PRIOR PRINTER'S NO. 1692 PRINTER'S NO. 2200
No. 1314 Session of 2000
INTRODUCED BY HOLL, TOMLINSON, SALVATORE, GREENLEAF, COSTA,
KUKOVICH, TILGHMAN, LEMMOND, PUNT AND BOSCOLA,
FEBRUARY 29, 2000
SENATOR HART, FINANCE, AS AMENDED, OCTOBER 4, 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. FOR PURPOSES OF IMPLEMENTING THIS <--
22 SECTION, AS WELL AS SUBSECTION (A)(5), THE PHRASE "ATTENDING
23 COLLEGE" SHALL MEAN THAT THE ELIGIBLE CHILDREN ARE REGISTERED AT
24 AN ACCREDITED INSTITUTION OF HIGHER LEARNING AND ARE CARRYING A
25 MINIMUM COURSE LOAD OF SEVEN CREDIT HOURS PER SEMESTER.
26 (3) All such pensions as shall be allowed to those who are
27 retired by reason of disabilities shall be in conformity with a
28 uniform scale.
29 (4) The widow of a member of the police force or the widow <--
30 of a member who was eligible for a pension but had not begun
20000S1314B2200 - 2 -
1 collecting a pension or a member who retires on pension who dies
2 or if no widow survives or if she survives and subsequently dies
3 [or remarries], then the child or children under the age of <--
4 eighteen years or if attending college, under the age of twenty- <--
5 three years, of a member of the police force or a member who
6 retires on pension who dies on or after [the effective date of <--
7 this amendment, [may] June 23, 1970, shall, during her lifetime <--
8 [or so long as she does not remarry] in the case of a widow or <--
9 until reaching the age of eighteen years or if attending <--
10 college, until reaching the age of twenty-three years, in the
11 case of a child or children, be entitled to receive a pension
12 calculated at the rate of fifty per centum of the pension the
13 member was receiving or would have been receiving had he been
14 retired at the time of his death[.], except that if the assets <--
15 of the pension fund exceed the present value of future benefits
16 as reported in the last actuarial valuation report filed with
17 the Public Employee Retirement Commission under the act of
18 December 18, 1984 (P.L.1005, No.205), known as the "Municipal
19 Pension Plan Funding Standard and Recovery Act," such
20 entitlement shall be calculated at one hundred per centum of the
21 pension the member was receiving or would have been receiving
22 had he been retired at the time of his death. RETIRED AT THE <--
23 TIME OF HIS DEATH.
24 (5) THE WIDOW OF A MEMBER OF THE POLICE FORCE OR THE WIDOW
25 OF A MEMBER WHO WAS ELIGIBLE FOR A PENSION BUT HAD NOT BEGUN
26 COLLECTING A PENSION OR A MEMBER WHO RETIRES ON PENSION WHO DIES
27 OR IF NO WIDOW SURVIVES OR IF SHE SURVIVES AND SUBSEQUENTLY
28 DIES, THEN THE CHILD OR CHILDREN UNDER THE AGE OF EIGHTEEN YEARS
29 OR IF ATTENDING COLLEGE, UNDER THE AGE OF TWENTY-THREE YEARS, OF
30 A MEMBER OF THE POLICE FORCE OR A MEMBER WHO RETIRES ON PENSION
20000S1314B2200 - 3 -
1 WHO DIES ON OR AFTER THE EFFECTIVE DATE OF THIS AMENDATORY ACT,
2 SHALL, DURING HER LIFETIME IN THE CASE OF A WIDOW OR UNTIL
3 REACHING THE AGE OF EIGHTEEN YEARS OR IF ATTENDING COLLEGE,
4 UNTIL REACHING THE AGE OF TWENTY-THREE YEARS, IN THE CASE OF A
5 CHILD OR CHILDREN, BE ENTITLED TO RECEIVE A PENSION CALCULATED
6 AT THE RATE OF FIFTY PER CENTUM OF THE PENSION THE MEMBER WAS
7 RECEIVING OR WOULD HAVE BEEN RECEIVING HAD HE BEEN RETIRED AT
8 THE TIME OF HIS DEATH, EXCEPT THAT IF THE ASSETS OF THE PENSION
9 FUND EXCEED THE PRESENT VALUE OF FUTURE BENEFITS AS REPORTED IN
10 THE LAST ACTUARIAL VALUATION REPORT FILED WITH THE PUBLIC
11 EMPLOYEE RETIREMENT COMMISSION UNDER THE ACT OF DECEMBER 18,
12 1984 (P.L.1005, NO.205), KNOWN AS THE "MUNICIPAL PENSION PLAN
13 FUNDING STANDARD AND RECOVERY ACT," BOTH BEFORE AND AFTER THE
14 ACTUARY HAS COSTED OUT A JOINT AND ONE HUNDRED PER CENTUM
15 SURVIVORSHIP RETIREMENT BENEFIT, SUCH ENTITLEMENT SHALL BE
16 CALCULATED AT ONE HUNDRED PER CENTUM OF THE PENSION THE MEMBER
17 WAS RECEIVING OR WOULD HAVE BEEN RECEIVING HAD HE BEEN RETIRED
18 AT THE TIME OF HIS DEATH FOR ALL MEMBERS WHO RETIRE, OR WHO DIE
19 BUT WERE ELIGIBLE TO RETIRE, DURING THE PERIOD THE ASSETS OF THE
20 PENSION FUND EXCEED THE PRESENT VALUE OF FUTURE BENEFITS AS SET
21 FORTH ABOVE.
22 (5) (6) The widow of a member of the police force who dies <--
23 before his pension has vested or if no widow survives or if she
24 survives and subsequently dies, the child or children under the
25 age of eighteen years, or if attending college, under the age of
26 twenty-three years, of the member of the police force shall be
27 entitled to receive repayment of all money which the member
