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                                                      PRINTER'S NO. 3286

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2442 Session of 2000


        INTRODUCED BY WILLIAMS, BATTISTO, BELARDI, BUNT, M. COHEN,
           COLAFELLA, CORRIGAN, COSTA, COY, CURRY, DERMODY, DeWEESE,
           FRANKEL, GRUCELA, HARHAI, JOSEPHS, LAUGHLIN, McCALL, MYERS,
           ORIE, PESCI, PRESTON, RAMOS, ROBERTS, ROEBUCK, SHANER,
           SNYDER, TRAVAGLIO, TRELLO, TRUE, WALKO, YOUNGBLOOD, YUDICHAK,
           BELFANTI, KENNEY, LEVDANSKY, LUCYK, MAHER, MANN, McGILL,
           McILHATTAN, PETRARCA, ROONEY, SAINATO, SOLOBAY, STABACK,
           STEELMAN, STERN, TIGUE, VAN HORNE, WASHINGTON AND WOJNAROSKI,
           APRIL 3, 2000

        REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, APRIL 3, 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 benefits.

    15     The General Assembly of the Commonwealth of Pennsylvania
    16  hereby enacts as follows:
    17     Section 1.  Section 1 of the act of May 29, 1956 (1955
    18  P.L.1804, No.600), referred to as the Municipal Police Pension
    19  Law, amended May 10, 1996 (P.L.162, No.33), is amended to read:
    20     Section 1.  (a)  (1)  Each borough, town and township of this


