PRIOR PRINTER'S NO. 1341 PRINTER'S NO. 1916
No. 1101 Session of 1999
INTRODUCED BY COSTA, BODACK, BELAN, WAGNER AND MURPHY,
SEPTEMBER 28, 1999
AS AMENDED ON THIRD CONSIDERATION, MAY 1, 2000
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 payments by employees into the retirement system, for amount
6 of retirement allowances and for charter limitations.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Sections 1708(a) and 1712(a) of the act of July
10 28, 1953 (P.L.723, No.230), known as the Second Class County
11 Code, amended December 14, 1989 (P.L.631, No.75), are amended to
12 read:
13 Section 1708. Compulsory Membership; Payments Into Fund;
14 Exceptions; Vested Interest.--(a) Each county employe shall be
15 required to become a member of the county employes' retirement
16 system within six months from the date of his or her employment.
17 The said county employe may elect to become a member of the
18 retirement system at any time during the aforesaid six months
19 period of time by notifying the head of the department, office
1 or agency in which department, office or agency he or she is
2 employed of the said election. A copy thereof shall be filed
3 immediately with the board. He or she shall, each month, pay
4 into the retirement fund a monthly contribution, being a certain
5 percentage of the amount received by him or her as compensation
6 during the preceding calendar month[, which shall be computed on
7 a monthly compensation of four thousand three hundred thirty-
8 three dollars and thirty-three cents ($4,333.33) or less].
9 Except as provided in subsection (d), the monthly contribution
10 shall be the percentage of his or her compensation as heretofore
11 stated, on a graduated scale as follows:
12 For the year 1988 and thereafter, six and one-quarter per
13 centum up to seven hundred fifty dollars ($750) per month.
14 Nine and three-eighths per centum from seven hundred fifty
15 dollars ($750) to fifteen hundred dollars ($1500) per month.
16 Twelve and one-half per centum from fifteen hundred dollars
17 ($1500) [to four thousand three hundred thirty-three dollars and
18 thirty-three cents ($4,333.33)] per month and above.
19 Except as hereinafter provided, the aforesaid increase rate
20 of monthly contributions to be paid into the retirement fund to
21 enhance the actuarial soundness of said fund, shall be
22 applicable to all county employes who are members of the
23 retirement system. Such monthly contributions shall be collected
24 by the county treasurer and by him paid into the retirement
25 fund. The payment of the increased rate of the aforesaid monthly
26 contributions shall not apply to such former county employes
27 whose monthly contributions are now paid into said fund in
28 accordance with the provisions of subsection (d) of section
29 1713. Any county employe receiving compensation for accidental
30 injuries in accordance with the provisions of The Pennsylvania
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1 Workmen's Compensation Act shall during the period of time in
2 which such county employe is receiving disability benefits, as
3 provided in the aforesaid act, pay each month for retirement
4 benefits a sum equal to the last monthly contribution as paid
5 into the retirement fund when said county employe was in
6 employment. The monthly contribution shall not be paid by any
7 person who was receiving a retirement allowance and is
8 subsequent to the thirty-first day of May, one thousand nine
9 hundred fifty-three, reemployed as a county employe or any other
10 person who is ineligible to become a member of the retirement
11 system.
