PRINTER'S NO. 2214
No. 1749 Session of 2001
INTRODUCED BY CURRY, GEORGE, BELFANTI, CASORIO, M. COHEN, COLAFELLA, COSTA, CRUZ, DeLUCA, FRANKEL, GRUCELA, HESS, HORSEY, JAMES, KIRKLAND, LAUGHLIN, McCALL, MICOZZIE, NICKOL, PETRARCA, PRESTON, READSHAW, RUBLEY, SAINATO, SCHULER, SHANER, SOLOBAY, STERN, TIGUE, TRELLO, WALKO, WANSACZ, WASHINGTON, C. WILLIAMS, WILT AND YOUNGBLOOD, JUNE 13, 2001
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JUNE 13, 2001
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," authorizing a late retirement 15 benefit. 16 The General Assembly of the Commonwealth of Pennsylvania 17 hereby enacts as follows: 18 Section 1. Section 5(c) of the act of May 29, 1956 (1955 19 P.L.1804, No.600), referred to as the Municipal Police Pension 20 Law, amended February 18, 1998 (P.L.158, No.24), is amended and 21 the section is amended by adding a subsection to read: 22 Section 5. * * *
1 (c) Monthly pension or retirement benefits other than length 2 of service increments shall be computed at one-half the monthly 3 average salary of such member during not more than the last 4 sixty nor less than the last thirty-six months of employment. 5 Such pension or retirement benefits for any month shall be 6 computed as the sum of (1) any pension benefits from pension 7 plans heretofore established by a private organization or 8 association for the members of the police force but only to the 9 extent that this Commonwealth or any of its municipalities shall 10 have contributed to such pension plan moneys raised by taxation; 11 (2) if positions covered by the fund are included in an 12 agreement under the Federal Social Security Act, up to seventy- 13 five per centum of his full social security old-age insurance 14 benefit calculated in accordance with the provisions of the 15 Federal Social Security Act in effect on the date of his 16 termination of employment, except that such amount shall be 17 included only upon attainment of the age at which the officer 18 would be eligible to receive full social security old-age 19 insurance benefits and in determining such eligibility and such 20 amount only compensation for services actually rendered by the 21 officer and covered by the police pension fund shall be 22 included; and (3) benefits from the police pension fund 23 established pursuant to this act to the extent necessary to 24 bring the total benefits in any month up to one-half the 25 aforesaid monthly average salary except that any officer who 26 receives pension or retirement benefits from any plan 27 established at any time pursuant to this act and who is also 28 entitled to receive social security old-age insurance benefits 29 shall not regardless of when the officer retired from active 30 service have his pension or retirement benefits offset or 20010H1749B2214 - 2 -
1 reduced by more than seventy-five per centum of the social 2 security old-age insurance benefits which he receives. Optional 3 forms of pension or retirement benefit payments, other than lump 4 sums, may be made available, each being the actuarial equivalent 5 of the form set forth in the actuarial valuation report filed 6 with the Public Employee Retirement Commission that is 7 applicable to the period and that includes the retirement date. 8 * * * 9 (j) In lieu of the provisions set forth in subsection (f), 10 the ordinance or resolution establishing the police pension fund 11 may provide for a late retirement benefit. The late retirement 12 benefit shall be provided to a member of the police force who 13 terminates employment after completion of superannuation 14 retirement age and service requirements and who files a written 15 application for a late retirement benefit with the governing 16 body of the municipality or regional police department. The late 17 retirement benefit shall become effective as of the date that 18 the application is filed with the governing body or the date 19 that is designated in the application, whichever is later, and 20 shall be the actuarial equivalent of a superannuation benefit 21 calculated by: (1) applying age and service requirements which 22 satisfy the provisions set forth in section 3 and the 23 limitations in subsections (c) and (d), as applicable; and (2) 24 actuarially increasing the superannuation requirement benefit to 25 reflect that it will commence on the effective date of late 26 retirement rather than on the date that the member completed the 27 superannuation age and service requirements. The actuarial 28 increase shall be calculated using the actuarial assumptions 29 reported in the last actuarial valuation report filed with the 30 Public Employee Retirement Commission under the act of December 20010H1749B2214 - 3 -
1 18, 1984 (P.L.1005, No.205), known as the "Municipal Pension 2 Plan Funding Standard and Recovery Act." If, however, it is 3 determined to provide a greater amount than provided by the 4 actuarial equivalent of the superannuation retirement benefit, 5 the late retirement benefit shall be based upon the member's 6 average salary and service as of the effective date of late 7 retirement. 8 Section 2. This act shall take effect in 60 days. L13L53DMS/20010H1749B2214 - 4 -