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| PRIOR PRINTER'S NO. 2499 | PRINTER'S NO. 2523 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY HARHAI, JULY 22, 2009 |
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| AS REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF REPRESENTATIVES, AS AMENDED, JULY 30, 2009 |
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| AN ACT |
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1 | Amending the act of February 1, 1974 (P.L.34, No.15), entitled |
2 | "An act creating a Pennsylvania Municipal Retirement System |
3 | for the payment of retirement allowances to officers, |
4 | employes, firemen and police of political subdivisions and |
5 | municipal authorities and of institutions supported and |
6 | maintained by political subdivisions and municipal government |
7 | associations and providing for the administration of the same |
8 | by a board composed of the State Treasurer and others |
9 | appointed by the Governor; imposing certain duties on the |
10 | Pennsylvania Municipal Retirement Board and the actuary |
11 | thereof; providing the procedure whereby political |
12 | subdivisions and municipal authorities may join such system, |
13 | and imposing certain liabilities and obligations on such |
14 | political subdivisions and municipal authorities in |
15 | connection therewith, and as to certain existing retirement |
16 | and pension systems, and upon officers, employes, firemen and |
17 | police of such political subdivisions, institutions supported |
18 | and maintained by political subdivisions, and upon municipal |
19 | authorities; providing for the continuation of certain |
20 | municipal retirement systems now administered by the |
21 | Commonwealth; providing certain exemptions from taxation, |
22 | execution, attachment, levy and sale and providing for the |
23 | repeal of certain related acts," further providing for |
24 | general provisions, for provisions relating to municipal |
25 | employees, for provisions relating to municipal firemen and |
26 | municipal police officers and for optional retirement plans; |
27 | providing for the Municipal Pension Recovery Program and for |
28 | the Cooperative Municipal Pension and Security Program; and |
29 | making editorial changes. |
30 | The General Assembly of the Commonwealth of Pennsylvania |
31 | hereby enacts as follows: |
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1 | Section 1. The title of the act of February 1, 1974 (P.L.34, |
2 | No.15), known as the Pennsylvania Municipal Retirement Law, is |
3 | amended to read: |
4 | AN ACT |
5 | Creating a Pennsylvania Municipal Retirement System for the |
6 | payment of retirement allowances to officers, [employes] |
7 | employees, [firemen] fire fighters and police officers of |
8 | political subdivisions and municipal authorities and of |
9 | institutions supported and maintained by political |
10 | subdivisions and municipal government associations and |
11 | providing for the administration of the same by a board |
12 | composed of the State Treasurer and others appointed by the |
13 | Governor; imposing certain duties on the Pennsylvania |
14 | Municipal Retirement Board and the actuary thereof; providing |
15 | the procedure whereby political subdivisions and municipal |
16 | authorities may join such system, and imposing certain |
17 | liabilities and obligations on such political subdivisions |
18 | and municipal authorities in connection therewith, and as to |
19 | certain existing retirement and pension systems, and upon |
20 | officers, [employes, firemen] employees, fire fighters and |
21 | police officers of such political subdivisions, institutions |
22 | supported and maintained by political subdivisions, and upon |
23 | municipal authorities; providing for the continuation of |
24 | certain municipal retirement systems now administered by the |
25 | Commonwealth; providing certain exemptions from taxation, |
26 | execution, attachment, levy and sale and providing for the |
27 | Municipal Pension Recovery Program, for the Cooperative |
28 | Municipal Pension and Security Program and the repeal of |
29 | certain related acts. |
30 | Section 2. Section 102 of the act, amended or added December |
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1 | 19, 1975 (P.L.520, No.153) and May 17, 1980 (P.L.135, No.50), is |
2 | amended to read: |
3 | Section 102. Definitions.--As used in this act: |
4 | "Accumulated [deductions" means the] deductions." Either of |
5 | the following: |
6 | (1) The total amount deducted from the salary or |
7 | compensation of the [contributor] member and paid over by the |
8 | municipality or paid by the member or from any existing pension |
9 | or retirement system directly into the retirement fund and |
10 | credited to the member's account, together with regular interest |
11 | thereon, for those member accounts established under the |
12 | provisions of a retirement plan established under Article II, |
13 | Article III, Article IV or Article IV-A of this act unless |
14 | interest is excluded in a contract for an optional retirement |
15 | plan entered into under the provisions of clause (11) of section |
16 | 104 of this act or under the Municipal Pension Recovery Program |
17 | established under Article IV-A of this act. |
18 | (2) For those member accounts established under the |
19 | provisions of a retirement plan established under Article IV-B |
20 | of this act, the term shall mean the total amount deducted from |
21 | the salary or compensation of the member and paid over by the |
22 | municipality or paid by the member or from any existing pension |
23 | or retirement system directly into the retirement fund and |
24 | credited to the member's account, together with statutory |
25 | interest thereon. |
26 | "Active member." A municipal employee, municipal fire |
27 | fighter, municipal police officer or an employee of a municipal |
28 | government association who is earning credited service in a |
29 | retirement plan that has been established under the provisions |
30 | of this act. |
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1 | "Actuarially [sound" means a] sound." A plan which is being |
2 | operated under supervision of an actuary and which is being |
3 | funded annually at a level not lower than the normal cost of the |
4 | plan plus a contribution towards the unfunded accrued liability |
5 | sufficient to complete the funding thereof in accordance with |
6 | the provisions of the act of December 18, 1984 (P.L.1005, |
7 | No.205), known as the "Municipal Pension Funding Standard and |
8 | Recovery Act," if the plan is subject to the provisions of that |
9 | act and if the plan is not subject to that act, within thirty |
10 | years of the effective date of enrollment in the system. If the |
11 | unfunded accrued liability is increased subsequent to the |
12 | effective date of the system, such additional liability shall be |
13 | funded in accordance with the provisions of the "Municipal |
14 | Pension Funding Standard and Recovery Act," if the plan is |
15 | subject to the provisions of that act and if the plan is not |
16 | subject to that act, within a period of thirty years from the |
17 | effective date of the increase. [If deemed advisable by the |
18 | actuary, the initial liability and any increase thereof, may be |
19 | combined and amortized over a period of years, not to exceed |
20 | thirty.] |
21 | ["Actuary" means: (i)] "Actuary." Any of the following: |
22 | (1) a member of the American Academy of Actuaries[, or |
23 | (ii)]; |
24 | (2) an individual who has demonstrated to the satisfaction |
25 | of the Insurance Commissioner of Pennsylvania that he had the |
26 | educational background necessary for the practice of actuarial |
27 | science and has had at least seven years of actuarial |
28 | experience[, or (iii)]; or |
29 | (3) a firm, partnership or corporation of which one or more |
30 | members meets the requirements of [subclauses (i) or (ii) above] |
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1 | clause (1) or (2). |
2 | "Alternate payee." Any spouse, former spouse, child or |
3 | dependent of a member who is recognized by an approved domestic |
4 | relations order as having a right to receive all or a portion of |
5 | the moneys payable to that member under this act. |
6 | ["Annuitant" means a former contributor in receipt of a |
7 | superannuation retirement allowance or other benefit provided by |
8 | this act.] |
9 | "Annuitant." Any member on or after the effective date of |
10 | retirement until the member's annuity is terminated. |
11 | "Approved domestic relations order." Any domestic relations |
12 | order which has been approved in accordance with this act. |
13 | ["Beneficiary" means a person] "Beneficiary." A person who |
14 | is last designated in writing to the board by a [contributor or |
15 | an annuitant] member to receive benefits [after] or the member's |
16 | accumulated deductions upon the death of such [contributor or |
17 | annuitant] member. |
18 | ["Board" means the] "Board." The Pennsylvania Municipal |
19 | Retirement Board created by this act. |
20 | "Compensation." Remuneration actually received for services |
21 | rendered as a municipal employee, municipal fire fighter or |
22 | municipal police officer, excluding reimbursement for expenses |
23 | incidental to employment. Compensation shall be adjusted as |
24 | appropriate to comply with the terms of any contract entered |
25 | into between the board and the applicable municipality under |
26 | Article IV or Article IV-A. For members who are enrolled in a |
27 | plan that has adopted the provisions of section 414(h) of the |
28 | Internal Revenue Code of 1986, as designated and referred to in |
29 | the Federal Tax Reform Act of 1986 (Public Law 99-514, § 2, 100 |
30 | Stat. 2085, 2095), the term shall also include any such pickup |
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1 | contributions so designated. Notwithstanding any provision to |
2 | the contrary, a member's compensation shall not exceed the |
3 | limitations under Internal Revenue Code § 401(a)(17) as adjusted |
4 | in accordance with § 401(a)(17)(B). The adjustment in effect for |
5 | a calendar year applies to any period, not exceeding twelve |
6 | months, over which compensation is determined (the |
7 | "determination period") beginning in such calendar year. If a |
8 | determination period consists of fewer than twelve months, the |
9 | compensation limit shall be multiplied by a fraction, the |
10 | numerator of which is the number of months in the determination |
11 | period and the denominator of which is twelve. |
12 | ["Contributor" means a member who has accumulated deductions |
13 | standing to his credit in the member's account of the fund |
14 | created by this act.] |
15 | "Date of termination of service." For an active member, the |
16 | last day of employment in a status covered by the eligibility |
17 | requirements of the pension plan or, in the case of an inactive |
18 | member on leave without pay, the date of resignation or the date |
19 | employment is formally discontinued by the municipality. |
20 | "Disability annuitant." A member on or after the effective |
21 | date of disability until his disability annuity is terminated. |
22 | "Domestic relations order." Any judgment, decree or order, |
23 | including approval of a property settlement agreement, entered |
24 | on or after the effective date of this definition by a court of |
25 | competent jurisdiction pursuant to a domestic relations law |
26 | which relates to the marital property rights of the spouse or |
27 | former spouse of a member, including the right to receive all or |
28 | a portion of the moneys payable to that member under this act in |
29 | furtherance of the equitable distribution of marital assets. The |
30 | term includes orders of support as that term is defined by 23 |
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1 | Pa.C.S. § 4302 (relating to definitions) and orders for the |
2 | enforcement of arrearages as provided in 23 Pa.C.S. § 3703 |
3 | (relating to enforcement of arrearages). |
4 | "Effective date of retirement." The first day following the |
5 | date of termination of service of a member if the member has |
6 | properly filed an application for an annuity within 90 days of |
7 | such date or, in the case of a member who does not apply for an |
8 | annuity within 90 days after the date of termination of service, |
9 | the date of filing an application for an annuity or the date |
10 | specified on the application, whichever is later. In the case of |
11 | a member applying for a disability retirement, the term shall |
12 | also mean the date certified by the board as the effective date |
13 | of disability. |
14 | "Employers account." The account maintained for each plan |
15 | established under Article IV-B to which shall be credited |
16 | contributions made by participating employers towards the |
17 | superannuation retirement, disability retirement and death |
18 | benefits of members. |
19 | "Equivalent actuarial [value" means benefits] value." |
20 | Benefits which have equal present value when computed on the |
21 | basis of regular interest and the mortality tables adopted by |
22 | the board and in use at the date the benefit becomes effective. |
23 | "Excess [interest" means the] interest." The investment |
24 | earnings on the fund in excess of that required for allocation |
25 | to regular interest and expenses. |
26 | "Final [salary" means] salary." Either of the following: |
27 | (1) For a retirement plan established under Article II, |
28 | Article III or Article IV of this act, the average annual salary |
29 | or compensation earned by a member and paid by the municipality |
30 | during the highest three, four, or five non-overlapping periods |
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1 | of twelve consecutive months as stipulated by the municipality, |
2 | or if not so long employed, then the average annual salary or |
3 | compensation earned and paid during the whole period of such |
4 | employment; or, if applicable, the amount or formula stipulated |
5 | between the municipality and the board in a contract for an |
6 | optional retirement plan entered into under the provisions of |
7 | clause (11) of section 104 of this act. |
8 | (2) For a retirement plan established under Article IV-A of |
9 | this act, the amount or formula stipulated between the |
10 | municipality and the board in the contract establishing the |
11 | retirement plan. |
12 | (3) For a retirement plan established under Article IV-B of |
13 | this act, the average annual compensation earned by a member and |
14 | paid by the municipality during the highest three consecutive |
15 | nonoverlapping years of credited service or, if not so long |
16 | enrolled in credited service, the average annual compensation |
17 | earned and paid during the whole period of such credited |
18 | service. |
19 | ["Fund" means the] "Fund." The Pennsylvania Municipal |
20 | Retirement Fund created by this act. |
21 | "Inactive member." A member who is enrolled in the system |
22 | but who is no longer earning credited service and who has |
23 | accumulated deductions standing to the member's credit in the |
24 | fund. |
25 | "Internal Revenue Code." The Internal Revenue Code of 1986, |
26 | as designated and referred to in the Federal Tax Reform Act of |
27 | 1986 (Public Law 99-514, § 2, 100 Stat. 2085, 2095), as amended. |
28 | A reference in this part to "Internal Revenue Code § " shall |
29 | be deemed to refer to the identically numbered section and |
30 | subsection or other subdivision of such section in 26 U.S.C. |
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1 | (relating to Internal Revenue Code), as such identically |
2 | numbered section may be amended. |
3 | "Joint coverage [member" means a member who shall have |
4 | become] member." A person who becomes a member of the |
5 | retirement system subsequent to the last date permitted by the |
6 | municipality employing [him] the person for statement of |
7 | preference concerning social security coverage, or who, having |
8 | become a member on or before such date, shall have filed with |
9 | the municipality a written statement that [he] the person elects |
10 | social security coverage [under an agreement with the Federal |
11 | Secretary of Health, Education and Welfare entered into by the |
12 | Commonwealth]. |
13 | ["Member" means a] "Member." A person who is a municipal |
14 | officer, [employe, fireman or policeman] employee, fire fighter |
15 | or police officer, or an [employe] employee of a municipal |
16 | government association who [has become a member of the |
17 | Pennsylvania Municipal Retirement System created by this act] is |
18 | an active member, inactive member, annuitant, disability |
19 | annuitant or vested member of the system. |
20 | "Member's [account" means the] account." The account to |
21 | which shall be credited the payroll deductions and other |
22 | contributions, plus interest, if any, of the members. |
23 | "Member's [annuity" means that] annuity." That portion or |
24 | component of the retirement allowance which is of equivalent |
25 | actuarial value, at date of retirement, to the accumulated |
26 | deductions of the member. |
27 | "Member's excess investment [account" means the] account." |
28 | The account maintained for each member, to which shall be |
29 | credited such excess interest [deemed to be earned on] awarded a |
30 | member [contributions]. |
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1 | "Municipal [account" means the] account." The account |
2 | maintained for each municipality that establishes a retirement |
3 | plan under Article II, Article III, Article IV or Article IV-A |
4 | of this act, to which shall be credited the contributions made |
5 | by it toward the superannuation retirement and death benefits of |
6 | members. |
7 | "Municipal [annuity" means that] annuity." That portion or |
8 | component of the retirement allowance computed in accordance |
9 | with the formula applicable to each municipality. |
10 | "Municipal [employe" means a] employee." A person holding an |
11 | office or position, other than that of a municipal [fireman] |
12 | fire fighter or municipal [policeman] police officer, under a |
13 | municipality or a municipal government association and paid on a |
14 | regular salary or per diem basis. The term shall not include |
15 | [officers and employes] an officer or employee paid wholly on a |
16 | fee basis. |
17 | "Municipal [fireman" means a] fire fighter." A person |
18 | holding a full-time position in the fire department of a |
19 | municipality and who works for a stated salary or compensation. |
20 | "Municipal Pension Funding Standard and Recovery Act." The |
21 | act of December 18, 1984 (P.L.1005, No.205), known as the |
22 | "Municipal Pension Funding Standard and Recovery Act." |
23 | "Municipal [policeman" means a] police officer." A person |
24 | holding a full-time position in the police department of a |
25 | municipality and who works for a stated salary or compensation. |
26 | ["Municipality" means a] "Municipality." A city, borough, |
27 | town, township, county, institution district, or any newly |
28 | created governmental unit, or an authority created by a city, |
29 | borough, town, township, county or county institution district, |
30 | or jointly by any such political subdivisions, or an institution |
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1 | supported and maintained by a municipality or a municipal |
2 | government association, or an industrial development agency as |
3 | defined by the act of May 31, 1956 (P.L.1911, No.635), known as |
4 | the "Industrial Development Assistance Law," which has adopted |
5 | bylaws and the governing body of which is organized and holds |
6 | regular public meetings. |
7 | "New [member" means] member." A person who is a municipal |
8 | officer, [employe, fireman or policeman] employee, firefighter |
9 | or police officer, or an [employe] employee of a municipal |
10 | government association and who first becomes a member after the |
11 | date the municipality by which [he] the person is employed |
12 | joined the retirement system created by this act. |
13 | "Optional membership." A category of membership in a |
14 | retirement plan that applies to employees authorized by law, |
15 | resolution or ordinance to elect to enroll or to refrain from |
16 | enrollment in the retirement plan. |
17 | "Original [member" means] member." A person who is a |
18 | municipal officer, [employe, fireman or policeman] employee, |
19 | fire fighter or police officer, or an [employe] employee of a |
20 | municipal government association who was employed by the |
21 | municipality at the date the municipality joined the system. |
22 | "Prior [salary" means the] salary." The annual salary or |
23 | compensation earned by a member and paid by the municipality |
24 | during the year immediately preceding the date the municipality |
25 | by which [he] the member is employed joined the system. |
26 | "Prior [service" means all service] service." All service of |
27 | a person as a municipal [employe, municipal fireman or municipal |
28 | policeman] employee, municipal fire fighter or municipal police |
29 | officer completed at the time the municipality by which [he] the |
30 | person is or was employed elected to join the system or the same |
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1 | municipality under a prior name or classification, unless the |
2 | municipality has elected to limit the period of such service for |
3 | municipal [employes] employees enrolled in a plan under Article |
4 | II [or], Article IV or Article IV-A of this act. |
5 | "Regular [interest" means the] interest." The rate fixed by |
6 | the board, from time to time, on the basis of earnings on |
7 | investments to be applied to the member's accounts, the |
8 | municipal accounts established under the provisions of a |
9 | retirement plan established under Article II, Article III, |
10 | Article IV or Article IV-A of this act, to the retired member's |
11 | reserve account, and to the employers' accounts of the plans |
12 | established under Article IV-B of this act. |
13 | "Retired member's reserve [account" means the] account." The |
14 | account from which all retirement allowances shall be paid for |
15 | superannuation and total disability retirement and voluntary and |
16 | involuntary [withdrawals] retirement. |
17 | "Retirement [allowance" means the] allowance." The sum of |
18 | the municipal annuity and the member's annuity and, if the |
19 | member is entitled to a disability annuity under the provisions |
20 | of this act, the disability annuity. |
21 | "Service connected [disability" means total] disability." |
22 | Total and permanent disability of a member [prior to eligibility |
23 | for superannuation retirement] resulting from a condition |
24 | arising out of and incurred in the course of [his] the member's |
25 | employment, and which is compensable under the applicable |
26 | provisions of the act of June 2, 1915 (P.L.736, No.338), known |
27 | as "The Pennsylvania [Workmen's] Workers' Compensation Act," or |
28 | the act of June 21, 1939 (P.L.566, No.284), known as "The |
29 | Pennsylvania Occupational Disease Act." |
30 | "Single coverage [member" means a member who shall become] |
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1 | member." A person who becomes a member of the retirement system |
2 | on or before the last date permitted by the municipality |
3 | employing [him] the person for statement of preference |
4 | concerning social security coverage and who either shall have |
5 | filed with the municipality a written statement that [he] the |
6 | person does not elect social security coverage [under any |
7 | agreement with the Federal Secretary of Health, Education and |
8 | Welfare entered into by the Commonwealth,] or shall not have |
9 | filed with the municipality any written statement. |
10 | "Statutory interest." Interest at 4% per annum, compounded |
11 | annually which is to be applied to a member's account |
12 | established under the provisions of Article IV-B of this act. |
13 | "Superannuation retirement [age" means sixty-five] age." |
14 | Sixty-five years of age for municipal [employes, fifty-five] |
15 | employees enrolled in a retirement plan established under |
16 | Article II of this act. Fifty-five years of age for municipal |
17 | [firemen] fire fighters and municipal police [or such other age] |
18 | officers enrolled in a retirement plan established under Article |
19 | III of this act. For members enrolled in a retirement plan |
20 | established under Article IV of this act, it shall be the age or |
21 | service requirement as may be stipulated between the |
22 | municipality and the board in a contract for an optional |
23 | retirement plan entered into with the municipality under the |
24 | provisions of clause (11) of section 104 of this act. For |
25 | members enrolled in a retirement plan established under Article |
26 | IV-B of this act, it shall be such age or service requirement as |
27 | provided in the Municipal Pension Recovery Program contract |
28 | entered into between the municipality and the board. For those |
29 | members enrolled in a retirement plan established under Article |
30 | IV-B of this act, it shall be the age and service as defined in |
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1 | Article IV-B of this act. |
2 | "Survivor [annuitant" means any] annuitant." Any person who |
3 | has been named by a member under a joint and survivor annuity |
4 | option to receive an annuity upon the death of such member. |
5 | ["System" means the] "System." The Pennsylvania Municipal |
6 | Retirement System [as established herein] established in this |
7 | act. |
8 | "Total disability reserve [account" means the] account." The |
9 | account to which shall be credited the contributions made by |
10 | municipalities toward the disability retirement of members |
11 | covered by the disability provisions of Article II, Article III |
12 | or Article IV of this act. |
13 | "Vested member." A member who, after attaining the |
14 | stipulated age or service requirements, or both, based on the |
15 | requirements of the plan in which the member is enrolled, has |
16 | terminated municipal service and has elected to leave the |
17 | member's total accumulated deductions in the system and to defer |
18 | receipt of an annuity. |
19 | Section 3. Section 103 of the act, amended May 17, 1980 |
20 | (P.L.135, No.50), is amended to read: |
21 | Section 103. Pennsylvania Municipal Retirement Board.--(a) |
22 | A Pennsylvania Municipal Retirement Board is hereby created, |
23 | which shall consist of the State Treasurer, the Secretary of |
24 | [the Commonwealth] Community and Economic Development, six |
25 | municipal elected officials or [employes] employees of different |
26 | classes of municipalities which have joined the system under the |
27 | provisions of Article II, Article III or Article IV of this act, |
28 | two municipal elected officials or employees of municipalities |
29 | which have joined the system under the provisions of Article IV- |
30 | A or Article IV-B of this act, [one retired member] two |
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1 | annuitants of the system [who is receiving a retirement |
2 | allowance], one municipal [fireman employed by a municipality |
3 | which has joined the system] employee who is an active member, |
4 | one municipal fire fighter who is an active member and one |
5 | municipal [policeman employed by a municipality which has joined |
6 | the system] police officer who is an active member. The [nine] |
7 | thirteen latter members shall be appointed by the Governor from |
8 | among nominations made by the County Commissioners Association, |
9 | the Pennsylvania League of Cities, the Pennsylvania Association |
10 | of Township Commissioners, the Pennsylvania State Association of |
11 | Township Supervisors, the Pennsylvania State Association of |
12 | Boroughs and the Pennsylvania Municipal Authorities Association, |
13 | and associations representing municipal employees, municipal |
14 | [firemen] fire fighters and municipal police officers, to serve |
15 | for a term of four years each and until their successors are |
16 | appointed and qualified. Appointments of members made by the |
17 | Governor shall not require the advice and consent of the Senate. |
18 | The [two municipal employe] members of the [Municipal Employes' |
19 | Retirement Board, appointed by the Governor from among |
20 | nominations made by various associations of county and municipal |
21 | officers,] board who are serving on the effective date of this |
22 | act, shall continue to serve as members of the [Pennsylvania |
23 | Municipal Retirement Board] board until the expiration of their |
24 | respective terms. |
25 | (b) A chairman and vice chairman of the board shall be |
26 | elected by the board every year at the January meeting [of the |
27 | board and the chairman and vice-chairman may succeed themselves |
28 | for the appointed term of four years]. |
29 | (c) Vacancies happening from among members appointed from |
30 | among the nominations made by the associations shall be filled |
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1 | by the appointment of a successor for a full term of four years. |
2 | (d) No appointed member shall serve more than two |
3 | consecutive full terms. |
4 | (e) Each member of the board shall take an oath of office |
5 | that he will diligently and honestly administer the affairs of |
6 | the board, and that he will not knowingly violate or wilfully |
7 | permit to be violated any of the provisions of this act. |
8 | (f) A quorum of the board shall consist of [six] eight |
9 | members. |
10 | Section 3.1. The act is amended by adding a section to read: |
11 | Section 103.1. Status of the Board.--(a) Except where |
12 | otherwise explicitly designated by act of the General Assembly, |
13 | the board shall be an independent board of the Commonwealth. |
14 | (b) For purposes of the act of October 15, 1980 (P.L.950, |
15 | No.164), known as the "Commonwealth Attorneys Act," the board |
16 | shall be considered an executive agency. |
17 | (c) For purposes of the act of July 31, 1968 (P.L.769, |
18 | No.240), referred to as the Commonwealth Documents Law, and the |
19 | act of June 25, 1982 (P.L.633, No.181), known as the "Regulatory |
20 | Review Act," the board shall be considered an agency. |
21 | Section 4. Section 104 of the act, amended May 17, 1980 |
22 | (P.L.135, No.50) and February 1, 1984 (P.L.1, No.1), is amended |
23 | to read: |
24 | Section 104. General Powers of the Board.--The board shall: |
25 | (1) Appoint a secretary [and], an assistant secretary and |
26 | investment professionals who shall serve at the pleasure of the |
27 | board. The compensation of all persons so appointed shall be |
28 | fixed by the board and shall be consistent with the standards |
