunteer
27 firemen's relief association or by a qualified third party under
28 contract with the volunteer firemen's relief association for the
29 purpose of providing benefits to participants and their
30 beneficiaries in conformance with this act or for the purpose of
19890H1557B1818 - 10 -
1 defraying the necessary and reasonable expenses of the operation
2 and administration of the plan. If the retirement benefit plan
3 and the related trust are not tax qualified within the meaning
4 of sections 401 and 501 of the Internal Revenue Code of 1986
5 (Public Law 99-514, 26 U.S.C. §§ 401 and 501), the trust
6 referred to in this subsection may provide that the assets held
7 thereunder may be subject to the claims of general creditors, if
8 any, of the volunteer firemen's relief association or may
9 contain any other terms and provisions which are necessary to
10 insure that the participation by a volunteer fireman in the
11 retirement benefit plan does not result in taxable income under
12 the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C.
13 § 1 et seq.) prior to the payment of retirement benefits.
14 (j) A fiduciary of a retirement benefit plan shall act
15 solely in the interest of the plan's participants and
16 beneficiaries. Subject only to the provisions of this act and
17 the plan document, a fiduciary may accept, hold, invest in and
18 retain an investment as long as the fiduciary exercises the
19 degree of judgment and care, under the circumstances then
20 prevailing, which persons of prudence and intelligence exercise
21 in the management of their own affairs, not in regard to
22 speculation but in regard to permanent disposition of their
23 funds, considering the probable income to be derived and the
24 probable safety of the capital.
25 (k) The volunteer firemen's relief association or the
26 designated plan administrator, whichever is applicable, shall
27 provide volunteer firemen who participate in a retirement
28 benefit plan maintained under this act with a summary of the
29 plan's provisions, including the plan's provisions relating to
30 the participation requirements; the rate at which a
19890H1557B1818 - 11 -
1 nonforfeitable right in plan benefits is obtained and increases;
2 and the plans' retirement benefit or contribution formula. This
3 summary shall be provided to each retirement benefit plan
4 participant within six months from the date on which plan
5 participation commences. In addition, a material modification to
6 the plan provisions shall be provided in writing to each
7 participant within six months after the date the modification is
8 adopted or the date on which it is effective, whichever is
9 later. A copy of the plan, the summary of the plan, and relevant
10 documents related to the funding or investment of the assets of
11 the plan and of contracts or agreements with service providers
12 to the plan shall be made available for inspection or copying by
13 a plan participant, a beneficiary or a member of the public at
14 the office of the volunteer firemen's relief association.
15 Section 3.4. Volunteer Firemen's Retirement Benefit Plan
16 Actuarial Reporting.--(a) Actuarial reporting shall be as
17 follows:
18 (1) The plan administrator defined in the retirement benefit
19 plan document or the chief administrator of the volunteer
20 firemen's relief association, if no plan administrator is
21 defined in the plan document, shall, every three years, cause
22 actuarial reporting for the retirement benefit plan to be
23 prepared and to be provided to the Department of the Auditor
24 General in conjunction with the routine audits performed under
25 section 7. A copy of the report shall be submitted to the
26 governing body or chief elected official of the municipality
27 where the volunteer fire company is located at the same time the
28 report is transmitted to the Auditor General. Actuarial
29 reporting is a public record and shall be made available to
30 active members or benefit recipients of the retirement benefit
19890H1557B1818 - 12 -
1 plan. Under a defined benefit plan, the report shall disclose
2 the actuarial assumptions and methods used in determining
3 actuarial costs and liabilities.
4 (2) The actuarial reporting for retirement benefit plans
5 which are defined benefit plans shall be pursuant to subsection
6 (c). The actuarial reporting for retirement benefit plans which
7 are defined contribution plans shall be pursuant to subsection
8 (d).
