act-1915-0-259•Pennsylvania Act 1915-259 — SECOND CLASS CITY EMPLOYE PENSION LAW
Pennsylvania Act 1915-259 — SECOND CLASS CITY EMPLOYE PENSION LAW
act-1915-0-2591915 Pa. Act 259Law
Act text
SECOND CLASS CITY EMPLOYE PENSION LAW
Act of May 28, 1915, P.L. 596, No. 259 Cl. 11
AN ACT
Requiring cities of the second class to establish a pension fund
for employes of said cities, and regulating the
administration and the payment of such pensions.
Section 1. Be it enacted, &c., That, all cities of the
second class shall create a pension fund for the pensioning of
employes of said cities, in the manner, under the conditions,
and subject to the qualifications following.
Section 2. In every such city of the second class there
shall be created a board, to be known as the Pension Board,
consisting of the mayor, the city controller, the president of
the city council, and two employes to be chosen by the employes
contributing to the pension fund. It shall be the duty of said
board to register all persons employed by the said city, and to
administer the collection and distribution of the fund herein
provided for, and to do such acts and make such reasonable rules
in the premises as such board may deem necessary to carry into
effect the provisions of this act.
Section 3. Every person now or hereafter employed by the
said cities, as herein provided, if any, of the age of sixty
years and upwards, who shall have been so employed for a period
of twenty years or more, shall, upon application to the board of
pensions herein created, be retired from service, and shall
during the remainder of his or her life receive the pension or
compensation fixed by this act, subject to such qualifications
as are herein contained: Provided, That if such person had been
employed by the said city for a period covering eighteen years
or more prior to the passage of this act and shall thereafter be
re-employed, it shall be necessary that the period of his or her
re-employment shall extend over a period of two years before
such person shall be entitled to receive the pension fixed by
this act: And provided further, That any person employed by said
city for a period for more than twenty years shall be allowed a
deduction of one year from the age herein fixed for retirement
for each five year period of service in excess of twenty years.
(3 amended Jun. 12, 1931, P.L.550, No.184)
Section 4. (a) During the lifetime of the person, he or she
shall be entitled to receive a pension from the fund set aside
for the purpose, in the amount hereinafter provided. The pension
shall be paid in monthly payments. If any pension be granted to
a person who has not been a contributor to the pension fund as
herein provided, during a period of twenty years, such person
shall be required to pay unto the board of pensions monthly an
amount equal to such amount as he or she would have been
required to contribute had he or she contributed during such
period as required by this act, until such time as his or her
contribution shall have extended during a period of twenty
years. Should any person be dismissed, for reasons other than
misconduct, after having served as an employe for fifteen years
or more but less than twenty years, or should any person leave
his position in order to accept appointment to a board of
viewers or election or appointment to any elective office in or
for the Commonwealth of Pennsylvania, after having served as an
employe for a period of at least two-thirds of twenty years, but
less than twenty years, such employe shall have the right to
elect to keep in the fund all contributions heretofore made to
the fund, or if same has been withdrawn to repay the same back
into the fund, and to continue making monthly payments to such
fund in an amount equal to the amount last due and paid monthly
while an employe. When such payments continue until the former
employe has contributed to the fund for a total of at least
twenty years, or until reaching the age of retirement, whichever
is the longer, such person shall be entitled to receive a
pension proportional to the pension which would have been
received had the employe completed twenty years of service prior
to dismissal, such proportion to be computed on the ratio which
the employes' actual time of service in months bears to twenty
years. Should any person so employed, after twenty years of
service, be dismissed, voluntarily retire, or be in any manner
deprived of his or her position or employment before attaining
the age fixed for retirement by this act, upon continuing a
monthly payment to the fund equal to the last amount due and
paid monthly while in active service, the person shall be
entitled to the pension above mentioned, notwithstanding he or
she has not attained the age for retirement at the time of his
or her separation from the service of such city; but the pension
shall not commence until he or she has attained such age. Any
employe, who has heretofore or shall hereafter be dismissed,
voluntarily retire or be in any manner deprived of his or her
position or employment, and who has been in the service of the
city for a period of twenty-five (25) years or more, and who has
made payments into the pension fund for a period of twenty (20)
years or more, and who has reached the age of fifty (50) years
shall, upon application to the board of pensions, receive the
pension or compensation fixed by this act, during the remainder
of his or her life. Any former employe of the department of
health of such a city, who has been deprived of his or her
position or employment as a result of the consolidation of the
department of health of the city with the department of health
of a county of the second class, and who had been in the service
of the city for a period of twenty (20) years or more prior to
January 1, 1957, and who has continued to make payments in a
pension fund established by a city of the second class for
twenty-five (25) years or more, and who has reached the age of
fifty (50) years, shall, upon application to the board of
