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                                 SENATE AMENDED
        PRIOR PRINTER'S NOS. 2004, 2766, 3237,        PRINTER'S NO. 4229
        4179

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

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.


















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