SENATE AMENDED PRIOR PRINTER'S NOS. 2004, 2766, 3237, PRINTER'S NO. 4229 4179
No. 1639 Session of 1999
INTRODUCED BY KAISER, SOLOBAY, MAYERNIK, MARKOSEK, CASORIO, WOJNAROSKI, READSHAW, WALKO, DERMODY, YOUNGBLOOD, SAINATO, SERAFINI, COLAFELLA, HARHAI, THOMAS AND VAN HORNE, JUNE 14, 1999
AS AMENDED ON THIRD CONSIDERATION, IN SENATE, NOVEMBER 21, 2000
AN ACT 1 Amending the act of May 29, 1956 (1955 P.L.1804, No.600), 2 entitled, as amended, "An act providing for the establishment 3 of police pension funds or pension annuities in certain 4 boroughs, towns and townships; authorizing the establishment 5 of police pension funds or pension annuities by regional 6 police departments; providing for the regulation and 7 maintenance of police pension funds or pension annuities; 8 providing for an actuary; continuance of existing funds or 9 transfer thereof to funds herein established; prescribing 10 rights of beneficiaries; contributions by members; providing 11 for expenses of administration; continuation of existing 12 authority to provide annuity contracts; credit for military 13 service; refunds; exempting allowances from judicial process; 14 and repealing certain acts," further providing for payments <-- 15 to spouses; clarifying a term; and making an editorial change 16 BENEFITS. <-- 17 The General Assembly of the Commonwealth of Pennsylvania 18 hereby enacts as follows: 19 Section 1. Section 1 of the act of May 29, 1956 (1955 20 P.L.1804, No.600), referred to as the Municipal Police Pension 21 Law, amended May 10, 1996 (P.L.102, No.33), is amended to read: 22 Section 1. (a) Each borough, town and township of this <-- 23 Commonwealth maintaining a police force of three or more full-
1 time members and each regional police department shall, and all 2 other boroughs, towns or townships may, establish, by ordinance 3 or resolution, a police pension fund or pension annuity to be 4 maintained by a charge against each member of the police force, 5 by annual appropriations made by the borough, town, township or 6 regional police department, by payments made by the State 7 Treasurer to the municipal treasurer from the moneys received 8 from taxes paid upon premiums by foreign casualty insurance 9 companies for purposes of pension retirement for policemen, and 10 by gifts, grants, devises or bequests granted to the pension 11 fund pursuant to section two of this act. Such fund shall be 12 under the direction of the governing body of the borough, town, 13 township or regional police department, and applied under such 14 regulations as such governing body, by ordinance or resolution, 15 may prescribe for the benefit of such members of the police 16 force as shall receive honorable discharge therefrom by reason 17 of age and service, or disability, and may prescribe for the 18 benefit (i) of widows, even if they remarry, and if no widow 19 survives or if she survives and subsequently dies [or 20 remarries], then (ii) of child or children