SENATE AMENDED PRIOR PRINTER'S NO. 3748 PRINTER'S NO. 4633
No. 2595 Session of 2002
INTRODUCED BY PIPPY, CALTAGIRONE, M. COHEN, CORRIGAN, COSTA, CREIGHTON, DeLUCA, FEESE, LAUGHLIN, LESCOVITZ, MARKOSEK, MICHLOVIC, PETRONE, PICKETT, READSHAW, ROBINSON, T. STEVENSON, SURRA, TURZAI, WASHINGTON, YOUNGBLOOD, DIVEN, FRANKEL AND KAISER, APRIL 18, 2002
SENATOR THOMPSON, APPROPRIATIONS, IN SENATE, RE-REPORTED AS AMENDED, NOVEMBER 19, 2002
AN ACT 1 Amending the act of July 28, 1953 (P.L.723, No.230), entitled, 2 as amended, "An act relating to counties of the second class 3 and second class A; amending, revising, consolidating and 4 changing the laws relating thereto," further providing for 5 employees eligible for retirement allowances. 6 The General Assembly of the Commonwealth of Pennsylvania 7 hereby enacts as follows: 8 Section 1. Section 1710(j) of the act of July 28, 1953 <-- 9 (P.L.723, No.230), known as the Second Class County Code, added 10 March 27, 1980 (P.L.57, No.21), is amended to read: 11 SECTION 1. SECTION 1710(I) AND (J) OF THE ACT OF JULY 28, <-- 12 1953 (P.L.723, NO.230), KNOWN AS THE SECOND CLASS COUNTY CODE, 13 AMENDED OR ADDED FEBRUARY 9, 1984 (P.L.12, NO.6) AND DECEMBER 14 14, 1989 (P.L.831, NO.75), ARE AMENDED TO READ: 15 Section 1710. Employes Eligible for Retirement Allowances.-- 16 * * * 17 (I) UPON APPLICATION TO THE BOARD, ALL MEMBERS OF THE FUND <--
1 WHO ARE CONTRIBUTORS AND WHO SERVED IN THE ARMED FORCES OF THE 2 UNITED STATES SUBSEQUENT TO SEPTEMBER 1, 1940, OR WHO BECOME 3 MEMBERS OF THE RETIREMENT FUND ON OR AFTER THE EFFECTIVE DATE OF 4 THIS ACT SHALL BE ENTITLED TO HAVE FULL MILITARY SERVICE CREDIT 5 FOR EACH OF THE MOST RECENT YEARS OF MILITARY SERVICE OR 6 FRACTION THEREOF, NOT TO EXCEED THREE FULL YEARS OF SUCH 7 SERVICE; PROVIDED, THEY HAVE A RETIREMENT CREDIT OF THE MINIMUM 8 NUMBER OF YEARS SPECIFIED IN SUBSECTION (A) OF THIS SECTION OR 9 MORE [AND HAVE REACHED THE AGE OF FIFTY YEARS WHILE EMPLOYED OR 10 HAVE ACCUMULATED A PERIOD OF TWENTY YEARS OF RETIREMENT CREDIT 11 AND UNDER THE AGE OF FIFTY YEARS]. THE FORMULA TO BE FOLLOWED 12 FOR PAYMENT TO THE FUND SHALL BE IN AN AMOUNT EQUAL TO THE 13 MAXIMUM RATE OF CONTRIBUTION HAD THEY BEEN MEMBERS OF THE FUND 14 PLUS AN ADDITIONAL AMOUNT AS THE EQUIVALENT OF THE COUNTY 15 MATCHING APPROPRIATION, PLUS INTEREST, IF APPLICABLE, AT THE 16 RATE OF SIX PER CENTUM PER YEAR FROM THE DATE OF EACH YEAR OF 17 CREDITED MILITARY SERVICE TO DATE OF REPAYMENT OR BY APPLYING 18 THE EMPLOYE'S BASIC CONTRIBUTION RATE PLUS THE COUNTY'S NORMAL 19 CONTRIBUTION RATE FOR ACTIVE MEMBERS AT THE TIME OF ENTRY, 20 SUBSEQUENT TO SUCH MILITARY SERVICE, OF THE EMPLOYE INTO COUNTY 21 SERVICE TO HIS AVERAGE ANNUAL RATE OF COMPENSATION OVER THE 22 FIRST THREE YEARS OF SUCH SUBSEQUENT COUNTY SERVICE AND 23 MULTIPLYING THE RESULT BY THE NUMBER OF YEARS AND FRACTIONAL 24 PART OF A YEAR OF CREDITABLE NONINTERVENING MILITARY SERVICE 25 BEING PURCHASED, TOGETHER WITH INTEREST, IF APPLICABLE, DURING 26 ALL PERIODS OF SUBSEQUENT COUNTY SERVICE TO DATE OF PURCHASE. 27 SHOULD IT BE DETERMINED BY THE RETIREMENT BOARD THAT VERIFIABLE 28 COMPENSATION DATA IS NOT AVAILABLE IT SHALL HAVE THE DISCRETION 29 TO DETERMINE WHICH FORMULA SHALL BE USED: PROVIDED, THAT SAID 30 MEMBER IS NOT ENTITLED TO RECEIVE, ELIGIBLE TO RECEIVE NOW OR IN 20020H2595B4633 - 2 -