pensions, receive the pension or compensation fixed by this act
during the remainder of his or her life. Should any employe or
former employe of the department of health of such city who has
been transferred involuntarily into the department of health of
a county of the second class, however, become totally and
permanently disabled after fifteen years of service, he or she
shall be entitled to the pension. If any employe who has served
less than fifteen years becomes totally and permanently disabled
by reason of injury sustained in the actual performance of duty,
such employe shall be entitled to the pension. Proof of total
and permanent disability shall consist of the sworn statement of
three practicing physicians, designated by the board, that the
employe is in a permanent condition of health which would
totally disable him or her from performing the duties of his or
her position or office. Once a year the board of pensions may
require a disability pensioner to undergo a medical examination
by three physicians appointed by the board, and should such
physicians thereupon report and certify to the board that such
beneficiary is no longer incapacitated and should the pension
board concur in such report the pension to such beneficiary
shall be discontinued. ((a) amended Aug. 10, 1965, P.L.315,
No.166)
(b) The pension paid to any employe pensioned prior to the
first day of June, one thousand nine hundred fifty-one, shall
not be less than one hundred thirty dollars nor exceed one
hundred forty-seven dollars and fifty cents per month and shall
not be computed on rate of pay in excess of two hundred and
fifty dollars per month. The pension paid to any employe
pensioned after the first day of June, one thousand nine hundred
fifty-one and prior to the first day of July, one thousand nine
hundred fifty-five, shall not be less than one hundred thirty
dollars nor exceed one hundred eighty-five dollars per month and
shall not be computed on rate of pay in excess of three hundred
fifty dollars per month. The pension paid to any employe
pensioned after the first day of July, one thousand nine hundred
fifty-five, shall not be less than one hundred thirty dollars
nor exceed two hundred forty-seven dollars and fifty cents per
month and shall not be computed on rate of pay in excess of four
hundred fifty dollars per month. The pension paid to any employe
pensioned after the first day of July, one thousand nine hundred
sixty-nine, shall not be less than one hundred thirty dollars
per month nor exceed three hundred fifty-seven dollars and fifty
cents per month and shall not be computed on rate of pay in
excess of six hundred fifty dollars per month. ((b) amended Jan.
14, 1970 (1969), P.L.516, No.194)
(b.1) Any employe who had been a member of the pension fund
prior to the first day of June, one thousand nine hundred fifty-
one, and who had retired or was pensioned prior thereto, and
whose average salary for the last five years of his or her
employment by the city was two hundred dollars per month or more
but less than two hundred fifty dollars per month, shall have
his or her pension computed on fifty-five per centum of his or
her average salary during the aforesaid five-year period of time
and shall be paid an additional sum of forty-seven dollars per
month. Any employe who had been a member of the pension fund
prior to the first day of June, one thousand nine hundred fifty-
one, and who had retired or was pensioned prior thereto, whose
average salary during the last five years of his or her
employment with the city was two hundred fifty dollars per month
or more, shall receive a pension of not more than one hundred
forty-seven dollars and fifty cents per month and shall be paid
an additional sum of forty-seven dollars per month. ((b.1)
amended Jun. 12, 1969, P.L.76, No.25)
(c) Any employe who is a member of the pension fund on the
first day of June, one thousand nine hundred fifty-one, and who
shall retire or be pensioned prior to the first day of July, one
thousand nine hundred fifty-five, and whose average salary for
the last five years of his or her employment by the city has
been two hundred dollars a month or more but less than two
hundred and fifty dollars per month, shall have his or her
pension computed on fifty-five per centum of his or her average
salary during the aforesaid five-year period of time and shall
be paid an additional sum of forty-seven dollars per month. Any
employe who is a member of the pension fund on the first day of
June, one thousand nine hundred fifty-one, and who shall retire
or be pensioned prior to the first day of July, one thousand
nine hundred fifty-five, whose average salary during the last
five years of his or her employment with the said city has been
two hundred and fifty dollars per month or more, shall receive a
pension of not less than one hundred forty-seven dollars and
fifty cents per month and shall be paid an additional sum of
forty-seven dollars per month. Any employe who is a member of
the pension fund on the first day of July, one thousand nine
hundred fifty-five, and who shall retire or be pensioned then or
thereafter, and whose average salary for the last five years of
his or her employment by the said city has been less than two
hundred and fifty dollars per month, shall have his or her
pension computed on sixty per centum of his or her average
salary during the aforesaid five-year period of time, but in no
event shall he or she receive a pension of less than one hundred
thirty dollars per month. Any employe who is a member of the
pension fund on the first day of July, one thousand nine hundred
fifty-five, and who shall retire or be pensioned then or
thereafter, and whose average salary for the last five years of
his or her employment by the said city has been two hundred and
fifty dollars or more per month, shall have his or her pension
computed on fifty-five per centum of his or her average salary
during the aforesaid five-year period of time. Any employe who
is a member of the pension fund on the first day of July, one