under the age of 21 eighteen years, of members of the police force or of members 22 retired on pension. All such pensions as shall be allowed to 23 those who are retired by reason of disabilities shall be in 24 conformity with a uniform scale. The widow of a member of the 25 police force or a member who retires on pension who dies or if 26 no widow survives or if she survives and subsequently dies [or 27 remarries], then the child or children under the age of eighteen 28 years of a member of the police force or a member who retires on 29 pension who dies on or after the effective date of this 30 amendment, may, during her lifetime [or so long as she does not 19990H1639B4229 - 2 -
1 remarry in the case of a widow] or until reaching the age of 2 eighteen years in the case of a child or children, be entitled 3 to receive a pension calculated at the rate of fifty per centum 4 of the pension the member was receiving or would have been 5 receiving had he been retired at the time of his death. 6 (b) For purposes of this act, the term "regional police 7 department" shall mean a municipal police force organized and 8 operated in combination by two or more municipalities through an 9 intermunicipal agreement under [the act of July 12, 1972 10 (P.L.762, No.180), referred to as the Intergovernmental 11 Cooperation Law] 53 Pa.C.S. Pt. III, Subpt. D (relating to area 12 government and intergovernmental cooperation). 13 Section 2. The act is amended by adding a section to read: 14 Section 11.2. For purposes of this act, the term "widow" 15 shall include a widower. 16 Section 3. This act shall take effect in 60 days. 17 SECTION 1. (A) (1) EACH BOROUGH, TOWN AND TOWNSHIP OF THIS <-- 18 COMMONWEALTH MAINTAINING A POLICE FORCE OF THREE OR MORE FULL- 19 TIME MEMBERS AND EACH REGIONAL POLICE DEPARTMENT SHALL, AND ALL 20 OTHER BOROUGHS, TOWNS OR TOWNSHIPS MAY, ESTABLISH, BY ORDINANCE 21 OR RESOLUTION, A POLICE PENSION FUND OR PENSION ANNUITY TO BE 22 MAINTAINED BY A CHARGE AGAINST EACH MEMBER OF THE POLICE FORCE, 23 BY ANNUAL APPROPRIATIONS MADE BY THE BOROUGH, TOWN, TOWNSHIP OR 24 REGIONAL POLICE DEPARTMENT, BY PAYMENTS MADE BY THE STATE 25 TREASURER TO THE MUNICIPAL TREASURER FROM THE MONEYS RECEIVED 26 FROM TAXES PAID UPON PREMIUMS BY FOREIGN CASUALTY INSURANCE 27 COMPANIES FOR PURPOSES OF PENSION RETIREMENT FOR POLICEMEN, AND 28 BY GIFTS, GRANTS, DEVISES OR BEQUESTS GRANTED TO THE PENSION 29 FUND PURSUANT TO SECTION TWO OF THIS ACT. 30 (2) SUCH FUND SHALL BE UNDER THE DIRECTION OF THE GOVERNING 19990H1639B4229 - 3 -