9 (b) If a retirement benefit plan fails to comply with this
10 section, allocation of proceeds of the premium tax on foreign
11 fire insurance pursuant to Chapter 7 of the act of December 18,
12 1984 (P.L.1005, No.205), known as the "Municipal Pension Plan
13 Funding Standard and Recovery Act," otherwise payable with
14 respect to the relief association or fire company shall be
15 withheld until compliance occurs.
16 (c) The actuarial reporting for a retirement benefit plan,
17 which is a defined benefit plan, shall be as follows:
18 (1) The actuarial reporting shall be prepared and certified
19 by a certified actuary.
20 (2) The actuarial reporting shall be prepared in accordance
21 with the frozen entry age actuarial cost method with costs
22 allocated on the basis of future years of fire service of plan
23 participants. The actuarial cost method shall be used to value
24 all aspects of the retirement benefit plan. The actuarial
25 reporting shall use actuarial assumptions which are, in the
26 judgment of the actuary and the governing body of the plan,
27 reasonable in the aggregate. The actuarial reporting shall
28 measure the aspects of the retirement benefit plan in accordance
29 with modifications in plan benefits which, as of the valuation
30 date, are known or can reasonably be expected to be in force
19890H1557B1818 - 13 -
1 during the ensuing year. The actuarial reporting shall contain
2 (i) an exhibit setting forth the normal cost accrual rate and
3 the amount for each plan year; (ii) in the case of a retirement
4 benefit plan that provides for credit for years of fire service
5 prior to the effective date of the retirement benefit plan for
6 the purpose of computing the amount of benefits under the plan
7 or for amendments increasing benefits, a separate statement of
8 the retirement benefit plan's actuarial accrued liability; (iii)
9 an exhibit of the total administrative cost of the retirement
10 benefit plan for the preceding year; (iv) an exhibit summarizing
11 the actuarial cost methods and the actuarial assumptions used in
12 preparation of the actuarial exhibits; (v) an exhibit of the
13 present value of accumulated plan benefits; (vi) an exhibit of
14 the assets of the plan at fair market value or, if the assets
15 are valued differently from fair market value, a statement of
16 the basis for determining the value of assets for purposes of
17 this section and section 3.5; (vii) a summary of the pertinent
18 participant data; and (viii) a summary of the principal
19 provisions of the benefits of the retirement benefit plan upon
20 which the actuarial exhibit is based.
21 (d) The actuarial reporting for a retirement benefit plan
22 which is a defined contribution plan shall include the total
23 balance of any member account applicable to the retirement
24 benefit plan, the procedures for establishing contribution rates
25 or requirements, the procedures for allocating amounts to member
26 accounts and additional relevant information.
27 Section 3.5. Volunteer Firemen's Retirement Income Plan
28 Minimum Funding Standard.--(a) The plan administrator or chief
29 administrator of the volunteer firemen's relief association
30 shall annually determine the financial requirements of the
19890H1557B1818 - 14 -
1 retirement benefit plan for the following year on the basis of
2 the most recent actuarial reporting and shall certify those
3 requirements to the governing body of the volunteer firemen's
4 relief association which maintains the retirement benefit plan.
5 The requirements shall be certified no later than two months
6 prior to the start of the next following year.
7 (b) If the retirement benefit plan is a defined benefit plan
8 providing monthly benefits for the life of the recipients, the
9 financial requirement of the retirement benefit plan shall be
10 the normal cost plus, in the case of a defined benefit plan that
11 provides benefits based on years of fire service prior to the
12 effective date of the plan, the cost to amortize a liability
13 attributable to fire service over a period not to exceed ten
14 years from the plan's effective date or, in the case of an
15 amendment increasing benefits, ten years from the date of the
16 amendment.
17 (c) If the retirement benefit plan is a defined benefit plan
18 allowing lump-sum benefits to recipients, the financial
19 requirements shall be the greater of the requirements
20 established in subsection (b) or an amount determined by an
21 actuary which will provide lump-sum benefits for all
22 participants retiring during the current year.
