PRINTER'S NO. 4256
No. 2998 Session of 1990
INTRODUCED BY JAMES, HOWLETT, CARN, WOGAN, DONATUCCI, PRESTON,
O'BRIEN, COHEN, RIEGER, ROBINSON, GIGLIOTTI, DEMPSEY,
JACKSON, MELIO, ANGSTADT, KENNEY, BELFANTI, TIGUE, PESCI,
McNALLY, PISTELLA, JOHNSON, JOSEPHS, HUGHES, CIVERA, STABACK,
NAHILL, WILLIAMS, THOMAS, FOX, TRELLO, MURPHY, OLIVER,
KOSINSKI, EVANS, KAISER, LINTON, ACOSTA, RICHARDSON, HAYDEN,
HARPER AND ROEBUCK, NOVEMBER 12, 1990
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, NOVEMBER 12, 1990
AN ACT
1 Amending the act of December 13, 1988 (P.L.1192, No.147),
2 entitled "An act requiring municipal retirement systems to
3 pay special ad hoc postretirement adjustments to certain
4 retired police officers and firefighters; providing for the
5 financing of these adjustments; providing for the
6 administration of the Commonwealth's reimbursements for these
7 adjustments; and making repeals," extending the provisions of
8 the act to include survivors of police officers and
9 firefighters; and providing for a supplement from the General
10 Fund.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. Section 102 of the act of December 13, 1988
14 (P.L.1192, No.147), known as the Special Ad Hoc Municipal Police
15 and Firefighter Postretirement Adjustment Act, is amended by
16 adding a definition to read:
17 Section 102. Definitions.
18 The following words and phrases when used in this act shall
19 have the meanings given to them in this section unless the
1 context clearly indicates otherwise:
2 * * *
3 "Survivor." A person who, on the effective date of this act,
4 is a survivor of a police officer or firefighter and who is
5 receiving survivor benefits from a public employee retirement
6 system.
7 Section 2. Sections 301, 302 and 702 of the act are amended
8 to read:
9 Section 301. Entitlement to special ad hoc adjustment.
10 A municipal retirement system shall pay a retired police
11 officer or firefighter or the survivor of a retired police
12 officer or firefighter a special ad hoc municipal police and
13 firefighter postretirement adjustment under this chapter if all
14 of the following apply:
15 (1) The retiree has terminated active employment with
16 the municipality as a police officer or firefighter.
17 (2) The retiree is receiving a retirement annuity,
18 retirement benefit, service pension or disability pension
19 benefit from a municipal retirement system on the basis of
20 active employment with a municipality as a police officer or
21 firefighter.
22 [(3) The retiree began receiving the retirement annuity,
23 retirement benefit, service pension or disability pension
24 benefit before January 1, 1985.]
25 Section 302. Amount of special ad hoc adjustment.
26 (a) General rule.--Except as provided in [subsections (b)
27 and] subsection (c), a municipal retirement system shall pay a
28 retired police officer [or], firefighter or survivor a special
29 ad hoc municipal police and firefighter postretirement
30 adjustment under section 301.[, as follows:
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1 (1) The sum of $25 a month, if on January 1, 1989, the
2 retiree has been retired at least five years but less than
3 ten years.
4 (2) The sum of $50 a month, if on January 1, 1989, the
5 retiree is totally disabled and has been retired less than
6 ten years.
7 (3) The sum of $75 a month, if on January 1, 1989, the
8 retiree has been retired at least ten years but less than 20
9 years.
10 (4) The sum of $150 a month, if on January 1, 1989, the
11 retiree has been retired at least 20 years.]
12 Postretirement adjustments shall be granted annually for all
13 retirees and survivors by an amount determined in accordance
14 with the Consumer Price Index for all urban consumers published
15 by the Bureau of Labor Statistics, United States Department of
16 Labor.
17 (b) Retirement date.--In the case of a special ad hoc
18 postretirement adjustment payable to a survivor, the benefit
19 amounts shall be based on the retirement date of the retiree.
