PRINTER'S NO. 2723
No. 2103 Session of 1999
INTRODUCED BY CURRY, NICKOL, TIGUE, McCALL, LAUGHLIN, SURRA, FREEMAN, WILLIAMS, BELFANTI, VAN HORNE, McILHATTAN, FRANKEL, ROBINSON, CIVERA, SHANER, TANGRETTI, JAMES, COSTA, M. COHEN, YOUNGBLOOD, RAMOS AND MAHER, DECEMBER 1, 1999
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, DECEMBER 1, 1999
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. * * * 23 (c) Monthly pension or retirement benefits other than length
1 of service increments shall be computed at one-half the monthly 2 average salary of such member during not more than the last 3 sixty nor less than the last thirty-six months of employment. 4 Such pension or retirement benefits for any month shall be 5 computed as the sum of (1) any pension benefits from pension 6 plans heretofore established by a private organization or 7 association for the members of the police force but only to the 8 extent that this Commonwealth or any of its municipalities shall 9 have contributed to such pension plan moneys raised by taxation; 10 (2) if positions covered by the fund are included in an 11 agreement under the Federal Social Security Act, up to seventy- 12 five per centum of his full social security old-age insurance 13 benefit calculated in accordance with the provisions of the 14 Federal Social Security Act in effect on the date of his 15 termination of employment, except that such amount shall be 16 included only upon attainment of the age at which the officer 17 would be eligible to receive full social security old-age 18 insurance benefits and in determining such eligibility and such 19 amount only compensation for services actually rendered by the 20 officer and covered by the police pension fund shall be 21 included; and (3) benefits from the police pension fund 22 established pursuant to this act to the extent necessary to 23 bring the total benefits in any month up to one-half the 24 aforesaid monthly average salary except that any officer who 25 receives pension or retirement benefits from any plan 26 established at any time pursuant to this act and who is also 27 entitled to receive social security old-age insurance benefits 28 shall not regardless of when the officer retired from active 29 service have his pension or retirement benefits offset or 30 reduced by more than seventy-five per centum of the social 19990H2103B2723 - 2 -
1 security old-age insurance benefits which he receives. Optional 2 forms of pension or retirement benefit payments, other than lump 3 sums, may be made available, each being the actuarial equivalent 4 of the form set forth in the actuarial valuation report filed 5 with the Public Employee Retirement Commission that is 6 applicable to the period and that includes the retirement date. 7 * * * 8 (j) In lieu of the provisions set forth in subsection (f), 9 the ordinance or resolution establishing the police pension fund 10 may provide for a late retirement benefit. The late retirement 11 benefit shall be provided to a member of the police force who 12 terminates employment after completion of superannuation 13 retirement age and service requirements and who files a written 14 application for a late retirement benefit with the governing 15 body of the municipality or regional police department. The late 16 retirement benefit shall become effective as of the date that 17 the application is filed with the governing body or the date 18 that is designated in the application, whichever is later, and 19 shall be the actuarial equivalent of a superannuation benefit 20 calculated by: (1) applying age and service requirements which 21 satisfy the provisions set forth in section 3 and the 22 limitations in subsections (c) and (d), as applicable; and (2) 23 actuarially increasing the superannuation requirement benefit to 24 reflect that it will commence on the effective date of late 25 retirement rather than on the date that the member completed the 26 superannuation age and service requirements. The actuarial 27 increase shall be calculated using the actuarial assumptions 28 reported in the last actuarial valuation report filed with the 29 Public Employee Retirement Commission under the act of December 30 18, 1984 (P.L.1005, No.205), known as the "Municipal Pension 19990H2103B2723 - 3 -
1 Plan Funding Standard and Recovery Act." If, however, it is 2 determined to provide a greater amount than provided by the 3 actuarial equivalent of the superannuation retirement benefit, 4 the late retirement benefit shall be based upon the member's 5 average salary and service as of the effective date of late 6 retirement. 7 Section 2. This act shall take effect in 60 days. B23L53DMS/19990H2103B2723 - 4 -