28 invested in the pension fund plus interest or other increases in
29 value of the member's investment in the pension fund, UNLESS THE <--
30 MEMBER HAS DESIGNATED ANOTHER BENEFICIARY FOR THIS PURPOSE.
20000S1314B2200 - 4 -
1 (b) For purposes of this act, the term "regional police
2 department" shall mean a municipal police force organized and
3 operated in combination by two or more municipalities through an
4 intermunicipal agreement under the act of July 12, 1972
5 (P.L.762, No.180), referred to as the Intergovernmental
6 Cooperation Law.
7 Section 2. Section 5(c) and (e) of the act, amended February
8 18, 1998 (P.L.158, No.24), are amended to read:
9 Section 5. * * *
10 (c) Monthly pension or retirement benefits other than length
11 of service increments shall be computed at one-half the monthly
12 average salary of such member during not more than the last
13 sixty nor less than the last thirty-six months of employment[.],
14 except that if the assets of the pension fund exceed the present
15 value of future benefits as reported in the last actuarial
16 valuation report filed with the Public Employee Retirement
17 Commission under the act of December 18, 1984 (P.L.1005,
18 No.205), known as the "Municipal Pension Plan Funding Standard
19 and Recovery Act," BOTH BEFORE AND AFTER THE ACTUARY HAS COSTED <--
20 OUT BENEFITS IN EXCESS OF THE LIMITS HEREIN PRESCRIBED, such
21 monthly pension or retirement benefits may be computed in excess
22 of the limits herein prescribed FOR ALL MEMBERS WHO RETIRE, OR <--
23 WHO DIE BUT WERE ELIGIBLE TO RETIRE, DURING THE PERIOD THE
24 ASSETS OF THE PENSION FUND EXCEED THE PRESENT VALUE OF FUTURE
25 BENEFITS AS SET FORTH ABOVE. PURSUANT TO THIS SECTION, THE LEVEL
26 OF ENHANCED PENSION BENEFITS FOR PROSPECTIVE RETIREES MAY BE
27 READJUSTED FROM VALUATION PERIOD TO VALUATION PERIOD, IF
28 NECESSARY, TO ENSURE THAT THE ASSETS OF THE FUND EXCEED THE
29 PRESENT VALUE OF FUTURE BENEFITS BOTH BEFORE AND AFTER THE
30 ACTUARY HAS COSTED OUT SUCH ENHANCED BENEFITS. Such pension or
20000S1314B2200 - 5 -
1 retirement benefits for any month shall be computed as the sum
2 of (1) any pension benefits from pension plans heretofore
3 established by a private organization or association for the
4 members of the police force but only to the extent that this
5 Commonwealth or any of its municipalities shall have contributed
6 to such pension plan moneys raised by taxation; (2) if positions
7 covered by the fund are included in an agreement under the
8 Federal Social Security Act, up to seventy-five per centum of
9 his full social security old-age insurance benefit calculated in
10 accordance with the provisions of the Federal Social Security
11 Act in effect on the date of his termination of employment,
12 except that such amount shall be included only upon attainment
13 of the age at which the officer would be eligible to receive
14 full social security old-age insurance benefits and in
15 determining such eligibility and such amount only compensation
16 for services actually rendered by the officer and covered by the
17 police pension fund shall be included; and (3) benefits from the
18 police pension fund established pursuant to this act to the
19 extent necessary to bring the total benefits in any month up to
20 one-half the aforesaid monthly average salary except that any
21 officer who receives pension or retirement benefits from any
22 plan established at any time pursuant to this act and who is
23 also entitled to receive social security old-age insurance
24 benefits shall not regardless of when the officer retired from
25 active service have his pension or retirement benefits offset or
26 reduced by more than seventy-five per centum of the social
27 security old-age insurance benefits which he receives.
28 * * *
29 (e) In the case of the payment of pensions for permanent
30 injuries incurred in service and to families of members killed
20000S1314B2200 - 6 -
1 in service, the amount and commencement of the payments shall be
2 fixed by regulations of the governing body of the borough, town,
3 township or regional police department[.], provided that
4 pensions for permanent injuries INCURRED IN SERVICE shall be <--
5 calculated at no less than fifty per centum of the member's
6 salary at the time the disability was incurred and provided
7 further that pensions for the families of members killed in
8 service shall be calculated at one hundred per centum of the
9 member's salary at the time of death.
10 * * *
11 Section 3. This act shall take effect in 90 days.
G30L53DMS/20000S1314B2200 - 7 -