23 (d) If the retirement benefit plan is a defined contribution
24 plan, the financial requirements of the retirement benefit plan
25 shall be determined pursuant to the terms of the retirement
26 benefit plan or instrument establishing the retirement benefit
27 plan. The Department of the Auditor General may specify
28 procedures for determining the financial requirements of
29 retirement benefit plans to which this subsection is applicable
30 as need arises if those procedures are consistent with this act.
19890H1557B1818 - 15 -
1 (e) The minimum financial requirements of the retirement
2 benefit plan shall be the obligation of the volunteer firemen's
3 relief association. The minimum financial requirements of the
4 retirement benefit plan shall be due no later than twelve months
5 following the start of the year. An amount of the minimum
6 financial requirements of the retirement benefit plan which
7 remains unpaid by the volunteer firemen's relief association
8 which maintains the retirement benefit, as of twelve months
9 after the date on which the minimum financial requirements are
10 due, shall be added to the minimum financial requirement for the
11 current year, with interest, until the payment is made at the
12 actuarial valuation rate. If the amount applicable to the prior
13 year is not paid by the close of the current year, the
14 retirement benefit plan shall be liquidated; and no further
15 benefits shall be earned by any volunteer fireman thereafter.
16 Upon liquidation of the plan, the assets shall be allocated
17 among the participants and beneficiaries of the plan in the
18 following order:
19 (1) In the case of benefits payable as an annuity, (i) in
20 the case of the benefit of a participant or beneficiary which
21 was in pay status as of the beginning of the three-year period
22 ending on the date the plan is liquidated, the lowest benefit
23 based on the provisions of the plan as in effect during the
24 five-year period ending on the date the plan is liquidated; and
25 (ii) in the case of a benefit of a participant or beneficiary
26 other than a benefit described in subclause (i) which
27 (participant or beneficiary) would have been in pay status as of
28 the beginning of the three-year period ending on the date the
29 plan is liquidated if the participant had retired prior to the
30 beginning of that period, the lowest benefit based on the
19890H1557B1818 - 16 -
1 provisions of the plan, as in effect during the five-year period
2 ending on the date the plan is liquidated.
3 (2) In the case of other benefits, assets remaining after
4 the liabilities of the plan to participants and their
5 beneficiaries have been satisfied may be returned to the
6 volunteer firemen's relief association.
7 (f) If a retirement benefit plan is liquidated under this
8 section, the volunteer firemen's relief association that
9 previously sponsored the plan may not sponsor a retirement
10 benefit plan described in section 3(6.1) for the period of at
11 least ten years from the date the plan was liquidated. A plan
12 that is established after the ten-year period referred to in
13 this subsection may not credit as years of fire service years
14 during the ten-year period following the liquidation of the
15 plan.
16 (g) Except as provided in this act, a retirement benefit
17 plan established under this act shall not be subject to Chapters
18 1 through 6 or 8 of the act of December 18, 1984 (P.L.1005,
19 No.205), known as the "Municipal Pension Plan Funding Standard
20 and Recovery Act."
21 Section 3.6. Standards for Years of Fire Service.--(a) A
22 year of fire service shall be credited under a retirement
23 benefit plan for each year after the establishment of the plan
24 in which an active volunteer fireman accumulates at least fifty
25 points. Points shall be granted in accordance with a system
26 adopted by each volunteer company covered by a plan established
27 by the volunteer firemen's relief association. The system shall
28 provide that points shall be granted for activities designated
29 by each volunteer company covered by a plan established by the
30 volunteer firemen's relief association. Activities shall be
19890H1557B1818 - 17 -
1 selected from the following:
2 (1) Training courses, a maximum of twenty-five points shall
3 be awarded as follows: (i) courses under twenty hours' duration,
4 one point per hour, with a maximum of five points; (ii) courses
5 of twenty to forty-five hours' duration, one point per hour for
6 each hour over initial twenty hours, with a maximum of ten
7 points; and (iii) courses over forty-five hours' duration,
8 fifteen points per course.
9 (2) Drills of at least two hours, a maximum of twenty points
10 shall be awarded, one point per drill (minimum two-hour drill).
