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                                 SENATE AMENDED
        PRIOR PRINTER'S NO. 3748                      PRINTER'S NO. 4633

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2595 Session of 2002


        INTRODUCED BY PIPPY, CALTAGIRONE, M. COHEN, CORRIGAN, COSTA,
           CREIGHTON, DeLUCA, FEESE, LAUGHLIN, LESCOVITZ, MARKOSEK,
           MICHLOVIC, PETRONE, PICKETT, READSHAW, ROBINSON,
           T. STEVENSON, SURRA, TURZAI, WASHINGTON, YOUNGBLOOD, DIVEN,
           FRANKEL AND KAISER, APRIL 18, 2002

        SENATOR THOMPSON, APPROPRIATIONS, IN SENATE, RE-REPORTED AS
           AMENDED, NOVEMBER 19, 2002

                                     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 1710(j) of the act of July 28, 1953        <--
     9  (P.L.723, No.230), known as the Second Class County Code, added
    10  March 27, 1980 (P.L.57, No.21), is amended to read:
    11     SECTION 1.  SECTION 1710(I) AND (J) OF THE ACT OF JULY 28,     <--
    12  1953 (P.L.723, NO.230), KNOWN AS THE SECOND CLASS COUNTY CODE,
    13  AMENDED OR ADDED FEBRUARY 9, 1984 (P.L.12, NO.6) AND DECEMBER
    14  14, 1989 (P.L.831, NO.75), ARE AMENDED TO READ:
    15     Section 1710.  Employes Eligible for Retirement Allowances.--
    16  * * *
    17     (I)  UPON APPLICATION TO THE BOARD, ALL MEMBERS OF THE FUND    <--

     1  WHO ARE CONTRIBUTORS AND WHO SERVED IN THE ARMED FORCES OF THE
     2  UNITED STATES SUBSEQUENT TO SEPTEMBER 1, 1940, OR WHO BECOME
     3  MEMBERS OF THE RETIREMENT FUND ON OR AFTER THE EFFECTIVE DATE OF
     4  THIS ACT SHALL BE ENTITLED TO HAVE FULL MILITARY SERVICE CREDIT
     5  FOR EACH OF THE MOST RECENT YEARS OF MILITARY SERVICE OR
     6  FRACTION THEREOF, NOT TO EXCEED THREE FULL YEARS OF SUCH
     7  SERVICE; PROVIDED, THEY HAVE A RETIREMENT CREDIT OF THE MINIMUM
     8  NUMBER OF YEARS SPECIFIED IN SUBSECTION (A) OF THIS SECTION OR
     9  MORE [AND HAVE REACHED THE AGE OF FIFTY YEARS WHILE EMPLOYED OR
    10  HAVE ACCUMULATED A PERIOD OF TWENTY YEARS OF RETIREMENT CREDIT
    11  AND UNDER THE AGE OF FIFTY YEARS]. THE FORMULA TO BE FOLLOWED
    12  FOR PAYMENT TO THE FUND SHALL BE IN AN AMOUNT EQUAL TO THE
    13  MAXIMUM RATE OF CONTRIBUTION HAD THEY BEEN MEMBERS OF THE FUND
    14  PLUS AN ADDITIONAL AMOUNT AS THE EQUIVALENT OF THE COUNTY
    15  MATCHING APPROPRIATION, PLUS INTEREST, IF APPLICABLE, AT THE
    16  RATE OF SIX PER CENTUM PER YEAR FROM THE DATE OF EACH YEAR OF
    17  CREDITED MILITARY SERVICE TO DATE OF REPAYMENT OR BY APPLYING
    18  THE EMPLOYE'S BASIC CONTRIBUTION RATE PLUS THE COUNTY'S NORMAL
    19  CONTRIBUTION RATE FOR ACTIVE MEMBERS AT THE TIME OF ENTRY,
    20  SUBSEQUENT TO SUCH MILITARY SERVICE, OF THE EMPLOYE INTO COUNTY
    21  SERVICE TO HIS AVERAGE ANNUAL RATE OF COMPENSATION OVER THE
    22  FIRST THREE YEARS OF SUCH SUBSEQUENT COUNTY SERVICE AND
    23  MULTIPLYING THE RESULT BY THE NUMBER OF YEARS AND FRACTIONAL
    24  PART OF A YEAR OF CREDITABLE NONINTERVENING MILITARY SERVICE
    25  BEING PURCHASED, TOGETHER WITH INTEREST, IF APPLICABLE, DURING
    26  ALL PERIODS OF SUBSEQUENT COUNTY SERVICE TO DATE OF PURCHASE.
    27  SHOULD IT BE DETERMINED BY THE RETIREMENT BOARD THAT VERIFIABLE
    28  COMPENSATION DATA IS NOT AVAILABLE IT SHALL HAVE THE DISCRETION
    29  TO DETERMINE WHICH FORMULA SHALL BE USED: PROVIDED, THAT SAID
    30  MEMBER IS NOT ENTITLED TO RECEIVE, ELIGIBLE TO RECEIVE NOW OR IN
    20020H2595B4633                  - 2 -