29 | established by the Executive Board of the Commonwealth. The |
30 | secretary, with the prior approval of the board, shall appoint |
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1 | the clerical and other [employes] employees of the board, whose |
2 | positions, excluding the secretary's [and], assistant |
3 | secretary's and the investment professionals', shall be under |
4 | the classified service provisions of the act of August 5, 1941 |
5 | (P.L.752, No.286), as amended and the secretary shall fill |
6 | future vacancies in accordance with such provisions. [The |
7 | compensation of all persons so appointed shall be fixed by the |
8 | board and shall be consistent with the standards established by |
9 | the Executive Board of this Commonwealth;]. |
10 | (2) Contract for professional services, including but not |
11 | limited to actuarial, investment and medical as it deems |
12 | advisable[;]. |
13 | (3) Keep in convenient form such data as shall be deemed |
14 | necessary for actuarial valuation purposes[;]. |
15 | (4) From time to time, through its actuary, make an |
16 | actuarial investigation into the mortality and service |
17 | experience of the [contributors and annuitants] members and of |
18 | the various accounts created by this act[;]. |
19 | (5) Adopt [for the system] one or more mortality tables and |
20 | such other tables as shall be deemed necessary[;]. |
21 | (7) Certify annually the amount of appropriation which each |
22 | municipality shall pay into the [retirement fund, which amounts] |
23 | fund. Said obligations shall be based on estimates furnished by |
24 | the actuary[, and shall be credited to the municipal account of |
25 | the fund;] in accordance with the funding requirements found in |
26 | the Municipal Pension Funding Standard and Recovery Act, if |
27 | applicable to that municipality and, if not, as determined by |
28 | the board. |
29 | (8) Prepare and publish annually a financial statement |
30 | showing the condition of the fund and the various accounts |
|
1 | thereof, and setting forth such other facts, recommendations and |
2 | data as may be of use in the advancement of knowledge concerning |
3 | the Pennsylvania Municipal Retirement System, and furnish a copy |
4 | thereof to each municipality which has joined the system, and to |
5 | such persons as may request copies thereof[;]. |
6 | (9) Keep a record of all its proceedings, which will be open |
7 | to inspection by the public[;]. |
8 | (10) From time to time, with the advice of the [Attorney |
9 | General] Office of General Counsel and the actuary, adopt and |
10 | promulgate such rules and regulations as may be required for the |
11 | proper administration of the fund created by this act and the |
12 | several accounts thereof, and for the transaction of the |
13 | business of the board[;]. |
14 | (11) Be authorized to approve any optional retirement plan |
15 | for municipal [employes] employees, municipal [firemen] fire |
16 | fighters or municipal police officers, with any municipality as |
17 | long as it is actuarially sound and benefits under the plan are |
18 | not in excess of or member's minimum contribution rates are not |
19 | less than those provided in other existing retirement laws |
20 | pertaining to that class of municipality; except to the extent |
21 | that excess investment earnings are allocated to provide for |
22 | additional pension benefits or member accruals as otherwise |
23 | provided in this law[;]. |
24 | (12) Prepare and distribute annual statements of accounts to |
25 | each of the active members of the system, showing the |
26 | contributions made during the year, the interest [earned] |
27 | credited to the member's account and the total balance standing |
28 | in the member's account at the end of the year[;]. |
29 | (12.1) From time to time, at the direction of municipalities |
30 | under the provisions of Article II, Article III or Article IV of |
|
1 | this act electing to provide cost-of-living increases from their |
2 | share of excess investment earnings, the board shall allocate |
3 | excess investment earnings to provide additional "cost-of- |
4 | living" pension benefits to those members of such municipalities |
5 | who have already retired. Such allocations shall be made, with |
6 | the advice of the actuary, on a fully funded basis employing |
7 | actuarial assumptions which reflect the nature of the liability. |
8 | (12.2) From time to time, at the direction of municipalities |
9 | under the provisions of Article II, Article III or Article IV of |
10 | this act electing to apply their excess investment earnings to |
11 | member contributions, the board shall allocate excess investment |
12 | earnings for active members of such municipalities by applying |
13 | such allocation to member contributions. To the extent that |
14 | additional liabilities may accrue as a result of such |
15 | allocation, the actuary shall employ actuarial assumptions, on a |
16 | fully funded basis, to accurately reflect the nature of the |
17 | liability generated therefrom. |
18 | (13) Perform such other functions as are required for the |
19 | execution of the provisions of this act and all Federal and |
20 | State law and shall administer and interpret the provisions of |
21 | this act so as to ensure that the system shall be maintained as |
22 | tax qualified under the Internal Revenue Code. |
23 | (14) Enter into a contract with one or more third party |
24 | administrators for the administration of defined retirement |
25 | option plans enrolled under Article IV-A of this act. The board |
26 | shall set performance standards and criteria and annually review |
27 | all plan and fund managers to determine whether they meet such |
28 | standards and criteria. |
29 | (15) Possess the powers and privileges of a corporation and |
30 | shall operate and conduct business as the Pennsylvania Municipal |
|
1 | Retirement System. |
2 | Section 5. Section 105 of the act, amended May 17, 1980 |
3 | (P.L.135, No.50), is amended to read: |
4 | Section 105. Preliminary Actuarial Investigation Tables and |
5 | Rates.--[As soon as may be after the passage of this act, the] |
6 | The actuary shall make an investigation of the mortality, |
7 | service and salary experience of municipal [employes, municipal |
8 | firemen] employees, municipal fire fighters and municipal police |
9 | officers as [he] the actuary shall deem necessary, for the |
10 | purpose of determining upon tentative tables and municipal |
11 | contributions. On the basis of such investigation and |
12 | recommendation, the board shall adopt such tentative tables and |
13 | certify such tentative rates for the purpose of giving |
14 | municipalities and municipal [employes, municipal firemen] |
15 | employees, municipal fire fighters and municipal police officers |
16 | estimates of the cost involved in electing to join the |
17 | retirement [system] plans established by this act. The actuary |
18 | shall make subsequent investigations at least once every five |
19 | years in order to enable the board to change such tables when |
20 | necessary. |
21 | Section 6. Section 107 of the act is amended to read: |
22 | Section 107. Election by Municipalities to Join Retirement |
23 | System.--(a) Any municipality may elect, by ordinance or |
24 | resolution adopted by the tax levying body, or in the case of |
25 | municipal authorities by the board of such municipal authority |
26 | to join the system: Provided, however, That any municipality |
27 | electing coverage under the provisions of Article II of this act |
28 | must have first placed its municipal [employes] employees in so |
29 | far as they are eligible under the Federal Social Security Act. |
30 | (b) Any municipality, by action of its tax levying body, may |
|
1 | and upon petition of electors equal to at least five per cent of |
2 | the registered electors of the municipality, shall, submit the |
3 | question of joining such system to the voters of the |
4 | municipality at any municipal or general election, in the same |
5 | manner as other questions are submitted to the electors under |
6 | the election code of the Commonwealth. If the majority of the |
7 | electors voting on the question vote in favor thereof, the tax |
8 | levying body shall adopt an ordinance or resolution electing to |
9 | join such system. If the electors vote against joining the |
10 | system, then no further action shall be taken in the |
11 | municipality for a period of two years. |
12 | (c) A duly certified copy of any such ordinance or |
13 | resolution electing to join the system shall be filed with the |
14 | board. |
15 | Section 7. The act is amended by adding a section to read: |
16 | Section 107.1. Mandatory Enrollment.--(a) Any municipality |
17 | maintaining a severely distressed pension plan as determined |
18 | pursuant to the provisions of the Municipal Pension Plan Funding |
19 | Standard and Recovery Act, shall transfer the administration of |
20 | all existing pension plans established by the municipality to |
21 | the board, and the board shall enroll all such plans into the |
22 | system in accordance with the provisions of Article IV-A of this |
23 | act. |
24 | (b) Any municipality maintaining a severely distressed |
25 | pension plan as determined pursuant to the provisions of the |
26 | Municipal Pension Plan Funding Standard and Recovery Act after |
27 | the effective date of transferring the administration of all |
28 | existing pension plans established by the municipality to the |
29 | board under the provisions of Article IV-A shall enroll all |
30 | full-time employees as defined in Article IV-B of this act hired |
|
1 | subsequent to the effective date of the transfer into the system |
2 | in accordance with Article IV-B of this act. |
3 | (c) This section shall not apply to cities of the first | <-- |
4 | class. |
5 | Section 8. Sections 108 and 109 of the act are amended to |
6 | read: |
7 | Section 108. Retirement Funds and Accounts.--(a) The |
8 | Pennsylvania Municipal Retirement Fund shall consist of the |
9 | money received from municipalities arising from contributions by |
10 | municipalities, and from payroll deductions from salary or |
11 | compensation of members, and other contributions made by members |
12 | through the municipality to the system, from transfers made from |
13 | municipal retirement or pension systems and credited as provided |
14 | in this act, and investment earnings thereon. |
15 | (b) The fund shall be a trust, and the assets of the system |
16 | shall be held in trust. No part of the assets of the system |
17 | shall be used for or diverted to purposes other than for the |
18 | exclusive benefit of the members, their spouses or the members' |
19 | beneficiaries prior to the satisfaction of all liabilities of |
20 | the system with respect to them. The assets of the fund shall be |
21 | used only to pay: |
22 | (1) benefits to members in accordance with this act; and |
23 | (2) necessary expenses of the system as established in this |
24 | act. |
25 | (c) (1) Contributions made by municipalities enrolled in |
26 | plans established under the provisions of Article II, Article |
27 | III or Article IV of this act toward superannuation retirement |
28 | and death benefits of members shall be credited to the municipal |
29 | account of [said] the fund, contributions made by municipalities |
30 | toward disability retirement of members shall be credited to the |
|
1 | total disability reserve account of [said] the fund, and payroll |
2 | deductions and other contributions of members shall be credited |
3 | to the member's account of [said] the fund. Transfers made from |
4 | existing municipal retirement or pension systems shall be |
5 | credited as provided in this act. |
6 | (2) Contributions made by municipalities enrolled in plans |
7 | established under the provisions of Article IV-A of this act |
8 | toward superannuation retirement, disability retirement and |
9 | death benefits of members shall be credited to the municipal |
10 | account of the fund and payroll deductions and other |
11 | contributions of members shall be credited to the member's |
12 | account of the fund. Transfers made from existing municipal |
13 | retirement or pension systems shall be credited as provided in |
14 | this act. |
15 | (3) Contributions made by municipalities enrolled in plans |
16 | established under the provisions of Article IV-B of this act |
17 | toward superannuation retirement, disability retirement and |
18 | death benefits of members shall be credited to the employers |
19 | account of the fund, and payroll deductions and other |
20 | contributions of members shall be credited to the member's |
21 | account of the fund. |
22 | (d) (1) The board shall keep separate accounts of each |
23 | municipality and for each separate class of [employes] employees |
24 | enrolled by that municipality under [the several articles of |
25 | this act, except the total disability reserve account and the |
26 | retired member's reserve account which shall be maintained as |
27 | pooled accounts] Article II, Article III, Article IV or Article |
28 | IV-A of this act. The board shall keep one separate employer's |
29 | account for each retirement plan under Article IV-B of this act |
30 | and separate members' accounts for each employee enrolled in a |
|
1 | plan established under Article IV-B of this act. Each |
2 | municipality and the members thereof shall be liable to the |
3 | board for the amount of contributions required to cover the cost |
4 | of the retirement allowance and other benefits payable to such |
5 | members. |
6 | (2) The total disability reserve account and the retired |
7 | member's reserve account shall be maintained as pooled accounts. |
8 | (e) (1) Upon the granting of a superannuation or voluntary |
9 | or involuntary [withdrawal] retirement allowance to any |
10 | [contributor] member of a plan established under Article II, |
11 | Article III, Article IV or Article IV-B of this act, the amount |
12 | of [such contributor's] the member's accumulated deductions in |
13 | the member's account shall lose their status as accumulated |
14 | deductions and shall be transferred to the retired member's |
15 | reserve account and the actuarial equivalent of the municipal |
16 | annuity shall be similarly transferred from the municipal |
17 | account or the employer's account to the retired member's |
18 | reserve account. |
19 | (2) Upon the granting of a superannuation or voluntary or |
20 | involuntary retirement allowance to any member of a plan |
21 | enrolled in the system under Article IV-A, the amount of the |
22 | member's accumulated deductions in the member's account shall |
23 | lose their status as accumulated deductions and shall be |
24 | transferred to the municipal account of the plan. A transfer |
25 | shall be made monthly from the municipal account to the retired |
26 | member's reserve account to fund the retired member's reserve |
27 | account for any benefit payment to a retired member, a spouse or |
28 | beneficiary of a member who was entitled to a benefit under that |
29 | municipal plan's provisions. |
30 | (3) Upon the granting of a disability retirement allowance |
|
1 | to any [contributor] member of a plan established under Article |
2 | II, Article III or Article IV of this act, there shall be |
3 | transferred to the retired member's reserve account the amount |
4 | of the [contributor's] member's accumulated deductions in the |
5 | member's account, the amount of the equivalent actuarial value |
6 | [to] of the municipal annuity, and such additional amount from |
7 | the total disability reserve account as is needed in addition |
8 | thereto to provide the actuarial equivalent of the total |
9 | disability allowance to which the [contributor] member is |
10 | entitled. |
11 | (4) Upon the granting of a disability retirement allowance |
12 | to any member of a plan enrolled in the system under Article IV- |
13 | A of this act, the amount of the member's accumulated deductions |
14 | in the member's account shall lose their status as accumulated |
15 | deductions and shall be transferred to the municipal account of |
16 | the plan. A transfer shall be made monthly from the municipal |
17 | account to the retired member's reserve account to fund the |
18 | retired member's reserve account for any benefit payment to a |
19 | retired member, a spouse or beneficiary of a member who was |
20 | entitled to a benefit under that municipal plan's disability |
21 | provisions. |
22 | (5) Upon the granting of a disability retirement allowance |
23 | to any member of a plan established under Article IV-B of this |
24 | act, there shall be transferred to the retired member's reserve |
25 | account the amount of the member's accumulated deductions in the |
26 | member's account and such additional amount from the employer's |
27 | account as is needed in addition thereto to provide the |
28 | actuarial equivalent of the total disability allowance to which |
29 | the member is entitled. |
30 | Section 109. Custody of and Payments from Fund.--All moneys |
|
1 | and securities in the fund shall be placed in the custody of the |
2 | State Treasurer for safekeeping, and all payments on account of |
3 | retirement allowances shall be made on requisition signed by the |
4 | [chairman and] secretary of the board. |
5 | Section 9. Section 110 of the act, amended May 17, 1980 |
6 | (P.L.135, No.50), is amended to read: |
7 | Section 110. Management and Investment of Fund; Interest |
8 | Credits.--(a) The members of the board shall be trustees of the |
9 | fund, and shall have the exclusive management of said fund, with |
10 | full power to invest the moneys therein, subject to the terms, |
11 | conditions, limitations and restrictions imposed by law upon |
12 | fiduciaries. The [said] trustees shall have power to hold, |
13 | purchase, sell, assign, transfer and dispose of any securities |
14 | and investments in [said] the fund, as well as the proceeds of |
15 | such investments, and of the money belonging to [such] the fund. |
16 | (b) The board shall annually allow regular interest to the |
17 | credit [on each contributor's account,] of each member's account |
18 | and municipal account established under Article II, Article III, |
19 | Article IV and Article IV-A of this act. The board shall also |
20 | annually allow regular interest to the retired members reserve |
21 | account and [the total disability reserve account] to the |
22 | employer accounts of the plans established by Article IV-B of |
23 | this act. The board shall credit statutory interest on each |
24 | member's account established under Article IV-B of this act. The |
25 | board shall annually credit the difference between the statutory |
26 | interest awarded to the members' accounts of a plan established |
27 | under Article IV-B of this act and the amount of regular |
28 | interest that would have been earned on such accounts to the |
29 | employer's account of that plan. |
30 | [In addition, the] (c) The board shall, after [paying] |
|
1 | deducting money to pay for the appropriated expenses, annually |
2 | allow such excess interest as each municipality enrolled under |
3 | Article II, Article III or Article IV of this act deems |
4 | appropriate to the credit of the municipal accounts, member's |
5 | accounts, the member's excess investment accounts, retired |
6 | members reserve accounts [and total disability reserve |
7 | accounts]. Excess interest earned on accounts of a plan |
8 | established under Article IV-A of this act shall be credited to |
9 | the municipal account of that plan, and excess interest earned |
10 | on accounts of a plan created by Article IV-B shall be credited |
11 | to the employer's account of such plan. |
12 | Section 10. Section 111 of the act is amended to read: |
13 | Section 111. Municipal Guarantee.--(a) The regular interest |
14 | charges payable and the creation and maintenance of the |
15 | necessary reserves for the payment of the municipal and member's |
16 | annuities, as to any municipality in accordance with this act, |
17 | are hereby made the obligation of that municipality. |
18 | (b) In the case of the failure of a municipality to make |
19 | payments as required by this act, the Commonwealth shall |
20 | withhold payment to the municipality of any funds to which the |
21 | municipality may be entitled for pension purposes. The board may |
22 | recover any sums due to the fund by suit at law, or other |
23 | appropriate remedy. |
24 | (c) (1) No liability for a plan enrolled in the system |
25 | under the provisions of Article IV-A of this act shall be |
26 | assumed by or attached against the system, the board, the |
27 | Commonwealth or their officers or employees. |
28 | (2) Should the plan have insufficient funds held in the |
29 | plan's municipal account to make payment of all or a portion of |
30 | a given month's retirement allowance, the system's obligation to |
|
1 | make the remaining portion of such payment and any such future |
2 | payments shall cease and shall become the direct and immediate |
3 | liability of the municipality. |
4 | (3) Should the plan have insufficient funds held in the |
5 | plan's municipal account to make payment of all or a portion of |
6 | any lump sum death benefit, a municipality shall have 60 days |
7 | from notification of the deficiency to deposit sufficient funds |
8 | to the account to make payment of the death benefit. |
9 | (4) If payment is not received within 60 days, the system's |
10 | obligation to make the remaining portion of the payment shall |
11 | cease and shall become the direct and immediate liability of the |
12 | municipality. |
13 | Section 11. Section 112 of the act, amended July 5, 2005 |
14 | (P.L.50, No.16), is amended to read: |
15 | Section 112. Annual Estimates to Municipalities; |
16 | Administrative Expenses.--(a) The board shall prepare and |
17 | submit to each municipality, on or before the first day of the |
18 | third month preceding the commencing of each municipality's |
19 | fiscal year, an itemized estimate of the amounts necessary to be |
20 | appropriated by the municipality to complete the payments of the |
21 | obligations of the municipality to the fund during its next |
22 | fiscal year. |
23 | (b) (1) The board shall annually prepare and approve a |
24 | budget covering the administrative expenses of this act. Such |
25 | expenses as approved by the board shall be paid from receipts |
26 | from assessments made against each municipality for |
27 | administrative expenses. This assessment shall be based on the |
28 | number of members in each municipality and shall not exceed the |
29 | sum of twenty dollars ($20) per member per year. If, in the |
30 | calendar years 1995 through [2005] 2015, the amount received |
|
1 | from such assessments, when imposed at the maximum rate, is not |
2 | sufficient to cover the administrative expenses, then the |
3 | balance of such expenses shall be paid from interest earnings on |
4 | the fund in excess of the regular interest credited to the |
5 | municipal, members' and retired members' reserve accounts and |
6 | shall not, in any year, exceed six-tenths of one per cent of the |
7 | total asset value of the fund as of the beginning of the |
8 | calendar year. |
9 | (2) The administration of the Pennsylvania Municipal |
10 | Retirement System shall be audited annually and a report of this |
11 | audit shall be made annually to the General Assembly. |
12 | [The secretary of the board shall submit a proposed budget |
13 | for the following fiscal year to the Senate and House Local |
14 | Government Committees no later than November 1 of the year |
15 | preceding that for which the budget is being prepared. The |
16 | respective committees shall meet and review such budget |
17 | document. If the committees take no action within sixty days of |
18 | said November 1, the budget for the following calendar year |
19 | shall be deemed approved.] |
20 | (3) All assessments authorized under this section shall |
21 | remain authorized assessments for the calendar year they are |
22 | imposed. Beginning the first full calendar year after the |
23 | effective date of this paragraph, the board shall no longer |
24 | impose such assessments, but shall fund the administrative |
25 | expenses of the system from the assets of the fund in accordance |
26 | with subsection (c). |
27 | (c) (1) Effective the first Monday in February after the |
28 | effective date of this subsection, and every first Monday in |
29 | February thereafter, the board shall submit to the General |
30 | Assembly a proposed budget covering the administrative expenses |
|
1 | of the system for the coming fiscal year. |
2 | (2) Such expenses, as approved by the Governor and the |
3 | General Assembly in an appropriation act, shall be paid by the |
4 | State Treasurer from the assets of the fund. |
5 | Section 12. Section 113 of the act, amended May 17, 1980 |
6 | (P.L.135, No.50), is amended to read: |
7 | Section 113. Existing Local Retirement Systems.--(a) (1) |
8 | Where a municipality elects to join the system [established by] |
9 | under the provisions of Article II, Article III or Article IV of |
10 | this act, and is then maintaining a retirement or pension system |
11 | or systems covering its [employes] employees in whole or in |
12 | part, those [employes] employees so covered, and [employes] |
13 | employees thereafter eligible to join such pension system, shall |
14 | not become members of the retirement system established by this |
15 | act, unless at the time the municipality elects to join the |
16 | system, the members of each such existing retirement or pension |
17 | system shall, by the affirmative vote of seventy-five per cent |
18 | of all the members of each pension system, elect to be covered |
19 | by the retirement system established by this act. |
20 | (2) At any time thereafter, within a period of three years |
21 | after the municipality has elected to join the system under the |
22 | provisions of Article II, Article III or Article IV of this act, |
23 | but not thereafter, the members of an existing retirement or |
24 | pension system may, in like manner, elect to join the system |
25 | established by this act. In any such case, provisions may be |
26 | made for the transfer of moneys and securities in its retirement |
27 | or pension fund or funds, in whole or in part, to the fund |
28 | established by this act. Securities so transferred shall be only |
29 | those acceptable to the board. Securities not so acceptable |
30 | shall be converted into cash, and said cash transferred to the |
|
1 | fund created by this act. In any such transfer, provision shall |
2 | be made to credit the accumulated deductions of each member, at |
3 | least the amount [he] the member has paid into the retirement or |
4 | pension system of the municipality, which moneys shall be |
5 | credited against the prior service contributions of [such] the |
6 | member, or a municipality may turn over to the retirement system |
7 | created by this act any existing local pension system on a |
8 | completely funded basis, as to pensioners and pension credits of |
9 | members related to prior service to the date of transfer, or on |
10 | a partially funded basis if the municipality pays annually into |
11 | the retirement system amounts sufficient to completely liquidate |
12 | the municipality's liability for prior service within a period |
13 | not to exceed thirty years. |
14 | (b) No liability, on account of retirement allowances or |
15 | pensions being paid from any retirement or pension fund of the |
16 | municipality, shall attach against the fund, except as provided |
17 | in the contractor agreement, making a transfer of an existing |
18 | system in accordance with this section. The liability to |
19 | continue payment of pensions not so transferred shall attach |
20 | against the municipality, which shall annually make |
21 | appropriations from its tax revenues sufficient to pay the same. |
22 | In cases where workers covered by an existing retirement or |
23 | pension system elect to join the system [created by] under the |
24 | provisions of Article II, Article III or Article IV of this act, |
25 | the election to join shall be deemed to have been made at the |
26 | time the municipality elected to join the system, and the |
27 | liabilities of the municipality shall be fixed accordingly. |
28 | (c) Notwithstanding any other provision [herein] in this |
29 | act, the board may, in its discretion, entertain a request from |
30 | a municipality to join the system established by this act for |
|
1 | those [employes] employees who are excluded from local pension |
2 | plan coverage by virtue of the collective bargaining process or |
3 | otherwise. The request to join the system must be accompanied by |
4 | an affirmative vote of no less than three-fourths of those |
5 | [employes] employees not covered by the local pension plan. The |
6 | benefits to be established may be in accordance with the |
7 | provisions of this article or to any other relevant pension law |
8 | covering that class of municipality. The other requirements of |
9 | this section for joining this system shall be observed. |
10 | Section 13. Section 114 of the act is amended to read: |
11 | Section 114. Monthly Payments.--(a) Any retirement |
12 | allowance created under the provisions of this act shall be paid |
13 | in equal monthly installments and shall not be increased, |
14 | decreased, revoked or repealed, except where specifically |
15 | otherwise provided by this act. When the equivalent actuarial |
16 | value of the retirement allowance is less than $5,000, the board |
17 | may make a single lump sum payment equal to the equivalent |
18 | actuarial value. |
19 | (b) The annual retirement benefit payable to any member |
20 | shall not exceed the annual dollar limitation as set forth in |
21 | Internal Revenue Code § 415(b)(1)(A) as may be adjusted pursuant |
22 | to Internal Revenue Code § 415(d). To the extent that such |
23 | adjustment may be required by operation of the Internal Revenue |
24 | Code, regulation or other publications issued by the Internal |
25 | Revenue Service, such adjustment shall only apply to the dollar |
26 | limitation specified in this section. |
27 | Section 14. Section 115 of the act, repealed in part April |
28 | 28, 1978 (P.L.202, No.53), is amended to read: |
29 | Section 115. Exemption of Retirement Allowance and |
30 | Exceptions.--(a) The retirement allowance and the contributions |
|
1 | of members to the fund, all contributions returned to |
2 | [contributors] members under the provisions of this act and the |
3 | moneys in the fund created by this act, shall be exempt from any |
4 | State or municipal tax and shall be unassignable except to a |
5 | beneficiary. |
6 | (b) Rights under this act shall be subject to: |
7 | (1) Attachment in favor of an alternate payee as set forth |
8 | in an approved domestic relations order. |
9 | (2) Forfeiture as provided by the act of July 8, 1978 |
10 | (P.L.752, No.140), known as the "Public Employee Pension |
