Bill Text: PA SB1352 | 2009-2010 | Regular Session | Introduced

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Bill Title: In provisions relating to cities of the first class, providing for purchase of credit for previous government service.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2010-05-04 - Referred to FINANCE [SB1352 Detail]

Download: Pennsylvania-2009-SB1352-Introduced.html

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PRINTER'S NO. 1947
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1352 Session of2010
INTRODUCED BY FARNESE AND COSTA, MAY 4, 2010
REFERRED TO FINANCE, MAY 4, 2010
AN ACT
Amending the act of December 18, 1984 (P.L.1005, No.205),
entitled, as amended, "An act mandating actuarial funding
standards for all municipal pension systems; establishing a
recovery program for municipal pension systems determined to
be financially distressed; providing for the distribution of
the tax on the premiums of foreign fire insurance companies;
providing for the establishment and administration of
deferred retirement option plans in local governments and for
local tax; and making repeals," in provisions relating to
cities of the first class, providing for purchase of credit
for previous government service.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of December 18, 1984 (P.L.1005, No.205),
known as the Municipal Pension Plan Funding Standard and
Recovery Act, is amended by adding a section to read:
Section 1004. Purchase of credit for previous government
service.
(a) General rule.--A member of a retirement system of a city
of the first class may purchase credited service for previous
government employment, which was full-time or its prorated
equivalent and which occurred prior to the member's current term
of employment with the city of the first class, as follows:
(1) service with the military, under a branch of the
armed forces of the United States; or
(2) service as an employee of the Federal Government,
State or political subdivision within the Commonwealth or any
agency or instrumentality thereof or any association of
employees thereof; or of an educational organization which is
a public school within this Commonwealth which provides
elementary or secondary education, as determined by State
law.
(b) Limitation.--
(1) Credited service which may be purchased, only if the
member has vested in the current retirement system, for
allowable other government employment is limited to a maximum
of ten years and shall be permitted only with respect to
service for which the member is not or will not be entitled
to a vested pension from another employer.
(2) Notwithstanding the provisions of paragraph (1), a
member may purchase credit for prior military service for
which the member is or will be entitled to a military
pension, if that member's entitlement to a military pension
is based on whole or in part upon service in the military
reserves.
(c) Amount payable and payments.--The amount payable shall
be certified in each case by the pension board in accordance
with methods approved by the actuary and shall be paid in a lump
sum within 30 days or amortized with statutory interest through
salary deductions in amounts agreed upon by the member and the
pension board.
(d) Applications.--Applications for purchase of credited
service under this section shall be made on forms provided by
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the pension board and, in the case of an application for
allowable military service, shall be accompanied by a certified
copy of the applicant's military record plus proof of a
discharge from the armed forces of the United States that is
characterized as "honorable" or "under honorable conditions."
Such discharge shall be a condition precedent to being entitled
to the purchase of credited service with respect to military
service.
(e) Compliance by city of the first class.--A city of the
first class that has an established procedure for members of its
retirement system to purchase previous government service which
procedure does not conform to the provisions of subsection (b)
shall amend its plan:
(1) within 180 days of the effective date of this
section; or
(2) when the current labor-management contract creating
the plan expires, whichever is later, to conform with the
provisions of this section with respect to future retirement
system participants.
(f) Nonapplicability.--The provisions of subsection (b)
shall not apply to a member of the retirement system who:
(1) is exempt from civil service;
(2) is not entitled to be represented by a union; and
(3) has less than five years of credited service with
the retirement system.
(g) Construction.--A change of position in employment within
an administrative department of a city of the first class or
between administrative departments of a city of the first class
shall not be deemed as establishing a new current term of
employment for purposes of this section.
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Section 2. This act shall take effect in 60 days.
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