1 BODY OF THE BOROUGH, TOWN, TOWNSHIP OR REGIONAL POLICE 2 DEPARTMENT, AND APPLIED UNDER SUCH REGULATIONS AS SUCH GOVERNING 3 BODY, BY ORDINANCE OR RESOLUTION, [MAY] SHALL PRESCRIBE FOR THE 4 BENEFIT OF SUCH MEMBERS OF THE POLICE FORCE AS SHALL RECEIVE 5 HONORABLE DISCHARGE THEREFROM BY REASON OF AGE AND SERVICE, OR 6 DISABILITY, AND [MAY] SHALL PRESCRIBE FOR THE BENEFIT (I) OF 7 WIDOWS, AND IF NO WIDOW SURVIVES OR IF SHE SURVIVES AND 8 SUBSEQUENTLY DIES [OR REMARRIES], THEN (II) OF CHILD OR CHILDREN 9 UNDER THE AGE OF EIGHTEEN YEARS OR IF ATTENDING COLLEGE, UNDER 10 THE AGE OF TWENTY-THREE YEARS, OF MEMBERS OF THE POLICE FORCE OR 11 OF MEMBERS RETIRED ON PENSION. FOR PURPOSES OF IMPLEMENTING THIS 12 SECTION, AS WELL AS SUBSECTION (A)(4), THE PHRASE "ATTENDING 13 COLLEGE" SHALL MEAN THAT THE ELIGIBLE CHILDREN ARE REGISTERED AT 14 AN ACCREDITED INSTITUTION OF HIGHER LEARNING AND ARE CARRYING A 15 MINIMUM COURSE LOAD OF SEVEN CREDIT HOURS PER SEMESTER. 16 [ALL SUCH PENSIONS AS SHALL BE ALLOWED TO THOSE WHO ARE 17 RETIRED BY REASON OF DISABILITIES SHALL BE IN CONFORMITY WITH A 18 UNIFORM SCALE.] 19 (3) THE WIDOW OF A MEMBER OF THE POLICE FORCE OR A MEMBER 20 WHO RETIRES ON PENSION WHO DIES OR IF NO WIDOW SURVIVES OR IF 21 SHE SURVIVES AND SUBSEQUENTLY DIES [OR REMARRIES], THEN THE 22 CHILD OR CHILDREN UNDER THE AGE OF EIGHTEEN YEARS OR IF 23 ATTENDING COLLEGE, UNTIL REACHING THE AGE OF TWENTY-THREE YEARS, 24 OF A MEMBER OF THE POLICE FORCE OR A MEMBER WHO RETIRES ON 25 PENSION WHO DIES [ON OR AFTER THE EFFECTIVE DATE OF THIS 26 AMENDMENT, MAY], SHALL, DURING HER LIFETIME [OR SO LONG AS SHE <-- 27 DOES NOT REMARRY] IN THE CASE OF A WIDOW OR UNTIL REACHING THE 28 AGE OF EIGHTEEN YEARS OR IF ATTENDING COLLEGE, UNTIL REACHING 29 THE AGE OF TWENTY-THREE YEARS, IN THE CASE OF A CHILD OR 30 CHILDREN, BE ENTITLED TO RECEIVE A PENSION CALCULATED AT THE 19990H1639B4229 - 4 -
1 RATE OF FIFTY PER CENTUM OF THE PENSION THE MEMBER WAS RECEIVING 2 OR WOULD HAVE BEEN RECEIVING HAD HE BEEN RETIRED AT THE TIME OF 3 HIS DEATH. 4 (4) (I) THE WIDOW OF: 5 (A) A MEMBER OF THE POLICE FORCE WHO DIES ON OR AFTER THE 6 EFFECTIVE DATE OF THIS CLAUSE; 7 (B) A MEMBER WHO WAS ELIGIBLE FOR A PENSION BUT HAD NOT 8 BEGUN COLLECTING A PENSION WHO DIES ON OR AFTER THE EFFECTIVE 9 DATE OF THIS CLAUSE; OR 10 (C) A MEMBER WHO RETIRES ON PENSION WHO DIES ON OR AFTER THE 11 EFFECTIVE DATE OF THIS CLAUSE 12 SHALL, DURING HER LIFETIME, BE ENTITLED TO RECEIVE A PENSION 13 CALCULATED AT THE RATE OF FIFTY PER CENTUM OF THE PENSION THE 14 MEMBER WAS RECEIVING OR WOULD HAVE BEEN RECEIVING HAD HE BEEN 15 RETIRED AT THE TIME OF HIS DEATH, EXCEPT THAT IF THE ASSETS OF <-- 16 THE PENSION FUND EXCEED THE PRESENT VALUE OF FUTURE BENEFITS AS 17 REPORTED IN THE LAST ACTUARIAL VALUATION REPORT FILED WITH THE 18 PUBLIC EMPLOYEE RETIREMENT COMMISSION UNDER THE ACT OF DECEMBER 19 18, 1984 (P.L.1005, NO.205), KNOWN AS THE "MUNICIPAL PENSION 20 PLAN FUNDING STANDARD AND RECOVERY ACT," BOTH BEFORE AND AFTER 21 THE ACTUARY HAS COSTED OUT A JOINT AND ONE HUNDRED PER CENTUM 22 SURVIVORSHIP RETIREMENT BENEFIT, SUCH THE ENTITLEMENT SHALL BE <-- 23 CALCULATED AT ONE HUNDRED PER CENTUM OF THE PENSION THE MEMBER 24 WAS RECEIVING OR WOULD HAVE BEEN RECEIVING HAD HE BEEN RETIRED 25 AT THE TIME OF HIS DEATH FOR ALL MEMBERS WHO RETIRE, OR WHO DIE 26 BUT WERE ELIGIBLE TO RETIRE, DURING THE PERIOD THE ASSETS OF THE 27 PENSION FUND EXCEED THE PRESENT VALUE OF FUTURE BENEFITS AS SET 28 FORTH ABOVE. 29 (II) IF NO WIDOW SURVIVES OR IF SHE SURVIVES AND 30 SUBSEQUENTLY DIES, THEN THE CHILD OR CHILDREN OF THE MEMBER 19990H1639B4229 - 5 -