11 | Forfeiture Act." Forfeitures under this subsection or under any |
12 | other provision of law may not be applied to increase the |
13 | benefits that any member would otherwise receive under this |
14 | part. |
15 | (c) Effective with distributions made on or after January 1, |
16 | 1993, and notwithstanding any other provision of this section to |
17 | the contrary, a distributee may elect, at the time and in the |
18 | manner prescribed by the board, to have any portion of an |
19 | eligible rollover distribution paid directly to an eligible |
20 | retirement plan by way of a direct rollover. |
21 | (d) For purposes of this section, the following words shall |
22 | have the following meanings: |
23 | "Distributee." A member, a member's surviving spouse or a |
24 | member's former spouse who is an alternate payee under an |
25 | approved domestic relations order. |
26 | "Eligible retirement plan." The term shall have the meaning |
27 | given to it under the Internal Revenue Code § 402(c)(8)(B), |
28 | except that a qualified trust shall be considered an eligible |
29 | retirement plan only if it accepts the distributee's eligible |
30 | rollover distribution, however, in the case of an eligible |
|
1 | rollover distribution to a nonspousal beneficiary, an eligible |
2 | retirement plan is an "individual retirement account" or an |
3 | "individual retirement annuity" as those terms are defined in |
4 | the Internal Revenue Code § 408(a) and (b). |
5 | "Eligible rollover distribution." The term shall have the |
6 | meaning given to it under the Internal Revenue Code § 402(f)(2) |
7 | (A). |
8 | Section 15. Section 117 of the act, added November 29, 2004 |
9 | (P.L.1331, No.169), is amended to read: |
10 | Section 117. Part-Time [Employes] Employees.--(a) (1) All |
11 | existing part-time [employes] employees not enrolled in the |
12 | pension plan shall have the right to elect to participate in the |
13 | pension plan. A member's election to participate in the pension |
14 | plan under this subsection must be made in writing and received |
15 | by the municipality before July 1, 2005, and shall be |
16 | irrevocable. |
17 | (2) Existing part-time [employes] employees not enrolled |
18 | in the pension plan who elect to participate in the pension |
19 | plan under this subsection must pay into the system all |
20 | member contributions plus the regular interest that would |
21 | have been credited to those contributions had they |
22 | participated in the system from their date of hire. Failure |
23 | of the part-time [employe] employee to make such |
24 | contributions and regular interest payments as determined by |
25 | the administrator of the system shall be considered the same |
26 | as if the part-time [employe] employee had chosen not to |
27 | participate in the system. All other amounts required to be |
28 | contributed to the pension plan as a result of their election |
29 | to participate shall be paid by the municipality. |
30 | (b) Where a municipality determines to change the membership |
|
1 | requirements to prohibit part-time [employes] employees from |
2 | participating in the system established by this act, all |
3 | existing part-time [employes] employees enrolled in the pension |
4 | plan shall remain members of the pension plan unless they elect |
5 | to withdraw from the pension plan. A member election to withdraw |
6 | from the pension plan under this subsection must be made in |
7 | writing and received by the municipality before July 1, 2005, |
8 | and shall be irrevocable. |
9 | Section 16. The act is amended by adding sections to read: |
10 | Section 118. Approval of Domestic Relation Orders.--(a) A |
11 | domestic relations order shall be certified as an approved |
12 | domestic relations order by the secretary of the board or the |
13 | secretary's designated representative only if the order meets |
14 | all of the following: |
15 | (1) Requires the system to provide any type or form of |
16 | benefit or any option already provided under this act. |
17 | (2) Requires the system to provide no more than the total |
18 | amount of benefits than the member would otherwise receive, |
19 | determined on the basis of actuarial value, unless increased |
20 | benefits are paid to the member or alternate payee based upon |
21 | cost-of-living increases or increases based on other than |
22 | actuarial value. |
23 | (3) Specifies the amount or percentage of the member's |
24 | benefits to be paid by the system to each such alternate payee |
25 | or the manner in which the amount or percentage is to be |
26 | determined. |
27 | (4) Specifies the retirement option to be selected by the |
28 | member upon retirement or states that the member may select any |
29 | retirement option offered by this act upon retirement. |
30 | (5) Specifies the name and last known mailing address, if |
|
1 | any, of the member and the name and last known mailing address |
2 | of each alternate payee covered by the order and states that it |
3 | is the responsibility of each alternate payee to keep a current |
4 | mailing address on file with the system. |
5 | (6) Does not grant an alternate payee any of the rights, |
6 | options or privileges of a member under this act. |
7 | (7) Requires the member to execute an authorization allowing |
8 | each alternate payee to monitor the member's compliance with the |
9 | terms of the domestic relations order through access to |
10 | information concerning the member maintained by the system. |
11 | (b) (1) Upon receipt of a proposed domestic relations |
12 | order, the secretary of the board or the secretary's designated |
13 | representative shall determine whether the proposed order shall |
14 | be deemed an approved domestic relations order and shall notify |
15 | the member and each alternate payee of this determination. |
16 | (2) Notwithstanding any other provision of law, the |
17 | exclusive remedy of any member or alternate payee aggrieved by a |
18 | decision of the secretary of the board or the secretary's |
19 | designated representative shall be the right to an adjudication |
20 | by the board under 2 Pa.C.S. Ch. 5 (relating to practice and |
21 | procedure) with appeal therefrom to the Commonwealth Court under |
22 | 2 Pa.C.S. Ch. 7 (relating to judicial review) and 42 Pa.C.S. § |
23 | 763(a)(1) (relating to direct appeals from government agencies). |
24 | (c) (1) The requirements for approval identified in |
25 | subsection (a) shall not apply to any domestic relations order |
26 | which is an order for support as that term is defined in 23 |
27 | Pa.C.S. § 4302 (relating to definitions) or an order for the |
28 | enforcement of arrearages as provided in 23 Pa.C.S. § 3703 |
29 | (relating to enforcement of arrearages). |
30 | (2) These orders shall be approved to the extent that they |
|
1 | do not attach moneys in excess of the limits on attachments as |
2 | established by the laws of this Commonwealth and the United |
3 | States. |
4 | (d) Only the requirements of this section and any |
5 | regulations promulgated under this act shall be used to govern |
6 | the approval or disapproval of a domestic relations order. If |
7 | the secretary of the board or the secretary's designated |
8 | representative acts in accordance with the provisions of this |
9 | act and any promulgated regulations in approving or disapproving |
10 | a domestic relations order, then the obligations of the system |
11 | with respect to such approval or disapproval shall be |
12 | discharged. |
13 | Section 119. Amendment of Approved Domestic Relations |
14 | Orders.--(a) In the event that an alternate payee of an |
15 | approved domestic relations order predeceases the member and |
16 | there are benefits payable to the alternate payee, the court may |
17 | amend the approved domestic relations order to substitute a |
18 | person for the deceased alternate payee to receive any benefits |
19 | payable to the deceased alternate payee. |
20 | (b) If a court amends an approved domestic relations order |
21 | for any reason, then the amended order must be submitted for |
22 | recertification as an approved domestic relations order as |
23 | provided in this act. |
24 | Section 120. Irrevocable Beneficiary.--Notwithstanding any |
25 | other provision of this act, a domestic relations order may |
26 | provide for an irrevocable beneficiary. A domestic relations |
27 | order requiring the nomination of an irrevocable beneficiary |
28 | shall be deemed to be one that requires a member to nominate an |
29 | alternate payee as a beneficiary and that prohibits the removal |
30 | or change of that beneficiary without approval of a court of |
|
1 | competent jurisdiction, except by operation of law. Such a |
2 | domestic relations order may be certified as an approved |
3 | domestic relations order by the secretary of the board or the |
4 | secretary's designated representative after the member makes |
5 | such nomination, in which case the irrevocable beneficiary so |
6 | ordered by the court cannot be changed by the member without |
7 | approval by the court. |
8 | Section 121. Irrevocable Survivor Annuitant.-- |
9 | Notwithstanding any other provision of this act, a domestic |
10 | relations order may provide for an irrevocable survivor |
11 | annuitant. A domestic relations order requiring the designation |
12 | of an irrevocable survivor annuitant shall be deemed to be one |
13 | that requires a member to designate an alternate payee as a |
14 | survivor annuitant and that prohibits the removal or change of |
15 | that survivor annuitant without approval of a court of competent |
16 | jurisdiction, except by operation of law. Such a domestic |
17 | relations order may be certified as an approved domestic |
18 | relations order by the secretary of the board or the secretary's |
19 | designated representative, in which case the irrevocable |
20 | survivor annuitant so ordered by the court cannot be changed by |
21 | the member without approval by the court. A person ineligible to |
22 | be designated as a survivor annuitant may not be designated an |
23 | irrevocable survivor annuitant. |
24 | Section 17. Article II heading and section 201 of the act |
25 | are amended to read: |
26 | ARTICLE II |
27 | PROVISIONS RELATING TO MUNICIPAL [EMPLOYES] EMPLOYEES |
28 | Section 201. Purpose.--This article [shall provide] provides |
29 | for the uninterrupted continuation of retirement plans |
30 | established under the act of June 4, 1943 (P.L.886, No.371), |
|
1 | known as the "Municipal Employes' Retirement Law." It shall also |
2 | provide for the enrollment of municipal [employes] employees of |
3 | new municipalities joining the system, at the contribution rates |
4 | and benefit rates outlined in this article of the act. |
5 | Section 18. Section 203 of the act, amended November 29, |
6 | 2004 (P.L.1331, No.169), is amended to read: |
7 | Section 203. Existing Local Retirement Systems and |
8 | Compulsory and Optional Membership.--(a) (1) Where a |
9 | municipality elects to join the system established by this act, |
10 | and is then maintaining a retirement or pension system or |
11 | systems covering its [employes] employees in whole or in part, |
12 | those [employes] employees so covered, and [employes] employees |
13 | thereafter eligible to join [such] the pension system, shall not |
14 | become members of the retirement system established by this act, |
15 | unless at the time the municipality elects to join the system, |
16 | the members of each [such] existing retirement or pension system |
17 | shall, by the affirmative vote of seventy-five per cent of all |
18 | the members of each pension system, elect to be covered by the |
19 | retirement system established by this act. |
20 | (2) At any time thereafter, within a period of three years |
21 | after the municipality has elected to join the system, but not |
22 | thereafter, the members of an existing retirement or pension |
23 | system may, in like manner, elect to join the system established |
24 | by this act. |
25 | (3) In any such case, provisions may be made for the |
26 | transfer of moneys and securities in its retirement or pension |
27 | fund or funds, in whole or in part, to the fund established by |
28 | this act. Securities so transferred shall be only those |
29 | acceptable to the board. Securities not so acceptable shall be |
30 | converted into cash, and [said] the cash transferred to the fund |
|
1 | created by this act. |
2 | (4) In any such transfer, provision shall be made to credit |
3 | the accumulated deductions of each member, at least the amount |
4 | [he] the member has paid into the retirement or pension system |
5 | of the municipality, which moneys shall be credited against the |
6 | prior service contributions of [such] the member, or a |
7 | municipality may turn over to the retirement system created by |
8 | this act any existing local pension system on a completely |
9 | funded basis, as to pensioners and pension credits of members |
10 | related to prior service to the date of transfer, or on a |
11 | partially funded basis if the municipality pays annually into |
12 | the retirement system amounts sufficient to completely liquidate |
13 | the municipality's liability for prior service within a period |
14 | not to exceed thirty years. |
15 | (b) (1) No liability, on account of retirement allowances |
16 | or pensions being paid from any retirement or pension fund of |
17 | the municipality, shall attach against the fund, except as |
18 | provided in the agreement, making a transfer of an existing |
19 | system in accordance with this section. The liability to |
20 | continue payment of pensions not so transferred shall attach |
21 | against the municipality, which shall annually make |
22 | appropriations from its tax revenues sufficient to pay the same. |
23 | (2) In cases where workers covered by an existing retirement |
24 | or pension system elect to join the system created by this act, |
25 | the election to join shall be deemed to have been made at the |
26 | time the municipality elected to join the system, and the |
27 | liabilities of the municipality shall be fixed accordingly. |
28 | (c) (1) If a municipality elects to join the system under |
29 | the provisions of this [Article II] article, then each officer |
30 | other than elected officers, and each municipal [employe] |
|
1 | employee employed on a full-time basis, except one who is not |
2 | eligible for Federal Social Security coverage and except one who |
3 | is covered by an existing retirement or pension system and is |
4 | exempted as outlined above, shall be required to become a member |
5 | of the system. |
6 | (2) Each municipality shall determine whether membership in |
7 | [said] the system for elected officials and [employes] employees |
8 | hired on a temporary, seasonal or part-time basis shall be |
9 | compulsory, optional or prohibited. |
10 | (3) Where membership may be optional with an elected officer |
11 | or an [employe] employee hired on a temporary, seasonal or part- |
12 | time basis, an election to join the system must be made within |
13 | one year after the municipality elected to join the system or |
14 | within one year after the officer or temporary, seasonal or |
15 | part-time [employe] employee first entered the service of the |
16 | municipality. |
17 | (4) For those employees who choose not to enroll, the |
18 | declination of membership shall apply for the period of time the |
19 | employee serves continuously in that optional category. If there |
20 | is a break in service and the employee returns, the employee |
21 | shall not be permitted to purchase optional membership time |
22 | previously declined, but may be enrolled as a member for future |
23 | optional service, if the employee so chooses. If the employee |
24 | returns to service where membership is mandatory, the member |
25 | shall be required to join the plan, on a prospective basis only. |
26 | (5) Officers and [employes] employees paid only on a fee |
27 | basis shall not be eligible to join the system. |
28 | (d) When a municipality has established a policy of placing |
29 | new [employes] employees on a probationary status it may elect |
30 | to refrain from enrolling such [employes] employees into the |
|
1 | system for a period of up to one year from the date the |
2 | probationary [employe] employee first entered the service of the |
3 | municipality. In such cases service credits shall not be earned |
4 | by the [employe] employee for probationary time served prior to |
5 | enrollment. |
6 | (e) Notwithstanding any other provision [herein] of this |
7 | act, the board may, in its discretion, entertain a request from |
8 | a municipality to join the system established by this act for |
9 | those [employes] employees who are excluded from local pension |
10 | plan coverage by virtue of the collective bargaining process or |
11 | otherwise. The request to join the system must be accompanied by |
12 | an affirmative vote of no less than three-fourths of those |
13 | [employes] employees not covered by the local pension plan. The |
14 | benefits to be established may be in accordance with the |
15 | provisions of this article or any other relevant pension law |
16 | covering that class of municipality. The other requirements of |
17 | this section for joining this system shall be observed. |
18 | Section 19. Sections 204, 205 and 206 of the act, amended |
19 | May 17, 1980 (P.L.135, No.50), are amended to read: |
20 | Section 204. Service Allowance; Change of Employment; |
21 | Military Service.--(a) In computing the length of service of a |
22 | [contributor] member for retirement purposes, full credit shall |
23 | be given to each original member for each year of service |
24 | rendered to the municipality prior to the time the municipality |
25 | joined the system, whether or not such service was continuous. |
26 | (b) As soon as practicable, the board shall issue to each |
27 | original member a certificate certifying the aggregate length of |
28 | service rendered to the municipality prior to the time it joined |
29 | the system. Such certificate shall be final and conclusive as to |
30 | his prior service unless thereafter modified by the board, upon |
|
1 | application of the member. |
2 | (c) The time during which a member was absent from service |
3 | without pay shall not be counted in computing the service of a |
4 | [contributor] member in his certificate, or upon retirement, |
5 | unless specifically allowed by the municipality, with the |
6 | approval of the board. |
7 | (d) When a [contributor] member leaves the employ of a |
8 | municipality which has joined the system, and enters into the |
9 | employ of another municipality which has also joined the system, |
10 | his service credits shall remain unimpaired, but in such cases |
11 | the unpaid municipal liability for prior service shall be |
12 | prorated by the board between the municipalities on an equitable |
13 | basis. Such basis will be determined, with the advice of the |
14 | actuary, according to the number of years of service performed |
15 | by the [contributor] member for each municipality. |
16 | (e) A [contributor] member who has been employed by a |
17 | municipality for a period of at least six months and is an |
18 | active member of the system and who thereafter, heretofore, or |
19 | hereafter, shall be inducted into the military service of the |
20 | United States in times of war, armed conflict, or National |
21 | emergency, so proclaimed by the President of the United States, |
22 | shall have credited to his employment record, for pension or |
23 | retirement benefits, all of the time spent by him in such |
24 | military service during the continuance of such war, armed |
25 | conflict, or National emergency if such person returns or has |
26 | heretofore returned to his employment within six months after |
27 | his separation from the service. The municipality shall, during |
28 | the period of the member's intervening military service, |
29 | continue to make current service contributions toward the |
30 | municipal annuity of the member. An active member may file an |
|
1 | application with the board for permission to purchase credit |
2 | toward his member's share of the annuity for intervening |
3 | military service. These contributions shall be computed by |
4 | applying the member's contribution rate to his annual rate of |
5 | compensation at the time of entry of the member into active |
6 | military service, and multiplying the result by the number of |
7 | years and fractional part of a year of creditable intervening |
8 | military service, together with interest from date of return to |
9 | employment to date of purchase. The amount due from the member |
10 | shall be certified by the board in accordance with methods |
11 | approved by the actuary, and may be paid by (1) regular monthly |
12 | payments during active military service, or (2) a lump sum |
13 | payment within thirty days or (3) it may be amortized with |
14 | additional interest through salary deductions in amounts agreed |
15 | upon by the member of the board. |
16 | (f) An active member may also purchase credit for other than |
17 | intervening military service performed for the United States in |
18 | times of war, armed conflict or National emergency, so |
19 | proclaimed by the President of the United States, for a period |
20 | not to exceed five years: Provided, That the member has |
21 | completed five years of service to the municipality subsequent |
22 | to such military service. An active member may file an |
23 | application with the board for permission to purchase credit for |
24 | nonintervening military service upon completion of five years of |
25 | subsequent service to the municipality. The type of service |
26 | credit for such service shall be determined by the date of entry |
27 | of the municipality into the system. If the date of the member's |
28 | separation from military service is prior to the date on which |
29 | the municipality joined the system, then the credit purchased |
30 | shall be considered as prior service credit. In this case the |
|
1 | amount due from the member shall be computed by applying the |
2 | member's basic contribution rate plus the rate of contribution |
3 | the municipality paid for current service during its first year |
4 | of entry into the system to his prior salary and multiplying the |
5 | result by the number of years and fractional part of a year of |
6 | creditable nonintervening military service, plus interest from |
7 | the date of the member's employment by the municipality to the |
8 | date of purchase. If, on the other hand, the date of the |
9 | member's separation from military service is later than the date |
10 | of entry of the municipality into the system, then the credit |
11 | purchased shall be considered as current service credit. In this |
12 | case the amount due from the member shall be computed by |
13 | applying the member's basic contribution rate plus the |
14 | municipality's normal contribution rate for current service |
15 | which was in effect on the date of the member's entry into |
16 | employment with the municipality to his average annual rate of |
17 | compensation over the first five years of his subsequent |
18 | employment and multiplying the result by the number of years and |
19 | fractional part of a year of creditable nonintervening military |
20 | service being purchased, plus interest from the date of |
21 | employment by the municipality to date of purchase. |
22 | (g) The amount due from the member shall be certified by the |
23 | board in accordance with methods approved by the actuary, and |
24 | may be paid in a lump sum within thirty days or it may be |
25 | amortized with additional interest through salary deductions in |
26 | amounts agreed upon by the member and the board. |
27 | (h) The rate of interest to be charged to members on their |
28 | purchase of credit for intervening or nonintervening military |
29 | service shall be the rate being credited by the system to |
30 | member's contribution accounts in effect on the date of the |
|
1 | member's application, compounded annually. |
2 | (i) A member may purchase credit for intervening or |
3 | nonintervening military service only if his discharge or |
4 | separation from the service was granted under other than |
5 | dishonorable conditions. |
6 | (j) A member may not purchase credit for any military |
7 | service for which he is entitled to receive, eligible to receive |
8 | now or in the future, or is receiving retirement benefits for |
9 | such service under a retirement system administered and wholly |
10 | or partially paid for by any other governmental agency, or |
11 | private employer. |
12 | (k) Applications for permission to purchase credit for |
13 | military service must be accompanied by proof of the nature of |
14 | his discharge or separation from the military service. |
15 | Section 205. Determination of Municipal Liability.--(a) The |
16 | board shall as soon as may be, determine the present value of |
17 | the liability of each municipality for the prior service credits |
18 | to its original members, and shall establish an amount payable |
19 | annually over a period not exceeding thirty years, through which |
20 | payments such prior service liability may be funded. Each |
21 | municipality shall have the option to spread the payment of such |
22 | prior service liability over such period of years. |
23 | (b) The municipal liability shall be based upon credit for |
24 | all years of prior service toward the municipal annuity of each |
25 | original member, subject to such of the following options as the |
26 | municipality may elect: |
27 | (1) [The] the municipality may limit to ten years the credit |
28 | for prior service toward the municipal annuity of each original |
29 | member; or |
30 | (2) [The] the municipality may assume the liability for |
|
1 | payment of the member's contributions for the prior service or |
2 | any portion thereof of each original member. |
3 | (c) The board shall also determine, from time to time, the |
4 | amount which shall be contributed annually by each municipality |
5 | for service credits of original and new members subsequent to |
6 | the time the municipality joined the system, and the additional |
7 | amount which shall be contributed annually by each municipality |
8 | toward a reserve account for disability allowances payable to |
9 | original or new members, in order that all future service |
10 | liability may be fully funded on an actuarial basis. |
11 | (d) The amounts so determined by the board may be expressed |
12 | in a percentage of the payroll of the municipality covering its |
13 | contributing members. |
14 | (e) The cost of making the valuations required by this |
15 | section and in the transfer of any existing pension system of |
16 | any municipality, shall be part of the costs of administration |
17 | of this act. |
18 | Section 206. Contributions by Members; Consolidation of |
19 | Credits; Change of Employment.--(a) Each member of the system |
20 | shall be required to contribute to the fund three per cent of |
21 | that portion of their actual salary or compensation, including |
22 | fees where paid in part on a fee basis, on which social security |
23 | benefits are payable, and six per cent of any salary, |
24 | compensation or fees in excess of the amount on which social |
25 | security benefits are payable. However, in the event of a |
26 | [contributor] member who became a member prior to January 1, |
27 | 1979, the required rate of contribution shall be the lesser of |
28 | the rate herein provided and the rate applicable to [said] the |
29 | member upon his entry into the system. |
30 | (b) In order to increase his member's annuity, each member |
|
1 | shall also have the option to make contributions for his prior |
2 | service. [Such contributions] Contributions for prior service |
3 | may be anticipated in whole or in part at the time the |
4 | municipality joins the system, or payment thereof or such part |
5 | thereof as is not anticipated may be spread over a period of |
6 | time by increasing the payroll deduction of the member by at |
7 | least one-third. When a member elects to contribute on account |
8 | of all of his unpaid prior service, his rate of contribution |
9 | shall be calculated as of his age at the time he first entered |
10 | the service of the municipality: Provided, however, That any |
11 | municipality may, at the time it elects to join the system, or |
12 | at any time thereafter, agree with the board to pay into the |
13 | fund as part of its liability under and in accordance with |
14 | section 205 [hereof], the moneys necessary to provide the |
15 | member's contributions for prior service, and in such case no |
16 | contributions for prior service shall be made by the members. |
17 | (c) Member's contributions shall be paid into the fund by |
18 | the municipality through payroll deductions in such manner and |
19 | at such time as the board may by rule and regulation determine. |
20 | (d) When a municipal [employe] employee is employed by more |
21 | than one municipality, he shall be required to make |
22 | contributions on account of his salary paid by each |
23 | municipality. In such cases the board shall provide for the |
24 | consolidation of credits of the [contributor] member and, upon |
25 | his retirement, for a consolidated retirement allowance. |
26 | Section 20. Section 207 of the act, amended May 17, 1980 |
27 | (P.L.135, No.50) and November 29, 2004 (P.L.1331, No.169), is |
28 | amended to read: |
29 | Section 207. Withdrawal; Return to Service; Death in |
30 | Service.--(a) Should a [contributor] member, before reaching |
|
1 | superannuation retirement age, for any reason cease to be a |
2 | municipal employe, he shall be paid by the board the full amount |
3 | of the accumulated deductions standing to his credit in the |
4 | member's account, unless he is entitled to vesting rights or to |
5 | a retirement allowance for retirement not voluntarily, and |
6 | elects to exercise such vesting rights or take such retirement |
7 | allowance. Should [such] the former [contributor] member |
8 | thereafter return to the service of the same municipality and |
9 | restore to the fund, in such manner as may be agreed upon by |
10 | [such] the person and the board, his withdrawn accumulated |
11 | deductions as they were at the time of his separation from |
12 | service, his annuity rights as they existed at the time of |
13 | separation from service shall be restored and his obligations as |
14 | a member shall begin again. The rate of contribution of [such] |
15 | the returning member shall be the same as it was at the time he |
16 | separated from service. |
17 | (b) Should a [contributor] member, having attained or passed |
18 | superannuation age, elect, upon leaving the service of the |
19 | municipality, not to claim the retirement allowance to which he |
20 | is entitled, he shall, upon written application, be paid by the |
21 | board the full amount of the accumulated deductions standing to |
22 | his credit in the member's account and the balance in the |