12 * * *
13 Section 1712. Amount of Retirement Allowances.--(a) The
14 retirement allowance paid under the provisions of this article
15 shall equal fifty per centum of the amount which would
16 constitute the average monthly compensation as received by the
17 county employe during the highest twenty-four months of the last
18 four (4) years of his employment or two years on a bi-weekly pay
19 basis in which period of time the said county employe made
20 monthly or bi-weekly contributions into the retirement fund
21 prior to his or her retirement. Such average monthly
22 compensation shall include the compensation which any county
23 employe would have been entitled to and would have received
24 except for deduction from compensation due to time spent in
25 serving as an elected State official: Provided, That the county
26 and the employe shall make monthly contributions based on the
27 last compensation equal to the amount the county and he or she
28 would have paid into the retirement fund had such compensation
29 been paid by the county. [No retirement allowance shall be
30 computed on a monthly compensation in excess of four thousand
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1 three hundred thirty-three dollars and thirty-three cents
2 ($4,333.33).] In the event an employe, on the effective date of
3 employment termination, shall have less than a full year of
4 service for the purpose of computing the employe's service time,
5 then the amount of the retirement allowance, which would have
6 been computed had the employe completed a full twelve-month
7 period for the year of the termination of employment, shall be
8 prorated upon a full completed month basis for said last year of
9 service. No retirement allowance shall be computed on a monthly
10 compensation in excess of four thousand three hundred thirty-
11 three dollars and thirty-three cents ($4,333.33) (referred to in
12 this subsection as "excess compensation") unless the employe and
13 the county have made contributions on all excess compensation
14 received by the employe during the five-year period preceding
15 the employe's retirement: Provided, that the required
16 contribution is paid into the retirement system within ninety
17 (90) days of the date of retirement. An employe who retires
18 within five (5) years of the effective date of the compensation
19 cap removal may elect to satisfy the contribution requirement by
20 making a lump sum contribution that is calculated by applying
21 the applicable contribution percentage rate to all excess
22 compensation received by the employe during the prior five-year
23 period on which contributions were not made. Within ninety (90)
24 days of such contribution by an employe, contributions shall
25 also be made by the county in an amount equal to the amount
26 contributed by the employe. The effective date of the cap
27 removal is DECEMBER 31, 1999. <--
28 After the effective date of this amendment, certain former
29 county employes who are now receiving a retirement allowance
30 shall receive an increase of a certain per centum of such
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1 retirement allowance, which sum shall be computed on the average
2 monthly retirement allowance as heretofore authorized by the
3 board.
4 The per centum of increase in said monthly retirement
5 allowance shall be a flat 10 per centum increase with the
6 maximum amount not to exceed forty-five dollars ($45.00) per
7 month.
8 Any employe who earns in excess of ten thousand eight hundred
9 dollars ($10,800) per annum and shall retire during the period
10 from January 1, 1973 to December 31, 1981 shall pay, as a
11 condition to the payment of any benefits hereunder a lump sum
12 contribution into the retirement fund, which contribution shall
13 be computed as follows:
14 The difference between ten thousand eight hundred dollars
15 ($10,800) and the annual salary of the employe multiplied by the
16 number of years during which he was not an employe of the county
17 for the period aforesaid and upon that amount the sum of two per
18 centum which shall be the lump sum contribution as required
19 herein.
20 No person who is reemployed as a county employe shall be
21 eligible to receive the benefit of a retirement allowance plus a
22 service increment, if any, until he or she shall have made at
23 least twenty-four monthly or fifty-two bi-weekly contributions
24 into the retirement fund subsequent to his or her reemployment.
25 The foregoing provisions shall not have a retroactive
26 application and shall apply only to present and future county
27 employes. The rate required to be paid in accordance with this
28 provision shall apply to present county employes notwithstanding
29 the rate of contribution that the present county employe has
30 made into the retirement fund.
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1 * * *
2 Section 2. Section 3107-C of the act is amended by adding a
3 subsection to read:
4 Section 3107-C. Charter Limitations.--* * *
5 (m) The charter shall be subject to and shall not affect the <--
6 employes' retirement system under Article XVII.
7 Section 3. This act shall take effect in 60 days.
8 (M) THE COUNTY UNDER THE CHARTER SHALL BE SUBJECT TO THE <--
9 RESTRICTIONS AND PROHIBITIONS CONCERNING THE EMPLOYES'
10 RETIREMENT SYSTEM UNDER ARTICLE XVII AND THIS ARTICLE.
11 SECTION 3. THIS ACT SHALL BE RETROACTIVE TO JANUARY 1, 2000.
12 SECTION 4. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
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