11 (3) Sleep-in or standby, a maximum of twenty points shall be
12 awarded for (i) sleep-in, one point each full night; (ii)
13 standby, which is line-of-duty activity of the volunteer fire
14 company, lasting for four hours, not falling under one of the
15 other categories in this subsection, one point for each four
16 hours.
17 (4) Elected or appointed position, a maximum of twenty-five
18 points shall be awarded for (i) completion of one-year term in
19 an elected or appointed position, and (ii) being elected, as an
20 active volunteer fireman, to serve as a delegate to a firemen's
21 convention.
22 (5) Attendance at meetings, a maximum of twenty points shall
23 be awarded for attendance at an official meeting of the
24 volunteer fire company, at the rate of one point per meeting.
25 (6) Participation in department responses, fifteen points
26 for responding on the minimum number of calls shall be awarded
27 as outlined below:
28 Total number of calls Minimum number of calls
29 volunteer fire company volunteer fireman must
30 responds to annually run annually in order
19890H1557B1818 - 18 -
1 other than emergency to receive fifteen
2 rescue and first aid points credit
3 squad calls (ambulance
4 calls)
5 0 to 500 10%
6 500 to 1000 7.5%
7 1000 to 1500 5%
8 1500 and up 2.5%
9 Total number of calls Minimum number of calls
10 emergency rescue and volunteer fireman must
11 first aid squad run annually in order
12 (ambulance) responds receive fifteen
13 to annually points credit
14 0 to 500 10%
15 500 to 1000 7.5%
16 1000 to 1500 5%
17 1500 and up 2.5%
18 (7) Miscellaneous activities, a maximum of fifteen points
19 shall be awarded for participation in inspections and other
20 activities covered by the act of July 15, 1976 (P.L.1036,
21 No.208), known as the "Volunteer Fire Company, Ambulance Service
22 and Rescue Squad Assistance Act," and not otherwise listed at
23 the rate of one point per activity.
24 (b) The plan sponsor may designate less than all the
25 activities specified in subsection (a) as activities for which
26 points may be earned.
27 (c) Notwithstanding any other provision of this section, a
28 volunteer fireman may not accumulate points with respect to
29 activities described in subsection (a)(2), (4) or (5) with
30 respect to more than one volunteer fire company in one year.
19890H1557B1818 - 19 -
1 Section 3. Section 6(e) of the act is amended by adding a
2 clause to read:
3 Section 6. * * *
4 (e) The funds of any volunteer firemen's relief association
5 may be spent:
6 * * *
7 (13) To establish and maintain a retirement benefit plan as
8 defined in section 3.1. Prior to the establishment of a
9 retirement benefit plan under this clause, the volunteer
10 firemen's relief association shall provide the following minimum
11 benefits: an accidental death benefit of thirty thousand dollars
12 and a weekly disability income benefit of one hundred dollars
13 for accidental deaths and disabilities suffered by member
14 volunteer firemen and resulting from the performance of their
15 duties with a volunteer fire company.
16 Section 4. Section 7(a) of the act is amended to read:
17 Section 7. Audits.--(a) The Department of the Auditor
18 General shall have the power, and its duty shall be, to audit
19 the accounts and records of every volunteer firemen's relief
20 association receiving any money under [the act of June 28, 1895
21 (P.L.408), as amended,] Chapter 7 of the act of December 18,
22 1984 (P.L.1005, No.205), known as the "Municipal Pension Plan
23 Funding Standard and Recovery Act," as far as may be necessary
24 to satisfy the department that the money received was expended
25 or is being expended for no purpose other than that authorized
26 by this act. Copies of all such audits shall be furnished to the
27 Governor. Audits shall include expenditures relating to
28 retirement benefit plans either solely or partially funded by
29 funds obtained under the "Municipal Pension Plan Funding
30 Standard and Recovery Act."
19890H1557B1818 - 20 -
1 * * *
2 Section 5. This act shall take effect immediately.
B3L53JRW/19890H1557B1818 - 21 -