23 | member's excess investment account. |
24 | (c) (1) Should a person who has been retired on a |
25 | retirement under this act, return to employment on a regular |
26 | full-time basis in the same municipality, his retirement |
27 | allowance shall cease, and in the case of an annuity, other than |
28 | a disability annuity, the present value of such annuity shall be |
29 | frozen as of the date such annuity ceases. Upon subsequent |
30 | discontinuance of service, [such] the member, other than a |
|
1 | former disability annuitant, shall be entitled to an annuity |
2 | which is [actuarially equivalent to the sum of the present |
3 | value] of an equivalent actuarial value as the annuity |
4 | previously being paid and the present value of the annuity |
5 | earned by further service and further deductions added upon |
6 | reemployment. |
7 | (2) For the purposes of this section if a person is |
8 | reemployed [on a temporary, seasonal or part-time basis and his |
9 | gross post-retirement earnings from such reemployment during the |
10 | calendar year are less than five thousand dollars ($5,000) or |
11 | such other maximum as the board may establish, he shall not be |
12 | deemed reemployed, but if and when his gross post-retirement |
13 | earnings exceed five thousand dollars ($5,000) or such other |
14 | maximum as the board may establish in any calendar year he shall |
15 | not be entitled to receive his retirement allowance for that |
16 | month or any subsequent month in the calendar year in which he |
17 | continues in service.] following commencement of his retirement |
18 | allowance, he shall not be entitled to receive his retirement |
19 | allowance for that month or any subsequent month in which he |
20 | continues in service. |
21 | (3) Notwithstanding the provisions of paragraph (2), if such |
22 | person is otherwise eligible to receive an in-service |
23 | distribution of his retirement benefit by (i) attainment of |
24 | normal retirement age as defined in the Internal Revenue Code, |
25 | (ii) operation of Internal Revenue Code § 401(a)(36) or (iii) |
26 | operation of any other provision as may be adopted by the board |
27 | and consistent with the tax-qualification provisions of the |
28 | Internal Revenue Code, his retirement allowance shall continue |
29 | to be paid through such period of reemployment. |
30 | (4) The municipality [is required to] shall notify the board |
|
1 | immediately of the reemployment status of any retired former |
2 | [employe and file separate monthly reports of his gross earnings |
3 | as prescribed by the board] employee. |
4 | (d) Should a [contributor] member die while in service, |
5 | prior to becoming eligible for a retirement allowance, his |
6 | accumulated deductions shall be paid to his estate, or to such |
7 | person, if living, as he shall have designated in writing, filed |
8 | with the board as his beneficiary. In case any [contributor] |
9 | member has failed to designate a beneficiary, or if the named |
10 | beneficiary has predeceased the member and no such successor |
11 | beneficiary has been named, and upon the death in service shall |
12 | have less than one hundred dollars ($100) in accumulated |
13 | deductions standing to his credit, the board may, if letters |
14 | testamentary or of administration have not been taken out on his |
15 | estate within six months after death, pay such accumulated |
16 | deductions on the claim of the undertaker, or to any person or |
17 | municipality which shall have paid the claim of the undertaker. |
18 | Section 21. Section 208 of the act, amended May 17, 1980 |
19 | (P.L. 135, No.50), is amended to read: |
20 | Section 208. Superannuation Retirement.--(a.1) Retirement |
21 | for superannuation shall be [as follows:] provided in this |
22 | section. |
23 | [(a)] (a.2) Any [contributor] member who has reached |
24 | superannuation retirement age may retire for superannuation by |
25 | filing with the board a written statement, duly attested, |
26 | setting forth on what date he desires to be retired. [Said] The |
27 | application shall make the superannuation retirement allowance |
28 | effective on the date so specified, if [such] the application |
29 | was filed in the office of the board or deposited in the United |
30 | States mail, addressed to the board, before the date specified |
|
1 | in the application and before the death of the [contributor] |
2 | member, but the date so specified in the application shall not |
3 | be more than ninety days after the date of filing, or the date |
4 | the application was deposited in the mail. |
5 | (b) On retirement for superannuation, a [contributor] member |
6 | shall be entitled to a retirement allowance throughout his life, |
7 | which shall consist of: |
8 | (1) A member's annuity of equivalent actuarial value of his |
9 | accumulated deductions; and |
10 | (2) A municipal annuity which shall be equal to (i) for |
11 | current service, one two-hundred-fiftieth of that portion of his |
12 | final salary on which social security benefits are payable plus |
13 | one one-hundred-twenty-fifth of any portion of his final salary |
14 | in excess of the amount on which social security benefits are |
15 | payable for each year of service while a member, and in addition |
16 | thereto, (ii) for prior service in case of an original member, |
17 | one two-hundred-fiftieth of that portion of his prior salary on |
18 | which social security benefits are payable plus one one-hundred- |
19 | twenty-fifth of any portion of his prior salary in excess of the |
20 | amount on which social security benefits are payable for each |
21 | year of prior service or for a maximum of ten years if the |
22 | municipality has so limited the period of prior service, and in |
23 | addition thereto, one two-hundred-fiftieth of his prior salary |
24 | on which social security benefits are payable plus one one- |
25 | hundred-twenty-fifth of any portion of his prior salary in |
26 | excess of the amount on which social security benefits are |
27 | payable for each year of prior service for which the |
28 | municipality has paid or has obligated itself to pay the |
29 | member's contributions. For the purposes of calculating the |
30 | current service benefit, an average of the social security wage |
|
1 | base will be determined for the period of time over which final |
2 | salary is taken, and this average will be the basis for |
3 | calculating the amount of salary on which social security |
4 | benefits are payable. For the purposes of calculating the prior |
5 | service benefit, the social security wage base in effect on the |
6 | date of the municipality's entry into the system will be used as |
7 | the basis for calculating the amount of prior salary on which |
8 | social security benefits are payable. |
9 | (c) In no event shall the municipal annuity at the time of |
10 | retirement exceed fifty per cent of the final salary. |
11 | Section 22. Section 209 of the act is amended to read: |
12 | Section 209. Death Benefits.--(a) The provisions of |
13 | subsection (b) and (c) of this section shall not apply to any |
14 | member unless the municipality by which he is employed has |
15 | elected by ordinance or resolution, to extend the provisions of |
16 | this section to its employes. A duly certified copy of such |
17 | ordinance or resolution shall be filed with the board. |
18 | (b) A [contributor] member to the system who is entitled to |
19 | a superannuation retirement allowance by reason of having |
20 | reached superannuation retirement age or who is entitled to a |
21 | withdrawal allowance by reason of having completed twenty-four |
22 | years of total service, may file with the board a written |
23 | application for retirement, in the form required for [such] the |
24 | application, but requesting that [such] the retirement shall |
25 | become effective as of the time of his death, electing one of |
26 | the options provided in section 211 and nominating a person |
27 | having an insurable interest in his life under [said] the option |
28 | as required in [said] that section. In all such cases, the |
29 | application shall be held by the board until the [contributor] |
30 | member shall file a later application in the usual manner for a |
|
1 | superannuation retirement allowance or until the death of the |
2 | [contributor] member occurring while in municipal service, at |
3 | which time his retirement shall become effective with the same |
4 | benefits to the person designated as if the [contributor] member |
5 | had retired on the day immediately preceding his death. |
6 | (c) A [contributor] member to the system who is entitled to |
7 | a superannuation retirement allowance by reason of having |
8 | reached superannuation retirement age or who is entitled to a |
9 | withdrawal allowance by reason of having completed twenty-four |
10 | years of total service and who has died in municipal service |
11 | before filing with the board a written application for a |
12 | superannuation retirement allowance as provided in subsection |
13 | (b) of this section shall be considered as having elected Option |
14 | 1 as provided in section 211 as of the date of his death. In |
15 | such event, payment under Option 1 shall be made to the |
16 | beneficiary designated in the nomination of beneficiary form on |
17 | file with the board, or if [said] the beneficiary has |
18 | predeceased the [contributor] member, to the legal |
19 | representative of [said contributor] the member. |
20 | Section 23. Section 210 of the act, amended May 17, 1980 |
21 | (P.L.135, No.50), is amended to read: |
22 | Section 210. Early Retirement.--Should a [contributor] |
23 | member be discontinued from service not voluntarily, after |
24 | having completed eight years of total service, or voluntarily |
25 | after having completed twenty-four years of total service, but |
26 | in either event before reaching superannuation retirement age, |
27 | he shall be paid as he may elect, as follows: |
28 | (1) [The] the full amount of the accumulated deductions plus |
29 | the balance in the member's excess investment account standing |
30 | to his credit in the member's account of the fund; [or] |
|
1 | (2) [Upon] upon the filing of an application in the manner |
2 | outlined in subsection (a) of section 208, a retirement |
3 | allowance which shall consist of (i) a member's annuity of |
4 | equivalent actuarial value to his accumulated deductions plus |
5 | the balance in the member's excess investment account; and (ii) |
6 | a municipal annuity of equivalent actuarial value to the present |
7 | value of a municipal annuity, beginning at superannuation |
8 | retirement age, calculated in accordance with the provisions of |
9 | section 208; or |
10 | (3) [If] if qualified, a deferred retirement allowance as |
11 | provided in section 213. |
12 | Section 24. Section 211 of the act, amended June 10, 1982 |
13 | (P.L.446, No.131), is amended to read: |
14 | Section 211. Options on Superannuation or Early |
15 | Retirement.--At the time of his superannuation or early |
16 | retirement, a [contributor] member may elect to receive his |
17 | benefits in a retirement allowance payable throughout his life, |
18 | which shall be known as a single life annuity. In the event of |
19 | the death of an annuitant who has elected to receive the maximum |
20 | single life annuity before he has received in annuity payments |
21 | the full amount of the total accumulated deductions standing to |
22 | his credit on the effective date of retirement, the balance |
23 | shall be paid to his designated beneficiary, or instead, he may |
24 | elect to receive the equivalent actuarial value at that time of |
25 | his retirement allowance in a lesser allowance, payable |
26 | throughout life with provisions that: |
27 | (1) Option 1. If he shall die before receiving in payments |
28 | the present value of his retirement allowance as it was at the |
29 | time of his retirement, the balance, if less than five thousand |
30 | dollars ($5,000), shall be paid in a lump sum to his legal |
|
1 | representative, or to or in trust for his beneficiary. If the |
2 | balance is five thousand dollars ($5,000) or more, the |
3 | beneficiary may elect by application duly acknowledged and filed |
4 | with the board to receive payment of [such] the balance |
5 | according to any one of the following provisions: (i) a lump sum |
6 | payment; (ii) an annuity having a present value equal to the |
7 | balance payable; (iii) a lump sum payment and an annuity. [Such] |
8 | The annuity shall be of equivalent actuarial value to the |
9 | balance payable less the amount of the lump sum payment |
10 | specified by the beneficiary. |
11 | (2) Option 2. Upon his death, his retirement allowance |
12 | shall be continued throughout the life of and paid to his |
13 | survivor annuitant, if then living. |
14 | (3) Option 3. Upon his death, one-half of his retirement |
15 | allowance shall be continued throughout the life of and paid to |
16 | his survivor annuitant, if then living. |
17 | Section 25. Section 212 of the act, amended May 17, 1980 |
18 | (P.L.135, No.50) and June 10, 1982 (P.L.446, No.131), is amended |
19 | to read: |
20 | Section 212. Disability Retirement.--(a) After a |
21 | [contributor] member has had ten or more years of total service, |
22 | he may, upon application or on the application of one acting in |
23 | his behalf, or upon application of a head of the department of |
24 | the municipality by which he is employed, be retired by the |
25 | board on a disability allowance [if he is under superannuation |
26 | retirement age, and on a superannuation retirement allowance if |
27 | he has attained or passed such age,] if the physician designated |
28 | by the board, after medical examination of the [contributor] |
29 | member made at the place of residence of the [contributor] |
30 | member or at a place mutually agreed upon, shall certify to the |
|
1 | board that the [contributor] member is unable to engage in any |
2 | gainful employment and that [said contributor] the member ought |
3 | to be retired. When the disability of a [contributor] member is |
4 | determined to be service-connected, as defined in this act, no |
5 | minimum period of service shall be required for eligibility. |
6 | Application filing requirements shall be identical to those |
7 | outlined in subsection (a) of section 208. |
8 | (b) On retirement for disability a member shall receive a |
9 | retirement allowance which shall consist of: |
10 | (1) A member's annuity of the equivalent actuarial value to |
11 | his accumulated deductions, plus the balance in the member's |
12 | excess investment account[;]. |
13 | (2) A municipal annuity of the equivalent actuarial value to |
14 | the present value of a municipal annuity, beginning at |
15 | superannuation retirement age, calculated in accordance with the |
16 | provision of section 208[; and]. |
17 | (3) A disability annuity payable from the total disability |
18 | reserve account which, together with the member's annuity and |
19 | the municipal annuity, shall be sufficient to produce a |
20 | retirement allowance of thirty per cent of the final salary. |
21 | Where the disability of the member is determined to be service- |
22 | connected, as defined in this act, the retirement allowance |
23 | shall equal fifty per cent of his final salary. The disability |
24 | annuity shall be reduced by the amount of any payments for which |
25 | the member shall be eligible under the act of June 2, 1915 |
26 | (P.L.736, No.338), known as "The Pennsylvania [Workmen's] |
27 | Workers' Compensation Act," or the act of June 21, 1939 |
28 | (P.L.566, No.284), known as "The Pennsylvania Occupational |
29 | Disease Act." |
30 | (c) Once every year the board may require any disability |
|
1 | annuitant, while still under superannuation retirement age, to |
2 | undergo medical examination by a physician designated by the |
3 | board. [Such] The examination shall be made at the place of |
4 | residence of the beneficiary or other place mutually agreed |
5 | upon. Should the physician report and certify to the board that |
6 | [such] the disability beneficiary is no longer physically or |
7 | mentally incapacitated for the performance of duty and is able |
8 | to engage in a gainful occupation, then his disability |
9 | retirement allowance shall be discontinued, and in lieu thereof |
10 | an early involuntary retirement allowance shall at that time be |
11 | granted as if [such] the person had been retired not |
12 | voluntarily, if [such] the person shall have had eight or more |
13 | years of total service. |
14 | (d) Should a disability annuitant, while under |
15 | superannuation retirement age, refuse to submit to at least one |
16 | medical examination in any year by a physician designated by the |
17 | board, his disability retirement allowance shall be discontinued |
18 | until the withdrawal of [such] the refusal, and should [such] |
19 | the refusal continue for one year, then all his rights in and to |
20 | any disability retirement allowance or for early involuntary |
21 | retirement allowance provided for by this act, shall be |
22 | forfeited. |
23 | (e) Any [contributor] member entitled to retire for |
24 | disability may, in lieu of [such] retirement, if he has eight or |
25 | more years of total service, elect to retire not voluntarily |
26 | under the provisions of this act. |
27 | (f) Should a disability annuitant die before the total |
28 | disability retirement allowance received shall be at least equal |
29 | to the amount of his accumulated deductions plus the balance in |
30 | the member's excess investment account at the time of disability |
|
1 | retirement, then the board shall pay to the named beneficiary, |
2 | if living, or if the beneficiary predeceased the annuitant, or |
3 | no beneficiary was named, then to the annuitant's estate, an |
4 | amount equal to the difference between [such] the total |
5 | retirement allowance received and the annuitant's accumulated |
6 | deductions plus excess interest, and if [such] the difference is |
7 | less than one hundred dollars ($100) and no letters have been |
8 | taken out on the estate within six months after death, then |
9 | [such] the difference may be paid to the undertaker or to any |
10 | person or municipality who or which shall have paid the claim of |
11 | the undertaker. |
12 | Section 26. Sections 213, 214 and 215 of the act, amended |
13 | May 17, 1980 (P.L.135, No.50), are amended to read: |
14 | Section 213. Vesting.--(a) Should a [contributor] member, |
15 | before reaching superannuation retirement age and after having |
16 | completed twelve years of total service, for any reason cease to |
17 | be a municipal employe, he shall be entitled to vest his |
18 | retirement benefits until he attains superannuation retirement |
19 | age, by filing with the board a written notice of his intentions |
20 | to vest, within ninety days of the date of his termination of |
21 | employment. Accumulated deductions will include interest from |
22 | date of termination until the earlier of the date of the |
23 | commencement of the annuity or the date of payment of member |
24 | contributions. |
25 | (b) A [contributor] member, who was terminated by the |
26 | municipality not voluntarily, may elect, after he has vested, to |
27 | be paid as follows: |
28 | (1) [The] the full amount of the accumulated deductions, |
29 | including interest; [or] |
30 | (2) [An] an early retirement allowance as computed under the |
|
1 | provisions of clause (2) of section 210; or |
2 | (3) [Upon] upon reaching superannuation retirement age, a |
3 | superannuation retirement allowance as computed under the |
4 | provisions of section 208. |
5 | (c) A [contributor] member, who voluntarily terminated his |
6 | employment, may elect, after he has vested, to be paid as |
7 | follows: |
8 | (1) [The] the full amount of the accumulated deductions, |
9 | including interest; [or] |
10 | (2) [If] if the [contributor] member has completed twenty- |
11 | four years or more of total service, a voluntary withdrawal |
12 | allowance computed in accordance with the provisions of section |
13 | 210; or |
14 | (3) [Upon] upon reaching superannuation retirement age, a |
15 | superannuation retirement allowance as computed under the |
16 | provisions of section 208. |
17 | (d) Should a [contributor] member, who has vested, die |
18 | before he becomes eligible for a retirement allowance, the full |
19 | amount of the accumulated deductions plus the balance in the |
20 | member's excess investment account, including interest to the |
21 | date of his death, standing to his credit in the member's |
22 | account of the fund shall be paid to his estate or to his named |
23 | beneficiary in accordance with the provisions of subsection (d) |
24 | of section 207. |
25 | (e) Upon the termination of the retirement plan, all |
26 | members, regardless of credited service, shall be deemed fully |
27 | vested in their accrued benefit to the extent the benefits |
28 | provided under the plan are funded as of the date of |
29 | termination. |
30 | Section 214. Withdrawal Provisions.--(a) A municipality |
|
1 | which has joined the retirement system created or continued |
2 | under this [Article II] article may, for good and stated cause, |
3 | file an application with the board for permission to withdraw |
4 | from the system if it meets all of the following requirements: |
5 | (1) The municipality has been enrolled in the system for a |
6 | period of at least five years. |
7 | (2) The municipality has met all of its financial |
8 | obligations to the system. |
9 | (3) The legislative body of the municipality has passed an |
10 | ordinance or resolution signifying its intention to withdraw |
11 | from the system. |
12 | (4) The municipality has certified to the board that an |
13 | affirmative vote approving withdrawal from the system had been |
14 | obtained from at least seventy-five per cent of all of the |
15 | municipal [employes] employees affected by the ordinance or |
16 | resolution. |
17 | (b) The board shall within ninety days of its receipt, take |
18 | action on an application filed by a municipality for permission |
19 | to withdraw from the system. If the application is approved the |
20 | withdrawing municipality shall be entitled to receive a net |
21 | refund of the amounts then standing to the credit of the |
22 | municipality in the member's account, the member's excess |
23 | investment account, the municipal account and the retired |
24 | member's reserve accounts of the system. In no event shall the |
25 | total amount of the net refund to the municipality exceed the |
26 | pro rata interest of the withdrawing municipality in the net |
27 | assets of the entire fund based on the market value of the |
28 | investments of the fund as of the date of receipt of the |
29 | application for permission to withdraw. The liability for the |
30 | continuation of retirement or disability allowances being paid |
|
1 | from the fund shall attach against the withdrawing municipality |
2 | and be paid from funds transferred to a retirement system |
3 | established subsequent to its withdrawal from the system or from |
4 | moneys appropriated annually from tax revenues sufficient to pay |
5 | the same. If the board disapproves the application of the |
6 | municipality for permission to withdraw from the system the |
7 | board shall promptly notify the municipality of its decision and |
8 | advise the municipality of the board's reason or reasons for |
9 | disapproval. The board shall establish rules and regulations, in |
10 | accordance with the provisions of clause (10) of section 104 of |
11 | this act, governing the details of the procedures to be followed |
12 | in the withdrawal of municipalities from the system. |
13 | Section 215. Procedures for Amending Contracts.--Any |
14 | municipality which has joined the system under the provisions of |
15 | this [Article II] article may, with the approval of the board, |
16 | enter into a contract with the board as outlined in Article IV |
17 | of this act, to increase any of the benefits enumerated in |
18 | Article IV. The board shall not enter into any contract with any |
19 | municipality which decreases benefits, nor shall it enter into |
20 | any contract with a municipality which provides for benefits in |
21 | excess of or minimum member's contribution rates less than those |
22 | available to it under any other existing law pertaining to the |
23 | establishment of retirement systems for that class of |
24 | municipality, except to the extent that excess investment |
25 | earnings are allocated to provide for additional pension |
26 | benefits or member accruals as otherwise provided in this [law] |
27 | act. Before the board approves any such contract it shall first |
28 | determine, through its actuary, that the plan outlined in the |
29 | contract is actuarially sound. Any municipality which elects to |
30 | enter into a contract for increased benefits which would result |
|
1 | in an increase in its [employes] employees contribution rates |
2 | shall first obtain the written consent of at least seventy-five |
3 | per cent of its then member [employes] employees. Additional |
4 | costs for contracted increases in benefits shall become the |
5 | responsibility of the municipality and/or the members as |
6 | specified in the contract. |
7 | Section 27. Article III heading and section 301 of the act |
8 | are amended to read: |
9 | ARTICLE III |
10 | PROVISIONS RELATING TO MUNICIPAL [FIREMEN] FIRE FIGHTERS AND |
11 | MUNICIPAL POLICE OFFICERS |
12 | Section 301. Purpose.--This article [shall provide] provides |
13 | for the uninterrupted continuation of retirement plans |
14 | established under the act of July 31, 1968 (P.L.944, No.291), |
15 | known as the "Municipal Police Retirement Law." It shall also |
16 | provide for the enrollment of municipal [firemen] fire fighters |
17 | and municipal police officers of new municipalities joining the |
18 | system at the contribution rates and benefit rates outlined in |
19 | this article of the act. |
20 | Section 28. Section 303 of the act, amended May 17, 1980 |
21 | (P.L.135, No.50), is amended to read: |
22 | Section 303. Existing Local Retirement Systems and |
23 | Compulsory Membership.--(a) Where a municipality elects to join |
24 | the system established by this act, and is then maintaining a |
25 | retirement or pension system or systems covering its [employes] |
26 | employees in whole or in part, those [employes] employees so |
27 | covered, and [employes] employees thereafter eligible to join |
28 | such pension system, shall not become members of the retirement |
29 | system established by this act, unless at the time the |
30 | municipality elects to join the system, the members of each such |
|
1 | existing retirement or pension system shall, by the affirmative |
2 | vote of seventy-five per cent of all the members of each pension |
3 | system, elect to be covered by the retirement system established |
4 | by this act. At any time thereafter, within a period of three |
5 | years after the municipality has elected to join the system, but |
6 | not thereafter, the members of an existing retirement or pension |
7 | system may, in like manner, elect to join the system established |
8 | by this act. In any such case, provisions may be made for the |
9 | transfer of moneys and securities in its retirement or pension |
10 | fund or funds, in whole or in part, to the fund established by |
11 | this act. Securities so transferred shall be only those |
12 | acceptable to the board. Securities not so acceptable shall be |
13 | converted into cash, and [said] the cash transferred to the fund |
14 | created by this act. In any such transfer, provision shall be |
15 | made to credit the accumulated deductions of each member, at |
16 | least the amount he has paid into the retirement or pension |
17 | system of the municipality, which moneys shall be credited |
18 | against the prior service contributions of such member, or a |
19 | municipality may turn over to the retirement system created by |
20 | this act any existing local pension system on a completely |
21 | funded basis, as to pensioners and pension credits of members |
22 | related to prior service to the date of transfer, or on a |
23 | partially funded basis if the municipality pays annually into |
24 | the retirement system amounts sufficient to completely liquidate |
25 | the municipality's liability for prior service within a period |
26 | not to exceed thirty years. |
27 | (b) No liability, on account of retirement allowances or |
28 | pensions being paid from any retirement or pension fund of the |
29 | municipality, shall attach against the fund, except as provided |
30 | in the agreement, making a transfer of an existing system in |
|
1 | accordance with this section. The liability to continue payment |
2 | of pensions not so transferred shall attach against the |
3 | municipality, which shall annually make appropriations from its |
4 | tax revenues sufficient to pay the same. In cases where workers |
5 | covered by an existing retirement or pension system elect to |
6 | join the system created by this act, the election to join shall |
7 | be deemed to have been made at the time the municipality elected |
8 | to join the system, and the liabilities of the municipality |
9 | shall be fixed accordingly. |
10 | (c) If a municipality elects to cover its municipal |
11 | [firemen] fire fighters under the provisions of the system |
12 | created by this [Article III] article, then each municipal |
13 | [fireman] fire fighter shall be required to become a member of |
14 | the system. |
15 | (d) If a municipality elects to cover its municipal police |
16 | officers under the provisions of the system created by this |
17 | [Article III] article, then each municipal [policeman] police |
18 | officer shall be required to become a member of the system. |
19 | (e) When a municipality has established a policy of placing |
20 | new [employes] employees on a probationary status it may elect |
21 | to refrain from enrolling [such employes] the employees into the |
22 | system for a period of up to one year from the date the |
23 | probationary [employe] employee first entered the service of the |
24 | municipality. In such cases service credits shall not be earned |
25 | by the [employe] employee for probationary time served prior to |
26 | enrollment. Notwithstanding any other provision herein, the |
27 | board may, in its discretion, entertain a request from a |
28 | municipality to join the system established by this act for |
29 | those [employes] employees who are excluded from local pension |
30 | plan coverage by virtue of the collective bargaining process or |
|
1 | otherwise. The request to join the system must be accompanied by |
2 | an affirmative vote of no less than three-fourths of those |
3 | [employes] employees not covered by the local pension plan. The |
4 | benefits to be established may be in accordance with the |
5 | provisions of this article or any other relevant pension law |