1 SHALL BE ENTITLED TO RECEIVE A PENSION AS SET FORTH ABOVE UNTIL 2 REACHING THE AGE OF EIGHTEEN YEARS OR IF ATTENDING COLLEGE, 3 UNTIL REACHING THE AGE OF TWENTY-THREE YEARS. 4 (5) ALL SUCH PENSIONS AS SHALL BE ALLOWED TO THOSE WHO ARE 5 RETIRED BY REASON OF DISABILITIES SHALL BE IN CONFORMITY WITH A 6 UNIFORM SCALE. 7 (6) THE WIDOW OF A MEMBER OF THE POLICE FORCE WHO DIES BEFORE 8 HIS PENSION HAS VESTED OR IF NO WIDOW SURVIVES OR IF SHE 9 SURVIVES AND SUBSEQUENTLY DIES, THE CHILD OR CHILDREN UNDER THE 10 AGE OF EIGHTEEN YEARS, OR IF ATTENDING COLLEGE, UNDER THE AGE OF 11 TWENTY-THREE YEARS, OF THE MEMBER OF THE POLICE FORCE, SHALL BE <-- 12 ENTITLED TO RECEIVE REPAYMENT OF ALL MONEY WHICH THE MEMBER 13 INVESTED IN THE PENSION FUND PLUS INTEREST OR OTHER INCREASES IN 14 VALUE OF THE MEMBER'S INVESTMENT IN THE PENSION FUND, UNLESS THE 15 MEMBER HAS DESIGNATED ANOTHER BENEFICIARY FOR THIS PURPOSE. 16 (B) FOR PURPOSES OF THIS ACT, THE TERM "REGIONAL POLICE 17 DEPARTMENT" SHALL MEAN A MUNICIPAL POLICE FORCE ORGANIZED AND 18 OPERATED IN COMBINATION BY TWO OR MORE MUNICIPALITIES THROUGH AN 19 INTERMUNICIPAL AGREEMENT UNDER THE ACT OF JULY 12, 1972 20 (P.L.762, NO.180), REFERRED TO AS THE INTERGOVERNMENTAL 21 COOPERATION LAW. 22 SECTION 2. SECTION 5(C) AND (E) OF THE ACT, AMENDED FEBRUARY 23 18, 1998 (P.L.158, NO.24), ARE AMENDED TO READ: 24 SECTION 5. * * * 25 (C) MONTHLY PENSION OR RETIREMENT BENEFITS OTHER THAN LENGTH 26 OF SERVICE INCREMENTS SHALL BE COMPUTED AT ONE-HALF THE MONTHLY 27 AVERAGE SALARY OF SUCH MEMBER DURING NOT MORE THAN THE LAST 28 SIXTY NOR LESS THAN THE LAST THIRTY-SIX MONTHS OF EMPLOYMENT[.], 29 EXCEPT THAT IF THE ASSETS OF THE PENSION FUND EXCEED THE PRESENT 30 VALUE OF FUTURE BENEFITS AS REPORTED IN THE LAST ACTUARIAL 19990H1639B4229 - 6 -
1 VALUATION REPORT FILED WITH THE PUBLIC EMPLOYEE RETIREMENT 2 COMMISSION UNDER THE ACT OF DECEMBER 18, 1984 (P.L.1005, 3 NO.205), KNOWN AS THE "MUNICIPAL PENSION PLAN FUNDING STANDARD 4 AND RECOVERY ACT," BOTH BEFORE AND AFTER THE ACTUARY HAS COSTED 5 OUT BENEFITS IN EXCESS OF THE LIMITS HEREIN PRESCRIBED, SUCH THE <-- 6 MONTHLY PENSION OR RETIREMENT BENEFITS MAY BE COMPUTED IN EXCESS 7 OF THE LIMITS HEREIN PRESCRIBED FOR ALL MEMBERS WHO RETIRE, OR 8 WHO DIE BUT WERE ELIGIBLE TO RETIRE, DURING THE PERIOD THE 9 ASSETS OF THE PENSION FUND EXCEED THE PRESENT VALUE OF FUTURE 10 BENEFITS AS SET FORTH ABOVE. PURSUANT TO THIS SECTION, THE LEVEL 11 OF ENHANCED PENSION BENEFITS FOR PROSPECTIVE RETIREES MAY BE 12 READJUSTED FROM VALUATION PERIOD TO VALUATION PERIOD, IF 13 NECESSARY, TO ENSURE THAT THE ASSETS OF THE PENSION FUND EXCEED <-- 14 THE PRESENT VALUE OF FUTURE BENEFITS BOTH BEFORE AND AFTER THE 15 ACTUARY HAS COSTED OUT SUCH ENHANCED BENEFITS. SUCH PENSION