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                                                      PRINTER'S NO. 1692

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 1314 Session of 2000


        INTRODUCED BY HOLL, TOMLINSON, SALVATORE, GREENLEAF, COSTA,
           KUKOVICH, TILGHMAN, LEMMOND, PUNT AND BOSCOLA,
           FEBRUARY 29, 2000

        REFERRED TO FINANCE, FEBRUARY 29, 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
    21  Commonwealth maintaining a police force of three or more full-
    22  time members and each regional police department shall, and all
    23  other boroughs, towns or townships may, establish, by ordinance


     1  or resolution, a police pension fund or pension annuity to be
     2  maintained by a charge against each member of the police force,
     3  by annual appropriations made by the borough, town, township or
     4  regional police department, by payments made by the State
     5  Treasurer to the municipal treasurer from the moneys received
     6  from taxes paid upon premiums by foreign casualty insurance
     7  companies for purposes of pension retirement for policemen, and
     8  by gifts, grants, devises or bequests granted to the pension
     9  fund pursuant to section two of this act.
    10     (2)  Such fund shall be under the direction of the governing
    11  body of the borough, town, township or regional police
    12  department, and applied under such regulations as such governing
    13  body, by ordinance or resolution, [may] shall prescribe for the
    14  benefit of such members of the police force as shall receive
    15  honorable discharge therefrom by reason of age and service, or
    16  disability, and [may] shall prescribe for the benefit (i) of
    17  widows, and if no widow survives or if she survives and
    18  subsequently dies [or remarries], then (ii) of child or children
    19  under the age of eighteen years or if attending college, under
    20  the age of twenty-three years, of members of the police force or
    21  of members retired on pension.
    22     (3)  All such pensions as shall be allowed to those who are
    23  retired by reason of disabilities shall be in conformity with a
    24  uniform scale.
    25     (4)  The widow of a member of the police force or the widow
    26  of a member who was eligible for a pension but had not begun
    27  collecting a pension or a member who retires on pension who dies
    28  or if no widow survives or if she survives and subsequently dies
    29  [or remarries], then the child or children under the age of
    30  eighteen years or if attending college, under the age of twenty-
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     1  three years, of a member of the police force or a member who
     2  retires on pension who dies on or after [the effective date of
     3  this amendment, may] June 23, 1970, shall, during her lifetime
     4  [or so long as she does not remarry] in the case of a widow or
     5  until reaching the age of eighteen years or if attending
     6  college, until reaching the age of twenty-three years, in the
     7  case of a child or children, be entitled to receive a pension
     8  calculated at the rate of fifty per centum of the pension the
     9  member was receiving or would have been receiving had he been
    10  retired at the time of his death[.], except that if the assets
    11  of the pension fund exceed the present value of future benefits
    12  as reported in the last actuarial valuation report filed with
    13  the Public Employee Retirement Commission under the act of
    14  December 18, 1984 (P.L.1005, No.205), known as the "Municipal
    15  Pension Plan Funding Standard and Recovery Act," such
    16  entitlement shall be calculated at one hundred per centum of the
    17  pension the member was receiving or would have been receiving
    18  had he been retired at the time of his death.
    19     (5)  The widow of a member of the police force who dies
    20  before his pension has vested or if no widow survives or if she
    21  survives and subsequently dies, the child or children under the
    22  age of eighteen years, or if attending college, under the age of
    23  twenty-three years, of the member of the police force shall be
    24  entitled to receive repayment of all money which the member
    25  invested in the pension fund plus interest or other increases in
    26  value of the member's investment in the pension fund.
    27     (b)  For purposes of this act, the term "regional police
    28  department" shall mean a municipal police force organized and
    29  operated in combination by two or more municipalities through an
    30  intermunicipal agreement under the act of July 12, 1972
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     1  (P.L.762, No.180), referred to as the Intergovernmental
     2  Cooperation Law.
     3     Section 2.  Section 5(c) and (e) of the act, amended February
     4  18, 1998 (P.L.158, No.24), are amended to read:
     5     Section 5.  * * *
     6     (c)  Monthly pension or retirement benefits other than length
     7  of service increments shall be computed at one-half the monthly
     8  average salary of such member during not more than the last
     9  sixty nor less than the last thirty-six months of employment[.],
    10  except that if the assets of the pension fund exceed the present
    11  value of future benefits as reported in the last actuarial
    12  valuation report filed with the Public Employee Retirement
    13  Commission under the act of December 18, 1984 (P.L.1005,
    14  No.205), known as the "Municipal Pension Plan Funding Standard
    15  and Recovery Act," such monthly pension or retirement benefits
    16  may be computed in excess of the limits herein prescribed. Such
    17  pension or retirement benefits for any month shall be computed
    18  as the sum of (1) any pension benefits from pension plans
    19  heretofore established by a private organization or association
    20  for the members of the police force but only to the extent that
    21  this Commonwealth or any of its municipalities shall have
    22  contributed to such pension plan moneys raised by taxation; (2)
    23  if positions covered by the fund are included in an agreement
    24  under the Federal Social Security Act, up to seventy-five per
    25  centum of his full social security old-age insurance benefit
    26  calculated in accordance with the provisions of the Federal
    27  Social Security Act in effect on the date of his termination of
    28  employment, except that such amount shall be included only upon
    29  attainment of the age at which the officer would be eligible to
    30  receive full social security old-age insurance benefits and in
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     1  determining such eligibility and such amount only compensation
     2  for services actually rendered by the officer and covered by the
     3  police pension fund shall be included; and (3) benefits from the
     4  police pension fund established pursuant to this act to the
     5  extent necessary to bring the total benefits in any month up to
     6  one-half the aforesaid monthly average salary except that any
     7  officer who receives pension or retirement benefits from any
     8  plan established at any time pursuant to this act and who is
     9  also entitled to receive social security old-age insurance
    10  benefits shall not regardless of when the officer retired from
    11  active service have his pension or retirement benefits offset or
    12  reduced by more than seventy-five per centum of the social
    13  security old-age insurance benefits which he receives.
    14     * * *
    15     (e)  In the case of the payment of pensions for permanent
    16  injuries incurred in service and to families of members killed
    17  in service, the amount and commencement of the payments shall be
    18  fixed by regulations of the governing body of the borough, town,
    19  township or regional police department[.], provided that
    20  pensions for permanent injuries shall be calculated at no less
    21  than fifty per centum of the member's salary at the time the
    22  disability was incurred and provided further that pensions for
    23  the families of members killed in service shall be calculated at
    24  one hundred per centum of the member's salary at the time of
    25  death.
    26     * * *
    27     Section 3.  This act shall take effect in 90 days.


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