6 | covering that class of municipality. The other requirements of |
7 | this section for joining this system shall be observed. |
8 | Section 29. Section 304 of the act is amended to read: |
9 | Section 304. Separate Ordinances or Resolutions; Separate |
10 | Accounts.--(a) Any municipality electing to cover both its |
11 | municipal [firemen] fire fighters and municipal police officers |
12 | under the system created by this [Article III] article shall be |
13 | required to pass separate ordinances or resolutions covering |
14 | each class of [employes] employees. |
15 | (b) The board shall maintain separate accounting records for |
16 | municipal [firemen] fire fighters and for municipal police |
17 | officers. However, in the interest of good investment practice, |
18 | the board may, in its discretion, comingle moneys received from |
19 | municipalities, municipal [employes] employees, municipal |
20 | [firemen] fire fighters and municipal police officers. |
21 | Section 30. Sections 305, 306 and 307 of the act, amended |
22 | May 17, 1980 (P.L.135, No.50), are amended to read: |
23 | Section 305. Service Allowance; Change of Employment; |
24 | Military Service.--(a) In computing the length of service of a |
25 | [contributor] member for retirement purposes, full credit shall |
26 | be given to each original member for each year of service |
27 | rendered to the municipality prior to the time the municipality |
28 | joined the system. |
29 | (b) As soon as practicable, the board shall issue to each |
30 | original member a certificate certifying the aggregate length of |
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1 | service rendered to the municipality prior to the time it joined |
2 | the system. [Such] The certificate shall be final and conclusive |
3 | as to his prior service unless thereafter modified by the board, |
4 | upon application of the member. |
5 | (c) The time during which a member was absent from service |
6 | without pay, except for military service, shall not be counted |
7 | in computing the service of a [contributor] member in his |
8 | certificate, or upon retirement unless specially allowed by the |
9 | municipality, with the approval of the board. |
10 | (d) When a [contributor] member leaves the employ of a |
11 | municipality which has joined the system, and enters into the |
12 | employ of another municipality which has also joined the system, |
13 | his service credits shall remain unimpaired, but in such cases |
14 | the unpaid municipal liability for prior service shall be |
15 | prorated by the board between the municipalities on an equitable |
16 | basis. The basis will be determined, with the advice of the |
17 | actuary, according to the number of years of service performed |
18 | by the [contributor] member for each municipality. |
19 | (e) Any municipal [fireman] fire fighter or municipal |
20 | [policeman] police officer employed by a municipality who has |
21 | been a regularly appointed [fireman] fire fighter or [policeman] |
22 | police officer for a period of at least six months and is an |
23 | active member of the system and who thereafter, heretofore, or |
24 | hereafter, shall be inducted into the military service of the |
25 | United States in times of war, armed conflict, or National |
26 | emergency, so proclaimed by the President of the United States, |
27 | shall have credited to his employment record, for pension or |
28 | retirement benefits, all of the time spent by him in [such] that |
29 | military service during the continuance of such war, armed |
30 | conflict, or National emergency if such person returns or has |
|
1 | heretofore returned to his employment within six months after |
2 | his separation from the service. The municipality shall, during |
3 | the period of the member's intervening military service, |
4 | continue to make current service contributions toward the |
5 | municipal annuity of the member. An active member may file an |
6 | application with the board for permission to purchase credit |
7 | toward his member's share of the annuity for intervening |
8 | military service. These contributions shall be computed by |
9 | applying the member's contribution rate to his annual rate of |
10 | compensation at the time of entry of the member into active |
11 | military service, and multiplying the result by the number of |
12 | years and fractional part of a year of creditable intervening |
13 | military service, together with interest from date of return to |
14 | employment to date of purchase. The amount due from the member |
15 | shall be certified by the board in accordance with methods |
16 | approved by the actuary, and may be paid by (1) regular monthly |
17 | payments during active military service, or (2) a lump sum |
18 | payment within thirty days, or (3) it may be amortized with |
19 | additional interest through salary deductions in amounts agreed |
20 | upon by the member and the board. |
21 | (f) An active member may also purchase credit for other than |
22 | intervening military service performed for the United States in |
23 | times of war, armed conflict or National emergency, so |
24 | proclaimed by the President of the United States, for a period |
25 | not to exceed five years: Provided, That the member has |
26 | completed five years of service to the municipality subsequent |
27 | to [such] the military service. An active member may file an |
28 | application with the board for permission to purchase credit for |
29 | nonintervening military service upon completion of five years of |
30 | subsequent service to the municipality. The type of service |
|
1 | credit for [such] the service shall be determined by the date of |
2 | entry of the municipality into the system. If the date of the |
3 | member's separation from military service is prior to the date |
4 | on which the municipality joined the system, then the credit |
5 | purchased shall be considered as prior service credit. In this |
6 | case the amount due from the member shall be computed by |
7 | applying the member's basic contribution rate plus the rate of |
8 | contribution the municipality paid for current service during |
9 | its first year of entry into the system to his prior salary and |
10 | multiplying the result by the number of years and fractional |
11 | part of a year of creditable nonintervening military service, |
12 | plus interest from the later of the date of entry into the |
13 | system and the date of the member's employment by the |
14 | municipality to the date of purchase. The amount due from the |
15 | member shall be certified by the board in accordance with |
16 | methods approved by the actuary, and may be paid in a lump sum |
17 | within thirty days or it may be amortized with additional |
18 | interest through salary deductions in amounts agreed upon by the |
19 | member and the board. If, on the other hand, the date of the |
20 | member's separation from military service is later than the date |
21 | of entry of the municipality into the system, then the credit |
22 | purchased shall be considered as current service credit. In this |
23 | case the amount due from the member shall be computed by |
24 | applying the member's basic contribution rate plus the |
25 | municipality's normal contribution rate for current service |
26 | which was in effect on the date of the member's entry into |
27 | employment with the municipality to his average annual rate of |
28 | compensation over the first five years of his subsequent |
29 | employment and multiplying the result by the number of years and |
30 | fractional part of a year of creditable nonintervening military |
|
1 | service being purchased, plus interest from the date of |
2 | employment by the municipality to date of purchase. |
3 | (g) The amount due from the member shall be certified by the |
4 | board in accordance with methods approved by the actuary, and |
5 | may be paid in a lump sum within thirty days or it may be |
6 | amortized with additional interest through salary deductions in |
7 | amounts agreed upon by the member and the board. |
8 | (h) The rate of interest to be charged to members on their |
9 | purchase of credit for intervening or nonintervening military |
10 | service shall be the rate being credited by the system to |
11 | member's contribution accounts in effect on the date of the |
12 | member's application, compounded annually. |
13 | (i) A member may purchase credit for intervening or |
14 | nonintervening military service only if his discharge or |
15 | separation from the service was granted under other than |
16 | dishonorable conditions. |
17 | (j) A member may not purchase credit for any military |
18 | service for which he is entitled to receive a retirement |
19 | allowance from the United States Government. |
20 | (k) Applications for permission to purchase credit for |
21 | military service must be accompanied by proof of the nature of |
22 | his discharge or separation from the military service. |
23 | Section 306. Determination of Municipal Liability.--(a) The |
24 | board shall, as soon as may be, determine the present value of |
25 | the liability of each municipality for the prior service credits |
26 | to its original members, and shall establish an amount payable |
27 | annually over a period not exceeding thirty years, through which |
28 | payments [such] the prior service liability may be funded. Each |
29 | municipality shall have the option to spread the payment of |
30 | [such] the prior service liability over such period of years. |
|
1 | (b) The municipal liability shall be based upon credit for |
2 | all years of prior service toward the municipal annuity of each |
3 | original member. |
4 | (c) The board shall also determine, from time to time, the |
5 | amount which shall be contributed annually by each municipality, |
6 | for service credits of original and new members subsequent to |
7 | the time the municipality joined the system, and the additional |
8 | amount which shall be contributed annually by each municipality |
9 | toward a reserve account for disability allowances payable to |
10 | original and new members, in order that all future service |
11 | liability may be fully funded on an actuarial basis. |
12 | (d) The amounts so determined by the board may be expressed |
13 | in a percentage of payroll of the municipality covering its |
14 | contributing members. |
15 | (e) The payments made by the State Treasurer to the |
16 | treasurer of the municipality from moneys received from taxes |
17 | paid upon premiums by foreign fire insurance companies for |
18 | purposes of pension, retirement or disability benefits for |
19 | municipal [firemen] fire fighters shall be used as follows: (i) |
20 | to reduce the unfunded liability or, after such liability has |
21 | been funded, (ii) to apply against the annual obligation of the |
22 | municipality for future service and disability reserve costs. |
23 | [It shall be the duty of the] The governing body [to] shall |
24 | apply [such] the payments in accordance with the provisions of |
25 | this act. |
26 | (f) The payments made by the State Treasurer to the |
27 | treasurer of the municipality from the moneys received from |
28 | taxes paid upon premiums by foreign casualty insurance companies |
29 | for purposes of pension, retirement or disability benefits for |
30 | municipal policemen shall be used as follows: (i) to reduce the |
|
1 | unfunded liability or, after such liability has been funded, |
2 | (ii) to apply against the annual obligation of the municipality |
3 | for future service and disability reserve costs. [It shall be |
4 | the duty of the] The governing body [to] shall apply [such] the |
5 | payments in accordance with the provisions of this act. |
6 | (g) The cost of making the valuations required by this |
7 | section and in the transfer of any existing pension system of |
8 | any municipality, shall be part of the costs of administration |
9 | of this act. |
10 | Section 307. Contributions by Members; Consolidation of |
11 | Credits.--(a) Each single coverage member of the system created |
12 | under this [Article III] article, shall be required to |
13 | contribute no more than eight per cent of his salary or |
14 | compensation to the fund based on a uniform contribution rate as |
15 | determined by the actuary to provide the benefit under this |
16 | article. |
17 | (b) The amount of contribution by each joint coverage member |
18 | shall be computed in the manner described [above] in subsection |
19 | (a) for a single coverage member, except that the amount of |
20 | [such] the deductions from salary or compensation shall be |
21 | reduced with respect to wages (as defined in the Federal |
22 | Insurance Contributions Act (68A Stat. 417, 26 U.S.C. § 3121)) |
23 | by forty per cent of the tax on [employes] employees prescribed |
24 | by the Federal Insurance Contributions Act exclusive of that |
25 | portion of such tax attributable to disability coverage. |
26 | (c) Members' contributions shall be paid into the fund by |
27 | the municipality through payroll deductions in such manner and |
28 | at such time as the board may by rule and regulation determine. |
29 | Section 31. Section 308 of the act, amended May 17, 1980 |
30 | (P.L.135, No.50) and June 10, 1982 (P.L.446, No.131), is amended |
|
1 | to read: |
2 | Section 308. Withdrawal; Return to Service; Death in |
3 | Service.--(a) Should a [contributor] member, before reaching |
4 | superannuation retirement age, for any reason cease to be a |
5 | municipal [fireman] fire fighter or a municipal [policeman] |
6 | police officer, he shall be paid by the board the full amount of |
7 | the accumulated deductions standing to his credit in the |
8 | member's account, unless he is entitled to vesting rights or to |
9 | a retirement allowance for retirement not voluntarily, and |
10 | elects to exercise such vesting rights or take such retirement |
11 | allowance. Should such former [contributor] member thereafter |
12 | return to the service of the same municipality and restore to |
13 | the fund, in such manner as may be agreed upon by [such] the |
14 | person and the board, his withdrawn accumulated deductions as |
15 | they were at the time of his separation from service, his |
16 | annuity rights as they existed at the time of separation from |
17 | service shall be restored and his obligations as a member shall |
18 | begin again. |
19 | (b) Should a [contributor] member, having attained or passed |
20 | superannuation age, elect, upon leaving the service of the |
21 | municipality, not to claim the retirement allowance to which he |
22 | is entitled, he shall, upon written application, be paid by the |
23 | board the full amount of the accumulated deductions standing to |
24 | his credit in the member's account, and the balance in the |
25 | member's excess investment account. |
26 | (c) (1) Should a person who has been retired on a |
27 | retirement allowance under this act, return to employment on a |
28 | regular full-time basis in the same municipality, his retirement |
29 | allowance shall cease, and in the case of an annuity, other than |
30 | a disability annuity, the present value of [such] the annuity |
|
1 | shall be frozen as of the date such annuity ceases. Upon |
2 | subsequent discontinuance of service, such member, other than a |
3 | former disability annuitant, shall be entitled to an annuity |
4 | which is [actuarially equivalent to the sum of the present |
5 | value] of an equivalent actuarial value as the annuity |
6 | previously being paid and the present value of the annuity |
7 | earned by further service and further deductions added upon |
8 | reemployment. |
9 | (2) For the purposes of this section if a person is |
10 | reemployed [on a temporary or seasonal basis and his gross post- |
11 | retirement earnings from such reemployment during the calendar |
12 | year are less than five thousand dollars ($5,000) or such other |
13 | maximum as the board may establish, he shall not be deemed |
14 | reemployed, but if and when his gross post-retirement earnings |
15 | exceed five thousand dollars ($5,000) or such other maximum as |
16 | the board may establish in any calendar year he shall not be |
17 | entitled to receive his retirement allowance for that month or |
18 | any subsequent month in the calendar year in which he continues |
19 | in service] following commencement of his retirement allowance, |
20 | he shall not be entitled to receive his retirement allowance for |
21 | that month or any subsequent month in which he continues in |
22 | service. |
23 | (3) Notwithstanding the provisions of paragraph (2), if such |
24 | person is otherwise eligible to receive an in-service |
25 | distribution of his retirement benefit by (i) attainment of |
26 | normal retirement age as defined in the Internal Revenue Code, |
27 | (ii) operation of Internal Revenue Code § 401(a)(36) or (iii) |
28 | operation of any other provision as may be adopted by the board |
29 | and consistent with the tax-qualification provisions of the |
30 | Internal Revenue Code, his retirement allowance shall continue |
|
1 | to be paid through such period of reemployment. The municipality |
2 | is required to notify the board immediately of the reemployment |
3 | status of any retired former [employe and file separate monthly |
4 | reports of his gross earnings as prescribed by the board] |
5 | employee. |
6 | (d) Should a [contributor] member die while in service, |
7 | prior to becoming eligible for a retirement allowance, his |
8 | accumulated deductions shall be paid to his estate, or to such |
9 | person, if living, as he shall have designated, in writing, |
10 | filed with the board as his beneficiary. In case any |
11 | [contributor] member has failed to designate a beneficiary, or |
12 | if the named beneficiary has predeceased the member and no |
13 | successor beneficiary has been named, and upon the death in |
14 | service shall have less than one hundred dollars ($100) in |
15 | accumulated deductions standing to his credit, the board may, if |
16 | letters testamentary or of administration have not been taken |
17 | out on his estate within six months after his death, pay [such] |
18 | the accumulated deductions on the claim of the undertaker, or to |
19 | such person or municipality which shall have paid the claim of |
20 | the undertaker. |
21 | Section 32. Section 309 of the act, amended May 17, 1980 |
22 | (P.L.135, No.50), is amended to read: |
23 | Section 309. Superannuation Retirement.--Retirement for |
24 | superannuation shall be as follows: |
25 | (1) Any [contributor] member who has reached superannuation |
26 | retirement age may retire for superannuation by filing with the |
27 | board a written statement, duly attested, setting forth on what |
28 | date he desires to be retired. [Said] The application shall make |
29 | the superannuation retirement allowance effective on the date so |
30 | specified, if such application was filed in the office of the |
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1 | board or deposited in the United States mail, addressed to the |
2 | board, before the date specified in the application and before |
3 | the death of the [contributor] member, but the date so specified |
4 | in the application shall not be more than ninety days after the |
5 | date of filing, or the date the application was deposited in the |
6 | mail. |
7 | (2) On retirement for superannuation, a [contributor] member |
8 | shall be entitled to a retirement allowance throughout his life, |
9 | which shall consist of (i) a member's annuity of equivalent |
10 | actuarial value to his accumulated deductions, and the balance |
11 | in the member's excess investment account, and (ii) a municipal |
12 | annuity which shall be equal to, for current service, one one- |
13 | hundredth of his final salary for each year of service while a |
14 | member, and, in addition thereto for prior service in the case |
15 | of an original member, one one-hundredth of his prior salary for |
16 | each year of prior service. |
17 | (3) The superannuation retirement allowance provided in this |
18 | section or the withdrawal allowance provided in section 311, as |
19 | the case may be, payable to a joint coverage member after the |
20 | age at which social security old age insurance benefits become |
21 | payable shall be reduced by an amount equal to forty per cent of |
22 | the primary insurance amount of social security paid or payable |
23 | to him. [Such] The reduction shall be subject to the following |
24 | provisions: (i) the reduction in benefits in accordance with |
25 | this clause [(3)] shall not be applied in the case of an |
26 | annuitant until age sixty-five, unless such annuitant shall have |
27 | elected to receive social security benefits prior to age sixty- |
28 | five, (ii) the eligibility of such member for the old age |
29 | insurance benefit (primary insurance amount) and the amount of |
30 | such old age insurance benefit upon which the reduction in his |
|
1 | allowance shall be based, shall be determined by the board in |
2 | accordance with the provisions of the [Federal] Social Security |
3 | Act (49 Stat. 620, 42 U.S.C. § 301 et seq.), in effect on the |
4 | effective date of superannuation retirement, or withdrawal, of |
5 | the member, except that in determining such eligibility and such |
6 | amount only wages or compensation for service covered by the |
7 | system shall be included, (iii) the reduction in benefits in |
8 | accordance with this clause [(3)] shall apply only to that |
9 | portion of benefits based on wages as defined in the Federal |
10 | Insurance Contribution Act (68A Stat. 417, 26 U.S.C. § 3121), |
11 | (iv) the reduction of benefits in accordance with this clause |
12 | [(3)] shall be limited to the municipal annuity calculated in |
13 | accordance with clause (2) of this section, (v) the total sum |
14 | including social security old age insurance benefits to be |
15 | received upon superannuation retirement or withdrawal by a joint |
16 | coverage member shall not be less than the allowance that he |
17 | would be paid as a single coverage member, (vi) whenever the |
18 | amount of the reduction from the superannuation retirement |
19 | allowance or the withdrawal allowance shall have been once |
20 | determined, it shall remain fixed for the duration of the |
21 | allowance, except that any decrease in the old age insurance |
22 | benefit under the Federal Social Security Act shall result in a |
23 | corresponding decrease in the amount of the reduction in the |
24 | allowance, (vii) the reduction provided for in this clause [(3)] |
25 | shall not apply to disability allowances payable under section |
26 | 313 of this act. |
27 | (4) In no event shall the municipal annuity at the time of |
28 | retirement exceed fifty per cent of the [contributor's] member's |
29 | final salary. |
30 | (5) Other provisions of this act notwithstanding, any member |
|
1 | of a police force who was a member of a pension fund created |
2 | under the provisions of the former act of May 29, 1956 |
3 | (P.L.1804, No.600), and who was entitled to retire at the age of |
4 | fifty-five or sixty years after twenty years of total service, |
5 | or at the age of fifty or fifty-five after twenty-five years of |
6 | service, and to receive the pension provided by that act, shall |
7 | have the same entitlement under the system created pursuant to |
8 | this act. The municipal annuity, computed under subclause (ii) |
9 | of clause (3) above, shall be increased as needed, in addition |
10 | to the member's annuity, in order to pay any increased |
11 | retirement allowance resulting from the provisions of the act. |
12 | Section 33. Section 310 of the act is amended to read: |
13 | Section 310. Death Benefits.--(a) A [contributor] member to |
14 | the system who is entitled to a superannuation retirement |
15 | allowance by reason of having reached superannuation retirement |
16 | age or who is entitled to a withdrawal allowance by reason of |
17 | having completed twenty-four years of total service, may file |
18 | with the board a written application for retirement in the form |
19 | required for [such] the application, but requesting that such |
20 | retirement shall become effective as of the time of his death, |
21 | electing one of the options provided in section 312 of this act |
22 | and nominating a person having an insurable interest in his life |
23 | under [said] that option as required in said section. In all |
24 | such cases, the application shall be held by the board until the |
25 | [contributor shall file] member files a later application in the |
26 | usual manner for a superannuation retirement allowance or until |
27 | the death of the [contributor] member occurring while in the |
28 | municipal service, at which time his retirement shall become |
29 | effective with the same benefits to the person designated as if |
30 | the [contributor] member had retired on the day immediately |
|
1 | preceding his death. |
2 | (b) A [contributor] member to the system who is entitled to |
3 | a superannuation retirement allowance by reason of having |
4 | reached superannuation retirement age or who is entitled to a |
5 | withdrawal allowance by reason of having completed twenty-four |
6 | years of service and who has died in municipal service before |
7 | filing with the board a written application for a superannuation |
8 | retirement allowance as provided in subsection (a) of this |
9 | section shall be considered as having elected Option 1 as |
10 | provided in section 312 as of the date of his death. In such |
11 | event, payment under Option 1 shall be made to the beneficiary |
12 | designated in the nomination of beneficiary form on file with |
13 | the board, or if said beneficiary has predeceased the |
14 | [contributor] member, to the legal representative of [said |
15 | contributor] the member. |
16 | Section 34. Section 311 of the act, amended May 17, 1980 |
17 | (P.L.135, No.50), is amended to read: |
18 | Section 311. Early Retirement.--Should a [contributor] |
19 | member be discontinued from service not voluntarily after having |
20 | completed eight years of total service, or voluntarily after |
21 | having completed twenty-four years of total service, but in |
22 | either event before reaching superannuation retirement age, he |
23 | shall be paid as he may elect, as follows: |
24 | (1) [The] the full amount of his accumulated deductions plus |
25 | the balance in the member's excess investment account standing |
26 | to his credit in the member's account of the fund; [or] |
27 | (2) [Upon] upon the filing of an application in the manner |
28 | outlined in section 309(1) a retirement allowance which shall |
29 | consist of: (i) a member's annuity of equivalent actuarial value |
30 | to his accumulated deductions, plus the balance in the member's |
|
1 | excess investment account, and (ii) a municipal annuity of |
2 | equivalent actuarial value to the present value of a municipal |
3 | annuity, beginning at superannuation retirement age, calculated |
4 | in accordance with the provisions of section 309; or |
5 | (3) [If] if qualified, a deferred retirement allowance as |
6 | provided in section 314. |
7 | Section 35. Section 312 of the act, amended June 10, 1982 |
8 | (P.L.446, No.131), is amended to read: |
9 | Section 312. Options on Superannuation or Early |
10 | Retirement.--At the time of his superannuation or early |
11 | retirement, a [contributor] member may elect to receive his |
12 | benefits in a retirement allowance payable throughout his life, |
13 | which shall be known as a single life annuity. In the event of |
14 | the death of an annuitant who has elected to receive the maximum |
15 | single life annuity before he has received in annuity payments |
16 | the full amount of the total accumulated deductions standing to |
17 | his credit on the effective date of retirement, the balance |
18 | shall be paid to his designated beneficiary, or instead, he may |
19 | elect, to receive the actuarial equivalent value at that time of |
20 | his retirement allowance in a lesser allowance, payable |
21 | throughout life with provisions that: |
22 | (1) Option 1. If he [shall die] dies before receiving in |
23 | payments the present value of his retirement allowance as it was |
24 | at the time of his retirement, the balance, if less than five |
25 | thousand dollars ($5,000) shall be paid in a lump sum to his |
26 | legal representative, or to or in trust for his beneficiary. If |
27 | the balance is five thousand dollars ($5,000) or more, the |
28 | beneficiary may elect by application duly acknowledged and filed |
29 | with the board to receive payment of [such] the balance |
30 | according to any of the following provisions: (i) a lump sum |
|
1 | payment, (ii) an annuity having a present value equal to the |
2 | balance payable, (iii) a lump sum payment and an annuity. [Such] |
3 | The annuity shall be of equivalent actuarial value to the |
4 | balance payable less the amount of the lump sum payment |
5 | specified by the beneficiary. |
6 | (2) Option 2. Upon his death his retirement allowance shall |
7 | be continued throughout the life of and paid to his survivor |
8 | annuitant, if then living. |
9 | (3) Option 3. Upon his death, one-half of his retirement |
10 | allowance shall be continued throughout the life of and paid to |
11 | his survivor annuitant, if then living. |
12 | Section 36. Section 313 of the act, amended May 17, 1980 |
13 | (P.L.135, No.50) and June 10, 1982 (P.L.446, No.131), is amended |
14 | to read: |
15 | Section 313. Disability Retirement.--(a) After a |
16 | [contributor] member has had ten or more years of total service, |
17 | he may, upon application or on application of one acting in his |
18 | behalf, or upon application of a head of the department of the |
19 | municipality by which he is employed, be retired by the board on |
20 | a disability allowance [if he is under superannuation retirement |
21 | age, and on a superannuation retirement allowance if he has |
22 | attained or passed such age,] if the physician designated by the |
23 | board, after medical examination of the [contributor] member |
24 | made at the place of residence of the [contributor] member or at |
25 | a place mutually agreed upon, [shall certify] certifies to the |
26 | board that the [contributor] member is unable to engage in any |
27 | gainful employment and that [said contributor] the member ought |
28 | to be retired. When the disability of a [contributor] member is |
29 | determined to be service-connected, as defined in this act, no |
30 | minimum period of service shall be required for eligibility. |
|
1 | Application filing requirements shall be identical to those |
2 | outlined in clause (1) of section 309. |
3 | (b) On retirement for disability, a member shall receive a |
4 | retirement allowance which shall consist of: |
5 | (1) A member's annuity of equivalent actuarial value to his |
6 | accumulated deductions, plus the balance in the member's excess |
7 | investment account[;]. |
8 | (2) A municipal annuity of equivalent actuarial value to the |
