PRINTER'S NO. 1455
No. 1161 Session of 1999
INTRODUCED BY BOSCOLA, OCTOBER 26, 1999
REFERRED TO FINANCE, OCTOBER 26, 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," further providing for the return
15 of contributions.
16 The General Assembly of the Commonwealth of Pennsylvania
17 hereby enacts as follows:
18 Section 1. Section 5(g) of the act of May 29, 1956 (1955
19 P.L.1804, No.600), referred to as the Municipal Police Pension
20 Law, amended February 18, 1998 (P.L.158, No.24), is amended to
21 read:
22 Section 5. * * *
23 (g) (1) The ordinance or resolution establishing the police
24 pension fund may provide for a cost of living increase for
1 members of the police force receiving retirement benefits. The
2 cost of living increase shall not exceed the percentage increase
3 in the Consumer Price Index from the year in which the police
4 member last worked, shall not cause the total police pension
5 benefits to exceed seventy-five per centum of the salary for
6 computing retirement benefits and shall not cause the total cost
7 of living increase to exceed thirty per centum. No cost of
8 living increase shall be granted which would impair the
9 actuarial soundness of the pension fund.
10 (2) (i) Subject to the limitations in clause (ii), if the
11 assets of the police pension fund exceed the present value of
12 future benefits as reported in the last actuarial valuation
13 report filed with the Public Employee Retirement Commission
14 under the act of December 18, 1984 (P.L.1005, No.205), known as
15 the "Municipal Pension Plan Funding Standard and Recovery Act,"
16 a cost of living increase for members of the police force
17 receiving retirement benefits for twenty or more years may be
18 provided in excess of the limits herein prescribed. If the
19 assets of a police pension fund exceed the present value of
20 future benefits such that current members are not required to
21 contribute to the fund under section 6(c), a cost-of-living
22 increase may be provided for retired members in excess of the
23 limits herein prescribed, even if such cost of living increase
24 would result in the need for contributions to the fund by
25 current members under section 6(a).
26 (ii) If the total benefits to be paid to a retired member
27 from the police pension fund exceed ten thousand dollars
28 ($10,000) a year, then the police pension fund shall not pay
29 benefits to a retired member in excess of one hundred per centum
30 of the retired member's average compensation as defined in
19990S1161B1455 - 2 -
1 section 415 of the Internal Revenue Code of 1986 (Public Law 99-
2 514, 26 U.S.C. § 415) or in any successor statute.
3 * * *
4 Section 2. This act shall take effect in 60 days.
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