1 THE FUTURE, OR IS RECEIVING RETIREMENT BENEFITS FOR SUCH SERVICE 2 UNDER A RETIREMENT SYSTEM ADMINISTERED AND WHOLLY OR PARTIALLY 3 PAID FOR BY ANY OTHER GOVERNMENTAL AGENCY OR PRIVATE INDUSTRY. 4 BOTH PRINCIPAL AND INTEREST, IF APPLICABLE, SHALL BE 5 CONSOLIDATED INTO ONE AMOUNT AND PAID [IN TWELVE OR LESS EQUAL 6 MONTHLY INSTALLMENTS]. FULL PAYMENT THEREOF SHALL BE A CONDITION 7 PRECEDENT TO RECEIVE THE BENEFITS OF THE RETIREMENT ALLOWANCE. 8 IF THE MEMBER PAYS THE ENTIRE PRINCIPAL BACK WITHIN THE THREE- 9 YEAR PERIOD IMMEDIATELY FOLLOWING ATTAINMENT OF THE MINIMUM 10 NUMBER OF YEARS OF SERVICE CREDIT SPECIFIED IN SUBSECTION (A) OF 11 THIS SECTION, OR WITHIN THREE YEARS FROM THE DATE THIS 12 AMENDATORY ACT TAKES EFFECT FOR THOSE WHO ALREADY HAVE THE 13 MINIMUM NUMBERS OF YEARS OF SERVICE CREDIT SPECIFIED IN 14 SUBSECTION (A) OF THIS SECTION, NO INTEREST WILL BE CHARGED. 15 OTHERWISE INTEREST WILL BE CHARGED AT THE RATE OF SIX PER CENTUM 16 PER YEAR FROM THE DATE OF EACH YEAR OF CREDITED MILITARY SERVICE 17 TO DATE OF REPAYMENT. ONLY THOSE EMPLOYES WHO ARE ACTIVE MEMBERS 18 OF THE RETIREMENT FUND ON OR AFTER THE EFFECTIVE DATE OF THIS 19 AMENDATORY ACT SHALL BE PERMITTED TO AVAIL THEMSELVES OF EITHER 20 OF THESE PROGRAMS. 21 [THOSE EMPLOYES WHO BECAME MEMBERS OF THE RETIREMENT FUND 22 AFTER THE EFFECTIVE DATE OF THIS ACT, UPON APPLICATION TO THE 23 BOARD, SHALL BE ENTITLED TO HAVE FULL MILITARY SERVICE CREDIT 24 FOR EACH OF THE MOST RECENT YEARS OF MILITARY SERVICE OR 25 FRACTION THEREOF, NOT TO EXCEED THREE FULL YEARS OF SUCH 26 SERVICE: PROVIDED, THEY HAVE A RETIREMENT CREDIT OF THE MINIMUM 27 NUMBER OF YEARS SPECIFIED IN SUBSECTION (A) OF THIS SECTION OR 28 MORE AND HAVE REACHED THE AGE OF FIFTY YEARS WHILE EMPLOYED OR 29 HAVE ACCUMULATED A PERIOD OF TWENTY YEARS OF RETIREMENT CREDIT 30 AND UNDER THE AGE OF FIFTY YEARS. PAYMENT TO THE FUND SHALL BE 20020H2595B4633 - 3 -
1 IN AN AMOUNT EQUAL TO THE MAXIMUM RATE OF CONTRIBUTION HAD THEY
2 BEEN MEMBERS OF THE FUND PLUS AN ADDITIONAL AMOUNT AS THE
3 EQUIVALENT OF THE COUNTY MATCHING APPROPRIATION, PLUS INTEREST
4 AT THE RATE OF SIX PER CENTUM PER YEAR FROM THE DATE OF EACH
5 YEAR OF CREDITED MILITARY SERVICE TO DATE OF REPAYMENT:
6 PROVIDED, THAT SAID MEMBER IS NOT ENTITLED TO RECEIVE, ELIGIBLE
7 TO RECEIVE NOW OR IN THE FUTURE, OR IS RECEIVING RETIREMENT
8 BENEFITS FOR SUCH SERVICE UNDER A RETIREMENT SYSTEM ADMINISTERED
9 AND WHOLLY OR PARTIALLY PAID FOR BY ANY OTHER GOVERNMENTAL
10 AGENCY OR PRIVATE INDUSTRY. BOTH PRINCIPAL AND INTEREST SHALL BE
11 CONSOLIDATED INTO ONE AMOUNT AND PAID IN TWELVE OR LESS EQUAL