9 | present value of a municipal annuity, beginning at |
10 | superannuation retirement age, calculated in accordance with the |
11 | provisions of section 309[; and]. |
12 | (3) A disability annuity payable from the total disability |
13 | reserve account which, together with the member's annuity and |
14 | the municipal annuity, shall be sufficient to produce a |
15 | retirement allowance of thirty per cent of the [contributor's] |
16 | member's final salary. Where the disability of the member is |
17 | determined to be service-connected, as defined in this act, the |
18 | retirement allowance shall equal fifty per cent of his final |
19 | salary. The disability annuity shall be reduced by the amount of |
20 | any payments for which the member shall be eligible under the |
21 | act of June 2, 1915 (P.L.736, No.338), known as "The |
22 | Pennsylvania [Workmen's] Workers' Compensation Act," or the act |
23 | of June 21, 1939 (P.L.566, No.284), known as "The Pennsylvania |
24 | Occupational Disease Act." |
25 | (c) Once every year the board may require any disability |
26 | annuitant, while still under superannuation retirement age, to |
27 | undergo medical examination by a physician designated by the |
28 | board, and [such] the examination shall be made at the place of |
29 | residence of the annuitant or other place mutually agreed upon. |
30 | Should the physician report and certify to the board that [such] |
|
1 | the disabled annuitant is no longer physically or mentally |
2 | incapacitated for the performance of duty and is able to engage |
3 | in a gainful occupation, then his disability retirement |
4 | allowance shall be discontinued, and in lieu thereof an early |
5 | involuntary retirement allowance shall at that time be granted |
6 | as if [such] the person had been retired not voluntarily, if |
7 | [such] the person [shall have] has eight or more years of total |
8 | service. |
9 | (d) Should a disability annuitant, while under |
10 | superannuation retirement age, refuse to submit to at least one |
11 | medical examination in any year by a physician designated by the |
12 | board, his disability retirement allowance shall be discontinued |
13 | until withdrawal of [such] the refusal, and should [such] the |
14 | refusal continue for one year, then all his rights in and to any |
15 | disability retirement allowance or for early involuntary |
16 | retirement allowance provided by this act shall be forfeited. |
17 | (e) Any [contributor] member entitled to retire for |
18 | disability may, in lieu of such retirement, if he has eight or |
19 | more years of total service, elect to retire not voluntarily |
20 | under the provisions of this act. |
21 | (f) Should a disability annuitant die before the total |
22 | disability retirement allowance received [shall be] is at least |
23 | equal to the amount of his accumulated deductions plus the |
24 | balance in the member's excess investment account at the time of |
25 | disability retirement, then the board shall pay to the named |
26 | beneficiary, if living, or if the named beneficiary predeceased |
27 | the annuitant, or no beneficiary was named, then to the |
28 | annuitant's estate, an amount equal to the difference between |
29 | [such] the total retirement allowance received and the |
30 | annuitant's accumulated deductions, and if [such] the difference |
|
1 | is less than one hundred dollars ($100) and no letters have been |
2 | taken out on the estate within six months after death, then |
3 | [such] the difference may be paid to the undertaker or to any |
4 | person or municipality who or which [shall have] paid the claim |
5 | of the undertaker. |
6 | Section 37. Section 314 of the act, amended May 17, 1980 |
7 | (P.L.135, No.50), is amended to read: |
8 | Section 314. Vesting.--(a) Should a [contributor] member, |
9 | before reaching superannuation retirement age and after having |
10 | completed twelve years of total service, for any reason cease to |
11 | be a municipal [fireman] fire fighter or a municipal [policeman] |
12 | police officer, he shall be entitled to vest his retirement |
13 | benefits until he attains superannuation retirement age, by |
14 | filing with the board a written notice of his intentions to |
15 | vest, within ninety days of the date of his termination of |
16 | employment. Accumulated deductions will include interest from |
17 | date of termination until the earlier of the date of the |
18 | commencement of the annuity or the date of payment of member |
19 | contributions. |
20 | (b) A [contributor] member, who was terminated by the |
21 | municipality not voluntarily, may elect, after he has vested, to |
22 | be paid as follows: |
23 | (1) [The] the full amount of the accumulated deductions plus |
24 | the balance in the member's excess investment account, including |
25 | interest; [or] |
26 | (2) [An] an early retirement allowance as computed under the |
27 | provisions of clause (2) of section 311; or |
28 | (3) [Upon] upon reaching superannuation retirement age, a |
29 | superannuation retirement allowance as computed under the |
30 | provisions of section 309. |
|
1 | (c) A [contributor] member, who voluntarily terminated his |
2 | employment, may elect, after he has vested, to be paid as |
3 | follows: |
4 | (1) [The] the full amount of the accumulated deductions plus |
5 | the balance in the member's excess investment account, including |
6 | interest; [or] |
7 | (2) [If the contributor] if the member has completed twenty- |
8 | four years or more of total service, a voluntary withdrawal |
9 | allowance computed in accordance with the provisions of section |
10 | 311; or |
11 | (3) [Upon] upon reaching superannuation retirement age, a |
12 | superannuation retirement allowance as computed under the |
13 | provisions of section 309. |
14 | (d) Should a [contributor] member, who has vested, die |
15 | before he becomes eligible for a retirement allowance, the full |
16 | amount of the accumulated deductions plus the balance in the |
17 | member's excess investment account, including interest to the |
18 | date of his death, standing to his credit in the member's |
19 | account of the fund shall be paid to his estate or to his named |
20 | beneficiary in accordance with the provisions of subsection (d) |
21 | of section 308. |
22 | (e) Upon the termination of the retirement plan, all |
23 | members, regardless of credited service, shall be deemed fully |
24 | vested in their accrued benefit to the extent the benefits |
25 | provided under the plan are funded as of the date of |
26 | termination. |
27 | Section 38. Section 315 of the act is amended to read: |
28 | Section 315. Compliance.--When a municipality joins the |
29 | system, its action shall be construed as compliance with the |
30 | provisions of the former act of May 29, 1956 (P.L.1804, No.600), |
|
1 | or any other statute requiring the creation of a pension or |
2 | retirement system for [firemen] fire fighters or police |
3 | officers. |
4 | Section 39. Sections 316 and 317 of the act, amended May 17, |
5 | 1980 (P.L.135, No.50), are amended to read: |
6 | Section 316. Withdrawal Provisions.--(a) A municipality |
7 | which has joined the retirement system created or continued |
8 | under this [Article III] article may, for good and stated cause, |
9 | file an application with the board for permission to withdraw |
10 | from the system if it meets all of the following requirements: |
11 | (1) The municipality has been enrolled in the system for a |
12 | period of at least five years. |
13 | (2) The municipality has met all of its financial |
14 | obligations to the system. |
15 | (3) The legislative body of the municipality has passed an |
16 | ordinance or resolution signifying its intention to withdraw |
17 | from the system. |
18 | (4) The municipality has certified to the board that an |
19 | affirmative vote approving withdrawal from the system had been |
20 | obtained from at least seventy-five per cent of all of the |
21 | municipal [employes] employees affected by the ordinance or |
22 | resolution. |
23 | (b) The board shall within ninety days of its receipt, take |
24 | action on an application filed by a municipality for permission |
25 | to withdraw from the system. If the application is approved the |
26 | withdrawing municipality shall be entitled to receive a net |
27 | refund of the amounts then standing to the credit of the |
28 | municipality in the member's account, member's excess investment |
29 | account, the municipal account and the retired member's reserve |
30 | accounts of the system. In no event shall the total amount of |
|
1 | the net refund to the municipality exceed the pro rata interest |
2 | of the withdrawing municipality in the net assets of the entire |
3 | fund based on the market value of the investments of the fund as |
4 | of the date of receipt of the application for permission to |
5 | withdraw. The liability for the continuation of retirement or |
6 | disability allowances being paid from the fund shall attach |
7 | against the withdrawing municipality and be paid from funds |
8 | transferred to a retirement system established subsequent to its |
9 | withdrawal from the system or from moneys appropriated annually |
10 | from tax revenues sufficient to pay the same. If the board |
11 | disapproves the application of the municipality for permission |
12 | to withdraw from the system the board shall promptly notify the |
13 | municipality of its decision and advise the municipality of the |
14 | board's reason or reasons for disapproval. The board shall |
15 | establish rules and regulations, in accordance with the |
16 | provisions of clause (10) of section 104 of this act, governing |
17 | the details of the procedures to be followed in the withdrawal |
18 | of municipalities from the system. |
19 | Section 317. Procedures for Amending Contracts.--Any |
20 | municipality which has joined the system under the provisions of |
21 | this [Article III] article may, with the approval of the board, |
22 | enter into a contract with the board as outlined in Article IV |
23 | of this act, to increase any of the benefits enumerated in |
24 | Article IV. The board shall not enter into any contract with any |
25 | municipality which decreases benefits, nor shall it enter into |
26 | any contract with a municipality which provides for benefits in |
27 | excess of or minimum members contribution rates less than those |
28 | available to it under any other existing law pertaining to the |
29 | establishment of retirement systems for that class of |
30 | municipality, except to the extent that excess investment |
|
1 | earnings are allocated to provide for additional pension |
2 | benefits or member accruals as otherwise provided in this law. |
3 | Before the board approves any such contract it shall first |
4 | determine, through its actuary, that the plan outlined in the |
5 | contract is actuarially sound. Any member municipality which |
6 | elects to enter into a contract for increased benefits which |
7 | would result in an increase in its [employes] employees |
8 | contribution rates shall first obtain the written consent of at |
9 | least seventy-five per cent of its then member [employes] |
10 | employees. Additional costs for contracted increases in benefits |
11 | shall become the responsibility of the municipality and/or the |
12 | members as specified in the contract. |
13 | Section 40. Section 401 of the act is amended to read: |
14 | Section 401. Purpose.--This article [shall provide] provides |
15 | for the optional enrollment of those municipalities in the |
16 | Pennsylvania Municipal Retirement System which want to offer |
17 | retirement benefits to their [employes] employees different from |
18 | those available under Article II and Article III of this act. It |
19 | shall also provide for increasing member benefits for |
20 | municipalities formerly enrolled under the provisions of Article |
21 | II and Article III of this act. |
22 | Section 41. Section 402 of the act, amended November 29, |
23 | 2004 (P.L.1331, No.169), is amended to read: |
24 | Section 402. Existing Local Retirement Systems and |
25 | Compulsory and Optional Membership.--(a) Where a municipality |
26 | elects to join the system [established by this act] under the |
27 | provisions of this article, and is then maintaining a retirement |
28 | or pension system or systems covering its [employes] employees |
29 | in whole or in part, those [employes] employees so covered, and |
30 | [employes] employees thereafter eligible to join such pension |
|
1 | system, shall not become members of the retirement system |
2 | established by this act, unless at the time the municipality |
3 | elects to join the system, the members of each such existing |
4 | retirement or pension system shall, by the affirmative vote of |
5 | seventy-five per cent of all the members of each pension system, |
6 | elect to be covered by the retirement system established by this |
7 | act. At any time thereafter, within a period of three years |
8 | after the municipality has elected to join the system, but not |
9 | thereafter, the members of an existing retirement or pension |
10 | system may, in like manner, elect to join the system established |
11 | by this act. In any such case, provisions may be made for the |
12 | transfer of moneys and securities in its retirement or pension |
13 | fund or funds, in whole or in part, to the fund established by |
14 | this act. Securities so transferred shall be only those |
15 | acceptable to the board. Securities not so acceptable shall be |
16 | converted into cash, and [said] the cash transferred to the fund |
17 | created by this act. In any such transfer, provision shall be |
18 | made to credit the accumulated deductions of each member, at |
19 | least the amount he has paid into the retirement or pension |
20 | system of the municipality, which moneys shall be credited |
21 | against the prior service contributions of [such] the member, or |
22 | a municipality may turn over to the retirement system created by |
23 | this act any existing local pension system on a completely |
24 | funded basis, as to pensioners and pension credits of members |
25 | related to prior service to the date of transfer, or on a |
26 | partially funded basis if the municipality pays annually into |
27 | the retirement system amounts sufficient to completely liquidate |
28 | the municipality's liability for prior service within a period |
29 | not to exceed thirty years. |
30 | (b) No liability, on account of retirement allowances or |
|
1 | pensions being paid from any retirement or pension fund of the |
2 | municipality, shall attach against the fund, except as provided |
3 | in the agreement, making a transfer of an existing system in |
4 | accordance with this section. The liability to continue payment |
5 | of pensions not so transferred shall attach against the |
6 | municipality, which shall annually make appropriations from its |
7 | tax revenues sufficient to pay the same. In cases where workers |
8 | covered by an existing retirement or pension system elect to |
9 | join the system created by this act, the election to join shall |
10 | be deemed to have been made at the time the municipality elected |
11 | to join the system, and the liabilities of the municipality |
12 | shall be fixed accordingly. |
13 | (c) If a municipality elects to join the system under the |
14 | provisions of this [Article IV] article, it shall first |
15 | negotiate a contract with the board, acceptable to both the |
16 | municipality and the board, which shall set forth all the |
17 | specific details of municipal and member contribution rates and |
18 | benefits. The municipality shall then pass an ordinance or |
19 | resolution electing to join the system, and confirming the terms |
20 | of the contract by reference thereto. Separate contracts and |
21 | separate resolutions shall be executed for each class of |
22 | [employes] employees, namely municipal [employes] employees, |
23 | municipal [firemen] fire fighters and municipal police officers |
24 | in those cases where the municipality elects to bring more than |
25 | one class of its [employes] employees into the system. |
26 | (d) When a municipality elects to enroll its municipal |
27 | [employes] employees into the system, then each officer other |
28 | than elected officers, and each municipal [employe] employee |
29 | thereof, employed on a full-time basis, shall be required to |
30 | become a member of the system. Each municipality shall determine |
|
1 | whether membership in [said] the system for elected officials |
2 | and [employes] employees hired on a temporary, seasonal or part- |
3 | time basis shall be compulsory, optional or prohibited. Where |
4 | membership may be optional with an elected officer or an |
5 | [employe] employee hired on a temporary, seasonal or part-time |
6 | basis, an election to join the system must be made within one |
7 | year after the municipality elected to join the system or within |
8 | one year after the officer or temporary, seasonal or part-time |
9 | [employe] employee first entered the service of the |
10 | municipality. For an employee who chooses not to enroll, the |
11 | declination of membership shall apply for the period of time the |
12 | employee serves continuously in that optional category. If there |
13 | is a break in service and the employee returns, the employee |
14 | shall not be permitted to purchase optional membership time |
15 | previously declined, but may be enrolled as a member for future |
16 | optional service, if the employee so chooses. If the employee |
17 | returns to service where membership is mandatory, the member |
18 | shall be required to join the plan, on a prospective basis only. |
19 | Officers and [employes] employees paid only on a fee basis shall |
20 | not be eligible to join the system. |
21 | (e) When a municipality elects to enroll its municipal |
22 | [firemen] fire fighters or its municipal police officers into |
23 | the system, then each municipal [fireman] fire fighter or each |
24 | municipal [policeman] police officer, as defined in section 102 |
25 | of this act, shall be required to become a member of the system. |
26 | (f) When a municipality has established a policy of placing |
27 | new [employes] employees on a probationary status it may elect |
28 | to refrain from enrolling such [employes] employees into the |
29 | system for a period of up to one year from the date the |
30 | probationary [employe] employee first entered the service of the |
|
1 | municipality. In such cases service credits shall not be earned |
2 | by the [employe] employee for probationary time served prior to |
3 | enrollment. Notwithstanding any other provision [herein] in this |
4 | act, the board may, in its discretion, entertain a request from |
5 | a municipality to join the system established by this act for |
6 | those [employes] employees who are excluded from local pension |
7 | plan coverage by virtue of the collective bargaining process or |
8 | otherwise. The request to join the system must be accompanied by |
9 | an affirmative vote of no less than three-fourths of those |
10 | [employes] employees not covered by the local pension plan. The |
11 | benefits to be established may be in accordance with the |
12 | provisions of this article or any other relevant pension law |
13 | covering that class of municipality. The other requirements of |
14 | this section for joining this system shall be observed. |
15 | Section 42. Sections 403 and 404 of the act, amended May 17, |
16 | 1980 (P.L.135, No.50), are amended to read: |
17 | Section 403. Contract Provisions.--(a) Any contract for an |
18 | optional retirement plan entered into between a municipality and |
19 | the board shall not provide for any benefits in excess of or |
20 | minimum member's contribution rates less than those available to |
21 | that municipality for that class of [employes] employees under |
22 | any existing law pertaining to the establishment of a retirement |
23 | or pension system, except to the extent that excess investment |
24 | earnings are allocated to provide for additional pension |
25 | benefits or member accruals as otherwise provided in this law. |
26 | (b) The contract shall specifically state the following |
27 | terms and conditions: |
28 | (1) The superannuation retirement age at which a member |
29 | shall become eligible for a full normal retirement allowance in |
30 | accordance with the formula specified in the contract. |
|
1 | (2) Length of service requirements which must be met before |
2 | a member becomes eligible for either a superannuation retirement |
3 | allowance, an early retirement allowance and the method of |
4 | determining any reduction factors involved in the computation of |
5 | the amount of the allowance because of retirement prior to |
6 | attaining superannuation age. |
7 | (3) Provisions for the refunding of accumulated deductions |
8 | plus excess interest to [employes] employees who leave the |
9 | service of the municipality before they become eligible for any |
10 | type of retirement benefit and whether or not the [employe] |
11 | employee shall be entitled to interest earned on contributions. |
12 | (4) Provisions relating to the types and amounts of |
13 | disability retirement benefits for which a member may become |
14 | eligible, and the qualifications therefore. |
15 | (5) The availability of any vesting or deferred benefits to |
16 | which a member may become entitled. |
17 | (6) A description of the amount and the manner in which a |
18 | member may qualify for any death benefits, both before and after |
19 | retirement, including any prescribed payments to widows or |
20 | children under eighteen years of age. |
21 | (7) The formula used to determine the amount of normal |
22 | retirement benefits, including an explanation of the salary or |
23 | compensation to be used in the computations, and a statement |
24 | concerning any social security offset provisions included in the |
25 | contract. |
26 | (8) A description of any optional methods of payment of |
27 | retirement allowances available to a member. |
28 | (9) Any provisions for cost-of-living increases, and |
29 | limitations thereon, which may be included. |
30 | (10) The manner in which the rate or rates of [employe] |
|
1 | employee contributions shall be determined, together with any |
2 | provisions for additional voluntary contributions. |
3 | (11) The manner in which the rates of contribution from the |
4 | municipalities shall be determined. |
5 | (12) The manner in which costs for prior service for which |
6 | the municipality is willing to assume liability shall be |
7 | determined, with respect to both the municipality's share and |
8 | the member's share, if any. |
9 | (13) The manner in which credit for any allowable military |
10 | service shall be determined and the manner in which costs of |
11 | service shall be paid. |
12 | (14) Any other information which might have a bearing on the |
13 | costs or benefits of the retirement plan which might be required |
14 | by the board in the administration of the plan. |
15 | Section 404. Determination of Municipal Liability.--(a) The |
16 | board shall, as soon as may be, determine the present value of |
17 | the liability of each municipality for any prior service credits |
18 | it has elected to extend to its original members, and shall |
19 | establish an amount payable [annually] in accordance with the |
20 | "Municipal Pension Funding Standard and Recovery Act," where |
21 | applicable and where inapplicable over a period not exceeding |
22 | thirty years, through which payments [such] the prior service |
23 | liability may be funded. Each municipality shall have the option |
24 | to spread the payment of [such] the prior service liability over |
25 | [such] the period of years. |
26 | (b) The municipal liability shall be based upon credit for |
27 | those years of prior service toward the municipal annuity of |
28 | each original member, for which the municipality has agreed to |
29 | pay, plus any liability for payment of the member's |
30 | contributions for the prior service or any portion thereof of |
|
1 | each original member which the municipality has agreed to pay. |
2 | (c) The board shall also determine, from time to time, the |
3 | amount which shall be contributed annually by each municipality |
4 | for service credits of original and new members subsequent to |
5 | the time the municipality joined the system, and the additional |
6 | amount which shall be contributed annually by each municipality |
7 | toward a reserve account for disability allowance payable to |
8 | original and new members, in order that all future service |
9 | liability may be fully funded on an actuarial basis. |
10 | (d) The amounts so determined by the board may be expressed |
11 | in a percentage of the payroll of the municipality covering its |
12 | contributing members. |
13 | [The payments made by the State Treasurer to the treasurer of |
14 | the municipality from moneys received from taxes paid upon |
15 | premiums by foreign fire insurance companies for purposes of |
16 | pension, retirement or disability benefits for municipal firemen |
17 | shall be used as follows: (i) to reduce the unfunded liability |
18 | or, after such liability has been funded, (ii) to apply against |
19 | the annual obligation of the municipality for future service and |
20 | disability reserve costs, and (iii) to reduce member |
21 | contributions. It shall be the duty of the governing body to |
22 | apply such payments in accordance with the provisions of this |
23 | act. |
24 | The payments made by the State Treasurer to the treasurer of |
25 | the municipality from the moneys received from taxes paid upon |
26 | premiums by foreign casualty insurance companies for purposes of |
27 | pension, retirement or disability benefits for municipal |
28 | policemen shall be used as follows: (i) to reduce the unfunded |
29 | liability or, after such liability has been funded, (ii) to |
30 | apply against the annual obligation of the municipality for |
|
1 | future service and disability reserve costs, and (iii) to reduce |
2 | member contributions. It shall be the duty of the governing body |
3 | to apply such payments in accordance with the provisions of this |
4 | act.] |
5 | (e) The cost of making the valuations required by this |
6 | section and in the transfer of any existing pension system of |
7 | any municipality, shall be part of the costs of administration |
8 | of this act. |
9 | Section 43. Section 405 of the act is amended to read: |
10 | Section 405. Contributions by Members; Consolidation of |
11 | Credits; Change of Employment.--(a) Each member of the system |
12 | shall be required to contribute to the fund such per cent of his |
13 | actual salary or compensation, including fees where paid in part |
14 | on a fee basis, as specified in the contract, which |
15 | contributions shall be paid into the fund by the municipality |
16 | through payroll deductions in such manner and at such time as |
17 | the board may by rule and regulation determine. |
18 | (b) If such provision is contained in the contract between |
19 | the municipality and the board, each member may increase his |
20 | member's annuity by electing to make such additional voluntary |
21 | contributions as prescribed [therein] in the contract. |
22 | (c) When a member is employed by more than one municipality, |
23 | he shall be required to make contributions on account of his |
24 | salary paid by each municipality. In such cases the board shall |
25 | provide for the consolidation of credits of the [contributor] |
26 | member, and upon his retirement, for a consolidated retirement |
27 | allowance. |
28 | (d) When a [contributor] member leaves the employ of a |
29 | municipality which has joined the system, and enters into the |
30 | employ of another municipality which has also joined the system, |
|
1 | his service credits shall remain unimpaired, but in such cases |
2 | any unpaid municipal liability for prior service shall be |
3 | prorated by the board between the municipalities on an equitable |
4 | basis. |
5 | Section 44. Section 406 of the act, amended May 17, 1980 |
6 | (P.L.135, No.50) and November 29, 2004 (P.L.1331, No.169), is |
7 | amended to read: |
8 | Section 406. Withdrawal; Return to Service; Death in |
9 | Service.--(a) Should a [contributor] member, before reaching |
10 | superannuation retirement age, for any reason terminate his |
11 | employment with the municipality, he shall receive a refund of |
12 | his contributions in full, either with or without interest and |
13 | excess interest earned as specified in the contract, unless he |
14 | may be entitled to a retirement allowance for early retirement, |
15 | and elects to take [such] the retirement allowance. Should |
16 | [such] the former [contributor] member thereafter return to the |
17 | service of the same municipality and restore to the fund in such |
18 | manner as may be agreed upon by [such] the person and the board, |
19 | his withdrawn contributions as they were at the time of his |
20 | separation from service, his annuity rights as they existed at |
21 | the time of separation from service, shall be restored and his |
22 | obligations as a member shall begin again. [The rate of |
23 | contribution of such returning member shall be the same as it |
24 | was at the time he separated from service.] |
25 | (b) Should a [contributor] member, having attained or passed |
26 | superannuation age, elect, upon leaving the service of the |
27 | member municipality, not to claim the retirement allowance to |
28 | which he is entitled, he shall, upon written application, be |
29 | paid by the board the full amount of his contributions standing |
30 | to his credit in the member's account, either with or without |
|
1 | interest earned and the amount in his excess investment account |
2 | as stipulated in the contract. |
3 | (c) (1) Should a person who has been retired on a |
4 | retirement allowance under this act, return to employment on a |
5 | regular full-time basis in the same municipality, his retirement |
6 | allowance shall cease, and in the case of an annuity, other than |
7 | a disability annuity, the present value of [such] the annuity |
8 | shall be frozen as of the date [such] the annuity ceases. Upon |
9 | subsequent discontinuance of service, [such] the member, other |
10 | than a former disability annuitant, shall be entitled to an |
11 | annuity which is [actuarially equivalent to the sum of the |
12 | present value] of an equivalent actuarial value as the annuity |
13 | previously being paid and the present value of the annuity |
14 | earned by further service and further deductions added upon |
15 | reemployment. |
16 | (2) For the purposes of this section if a person is |
17 | reemployed [on a temporary, seasonal or part-time basis and his |
18 | gross post-retirement earnings from such reemployment during the |
19 | calendar year are less than five thousand dollars ($5,000) or |
20 | such other maximum as the board may establish, he shall not be |
21 | deemed reemployed, but if and when his gross post-retirement |
