PRINTER'S NO. 2072
No. 1685 Session of 1999
INTRODUCED BY FREEMAN, HENNESSEY, BELFANTI, CALTAGIRONE,
M. COHEN, COSTA, CURRY, JAMES, KIRKLAND, LAUGHLIN, READSHAW,
SOLOBAY, STABACK, J. TAYLOR, TRAVAGLIO, TRELLO, WILLIAMS,
WOJNAROSKI, YOUNGBLOOD AND YUDICHAK, JUNE 16, 1999
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JUNE 16, 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," providing for rebate of monetary
15 contributions for overfunded police pension funds.
16 The General Assembly of the Commonwealth of Pennsylvania
17 hereby enacts as follows:
18 Section 1. The act of May 29, 1956 (1955 P.L.1804, No.600),
19 referred to as the Municipal Police Pension Law, is amended by
20 adding a section to read:
21 Section 3.1. (a) Each ordinance or resolution establishing
22 a police pension fund may provide a rebate to those retired
23 police officers who made contributions to the fund provided that
1 the borough, town or township actuary certifies that the
2 borough, town or township police pension fund is overfunded such
3 that the borough, town or township plan's assets have exceeded
4 its actuarial liability by one hundred per centum. The borough,
5 town or township of that fund may upon resolution or ordinance
6 of the governing body authorize the withdrawal from the fund an
7 amount no more than two per centum of the fund's actuarial
8 liability in any given year to be used to reimburse those
9 retired police officers for the retired officers' monetary
10 contributions to the fund.
11 (b) In addition to the requirements of subsection (a), any
12 rebate paid to eligible police retirees shall only be authorized
13 by a borough, town or township, if, as a result of the proposed
14 rebate to be paid out for that particular year, the fund shall
15 remain overfunded by one hundred per centum above the fund's
16 actuarial liability. The actuary shall certify that any proposed
17 rebate payment will not reduce the pension's assets to less than
18 one hundred per centum above the actuarial liability.
19 Section 2. This act shall apply to any borough, town or
20 township retired police officer or the retired police officer's
21 widow who is eligible to receive benefits under a police pension
22 plan as of January 1, 1999.
23 Section 3. This act shall take effect in 60 days.
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