     1  Commonwealth maintaining a police force of three or more full-
     2  time members and each regional police department shall, and all
     3  other boroughs, towns or townships may, establish, by ordinance
     4  or resolution, a police pension fund or pension annuity to be
     5  maintained by a charge against each member of the police force,
     6  by annual appropriations made by the borough, town, township or
     7  regional police department, by payments made by the State
     8  Treasurer to the municipal treasurer from the moneys received
     9  from taxes paid upon premiums by foreign casualty insurance
    10  companies for purposes of pension retirement for policemen, and
    11  by gifts, grants, devises or bequests granted to the pension
    12  fund pursuant to section two of this act.
    13     (2)  Such fund shall be under the direction of the governing
    14  body of the borough, town, township or regional police
    15  department, and applied under such regulations as such governing
    16  body, by ordinance or resolution, [may] shall prescribe for the
    17  benefit of such members of the police force as shall receive
    18  honorable discharge therefrom by reason of age and service, or
    19  disability, and [may] shall prescribe for the benefit (i) of
    20  widows, and if no widow survives or if she survives and
    21  subsequently dies [or remarries], then (ii) of child or children
    22  under the age of eighteen years, or if attending college,
    23  twenty-three years, of members of the police force or of members
    24  retired on pension.
    25     (3)  All such pensions as shall be allowed to those who are
    26  retired by reason of disabilities shall be in conformity with a
    27  uniform scale.
    28     (4)  The widow of a member of the police force or the widow
    29  of a member who was eligible for a pension but had not begun
    30  collecting a pension or a member who retires on pension who dies
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     1  or if no widow survives or if she survives and subsequently dies
     2  [or remarries], then the child or children under the age of
     3  eighteen years, or if attending college, twenty-three years, of
     4  a member of the police force or a member who retires on pension
     5  who dies on or after the effective date of this amendment, [may]
     6  shall, during her lifetime [or so long as she does not remarry]
     7  in the case of a widow or until reaching the age of eighteen
     8  years, or if attending college, twenty-three years, in the case
     9  of a child or children, be entitled to receive a pension
    10  calculated at the rate of fifty per centum of the pension the
    11  member was receiving or would have been receiving had he been
    12  retired at the time of his death[.], except that if the assets
    13  of the pension fund exceed the present value of future benefits
    14  as reported in the last actuarial valuation report filed with
    15  the Public Employee Retirement Commission under the act of
    16  December 18, 1984 (P.L.1005, No.205), known as the "Municipal
    17  Pension Plan Funding Standard and Recovery Act," such
    18  entitlement shall be calculated at one hundred per centum of the
    19  pension the member was receiving or would have been receiving
    20  had he been retired at the time of his death.
    21     (5)  The widow of a member of the police force who dies
    22  before his pension has vested or if no widow survives or if she
    23  survives and subsequently dies, the child or children under the
    24  age of eighteen years, or if attending college, twenty-three
    25  years, of the member of the police force shall be entitled to
    26  receive repayment of all money which the member invested in the
    27  pension fund, plus interest or other increases in value of the
    28  member's investment in the pension fund.
    29     (b)  For purposes of this act, the term "regional police
    30  department" shall mean a municipal police force organized and
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     1  operated in combination by two or more municipalities through an
     2  intermunicipal agreement under [the act of July 12, 1972
     3  (P.L.762, No.180), referred to as the Intergovernmental
     4  Cooperation Law.] 53 Pa.C.S. Ch. 23 Subch. A (relating to
     5  intergovernmental cooperation).
     6     Section 2.  Section 5(c) and (e) of the act, amended February
     7  18, 1998 (P.L.158, No.24), are amended to read:
     8     Section 5.  * * *
     9     (c)  Monthly pension or retirement benefits other than length
    10  of service increments shall be computed at one-half the monthly
    11  average salary of such member during not more than the last
    12  sixty nor less than the last thirty-six months of employment,
    13  except that if the assets of the pension fund exceed the present
    14  value of future benefits as reported in the last actuarial
    15  valuation report filed with the Public Employee Retirement
    16  Commission under the act of December 18, 1984 (P.L.1005,
    17  No.205), known as the "Municipal Pension Plan Funding Standard
    18  and Recovery Act," such monthly pension or retirement benefits
    19  may be computed in excess of the limits herein prescribed. Such
    20  pension or retirement benefits for any month shall be computed
    21  as the sum of (1) any pension benefits from pension plans
    22  heretofore established by a private organization or association
    23  for the members of the police force but only to the extent that
    24  this Commonwealth or any of its municipalities shall have
    25  contributed to such pension plan moneys raised by taxation; (2)
    26  if positions covered by the fund are included in an agreement
    27  under the Federal Social Security Act, up to seventy-five per
    28  centum of his full social security old-age insurance benefit
    29  calculated in accordance with the provisions of the Federal
    30  Social Security Act in effect on the date of his termination of
    20000H2442B3286                  - 4 -

     1  employment, except that such amount shall be included only upon
     2  attainment of the age at which the officer would be eligible to
     3  receive full social security old-age insurance benefits and in
     4  determining such eligibility and such amount only compensation
     5  for services actually rendered by the officer and covered by the
     6  police pension fund shall be included; and (3) benefits from the
     7  police pension fund established pursuant to this act to the
     8  extent necessary to bring the total benefits in any month up to
     9  one-half the aforesaid monthly average salary except that any
    10  officer who receives pension or retirement benefits from any
    11  plan established at any time pursuant to this act and who is
    12  also entitled to receive social security old-age insurance
    13  benefits shall not regardless of when the officer retired from
    14  active service have his pension or retirement benefits offset or
    15  reduced by more than seventy-five per centum of the social
    16  security old-age insurance benefits which he receives.
    17     * * *
    18     (e)  In the case of the payment of pensions for permanent
    19  injuries incurred in service and to families of members killed
    20  in service, the amount and commencement of the payments shall be
    21  fixed by regulations of the governing body of the borough, town,
    22  township or regional police department, provided that pensions
    23  for permanent injuries shall be calculated at no less than fifty
    24  per centum of the member's salary at the time the disability was
    25  incurred, and provided further that the pensions for the
    26  families of members killed in service shall be calculated at one
    27  hundred per centum of the member's salary at the time of death.
    28     * * *
    29     Section 3.  This act shall take effect in 90 days.

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