PRINTER'S NO. 1455
No. 1161 Session of 1999
INTRODUCED BY BOSCOLA, OCTOBER 26, 1999
REFERRED TO FINANCE, OCTOBER 26, 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," further providing for the return 15 of contributions. 16 The General Assembly of the Commonwealth of Pennsylvania 17 hereby enacts as follows: 18 Section 1. Section 5(g) 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 to 21 read: 22 Section 5. * * * 23 (g) (1) The ordinance or resolution establishing the police 24 pension fund may provide for a cost of living increase for
1 members of the police force receiving retirement benefits. The 2 cost of living increase shall not exceed the percentage increase 3 in the Consumer Price Index from the year in which the police 4 member last worked, shall not cause the total police pension 5 benefits to exceed seventy-five per centum of the salary for 6 computing retirement benefits and shall not cause the total cost 7 of living increase to exceed thirty per centum. No cost of 8 living increase shall be granted which would impair the 9 actuarial soundness of the pension fund. 10 (2) (i) Subject to the limitations in clause (ii), if the 11 assets of the police pension fund exceed the present value of 12 future benefits as reported in the last actuarial valuation 13 report filed with the Public Employee Retirement Commission 14 under the act of December 18, 1984 (P.L.1005, No.205), known as 15 the "Municipal Pension Plan Funding Standard and Recovery Act," 16 a cost of living increase for members of the police force 17 receiving retirement benefits for twenty or more years may be 18 provided in excess of the limits herein prescribed. If the 19 assets of a police pension fund exceed the present value of 20 future benefits such that current members are not required to 21 contribute to the fund under section 6(c), a cost-of-living 22 increase may be provided for retired members in excess of the 23 limits herein prescribed, even if such cost of living increase 24 would result in the need for contributions to the fund by 25 current members under section 6(a). 26 (ii) If the total benefits to be paid to a retired member 27 from the police pension fund exceed ten thousand dollars 28 ($10,000) a year, then the police pension fund shall not pay 29 benefits to a retired member in excess of one hundred per centum 30 of the retired member's average compensation as defined in 19990S1161B1455 - 2 -
1 section 415 of the Internal Revenue Code of 1986 (Public Law 99- 2 514, 26 U.S.C. § 415) or in any successor statute. 3 * * * 4 Section 2. This act shall take effect in 60 days. E24L53BIL/19990S1161B1455 - 3 -