22 | earnings exceed five thousand dollars ($5,000) or such other |
23 | maximum as the board may establish in any calendar year he shall |
24 | not be entitled to receive his retirement allowance for that |
25 | month or any subsequent month in the calendar year in which he |
26 | continues in service] following commencement of his retirement |
27 | allowance, he shall not be entitled to receive his retirement |
28 | allowance for that month or any subsequent month in which he |
29 | continues in service. |
30 | (3) Notwithstanding the provisions of paragraph (2), if such |
|
1 | person is otherwise eligible to receive an in-service |
2 | distribution of his retirement benefit by, (i) attainment of |
3 | normal retirement age as defined in the Internal Revenue Code, |
4 | (ii) operation of Internal Revenue Code § 401(a)(36) or (iii) |
5 | operation of any other provision as may be adopted by the board |
6 | and consistent with the tax-qualification provisions of the |
7 | Internal Revenue Code, his retirement allowance shall continue |
8 | to be paid through such period of reemployment. The municipality |
9 | [is required to] shall notify the board immediately of the |
10 | reemployment status of any retired former [employe and file |
11 | separate monthly reports of his gross earnings as prescribed by |
12 | the board] employee. |
13 | (d) Should a [contributor] member die while in service, any |
14 | death or survivor benefits for which he may be eligible under |
15 | the provisions of the contract shall be paid in accordance with |
16 | the terms of the contract. |
17 | (e) Should a [contributor] member die while in service, and |
18 | before becoming eligible for any other benefits contained in the |
19 | contract, the full amount of his contributions, either with or |
20 | without interest and excess interest earned as stipulated in the |
21 | contract, shall be paid to his estate, or to such person, if |
22 | living, as he shall have designated in writing, filed with the |
23 | board as his beneficiary. In case any [contributor] member has |
24 | failed to designate a beneficiary, or if the named beneficiary |
25 | has predeceased the member and no such successor beneficiary has |
26 | been named, and upon the death in service shall have less than |
27 | one hundred dollars ($100) in accumulated deductions standing to |
28 | his credit, the board may, if letters testamentary or of |
29 | administration have not been taken out on his estate within six |
30 | months after death, pay [such] the accumulated deductions on the |
|
1 | claim of the undertaker, or to any person or municipality which |
2 | [shall have] has paid the claim of the undertaker. |
3 | Section 45. Section 407 of the act is amended to read: |
4 | Section 407. Superannuation Retirement.--Retirement for |
5 | superannuation shall be as follows: |
6 | (1) Any [contributor] member who has reached superannuation |
7 | retirement age may retire for superannuation by filing with the |
8 | board a written statement, duly attested, setting forth on what |
9 | date he desires to be retired. [Said] The application shall make |
10 | the superannuation retirement allowance effective on the date so |
11 | specified, if [such] the application was filed in the office of |
12 | the board or deposited in the United States mail, addressed to |
13 | the board, before the date specified in the application and |
14 | before the death of the [contributor] member, but the date so |
15 | specified in the application shall not be more than ninety days |
16 | after the date of filing, or the date the application was |
17 | deposited in the mail. |
18 | (2) On retirement for superannuation, a [contributor] member |
19 | shall be entitled to a retirement allowance throughout his life, |
20 | which shall consist of an amount computed in accordance with the |
21 | formula specified in the contract. |
22 | Section 46. Section 408 of the act, amended May 17, 1980 |
23 | (P.L.135, No.50), is amended to read: |
24 | Section 408. Early Retirement.--Should a member be |
25 | discontinued from service not voluntarily, after having |
26 | completed a required number of years of total service, or |
27 | voluntarily after having completed a required number of years of |
28 | total service, but in either event before reaching |
29 | superannuation retirement age, he shall be paid, as he may |
30 | elect, as follows: |
|
1 | (1) [The] the full amount of the accumulated deductions |
2 | standing to his credit in the member's account of the fund, plus |
3 | the balance in the member's excess investment account; or |
4 | (2) [The] the early retirement allowance, if any, specified |
5 | in the contract. |
6 | Section 47. Section 409 of the act, amended June 10, 1982 |
7 | (P.L.446, No.131), is amended to read: |
8 | Section 409. Options on Superannuation or Early |
9 | Retirement.--At the time of his superannuation or early |
10 | retirement, a [contributor] member may elect to receive his |
11 | benefits in a retirement allowance payable throughout his life, |
12 | which shall be known as a single life annuity. In the event of |
13 | the death of an annuitant who has elected to receive the maximum |
14 | single life annuity before he has received in annuity payments |
15 | the full amount of the total accumulated deductions standing to |
16 | his credit on the effective date of retirement, the balance |
17 | shall be paid to his designated beneficiary, or instead, he may |
18 | elect to receive the actuarial equivalent at that time of his |
19 | retirement allowance in a lesser allowance, payable throughout |
20 | life with provisions that: |
21 | (1) Option 1. If he shall die before receiving in payments |
22 | the present value of his retirement allowance as it was at the |
23 | time of his retirement, the balance, if less than five thousand |
24 | dollars ($5,000), shall be paid in a lump sum to his legal |
25 | representative, or to or in trust for his beneficiary. If the |
26 | balance is five thousand dollars ($5,000) or more, the |
27 | beneficiary may elect by application duly acknowledged and filed |
28 | with the board to receive payment of [such] the balance |
29 | according to any one of the following provisions: (i) a lump sum |
30 | payment, (ii) an annuity having a present value equal to the |
|
1 | balance payable, (iii) a lump sum payment and an annuity. [Such] |
2 | The annuity shall be of equivalent actuarial value to the |
3 | balance payable less the amount of the lump sum payment |
4 | specified by the beneficiary. |
5 | (2) Option 2. Upon his death, his retirement allowance |
6 | shall be continued throughout the life of and paid to his |
7 | survivor annuitant, if then living. |
8 | (3) Option 3. Upon his death, one-half of his retirement |
9 | allowance shall be continued throughout the life of and paid to |
10 | his survivor annuitant, if then living. |
11 | (4) Option 4. Any other optional form of payment contained |
12 | in the contract. |
13 | Section 48. Section 410 of the act, amended January 4, 1978 |
14 | (P.L.1, No.1), is amended to read: |
15 | Section 410. Vesting.--(a) Provisions for vesting may be |
16 | included in the contract between the municipality and the board. |
17 | When such provision is made it shall mean that a [contributor] |
18 | member who terminates his employment with the municipality after |
19 | a stipulated age or length of service, or both, may, if he so |
20 | elects in writing, leave his contributions, plus interest, as |
21 | credited to his account, in the fund, and, upon reaching |
22 | superannuation retirement age, receive a superannuation |
23 | retirement allowance and accumulated deductions would include |
24 | interest from date of termination until the earlier of the date |
25 | of commencement of the annuity or the date of payment of member |
26 | contributions. |
27 | (b) Upon the termination of the retirement plan, all |
28 | members, regardless of credited service, shall be deemed fully |
29 | vested in their accrued benefit to the extent the benefits |
30 | provided under the plan are funded as of the date of |
|
1 | termination. |
2 | Section 49. Sections 411, 412 and 413 of the act, amended |
3 | May 17, 1980 (P.L.135, No.50), are amended to read: |
4 | Section 411. Disability Retirement.--(a) After a member has |
5 | had the required number of years of total service as stated in |
6 | the contract, he may, upon application or on the application of |
7 | one acting in his behalf, or upon application of a head of the |
8 | department of the municipality by which he is employed, be |
9 | retired by the board on a disability allowance [if he is under |
10 | superannuation retirement age, and on a superannuation |
11 | retirement allowance if he has attained or passed such age,] if |
12 | the physician designated by the board, after medical examination |
13 | of the member made at the place of residence of the member or at |
14 | a place mutually agreed upon, shall certify to the board that |
15 | the member is unable to engage in any gainful employment and |
16 | that [said] the member ought to be retired. Where the disability |
17 | of a member is determined to be service-connected, as defined in |
18 | this act, no minimum period of service shall be required for |
19 | eligibility. Requirements for filing applications shall be |
20 | identical to those outlined in clause (1) of section 407. |
21 | (b) On retirement for disability a member shall receive a |
22 | retirement allowance which shall consist of an amount computed |
23 | in accordance with the formula specified in the contract. |
24 | (c) Once every year the board may require any disability |
25 | annuitant, while still under superannuation retirement age, to |
26 | undergo medical examination by a physician designated by the |
27 | board. [Such] The examination shall be made at the place of |
28 | residence of the beneficiary or other place mutually agreed |
29 | upon. Should the physician report and certify to the board that |
30 | [such] the disability beneficiary is no longer physically or |
|
1 | mentally incapacitated for the performance of duty and is able |
2 | to engage in a gainful occupation, then his disability |
3 | retirement allowance shall be discontinued, and in lieu thereof |
4 | an early involuntary retirement allowance shall at that time be |
5 | granted as if [such] the person had been retired not |
6 | voluntarily, if such a provision is included in the contract and |
7 | if [such] the person [shall have had] has the required number of |
8 | years of total service as stated in the contract. |
9 | (d) Should a disability annuitant, while under |
10 | superannuation retirement age, refuse to submit to at least one |
11 | medical examination in any year by a physician designated by the |
12 | board, his disability retirement allowance shall be discontinued |
13 | until the withdrawal of [such] the refusal, and should [such] |
14 | the refusal continue for one year, then all his right in and to |
15 | any disability retirement allowance or for early involuntary |
16 | retirement allowance provided for by this act, shall be |
17 | forfeited. |
18 | (e) Any [contributor] member entitled to retire for |
19 | disability may, in lieu of such retirement, if he has a required |
20 | number of years of total service, elect to retire not |
21 | voluntarily under the provisions of this act if such provisions |
22 | are included in the contract. |
23 | (f) Should a disability annuitant die before the total |
24 | disability retirement allowance received shall be at least equal |
25 | to the amount of the credit in his member's account plus the |
26 | balance in the member's excess investment account at the time of |
27 | disability retirement, then the board shall pay to the named |
28 | beneficiary, if living, or if the beneficiary predeceased the |
29 | annuitant, or no beneficiary was named, then to the annuitant's |
30 | estate, an amount equal to the difference between [such] the |
|
1 | total retirement allowance received and the annuitant's |
2 | accumulated deductions plus excess interest, and if [such] the |
3 | difference is less than one hundred dollars ($100) and no |
4 | letters have been taken out on the estate within six months |
5 | after death, then [such] the difference may be paid to the |
6 | undertaker or to any person or municipality who or which [shall |
7 | have] has paid the claim of the undertaker. If the contract |
8 | between the municipality and the board provides that upon the |
9 | death of a disability annuitant payments in a specific amount |
10 | shall be continued to certain beneficiaries, then the provisions |
11 | of [subsection (f)] this subsection shall not apply and payments |
12 | shall be made in accordance with the terms of the contract. |
13 | Section 412. Withdrawal Provisions.--(a) A municipality |
14 | which has joined the retirement system created or continued |
15 | under this [Article IV] article may, for good and stated cause, |
16 | file an application with the board for permission to withdraw |
17 | from the system if it meets all of the following requirements: |
18 | (1) The municipality has been enrolled in the system for a |
19 | period of at least five years. |
20 | (2) The municipality has met all of its financial |
21 | obligations to the system. |
22 | (3) The legislative body of the municipality has passed an |
23 | ordinance or resolution signifying its intention to withdraw |
24 | from the system. |
25 | (4) The municipality has certified to the board that an |
26 | affirmative vote approving withdrawal from the system had been |
27 | obtained from at least seventy-five per cent of all of the |
28 | municipal [employes] employees affected by the ordinance or |
29 | resolution. |
30 | (b) The board shall within ninety days of its receipt, take |
|
1 | action on an application filed by a municipality for permission |
2 | to withdraw from the system. If the application is approved the |
3 | withdrawing municipality shall be entitled to receive a net |
4 | refund of the amounts then standing to the credit of the |
5 | municipality in the member's account, the member's excess |
6 | investment account, the municipal account and the retired |
7 | member's reserve accounts of the system. In no event shall the |
8 | total amount of the net refund to the municipality exceed the |
9 | pro rata interest of the withdrawing municipality in the net |
10 | assets of the entire fund based on the market value of the |
11 | investments of the fund as of the date of receipt of the |
12 | application for permission to withdraw. The liability for the |
13 | continuation of retirement or disability allowances being paid |
14 | from the fund shall attach against the withdrawing municipality |
15 | and be paid from funds transferred to a retirement system |
16 | established subsequent to its withdrawal from the system or from |
17 | moneys appropriated annually from tax revenues sufficient to pay |
18 | the same. If the board disapproves the application of the |
19 | municipality for permission to withdraw from the system the |
20 | board shall promptly notify the municipality of its decision and |
21 | advise the municipality of the board's reason or reasons for |
22 | disapproval. The board shall establish rules and regulations, in |
23 | accordance with the provisions of clause (10) of section 104 of |
24 | this act, governing the details of the procedures to be followed |
25 | in the withdrawal of municipalities from the system. |
26 | Section 413. Procedures for Amending Contracts.--Any |
27 | municipality which has joined the system under the provisions of |
28 | this [Article IV] article may, with the approval of the board, |
29 | amend the contract with the board to increase any of the |
30 | benefits enumerated in [Article IV] this article to its members. |
|
1 | The board shall not enter into any amended contract with any |
2 | municipality which decreases benefits, nor shall it enter into |
3 | any amended contract with a municipality which provides for |
4 | benefits in excess of or minimum member's contribution rates |
5 | less than those available to it under any other existing law |
6 | pertaining to the establishment of retirement systems for that |
7 | class of municipality except to the extent that excess |
8 | investment earnings are allocated to provide for additional |
9 | pension benefits or members accruals as otherwise provided in |
10 | this law. Before the board approves any such amended contract it |
11 | shall first determine, through its actuary, that the plan |
12 | outlined is actuarially sound. Any member municipality which |
13 | elects to enter into an amended contract for increased benefits |
14 | which would result in an increase in its [employes] employees' |
15 | contribution rates shall first obtain the written consent of at |
16 | least seventy-five per cent of its then member [employes] |
17 | employees. Additional costs for increases in benefits shall |
18 | become the responsibility of the municipality and/or the member |
19 | as specified in the contract. |
20 | Section 50. The act is amended by adding articles to read: |
21 | ARTICLE IV-A |
22 | MUNICIPAL PENSION RECOVERY PROGRAM |
23 | Section 401-A. Purpose.--This article provides for the |
24 | mandatory enrollment of pension plans maintained by those |
25 | municipalities which have pension plans that have been |
26 | determined to be severely distressed pursuant to the Municipal |
27 | Pension Plan Funding Standard and Recovery Act, into the |
28 | Municipal Pension Recovery Program established by this article. |
29 | Section 402-A. Mandatory Plan Enrollment.--(a) Every |
30 | municipality that is determined to be severely distressed |
|
1 | pursuant to the Municipal Pension Plan Funding Standard and |
2 | Recovery Act shall join the system under the provisions of this |
3 | article. If a municipality is required to join the system under |
4 | this article, it shall enter into a contract with the board for |
5 | each separately established retirement plan then being |
6 | maintained by the municipality stating the provisions of each |
7 | retirement plan and transferring the responsibility to |
8 | administer each retirement plan to the board. Employees |
9 | participating in a multiemployer retirement, joint trusted, |
10 | Taft-Hartley collectively bargained pension plan shall not be |
11 | subject to the provisions of this article. |
12 | (b) All members of a retirement plan enrolled into the |
13 | Municipal Pension Recovery Program under the provisions of this |
14 | article shall become members of the system and shall earn and |
15 | receive their retirement benefits in accordance with the |
16 | contract entered into under the provisions of this article. |
17 | (c) No employee of a municipality that has entered into a |
18 | contract under the provisions of this article who is hired on or |
19 | after the date of certification as a severely distressed |
20 | retirement plan or who returns to service on or after that date |
21 | shall be enrolled under the provisions of this article but shall |
22 | be subject to the provisions of Article IV-B. |
23 | (d) No liability, on account of retirement allowances or |
24 | pensions being paid from any retirement or pension fund of the |
25 | municipality, shall attach against the fund, except as provided |
26 | in the contract, making a transfer of an existing system in |
27 | accordance with this section. The liability to continue payment |
28 | of pensions not so transferred shall attach against the |
29 | municipality, which shall annually make appropriations from its |
30 | tax revenues sufficient to pay the same. |
|
1 | Section 403-A. Municipal Pension Recovery Program |
2 | Contract.--(a) The Municipal Pension Recovery Program contract, |
3 | as required by section 402-A, shall comport with the existing |
4 | plan documents as may be evidenced by the statutory provisions, |
5 | municipal charters, ordinances or resolutions, collective |
6 | bargaining agreements, arbitration awards and other written |
7 | documentation in full force and effect as of the date of |
8 | certification as a severely distressed retirement plan. All the |
9 | existing plan documents shall be provided to the board within 30 |
10 | days of the date of the certification. The system shall then |
11 | prepare and provide to the municipality a Municipal Pension |
12 | Recovery Program contract that shall contain all retirement |
13 | benefits and obligations to be administered by the system for |
14 | each pension plan established by the municipality. |
15 | (b) Should a municipality fail to provide plan documents |
16 | within the 30-day period, the system shall prepare a Municipal |
17 | Pension Recovery Program contract in accordance with the |
18 | benefits stated in the most recently filed valuation report |
19 | under the Municipal Pension Funding Standards and Recovery Act. |
20 | (c) The administration of the Municipal Pension Recovery |
21 | Program contract shall be subject to Federal and State laws |
22 | relating to tax qualified pension programs. In the event that |
23 | any provision of the existing plan documents is not in |
24 | compliance with Federal and State laws relating to tax qualified |
25 | pension programs, the board may elect to pursue any remedial |
26 | measures it deems appropriate, the cost of which shall be |
27 | absorbed by the municipality. Until such time as the remedial |
28 | measures can be implemented or if such plan provision cannot be |
29 | remediated, such provision shall not be administered by the |
30 | board and shall remain the obligation of the municipality. |
|
1 | (d) Within 30 days from the date the Municipal Pension |
2 | Recovery Program contract was mailed to the municipality, the |
3 | municipality shall execute the Municipal Pension Recovery |
4 | Program contract or file an appeal and request for an |
5 | administrative hearing before the board. Notwithstanding any |
6 | other provision of law, the exclusive remedy of any municipality |
7 | under this article aggrieved by a decision of the board in |
8 | finalizing the terms of the Municipal Pension Recovery Program |
9 | contract shall be the right to an adjudication by the board in |
10 | accordance with 2 Pa.C.S. Ch. 5 (relating to practice and |
11 | procedure) with appeal therefrom to the Commonwealth Court under |
12 | 2 Pa.C.S. Ch. 7 (relating to judicial review) and 42 Pa.C.S. § |
13 | 763(a)(1) (relating to direct appeals from government agencies). |
14 | If an appeal is not filed within the prescribed time, the |
15 | Municipal Pension Recovery Program contract shall be deemed a |
16 | final and binding contract between the board and the |
17 | municipality for the administration of the benefit structure |
18 | provided in the contract. |
19 | (e) From and after the date of certification as a severely |
20 | distressed retirement plan under the Municipal Pension Plan |
21 | Funding Standard and Recovery Act and notwithstanding any other |
22 | provision of law, pension benefits shall not be subject to |
23 | collective bargaining or arbitration between municipalities |
24 | subject to this article and their employees. No statute, |
25 | ordinance, contract, arbitration award or practice shall permit |
26 | or authorize any deviation from or alteration of the terms of |
27 | the Municipal Pension Recovery Program contract by which the |
28 | benefit plan is administered and no amendment thereof shall be |
29 | permitted. A municipality may not establish, create or |
30 | contribute to a retirement plan for employees enrolled in the |
|
1 | Municipal Pension Recovery Program other than the plan created |
2 | in accordance with this article. |
3 | Section 404-A. Required Terms and Conditions.--The Municipal |
4 | Pension Recovery Program contract entered into between a |
5 | municipality and the board shall specifically state the |
6 | following terms and conditions: |
7 | (1) The superannuation retirement age at which a member |
8 | becomes eligible for a full normal retirement allowance in |
9 | accordance with the formula specified in the contract. |
10 | (2) Length of service requirements, if any, which must be |
11 | met before a member becomes eligible for either a superannuation |
12 | retirement allowance or an early retirement allowance and the |
13 | method of determining any reduction factors involved in the |
14 | computation of the amount of the allowance because of retirement |
15 | prior to attaining superannuation age. |
16 | (3) Provisions for the refunding of accumulated deductions |
17 | plus interest to an employee who leaves the service of the |
18 | municipality before the employee becomes eligible for any type |
19 | of retirement benefit and whether or not the employee shall be |
20 | entitled to interest earned on contributions. |
21 | (4) Provisions relating to the types and amounts of |
22 | disability retirement benefits for which a member may become |
23 | eligible and the qualifications therefor. |
24 | (5) The availability of any vesting or deferred benefits to |
25 | which a member may become entitled. |
26 | (6) A description of the amount and the manner in which a |
27 | member may qualify for any death benefits, both before and after |
28 | retirement, including any prescribed payments to spouses or |
29 | children. |
30 | (7) The formula used to determine the amount of normal |
|
1 | retirement benefits, including an explanation of the salary or |
2 | compensation to be used in the computations, and a statement |
3 | concerning any Social Security offset provisions included in the |
4 | contract. |
5 | (8) A description of any optional methods of payment of |
6 | retirement allowances available to a member. |
7 | (9) Any provisions for cost-of-living increases and |
8 | limitations thereon, which may be included. |
9 | (10) The manner in which the rate or rates of employee |
10 | contributions shall be determined, together with any provisions |
11 | for additional voluntary contributions. |
12 | (11) The manner in which credit for any allowable military |
13 | service shall be determined and the manner in which costs of |
14 | service shall be paid. |
15 | (12) Any other information which might have a bearing on the |
16 | costs or benefits of the retirement plan which might be required |
17 | by the board in the administration of the plan. |
18 | Section 405-A. Determination of Municipal Liability.--(a) |
19 | (1) The board shall value the liability of each municipal plan |
20 | enrolling under this article and that liability shall attach to |
21 | the municipality upon the effective date of the Municipal |
22 | Pension Recovery Program contract. The obligations shall be |
23 | calculated in accordance with the funding requirements found in |
24 | the Municipal Pension Funding Standard and Recovery Act. |
25 | (2) The transfer of all plan assets to the Pennsylvania |
26 | Municipal Retirement Fund shall be made effective as of the |
27 | effective date of the Municipal Pension Recovery Program |
28 | contract. The value of said assets shall be determined at market |
29 | value but shall be adjusted by multiplying the market value of |
30 | the plan's assets by the ratio of the system's actuarial value |
|
1 | of assets as of January 1 of the year the plan enrolls in the |
2 | system divided by the system's market value of assets as of |
3 | January 1 of the year the plan enrolls in the system. |
4 | (3) As of the effective date of the Municipal Pension |
5 | Recovery Program contract, the board shall pay a plan's existing |
6 | retirement allowance obligations. All the benefits shall be paid |
7 | on a month-to-month basis from the retired members reserve |
8 | account, but the cost of the benefit payments shall not attach |
9 | to the retired member's reserve account. |
10 | (4) The plan's benefit liability shall be deducted from the |
11 | plan's assets held in the municipal account maintained by the |
12 | system on behalf of the plan and transferred to the retired |
13 | members reserve account. |
14 | (5) Upon the retirement or the establishment of a benefit |
15 | payment to a plan member, that plan member's member account and |
16 | all accumulated contributions held in the member account shall |
17 | be transferred to that plan's municipal account, and the benefit |
18 | shall be a liability attaching to the municipal account. |
19 | (b) The cost of making the valuations required by this |
20 | section and in the transfer of any existing pension system of |
21 | any municipality shall be part of the costs of administration of |
22 | this act. |
23 | Section 406-A. Contributions by Members.--Each member of the |
24 | system shall contribute to the fund such percent of his actual |
25 | salary or compensation, including fees where paid in part on a |
26 | fee basis, as required in the contract. The contributions shall |
27 | be paid into the fund by the municipality through payroll |
28 | deductions in such manner and at such time as the board may, by |
29 | rule and regulation, determine. The contributions shall be held |
30 | in a member account established and maintained on behalf of each |
|
1 | contributing member. |
2 | Section 407-A. Nonportability.--There shall be no |
3 | portability of service credits or contributions provided for in |
4 | any Municipal Pension Recovery Program contract established in |
5 | accordance with the provision of this article. |
6 | Section 408-A. Plan Termination and Residual Assets.--(a) |
7 | The board shall operate and administer each Municipal Pension |
8 | Recovery Program contract established under this article until |
9 | such time as all present and future obligations thereof have |
10 | been fully satisfied, and no retired member or beneficiary |
11 | remains to claim benefits under the contract, at which time the |
12 | board shall terminate the plan and the Municipal Pension |
13 | Recovery Program contract established for the plan shall expire. |
14 | (b) Any residual assets remaining to the credit of a |
15 | terminated pension plan held by the system in the municipal |
16 | account shall be used to satisfy future pension obligations of |
17 | that municipal employer to the Municipal Pension Recovery |
18 | Program established pursuant to Article IV-B, or, if the |
19 | municipality has no employees participating in that retirement |
20 | program, the residual funds shall be paid into the Cooperative |
21 | Municipal Pension and Security Program established under the |
22 | provisions of Article IV-B without restriction. |
23 | (c) Upon the termination of the retirement plan, all |
24 | members, regardless of credited service, shall be deemed fully |
25 | vested in their accrued benefit to the extent the benefits |
26 | provided under the plan are funded as of the date of |
27 | termination. |
28 | ARTICLE IV-B |
29 | COOPERATIVE MUNICIPAL PENSION AND SECURITY PROGRAM |
30 | Section 401-B. Purpose.--This article provides for the |
|
1 | establishment and operation of the Cooperative Municipal Pension |
2 | and Security Program and the mandatory enrollment of certain |
3 | municipal employees, municipal police officers and municipal |
