PRINTER'S NO. 2279
No. 1784 Session of 2001
INTRODUCED BY BUNT, FICHTER, L. I. COHEN, TRELLO, HARPER, ALLEN, CALTAGIRONE, CAPPELLI, DeLUCA, LAUGHLIN, PIPPY, PRESTON, SATHER, STABACK, T. STEVENSON, TIGUE, TRICH AND WOJNAROSKI, JUNE 19, 2001
REFERRED TO COMMITTEE ON URBAN AFFAIRS, JUNE 19, 2001
AN ACT 1 Amending the act of July 28, 1953 (P.L.723, No.230), entitled, 2 as amended, "An act relating to counties of the second class 3 and second class A; amending, revising, consolidating and 4 changing the laws relating thereto," further providing for 5 employees eligible for retirement allowances. 6 The General Assembly of the Commonwealth of Pennsylvania 7 hereby enacts as follows: 8 Section 1. Section 1712(a) of the act of July 28, 1953 9 (P.L.723, No.230), known as the Second Class County Code, 10 amended October 30, 2000 (P.L.616, No.85), is amended to read: 11 Section 1712. Amount of Retirement Allowances.--(a) The 12 retirement allowance paid under the provisions of this article 13 shall equal fifty per centum of the amount which would 14 constitute the average monthly compensation as received by the 15 county employe during the highest twenty-four months of the last 16 four (4) years of his employment or two years on a bi-weekly pay 17 basis in which period of time the said county employe made 18 monthly or bi-weekly contributions into the retirement fund
1 prior to his or her retirement. Such average monthly 2 compensation shall include the compensation which any county 3 employe would have been entitled to and would have received 4 except for deduction from compensation due to time spent in 5 serving as an elected State official: Provided, That the county 6 and the employe shall make monthly contributions based on the 7 last compensation equal to the amount the county and he or she 8 would have paid into the retirement fund had such compensation 9 been paid by the county. In the event an employe, on the 10 effective date of employment termination, shall have less than a 11 full year of service for the purpose of computing the employe's 12 service time, then the amount of the retirement allowance, which 13 would have been computed had the employe completed a full 14 twelve-month period for the year of the termination of 15 employment, shall be prorated upon a full completed month basis 16 for said last year of service. No retirement allowance shall be 17 computed on a monthly compensation in excess of four thousand 18 three hundred thirty-three dollars and thirty-three cents 19 ($4,333.33) (referred to in this subsection as "excess 20 compensation") unless the employe and the county have made 21 contributions on all excess compensation received by the employe 22 during the five-year period preceding the employe's retirement: 23 Provided, That the required contribution is paid into the 24 retirement system within ninety (90) days of the date of 25 retirement. An employe who retires within five (5) years of the 26 effective date of the compensation cap removal may elect to 27 satisfy the contribution requirement by making a lump sum 28 contribution that is calculated by applying the applicable 29 contribution percentage rate to all excess compensation received 30 by the employe during the prior five-year period on which 20010H1784B2279 - 2 -
1 contributions were not made. Within ninety (90) days of such 2 contribution by an employe, contributions shall also be made by 3 the county in an amount equal to the amount contributed by the 4 employe. The effective date of the cap removal is December 31, 5 1999. 6 After the effective date of this amendment, certain former 7 county employes who are now receiving a retirement allowance 8 shall receive an increase of a certain per centum of such 9 retirement allowance, which sum shall be computed on the average 10 monthly retirement allowance as heretofore authorized by the 11 board. 12 The per centum of increase in said monthly retirement 13 allowance shall be a flat 10 per centum increase with the 14 maximum amount not to exceed forty-five dollars ($45.00) per 15 month. 16 Any employe who earns in excess of ten thousand eight hundred 17 dollars ($10,800) per annum and shall retire during the period 18 from January 1, 1973 to December 31, 1981 shall pay, as a 19 condition to the payment of any benefits hereunder a lump sum 20 contribution into the retirement fund, which contribution shall 21 be computed as follows: 22 The difference between ten thousand eight hundred dollars 23 ($10,800) and the annual salary of the employe multiplied by the 24 number of years during which he was not an employe of the county 25 for the period aforesaid and upon that amount the sum of two per 26 centum which shall be the lump sum contribution as required 27 herein. 28 No person who is reemployed as a county employe shall be 29 eligible to receive the benefit of a retirement allowance plus a 30 service increment, if any, until he or she shall have made at 20010H1784B2279 - 3 -
1 least twenty-four monthly or fifty-two bi-weekly contributions 2 into the retirement fund subsequent to his or her reemployment. 3 The foregoing provisions shall not have a retroactive 4 application and shall apply only to present and future county 5 employes. The rate required to be paid in accordance with this 6 provision shall apply to present county employes notwithstanding 7 the rate of contribution that the present county employe has 8 made into the retirement fund. 9 Notwithstanding any other provision of this act or law to the 10 contrary, the county may increase the retirement allowance paid 11 under the provisions of this article by a cost-of-living 12 adjustment which may equal or exceed the Consumer Price Index. 13 * * * 14 Section 2. This act shall take effect in 60 days. F1L16DMS/20010H1784B2279 - 4 -