     1  THE FUTURE, OR IS RECEIVING RETIREMENT BENEFITS FOR SUCH SERVICE
     2  UNDER A RETIREMENT SYSTEM ADMINISTERED AND WHOLLY OR PARTIALLY
     3  PAID FOR BY ANY OTHER GOVERNMENTAL AGENCY OR PRIVATE INDUSTRY.
     4  BOTH PRINCIPAL AND INTEREST, IF APPLICABLE, SHALL BE
     5  CONSOLIDATED INTO ONE AMOUNT AND PAID [IN TWELVE OR LESS EQUAL
     6  MONTHLY INSTALLMENTS]. FULL PAYMENT THEREOF SHALL BE A CONDITION
     7  PRECEDENT TO RECEIVE THE BENEFITS OF THE RETIREMENT ALLOWANCE.
     8  IF THE MEMBER PAYS THE ENTIRE PRINCIPAL BACK WITHIN THE THREE-
     9  YEAR PERIOD IMMEDIATELY FOLLOWING ATTAINMENT OF THE MINIMUM
    10  NUMBER OF YEARS OF SERVICE CREDIT SPECIFIED IN SUBSECTION (A) OF
    11  THIS SECTION, OR WITHIN THREE YEARS FROM THE DATE THIS
    12  AMENDATORY ACT TAKES EFFECT FOR THOSE WHO ALREADY HAVE THE
    13  MINIMUM NUMBERS OF YEARS OF SERVICE CREDIT SPECIFIED IN
    14  SUBSECTION (A) OF THIS SECTION, NO INTEREST WILL BE CHARGED.
    15  OTHERWISE INTEREST WILL BE CHARGED AT THE RATE OF SIX PER CENTUM
    16  PER YEAR FROM THE DATE OF EACH YEAR OF CREDITED MILITARY SERVICE
    17  TO DATE OF REPAYMENT. ONLY THOSE EMPLOYES WHO ARE ACTIVE MEMBERS
    18  OF THE RETIREMENT FUND ON OR AFTER THE EFFECTIVE DATE OF THIS
    19  AMENDATORY ACT SHALL BE PERMITTED TO AVAIL THEMSELVES OF EITHER
    20  OF THESE PROGRAMS.
    21     [THOSE EMPLOYES WHO BECAME MEMBERS OF THE RETIREMENT FUND
    22  AFTER THE EFFECTIVE DATE OF THIS ACT, UPON APPLICATION TO THE
    23  BOARD, SHALL BE ENTITLED TO HAVE FULL MILITARY SERVICE CREDIT
    24  FOR EACH OF THE MOST RECENT YEARS OF MILITARY SERVICE OR
    25  FRACTION THEREOF, NOT TO EXCEED THREE FULL YEARS OF SUCH
    26  SERVICE: PROVIDED, THEY HAVE A RETIREMENT CREDIT OF THE MINIMUM
    27  NUMBER OF YEARS SPECIFIED IN SUBSECTION (A) OF THIS SECTION OR
    28  MORE AND HAVE REACHED THE AGE OF FIFTY YEARS WHILE EMPLOYED OR
    29  HAVE ACCUMULATED A PERIOD OF TWENTY YEARS OF RETIREMENT CREDIT
    30  AND UNDER THE AGE OF FIFTY YEARS. PAYMENT TO THE FUND SHALL BE
    20020H2595B4633                  - 3 -