OR 16 RETIREMENT BENEFITS FOR ANY MONTH SHALL BE COMPUTED AS THE SUM 17 OF (1) ANY PENSION BENEFITS FROM PENSION PLANS HERETOFORE 18 ESTABLISHED BY A PRIVATE ORGANIZATION OR ASSOCIATION FOR THE 19 MEMBERS OF THE POLICE FORCE BUT ONLY TO THE EXTENT THAT THIS 20 COMMONWEALTH OR ANY OF ITS MUNICIPALITIES SHALL HAVE CONTRIBUTED 21 TO SUCH PENSION PLAN MONEYS RAISED BY TAXATION; (2) IF POSITIONS 22 COVERED BY THE FUND ARE INCLUDED IN AN AGREEMENT UNDER THE 23 FEDERAL SOCIAL SECURITY ACT, UP TO SEVENTY-FIVE PER CENTUM OF 24 HIS FULL SOCIAL SECURITY OLD-AGE INSURANCE BENEFIT CALCULATED IN 25 ACCORDANCE WITH THE PROVISIONS OF THE FEDERAL SOCIAL SECURITY 26 ACT IN EFFECT ON THE DATE OF HIS TERMINATION OF EMPLOYMENT, 27 EXCEPT THAT SUCH AMOUNT SHALL BE INCLUDED ONLY UPON ATTAINMENT 28 OF THE AGE AT WHICH THE OFFICER WOULD BE ELIGIBLE TO RECEIVE 29 FULL SOCIAL SECURITY OLD-AGE INSURANCE BENEFITS AND IN 30 DETERMINING SUCH ELIGIBILITY AND SUCH AMOUNT ONLY COMPENSATION 19990H1639B4229 - 7 -
1 FOR SERVICES ACTUALLY RENDERED BY THE OFFICER AND COVERED BY THE 2 POLICE PENSION FUND SHALL BE INCLUDED; AND (3) BENEFITS FROM THE 3 POLICE PENSION FUND ESTABLISHED PURSUANT TO THIS ACT TO THE 4 EXTENT NECESSARY TO BRING THE TOTAL BENEFITS IN ANY MONTH UP TO 5 ONE-HALF THE AFORESAID MONTHLY AVERAGE SALARY EXCEPT THAT ANY 6 OFFICER WHO RECEIVES PENSION OR RETIREMENT BENEFITS FROM ANY 7 PLAN ESTABLISHED AT ANY TIME PURSUANT TO THIS ACT AND WHO IS 8 ALSO ENTITLED TO RECEIVE SOCIAL SECURITY OLD-AGE INSURANCE 9 BENEFITS SHALL NOT REGARDLESS OF WHEN THE OFFICER RETIRED FROM 10 ACTIVE SERVICE HAVE HIS PENSION OR RETIREMENT BENEFITS OFFSET OR 11 REDUCED BY MORE THAN SEVENTY-FIVE PER CENTUM OF THE SOCIAL 12 SECURITY OLD-AGE INSURANCE BENEFITS WHICH HE RECEIVES. 13 * * * 14 (E) IN THE CASE OF THE PAYMENT OF PENSIONS FOR PERMANENT 15 INJURIES INCURRED IN SERVICE AND TO FAMILIES OF MEMBERS KILLED 16 IN SERVICE, THE AMOUNT AND COMMENCEMENT OF THE PAYMENTS SHALL BE 17 FIXED BY REGULATIONS OF THE GOVERNING BODY OF THE BOROUGH, TOWN, 18 TOWNSHIP OR REGIONAL POLICE DEPARTMENT[.], PROVIDED THAT 19 PENSIONS FOR PERMANENT INJURIES INCURRED IN SERVICE SHALL BE 20 CALCULATED AT NO LESS THAN FIFTY PER CENTUM OF THE MEMBER'S 21 SALARY AT THE TIME THE DISABILITY WAS INCURRED AND PROVIDED 22 FURTHER THAT PENSIONS FOR THE FAMILIES OF MEMBERS KILLED IN 23 SERVICE SHALL BE CALCULATED AT ONE HUNDRED PER CENTUM OF THE 24 MEMBER'S SALARY AT THE TIME OF DEATH. 25 * * * 26 SECTION 3. THE ACT IS AMENDED BY ADDING A SECTION TO READ: 27 SECTION 11.2. FOR THE PURPOSES OF THIS ACT, THE TERM "WIDOW" 28 SHALL INCLUDE A WIDOWER. 29 SECTION 4. THE AMENDMENT OF SECTION 1(A)(2) AND (3) INSOFAR 30 AS THE AMENDMENT AFFECTS THE BENEFITS AVAILABLE TO WIDOWS SHALL 19990H1639B4229 - 8 -
1 APPLY TO WIDOWS WHOSE SPOUSE DIED ON OR BEFORE THE EFFECTIVE 2 DATE OF THIS ACT AND WHO WERE NOT REMARRIED AS OF SAID DATE. 3 SECTION 5. THIS ACT SHALL TAKE EFFECT IN 90 DAYS. B10L53DMS/19990H1639B4229 - 9 -