4 | fire fighters into the retirement plans established under the |
5 | provisions of this program. |
6 | Section 402-B. Cooperative Municipal Pension and Security |
7 | Program.--(a) The Cooperative Municipal Pension and Security |
8 | Program is established for the purpose of providing retirement |
9 | benefits to the employees of municipalities that are determined |
10 | to be severely distressed as defined by the Municipal Pension |
11 | Plan Funding Standard and Recovery Act. This article shall be |
12 | applicable to all full-time employees hired by a municipality |
13 | after the determination that the municipality is severely |
14 | distressed. A municipality determined to be subject to the |
15 | provisions of this article shall not, after such finding, |
16 | establish or participate in a retirement or pension fund, plan |
17 | or system for its full-time employees except as provided by this |
18 | article. For purposes of this article "full-time employee" means |
19 | an individual employed by a municipality who is scheduled to |
20 | work an average of at least 35 hours per week during a period of |
21 | at least six consecutive months. The term does not include an |
22 | independent contractor or any individual compensated on a fee or |
23 | commission basis. |
24 | (b) The Cooperative Municipal Pension and Security Program |
25 | shall be composed of the following retirement plans which shall |
26 | be maintained as tax-qualified pension plans established for the |
27 | exclusive benefit of the members and their beneficiaries: |
28 | (1) Municipal employees retirement plan A. |
29 | (2) Municipal employees retirement plan B. |
30 | (3) Public safety officers retirement plan A. |
|
1 | (4) Public safety officers retirement plan B. |
2 | (c) The Cooperative Municipal Pension and Security Program |
3 | shall be administered by the board in accordance with the |
4 | provisions of this article. |
5 | Section 403-B. Membership in a Retirement Plan.--(a) Each |
6 | municipality subject to the provisions of this article shall |
7 | enroll their municipal employees, municipal police officers and |
8 | municipal fire fighters in the Cooperative Municipal Pension and |
9 | Security Program by making application on behalf of the |
10 | employees to the board. Each application for participation |
11 | submitted by an employer under this section shall be enrolled in |
12 | the retirement plan applicable to their employment as follows: |
13 | (1) Municipal employees employed by a city shall be enrolled |
14 | in the municipal employees retirement plan A. |
15 | (2) Municipal employees employed by a municipality other |
16 | than a city shall be enrolled in the municipal employees |
17 | retirement plan B. |
18 | (3) Municipal police officers and municipal fire fighters |
19 | employed by a city shall be enrolled in the public safety |
20 | officers retirement plan A. |
21 | (4) Municipal police officers and municipal fire fighters |
22 | employed by a municipality other than a city shall be enrolled |
23 | in the public safety officers retirement plan B. |
24 | (b) Municipalities shall comply with the procedures |
25 | specified by the board regarding the content and submission of |
26 | applications for participation in the Cooperative Municipal |
27 | Pension and Security Program. |
28 | Section 404-B. Service Allowance; Change of Employment; and |
29 | Military Service.--(a) In computing the length of service of a |
30 | member for retirement purposes, full credit shall be given to |
|
1 | each member for each full or partial year of service rendered to |
2 | the municipality as a full-time employee. Except as otherwise |
3 | required by applicable law, in no event shall a member receive |
4 | service credit for any period during which the member is on |
5 | leave of absence without pay. |
6 | (b) An active member who has been employed by a municipality |
7 | that is covered by the provisions of the Cooperative Municipal |
8 | Pension and Security Program and thereafter enters the uniformed |
9 | services as defined by 38 U.S.C. § 4303 (relating to |
10 | definitions) and returns to the municipality to again be a |
11 | member of the plan within the authorized time period of the law, |
12 | shall have the authorized time spent in such service credited to |
13 | the member's employment record for pension or retirement |
14 | benefits, if the individual makes the required employee |
15 | contributions. |
16 | (c) An active member may also purchase credit for |
17 | nonintervening military service for a period not to exceed five |
18 | years. An active member may file an application with the board |
19 | to purchase credit for periods of nonintervening military |
20 | service upon completion of five years of subsequent service to |
21 | the municipality. The amount due from the member shall be |
22 | computed by applying the member's basic contribution rate plus |
23 | the applicable normal cost rate which was in effect on the date |
24 | of the member's entry into Cooperative Municipal Pension and |
25 | Security Program times the member’s average annual rate of |
26 | compensation over the first five years of his subsequent |
27 | employment and multiplying the result by the number of years and |
28 | fractional part of a year of creditable nonintervening military |
29 | service being purchased, plus statutory interest from the date |
30 | of enrollment in the plan to date of purchase. |
|
1 | (d) The amount due from the member for the purchase of |
2 | military service credit shall be certified by the board in |
3 | accordance with methods approved by the actuary and may be paid |
4 | in a lump sum within 30 days or may be amortized with additional |
5 | interest through deductions in amounts agreed upon by the member |
6 | and the board. The rate of interest to be charged to members on |
7 | their purchase of credit for nonintervening military service |
8 | shall be the statutory interest rate. |
9 | (e) A member may purchase credit for intervening or |
10 | nonintervening military service only if his discharge or |
11 | separation from the service was granted under other than |
12 | dishonorable conditions. A member may not purchase credit for |
13 | any military service for which he is entitled to receive, |
14 | eligible to receive now or in the future or is receiving |
15 | retirement benefits for the service under a retirement system |
16 | administered and wholly or partially paid for by any other |
17 | governmental agency or private employer. Applications to |
18 | purchase credit for military service must be accompanied by |
19 | proof of the nature of discharge or separation from the military |
20 | service. |
21 | Section 405-B. Determination of Municipal Liability.--The |
22 | board shall determine the amount which shall be contributed in |
23 | accordance with the Municipal Pension Funding Standard and |
24 | Recovery Act, by each municipality for service credits of |
25 | members subsequent to the time the municipality joined the |
26 | system in order that all service liability may be fully funded |
27 | on an actuarial basis. The amounts so determined by the board |
28 | shall be expressed as a percentage of the payroll of the |
29 | municipality covering its members. Each contribution shall be |
30 | deposited to the employers account of the applicable retirement |
|
1 | plan. |
2 | Section 406-B. Contributions by Members; Consolidation of |
3 | Credits; and Change of Employment.--(a) All plans in the |
4 | Cooperative Municipal Pension and Security Program shall be |
5 | treated as having adopted the provisions of IRC § 414(h) |
6 | relating to pickup contributions. Each municipality shall cause |
7 | the required pickup contributions to be made and shall cause to |
8 | be deducted any other required member contributions from each |
9 | payroll. The pickup rate required to be contributed to the |
10 | retirement plan shall be as follows: |
11 | (1) Members of municipal employees retirement plan A shall |
12 | contribute 6.00% of their compensation. |
13 | (2) Members of municipal employees retirement plan B shall |
14 | contribute 4.50% of their compensation. |
15 | (3) Members of public safety officers retirement plan A |
16 | shall contribute 6.75% of their compensation. |
17 | (4) Members of public safety officers retirement plan B |
18 | shall contribute 6.00% of their compensation. |
19 | (b) The municipality shall notify the board at times and in |
20 | a manner prescribed by the board of the compensation of any |
21 | noneligible member to whom the limitation under IRC § 401(a)(17) |
22 | either applies or is expected to apply and shall cause the |
23 | member's contributions deducted from payroll to cease at the |
24 | limitation under IRC § 401(a)(17) on the payroll date if and |
25 | when the limit is reached. The municipality shall certify to the |
26 | board the amounts picked up and deducted and shall send the |
27 | total amount picked up and deducted in such manner and at such |
28 | time as the board may by rule and regulation determine. The |
29 | employer shall pay pickup contributions from the same source of |
30 | funds which is used to pay other compensation to the employee. |
|
1 | Section 407-B. Withdrawal; Return to Service; and Death in |
2 | Service.--(a) Should a member before reaching superannuation |
3 | retirement eligibility for any reason cease to be employed, he |
4 | shall be paid by the board the full amount of the accumulated |
5 | deductions standing to his credit in the member's account, |
6 | unless he is entitled to vesting rights or a disability |
7 | retirement allowance and elects to exercise the vesting rights |
8 | or disability allowance. Should the former member thereafter |
9 | return to the service of any municipality subject to the |
10 | provisions of this article and restore to the fund, in such |
11 | manner as may be agreed upon by the person and the board, his |
12 | withdrawn accumulated deductions as they were at the time of his |
13 | separation from service, his annuity rights as they existed at |
14 | the time of separation from service shall be restored and his |
15 | obligations as a member shall begin again. |
16 | (b) Should a member, having attained or passed |
17 | superannuation eligibility, elect, upon leaving the service of |
18 | the municipality, not to claim the retirement allowance to which |
19 | he is entitled, he shall, upon written application, be paid by |
20 | the board the full amount of the accumulated deductions standing |
21 | to his credit in the member's account. |
22 | (c) Should a person who has been retired on a retirement |
23 | allowance under this act return to employment on a regular full- |
24 | time basis with a municipality required to enroll its employees |
25 | into the Cooperative Municipal Pension and Security Program, his |
26 | retirement allowance shall cease, and in the case of an annuity, |
27 | other than a disability annuity, the present value of the |
28 | annuity shall be frozen as of the date the annuity ceases. Upon |
29 | subsequent discontinuance of service, the member, other than a |
30 | former disability annuitant, shall be entitled to an annuity |
|
1 | which is of equivalent actuarially value equivalent as the |
2 | present value of the annuity earned by further service and |
3 | further deductions added upon reemployment. |
4 | Section 408-B. Superannuation Age and Service |
5 | Requirements.--Eligibility for superannuation retirement shall |
6 | be as follows: |
7 | (1) For members of the municipal employees retirement plan A |
8 | and municipal employees retirement plan B the attainment of at |
9 | least 30 years of credited service and the attainment of 65 |
10 | years of age. |
11 | (2) For members of the public safety officers retirement |
12 | plan A the attainment of at least 20 years of credited service |
13 | and the attainment of 50 years of age. |
14 | (3) For members of the public safety officers retirement |
15 | plan B the attainment of at least 25 years of credited service |
16 | and the attainment of 55 years of age. |
17 | Section 409-B. Superannuation Retirement Benefit.-- |
18 | Retirement for superannuation shall be as follows: |
19 | (1) Any member who has attained eligibility for a |
20 | superannuation retirement may retire by filing with the board a |
21 | written statement, duly attested, setting forth on what date he |
22 | desires to be retired. The application shall make the |
23 | superannuation retirement allowance effective on the date so |
24 | specified, if the application was filed in the office of the |
25 | board or deposited in the United States mail, addressed to the |
26 | board, before the date specified in the application and before |
27 | the death of the member, but the date stated in the application |
28 | shall not be more than 90 days after the date of filing or the |
29 | date the application was deposited in the mail. |
30 | (2) A member eligible for superannuation retirement shall be |
|
1 | entitled to an annual retirement allowance throughout his life, |
2 | which shall be calculated as follows: |
3 | (i) For members of the municipal employees retirement plan A |
4 | the annual annuity shall equal the member's years of credited |
5 | service times the member's final salary times 2.00%. |
6 | (ii) For members of the municipal employees retirement plan |
7 | B the annual annuity shall equal the member's years of credited |
8 | service times the member's final salary times 1.50%. |
9 | (iii) For members of the public safety officers retirement |
10 | plan A the annual annuity shall equal the member's years of |
11 | credited service times the member's final salary times 2.25%. |
12 | (iv) For members of the public safety officers retirement |
13 | plan B the annual annuity shall equal the member's years of |
14 | credited service times the member's final salary times 2.00%. |
15 | (3) The board shall make the first payment to a member who |
16 | is eligible for an annuity within 60 days of the filing of an |
17 | application for an annuity or, in the case of a vested member |
18 | who has deferred the filing of an application to a date later |
19 | than 90 days following attainment of eligibility for |
20 | superannuation, within 60 days of the effective date of |
21 | retirement, and receipt of the required data from the employer. |
22 | Concurrently the board shall certify to such member: |
23 | (i) The total accumulated deductions standing to the |
24 | member's credit showing separately the amount contributed by the |
25 | member, the pickup contributions and the interest credited to |
26 | the date of termination of service. |
27 | (ii) The number of years and fractional parts of a year |
28 | credited in each class of service. |
29 | (iii) The final average salary on which the annuity is based |
30 | as well as any applicable reduction factors due to election of a |
|
1 | retirement option. |
2 | (iv) The total annual annuity payable under the option |
3 | elected. |
4 | (4) Any annuity granted under the provisions of this section |
5 | or section 410-B shall be paid in equal monthly installments. |
6 | (5) Notwithstanding any other provision of this section, in |
7 | no event shall a member elect, nor shall the board permit, a |
8 | form of benefit that is payable over a period that fails to |
9 | satisfy the required distribution provisions of the Internal |
10 | Revenue Code § 401(a)(9). |
11 | Section 410-B. Options on Retirement.--(a) At the time of |
12 | his retirement, a member may elect to receive his benefits in a |
13 | retirement allowance payable throughout his life, which shall be |
14 | known as a single life annuity. In the event of the death of an |
15 | annuitant who has elected to receive the single life annuity |
16 | before he has received in annuity payments the full amount of |
17 | the total accumulated deductions standing to his credit on the |
18 | effective date of retirement, the balance shall be paid to his |
19 | designated beneficiary. Instead of receiving a single life |
20 | annuity the member may elect to receive the equivalent actuarial |
21 | value at the time of his retirement in a lesser allowance, |
22 | payable throughout life with provisions that: |
23 | (1) Option 1. If he shall die before receiving in payments |
24 | the present value of his retirement allowance as it was at the |
25 | time of his retirement, the balance, if less than $5,000, shall |
26 | be paid in a lump sum to his legal representative or to or in |
27 | trust for his beneficiary. If the balance is $5,000 or more, the |
28 | beneficiary may elect by application duly acknowledged and filed |
29 | with the board to receive payment of such balance according to |
30 | any one of the following provisions: |
|
1 | (i) a lump sum payment; |
2 | (ii) an annuity having a present value equal to the balance |
3 | payable; or |
4 | (iii) a lump sum payment and an annuity. The annuity shall |
5 | be of equivalent actuarial value to the balance payable less the |
6 | amount of the lump sum payment specified by the beneficiary. |
7 | (2) Option 2. Upon his death, his retirement allowance |
8 | shall be continued throughout the life of and paid to his |
9 | survivor annuitant, if then living. In the event of both the |
10 | deaths of an annuitant and the survivor annuitant before they |
11 | combined have received in annuity payments the full amount of |
12 | the total accumulated deductions standing to the member's credit |
13 | on the effective date of the member's retirement, the balance |
14 | shall be paid to the designated beneficiary. |
15 | (3) Option 3. Upon his death, one-half of his retirement |
16 | allowance shall be continued throughout the life of and paid to |
17 | his survivor annuitant, if then living. In the event of both the |
18 | deaths of an annuitant and the survivor annuitant before they |
19 | combined have received in annuity payments the full amount of |
20 | the total accumulated deductions standing to the member's credit |
21 | on the effective date of the member's retirement, the balance |
22 | shall be paid to the designated beneficiary. |
23 | Section 411-B. Death Benefits.--(a) A member who is |
24 | eligible to receive a superannuation retirement allowance may |
25 | file with the board a written application for retirement, in the |
26 | form required for the application, but requesting that the |
27 | retirement shall become effective as of the time of his death, |
28 | electing one of the options provided in section 410-B and |
29 | nominating a beneficiary or survivor annuitant under the |
30 | applicable option. In all such cases, the application shall be |
|
1 | held by the board until the member shall file a later |
2 | application in the usual manner for a superannuation retirement |
3 | allowance or until the death of the member occurring while in |
4 | municipal service, at which time his retirement shall become |
5 | effective with the same benefits to the person designated as if |
6 | the member had retired on the day immediately preceding his |
7 | death. |
8 | (b) A member who is eligible to receive a superannuation |
9 | retirement allowance at the time of death and who has not filed |
10 | with the board a written application for a superannuation |
11 | retirement allowance as provided in subsection (a) shall be |
12 | considered as having elected Option 1 as provided in section |
13 | 410-B as of the date of his death. In such event, payment under |
14 | Option 1 shall be made to the beneficiary designated in the |
15 | nomination of beneficiary form on file with the board, or if the |
16 | beneficiary has predeceased the member, to the legal |
17 | representative of the member. |
18 | (c) A member who dies as a result of injury or illness |
19 | incurred in the performance of official duties shall be deemed |
20 | to have met all requirements for superannuation retirement and |
21 | considered to have elected Option 1. |
22 | (d) Should a member die prior to becoming eligible for a |
23 | superannuation retirement allowance, his accumulated deductions |
24 | shall be paid to his estate, or to such person, if living, as he |
25 | shall have designated in writing, filed with the board as his |
26 | beneficiary. In case any member has failed to designate a |
27 | beneficiary, or if the named beneficiary has predeceased the |
28 | member and no such successor beneficiary has been named, and |
29 | upon the death in service shall have less than $100 in |
30 | accumulated deductions standing to his credit, the board may, if |
|
1 | letters testamentary or of administration have not been taken |
2 | out on his estate within six months after death, pay the |
3 | accumulated deductions on the claim of the undertaker, or to any |
4 | person or municipality which shall have paid the claim of the |
5 | undertaker. |
6 | Section 412-B. Disability Retirement.--(a) An active |
7 | municipal employee who has accumulated five or more years of |
8 | total credited service, or an active municipal police officer or |
9 | municipal fire fighter regardless of their credited years of |
10 | service, may, upon application or on the application of one |
11 | acting in his behalf, or upon application of the municipality by |
12 | which he is employed, be retired by the board on a disability |
13 | allowance if the physician designated by the board, after |
14 | medical examination of the member shall certify to the board |
15 | that the member is mentally or physically incapable of |
16 | continuing to perform the duties for which the member is |
17 | employed and that the member ought to be retired. |
18 | (b) A member electing to retire under the disability |
19 | provisions of this article shall receive a disability annuity |
20 | payable from the effective date of disability as determined by |
21 | the board and continued until a subsequent determination by the |
22 | board that the annuitant is no longer entitled to a disability |
23 | annuity. The disability annuity shall be equal to a standard |
24 | single life annuity multiplied by the benefit accrual rate |
25 | applicable to the member's retirement plan, if the product of |
26 | such benefit accrual rate and the total number of years of |
27 | credited service is greater than 16.667, otherwise the standard |
28 | single life annuity shall be multiplied by the lesser of the |
29 | following ratios: |
30 | MY*/Y or 16.667/Y |
|
1 | where M equals the accrual rate applicable to the member on the |
2 | effective date of the disability, Y equals the number of years |
3 | and partial years of credited service earned by the member as of |
4 | the effective date of the disability, and Y* equals the total |
5 | years and partial years of credited service the member would |
6 | have earned if he were to continue as an employee until |
7 | attaining eligibility for a superannuation retirement allowance, |
8 | or if the member has attained eligibility for a superannuation |
9 | retirement allowance at the time of the disability, then the |
10 | number of years of credited service. In lieu of a full |
11 | disability annuity the member may elect to receive the |
12 | equivalent actuarial value at the time of his retirement in a |
13 | lesser allowance, payable throughout life in accordance with the |
14 | provisions of either section 410-B(2) or (3). |
15 | (c) If a member has been found to be eligible for a |
16 | disability annuity and if the disability has been found to be a |
17 | service connected disability, the member shall receive a |
18 | supplement equal to 70% of his final average salary less the sum |
19 | of the annuity as determined under subsection (b) and any |
20 | payments paid or payable on account of the disability under the |
21 | act of June 2, 1915 (P.L.736, No.338), known as the Workers' |
22 | Compensation Act, the act of June 21, 1939 (P.L.566, No.284), |
23 | known as The Pennsylvania Occupational Disease Act, and the |
24 | Social Security Act (49 Stat. 620, 42 U.S.C. § 301 et seq.). If |
25 | the member has received a lump sum workers' compensation payment |
26 | in lieu of future weekly compensation payments, the length in |
27 | weeks and calculation of the service connected disability |
28 | supplement shall be determined by dividing the lump sum payment |
29 | by the average weekly wage as determined by the Workers' |
30 | Compensation Board. |
|
1 | (d) Once every year the board may require any disability |
2 | annuitant, while still under superannuation retirement age, to |
3 | undergo medical examination by a physician designated by the |
4 | board. Should the physician report and certify to the board that |
5 | the disability beneficiary is no longer physically or mentally |
6 | incapacitated for the performance of duty, then his disability |
7 | retirement allowance shall be discontinued. |
8 | (e) Should a disability annuitant, while under |
9 | superannuation retirement age, refuse to submit to at least one |
10 | medical examination in any year by a physician designated by the |
11 | board, his disability retirement allowance shall be discontinued |
12 | until the withdrawal of the refusal, and should the refusal |
13 | continue for one year, then all his rights in and to any |
14 | disability retirement allowance or for early involuntary |
15 | retirement allowance provided for by this article, shall be |
16 | forfeited. |
17 | (f) In the event of the death of a disability annuitant who |
18 | has elected to receive a maximum disability annuity before the |
19 | member has received in annuity payments an amount equal to the |
20 | present value, on the effective date of disability, of the |
21 | benefits to which the member would have been entitled under |
22 | subsection (b) had the member died while in service, the balance |
23 | of the amount shall be paid to the member's designated |
24 | beneficiary. |
25 | Section 413-B. Vesting.--(a) A member who ceases to be an |
26 | active member for any reason after having completed at least ten |
27 | years of credited service but before meeting the superannuation |
28 | retirement service requirement shall be entitled to vest his |
29 | retirement benefits until he attains superannuation retirement |
30 | age, by filing with the board a written notice of his intentions |
|
1 | to vest, within 90 days of the date of his termination of |
2 | employment. Accumulated deductions will include statutory |
3 | interest from date of termination until the earlier of the date |
4 | of the commencement of the annuity or the date of payment of |
5 | member contributions. |
6 | (b) A member who has separated from employment may elect, |
7 | after he has vested, to be paid as follows: |
8 | (1) the full amount of the accumulated deductions, including |
9 | statutory interest; or |
10 | (2) upon reaching superannuation retirement age, a |
11 | retirement allowance computed under the provisions of section |
12 | 408-B multiplied by a reduction factor equal to the ratio of the |
13 | member's actual years of credited service divided by the |
14 | required years of credited service for eligibility for a |
15 | superannuation retirement benefit. |
16 | (c) Should a vested member die before he becomes eligible |
17 | for a retirement allowance, the full amount of the accumulated |
18 | deductions, including statutory interest credited to the date of |
19 | his death, standing to his credit in the member's account of the |
20 | fund shall be paid to his estate or to his named beneficiary, |
21 | pursuant to section 411-B(d). |
22 | (d) Upon the termination of the retirement plan, all |
23 | members, regardless of credited service, shall be deemed fully |
24 | vested in their accrued benefit to the extent the benefits |
25 | provided under the plan are funded as of the date of |
26 | termination. |
27 | Section 414-B. Portability.--(a) There shall be no |
28 | portability of service credits for a member enrolled under the |
29 | Cooperative Municipal Pension and Security Program who leaves |
30 | the employ of a municipality required to enroll their employees |
|
1 | into one of the retirement plans created under this article and |
2 | becomes employed by a municipality that has established a |
3 | pension plan with the system under the provisions of Article II, |
4 | III or IV. Nor shall there be portability of service credits for |
5 | a member enrolled in a pension plan that was established under |
6 | the provisions of Article II, III or IV who leaves that |
7 | municipality's employ and becomes employed by a municipality |
8 | required to enroll their employees into one of the retirement |
9 | plans created under the Cooperative Municipal Pension and |
10 | Security Program. |
11 | (b) There shall be full portability of service credits among |
12 | the four plans created by this article, without regard to the |
13 | identity of the municipal employer. When a member enrolled in a |
14 | plan established under this article has a change in employment |
15 | that would no longer allow him to be eligible to earn credited |
16 | service with that municipality but the member becomes eligible |
17 | within a year of his separation from the plan for enrollment in |
18 | another plan established under this article, the member may |
19 | elect to transfer his credited service to his new plan provided |
20 | he restores his accumulated contributions to the system. A |
21 | member electing to institute the portability provisions found in |
22 | this section shall have any retirement benefit he becomes |
23 | eligible to receive calculated based upon a prorated formula |
24 | reflecting the years of credited service under each retirement |
25 | plan multiplied by the appropriate accrual formula applicable to |
26 | that service time. The benefit shall be based upon the final |
27 | salary of the member as determined under the provisions of the |
28 | retirement plan from which he is to receive the benefit. The |
29 | board shall ensure that the funding of the benefit is prorated |
30 | between the retirement plans based upon an equitable |
|
1 | distribution of the liability. |
2 | Section 51. Article V heading of the act is amended to read: |
3 | ARTICLE V |
4 | [REPEALS AND EFFECTIVE DATE] |
5 | MISCELLANEOUS PROVISIONS |
6 | Section 52. The Secretary of the Commonwealth shall publish |
7 | a notice in the Pennsylvania Bulletin stating the enactment of |
8 | an act of the General Assembly that both amends the act of |
9 | December 18, 1984 (P.L.1005, No.205), known as the Municipal |
10 | Pension Plan Funding Standard and Recovery Act, and provides for |
11 | the Municipal Pension Recovery Program and for the Cooperative |
12 | Municipal Pension and Security Program. The publication shall |
13 | occur within ten days of the effective date of this section or |
14 | the enactment of such amendatory act, whichever is later. |
15 | Section 53. This act shall take effect as follows: |
16 | (1) This section shall take effect immediately. |
17 | (2) Section 52 of this act shall take effect in 60 days. |
18 | (3) The remainder of this act shall take effect upon |
19 | publication of the notice under section 52 of this act. |
|