     1  IN AN AMOUNT EQUAL TO THE MAXIMUM RATE OF CONTRIBUTION HAD THEY
     2  BEEN MEMBERS OF THE FUND PLUS AN ADDITIONAL AMOUNT AS THE
     3  EQUIVALENT OF THE COUNTY MATCHING APPROPRIATION, PLUS INTEREST
     4  AT THE RATE OF SIX PER CENTUM PER YEAR FROM THE DATE OF EACH
     5  YEAR OF CREDITED MILITARY SERVICE TO DATE OF REPAYMENT:
     6  PROVIDED, THAT SAID MEMBER IS NOT ENTITLED TO RECEIVE, ELIGIBLE
     7  TO RECEIVE NOW OR IN THE FUTURE, OR IS RECEIVING RETIREMENT
     8  BENEFITS FOR SUCH SERVICE UNDER A RETIREMENT SYSTEM ADMINISTERED
     9  AND WHOLLY OR PARTIALLY PAID FOR BY ANY OTHER GOVERNMENTAL
    10  AGENCY OR PRIVATE INDUSTRY. BOTH PRINCIPAL AND INTEREST SHALL BE
    11  CONSOLIDATED INTO ONE AMOUNT AND PAID IN TWELVE OR LESS EQUAL
    12  MONTHLY INSTALLMENTS. FULL PAYMENT THEREOF SHALL BE A CONDITION
    13  PRECEDENT TO RECEIVE THE BENEFITS OF THE RETIREMENT ALLOWANCE.]
    14     (j)  (1)  Any person who was employed by an authority created
    15  by the county on or after June 10, 1968, pursuant to the act of
    16  May 2, 1945 (P.L.382, No.164), known as the "Municipality
    17  Authorities Act of 1945," for the purpose of assisting and
    18  encouraging local municipalities to undertake vital and
    19  necessary capital improvement projects that could not be
    20  financed or constructed with county assistance and who
    21  subsequently became an employe of the county may have the period
    22  of his employment with such authority credited as a county
    23  employe. The person shall make application to the board within
    24  three years of the effective date of this subsection and, upon
    25  approval of the application, shall pay into the retirement fund
    26  the amount which he would have been required to pay into the
    27  fund if he had been a county employe from the date of his
    28  original employment with the authority. The county shall pay
    29  into the retirement fund an amount equal to the amount paid in
    30  by the employe in accordance with the provisions of this
    20020H2595B4633                  - 4 -

     1  article.
     2     (2)  Any person who was employed by an authority created by
     3  the county on or after February 14, 1950, pursuant to the act of
     4  May 24, 1945 (P.L.991, No.385), known as the "Urban
     5  Redevelopment Law," who participated in the Allegheny County
     6  Redevelopment Authority (ACRA) retirement plan and who
     7  subsequently became an employe of the county on or before
     8  January 1, 2001, may have the period of his employment with such
     9  authority credited as a county employe, to reflect the employe's
    10  transfer of a governmental function, provided the person is not
    11  entitled to receive, eligible to receive now or in the future,
    12  or currently receiving retirement benefits for such service
    13  under a retirement system administered and wholly or partially
    14  paid for by any other governmental agency or by any private
    15  employer. The person shall be required to transfer to the
    16  retirement fund an amount equal to the greater of the amount the
    17  person received from the ACRA plan plus interest at six per
    18  centum per annum from the date of the distribution from the ACRA
    19  plan to date of payment or an amount equal to the sums, both
    20  employe and county contributions, that would have been paid into
    21  the retirement fund had the person always been a member of the
    22  retirement fund plus interest at six per centum per annum from
    23  the date the sums would have been made to the retirement fund to
    24  date of payment. Upon written notification of the amount from
    25  the board, the person would be given a year to make the
    26  contribution. Interest from the date of notification to date of
    27  payment shall be charged at six per centum per annum.
    28     Section 2.  This act shall take effect in 60 days.


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