20 [(b)] (c) Limitation.--If, under section 301, a retiree is
21 entitled to be paid a special ad hoc municipal police and
22 firefighter postretirement adjustment by more than one municipal
23 retirement system, the amount of the special ad hoc adjustment
24 under subsection (a) shall be reduced so that the total of all
25 these adjustments paid to the retiree does not exceed the amount
26 specified in subsection (a).
27 [(c) Modification in amount of postretirement adjustment.--
28 If a retiree entitled to receive a special ad hoc municipal
29 police and firefighters postretirement adjustment will receive a
30 postretirement adjustment from the applicable municipal police
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1 or paid firefighters pension plan after the effective date of
2 this act, the amount of the special ad hoc postretirement
3 adjustment under subsection (a) shall be reduced by the total
4 amount of any municipal postretirement adjustment.]
5 (d) Construction.--[Subsections (b) and] Subsection (c)
6 shall not be construed to reduce the amount of any retirement
7 annuity, retirement benefit, service pension or disability
8 pension benefit payable to a retiree immediately prior to the
9 effective date of this act.
10 Section 702. Deposits into special account.
11 Notwithstanding any applicable provision of the act of May
12 12, 1943 (P.L.259, No.120), referred to as the Foreign Casualty
13 Insurance Premium Tax Allocation Law, or any applicable
14 provisions of the act of March 4, 1971 (P.L.6, No.2), known as
15 the Tax Reform Code of 1971, or the provisions of sections
16 402(b) and 803(c) of the act of December 18, 1984 (P.L.1005,
17 No.205), known as the Municipal Pension Plan Funding Standard
18 and Recovery Act, beginning on January 1, 1990, prior to the
19 deposit of the proceeds of the insurance premium tax on foreign
20 casualty insurance premiums into the General Municipal Pension
21 System State Aid Program revenue account, an amount sufficient
22 to provide for the Commonwealth's reimbursement payments to
23 municipalities for special ad hoc adjustments [under this act]
24 provided to retirees under section 302(a) shall be deposited in
25 the separate account created under section 701.
26 Section 3. The act is amended by adding a section to read:
27 Section 703. Supplement from General Fund.
28 (a) Reimbursement amount.--An amount sufficient to reimburse
29 municipalities for special ad hoc adjustments provided to
30 survivors under section 302(b) in the first year shall be paid
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1 from the General Fund.
2 (b) Supplemental amounts.--Should the amount required to
3 reimburse municipalities for special ad hoc adjustments to
4 retirees under section 302(a) decrease after the first year, an
5 amount equal to the decrease shall be deposited in the separate
6 account created under section 701 and shall be used to reimburse
7 municipalities for special ad hoc adjustments provided to
8 survivors under section 302(b). If the amount of this deposit is
9 not sufficient to reimburse municipalities for provision of
10 adjustments to survivors under section 302(b), the difference
11 between the amount of this deposit and the amount required shall
12 be paid from the General Fund.
13 Section 4. Sections 901(a) and 902(a) of the act are amended
14 to read:
15 Section 901. Municipal retirement system certification of
16 adjustments paid.
17 (a) Certification.--Beginning January 1, 1989, the chief
18 administrative officer of a municipal retirement system that
19 pays a special ad hoc adjustment in that year shall certify the
20 total of all adjustments paid during that year to the Auditor
21 General not later than April 1 of the following year. The
22 adjustments paid to retirees under section 302(a) and to
23 survivors under section 302(b) shall be certified separately.
24 * * *
25 Section 902. Commonwealth disbursement of reimbursement
26 payment.
27 (a) Payment to account.--Not later than June 1 of the year
28 in which the form is due, the Auditor General shall certify to
29 the State Treasurer the amount to be deposited into the special
30 account created in section 701 and the amount to be paid from
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1 the General Fund and shall draw a warrant, payable to the
2 treasurer of the municipality, on the State Treasurer from the
3 special account created in section 701 for the amount certified
4 under section 901(a).
5 * * *
6 Section 5. This act shall be retroactive to February 12,
7 1989.
8 Section 6. This act shall take effect in 60 days.
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