12 MONTHLY INSTALLMENTS. FULL PAYMENT THEREOF SHALL BE A CONDITION
13 PRECEDENT TO RECEIVE THE BENEFITS OF THE RETIREMENT ALLOWANCE.]
14 (j) (1) Any person who was employed by an authority created
15 by the county on or after June 10, 1968, pursuant to the act of
16 May 2, 1945 (P.L.382, No.164), known as the "Municipality
17 Authorities Act of 1945," for the purpose of assisting and
18 encouraging local municipalities to undertake vital and
19 necessary capital improvement projects that could not be
20 financed or constructed with county assistance and who
21 subsequently became an employe of the county may have the period
22 of his employment with such authority credited as a county
23 employe. The person shall make application to the board within
24 three years of the effective date of this subsection and, upon
25 approval of the application, shall pay into the retirement fund
26 the amount which he would have been required to pay into the
27 fund if he had been a county employe from the date of his
28 original employment with the authority. The county shall pay
29 into the retirement fund an amount equal to the amount paid in
30 by the employe in accordance with the provisions of this
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1 article. 2 (2) Any person who was employed by an authority created by 3 the county on or after February 14, 1950, pursuant to the act of 4 May 24, 1945 (P.L.991, No.385), known as the "Urban 5 Redevelopment Law," who participated in the Allegheny County 6 Redevelopment Authority (ACRA) retirement plan and who 7 subsequently became an employe of the county on or before 8 January 1, 2001, may have the period of his employment with such 9 authority credited as a county employe, to reflect the employe's 10 transfer of a governmental function, provided the person is not 11 entitled to receive, eligible to receive now or in the future, 12 or currently receiving retirement benefits for such service 13 under a retirement system administered and wholly or partially 14 paid for by any other governmental agency or by any private 15 employer. The person shall be required to transfer to the 16 retirement fund an amount equal to the greater of the amount the 17 person received from the ACRA plan plus interest at six per 18 centum per annum from the date of the distribution from the ACRA 19 plan to date of payment or an amount equal to the sums, both 20 employe and county contributions, that would have been paid into 21 the retirement fund had the person always been a member of the 22 retirement fund plus interest at six per centum per annum from 23 the date the sums would have been made to the retirement fund to 24 date of payment. Upon written notification of the amount from 25 the board, the person would be given a year to make the 26 contribution. Interest from the date of notification to date of 27 payment shall be charged at six per centum per annum. 28 Section 2. This act shall take effect in 60 days. D10L16SFL/20020H2595B4633 - 5 -