PRIOR PRINTER'S NO. 1450 PRINTER'S NO. 3192
No. 1257 Session of 1989
INTRODUCED BY VAN HORNE AND MOWERY, APRIL 24, 1989
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
MARCH 20, 1990
AN ACT
1 Amending the act of August 1, 1975 (P.L.169, No.87), entitled
2 "An act relating to pensions for employees of the City of
3 Pittsburgh," further providing for the contribution rate of
4 members and contributions by the city; and requiring the
5 board to retain an actuary.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. The definition of "contribution rate" in section
9 1 of the act of August 1, 1975 (P.L.169, No.87), entitled "An
10 act relating to pensions for employees of the City of
11 Pittsburgh," is amended to read:
12 Section 1. Definitions.--The following terms shall have the
13 following respective meanings for the purposes of this act,
14 unless a different meaning is plainly required by the context.
15 * * *
16 "Contribution rate." [Five percent.] Except to the extent
17 that section 607(c) of the act of December 18, 1984 (P.L.1005,
18 No.205), known as the "Municipal Pension Plan Funding Standard
1 and Recovery Act," applies, 5% of salary or wages. <--
2 * * *
3 Section 2. Sections 2(e), 4(a), (b), (e) and (i) and 5 of
4 the act are amended to read:
5 Section 2. Administration.--* * *
6 (e) The members of the board may rely upon tables,
7 valuations and reports furnished by qualified professional
8 consultants. The board shall retain an approved actuary within
9 the meaning of that term pursuant to the act of December 18,
10 1984 (P.L.1005, No.205), known as the "Municipal Pension Plan
11 Funding Standard and Recovery Act," who shall assist the chief
12 administrative officer of the pension plan and of the city in
13 the preparation of actuarial valuation reports pursuant to that
14 act.
15 * * *
16 Section 4. Contributions by Members.--(a) Each member of
17 the fund who is making contributions hereunder on December 31,
18 1974, and each employee who becomes a member on or after January
19 1, 1975, shall contribute to the fund [5% of] an amount equal to
20 the contribution rate applied to his salary or wages.
21 (b) Any member who retires subsequent to January 1, 1975 but
22 prior to January 1, 1980 may elect to increase his average
23 monthly earnings by contributing [5% of] an amount equal to the
24 contribution rate applied to earnings in excess of $650 per
25 month for up to 36 months of service rendered prior to the
26 effective date of this act.
27 * * *
28 (e) Each person who becomes an employee of the city after
29 having been employed by the city in the bureau of fire or the
30 bureau of police, and who is not entitled to retirement benefits
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1 for such service under another retirement system and who desires
2 to have such service credited in the fund, shall be required to
3 pay to the fund an amount equal to [5% of] the contribution rate
4 applied to the total salary or wages received by him for each
5 month of service for which he wishes to receive credit together
6 with interest at the rate earned by the fund during the period
7 of such employment. Such amount shall be deducted from the
8 monthly salary or wages of the member over a period of two years
9 or in such manner and period as the board may determine. Upon
10 full payment of the amount due the member shall receive credit
11 for said period of service. If any member shall be injured while
12 in the actual performance of duty before he shall have made full
13 contribution for past service, so long as the disability
14 continues, he shall be eligible for pension under this act, but
15 any amount which he shall not yet have paid to the fund as a
16 contribution for past services under this section at the date of
17 his injury shall be paid, if the board, in its discretion, shall
18 so determine, in such monthly amounts as the board may
19 determine, which amounts shall be deducted from his or her
20 pension as and when monthly payments thereof shall be made.
21 * * *
22 (i) Any pensioner who had less than 20 years credited
23 service or who had elected to receive an early reduced pension
24 and who returns to service shall start contributing at [5% of]
25 an amount equal to the contribution rate applied to his salary
26 or wages and shall be entitled to have his subsequent retirement
27 pension be determined on the basis of this total service history
28 by restoring to the fund the total of the amount received in
29 pension payments.
30 Section 5. Contributions by the City.--(a) The public
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1 officials of the city charged with the disbursements,
2 expenditures, and appropriations, shall annually set aside,
3 apportion, and appropriate, out of all taxes and income of the
4 city, to the board, a sum sufficient to [maintain the pensions
5 due under this act. If the total disbursements from the fund for
6 the payment of pensions, refund of accumulated contributions of
7 members, and administration expenses shall exceed in any year
8 the total revenues of the fund from member contributions and the
9 interest and premiums on investments and bank deposits, then the
10 amount to be set aside, apportioned and appropriated by the
11 public officials of the city to the fund shall not be less than
12 the difference between the total disbursements and receipts of
13 the fund, as aforesaid.] meet the minimum obligation of the
14 municipality with respect to the pension plan pursuant to the
15 act of December 18, 1984 (P.L.1005, No.205), known as the
16 "Municipal Pension Plan Funding Standard and Recovery Act."
17 (b) Every authority or agency, whose employees are members
18 of the fund, shall be held liable for [the amount due to the
19 fund on account of benefits provided by this act which are paid
20 to employees of such authority or agency: Provided, however,
21 That where an employee of the authority or agency formerly
22 worked for the city, the authority or agency shall be held
23 liable for that proportionate part of the pension or other
24 benefits paid which the authority or agency service bears to the
25 total credited service] its proportional amount of the minimum
26 obligation of the municipality with respect to the pension plan
27 cited in subsection (a) as determined by the board.
28 Section 3. This act shall take effect immediately.
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