thousand nine hundred fifty-five, and who shall retire and be
pensioned then or thereafter, and whose average salary for the
last five years of his or her employment with the said city has
been two hundred and fifty dollars or more per month, shall
receive a pension of not less than one hundred and fifty-one
dollars and twenty-five cents per month. An employe who retired
or was pensioned on or before the thirty-first day of December,
one thousand nine hundred and sixty-two and who receives a
pension of two hundred seventy-five dollars or less a month,
shall be paid an additional sum of fifteen dollars per month. In
the event of the death of any person receiving a pension under
this act, there shall be paid to such person or persons as he or
she shall have designated in writing and filed with the board of
pensions as his or her beneficiary or to his or her estate a
lump sum representing the difference, if any, between the total
contributions paid into the pension fund by him or her as an
employe and the total pension payments received by him or her
during his or her lifetime but such lump sum shall be paid only
when such total contributions exceed the total pension payments
made. ((c) amended Mar. 3, 1972, P.L.88, No.32)
(d) Any employe who is a member of the pension fund on the
first day of July, one thousand nine hundred and sixty-nine and
who shall retire or be pensioned then or thereafter, shall
receive the following pension benefits as determined by said
employe's salary for the last five years of employment:
(1) An employe whose average salary for the last five years
of his or her employment by the said city has been less than
four hundred fifty dollars per month shall have his or her
pension computed on sixty per cent of his or her average salary
during the aforesaid five-year period of time, but in no event
shall he or she receive a pension of less than one hundred
thirty dollars per month.
(2) An employe whose average salary for the last five years
of his or her employment by the said city has been four hundred
fifty dollars or more per month shall have his or her pension
computed on fifty-five per cent of his or her average salary
during the aforesaid five-year period of time, but in no event
shall he or she receive a pension of less than two hundred
seventy dollars per month.
Any employe who is a member of the pension fund and is in the
employ of the city on the first day of July, one thousand nine
hundred sixty-nine, and was a member of said fund for the last
five years and any member of the pension fund who has not
attained the required age of retirement, but has continued
monthly payments as provided in subsection (a) hereof shall have
the option of contributing to the pension fund sufficient
additional moneys to become eligible for the benefits included
in this amendment. ((d) added Jan. 14, 1970 (1969), P.L.516,
No.194)
(e) In addition to other benefits provided by this act, city
council may, by ordinance, pay beneficiaries of the fund who
retired on or before July 1, 1969 an additional sum of forty
dollars ($40) per month. ((e) amended Jul. 18, 1974, P.L.478,
No.171)
Section 4.1. In every city of the second class, in addition
to the pension which is authorized by law and notwithstanding
the limitations therein placed upon pensions and upon
contributions, every contributor who shall have otherwise become
entitled to the pension and who has reached the age of fifty
years shall also be entitled to the payment of a service
increment in accordance with and subject to the conditions
hereinafter set forth:
(1) Service increment shall be the sum obtained by computing
the number of whole years after the completion of twenty years
service during which a contributor has been employed by the city
and paid out of the city treasury and multiplying the number of
years so computed by an amount equal to five dollars ($5) for
each month of service beyond twenty years of service. This sum
shall be divided by twelve to arrive at the monthly increment
payment. In computing the service increment, no employment after
the contributor has reached the age of sixty-five years shall be
included, and no service increment shall be paid in excess of
one hundred dollars ($100) per month.
(2) Each contributor, from and after the effective date of
this amendment, shall pay into the retirement fund as the
contribution to the increment fund a monthly sum in addition to
his or her retirement contribution, which shall be equal to one-
half of one per centum of his or her salary. Such payment shall
not exceed the sum of one dollar per month. The service
increment contribution shall not be paid after a contributor has
reached the age of sixty-five years.
(3) Persons, who are contributors on the effective date of
this amendment, who have already reached the age of sixty-five
years, shall have his or her service increment computed on the
years of employment prior to the date of reaching his or her
sixty-fifth birthday. Such person, however, shall be entitled to
the increment only by paying in the one dollar ($1) per month
contribution for the number of months his or her service exceeds
twenty years, but such contribution shall not exceed a total of
one hundred dollars ($100).
(4) Service increment contributions shall be paid at the
same time and in the same manner as pension contributions, and
may be withdrawn in full, without interest, by persons who leave
the employment of the city, subject to the same conditions by
which pension contributions may be withdrawn or by persons who
retire before becoming entitled to any service increment. When
any person is reemployed by the city after withdrawal of pension
contributions, his or her prior service shall not be used in the
computation of service increment unless the amount of such
contributions be repaid into the pension fund, subject to the
same conditions by which pension fund withdrawals are permitted
to be repaid. ((4) amended Aug. 24, 1961, P.L.1131, No.505)
(5) All employes of the city who are now contributors to the
pension fund and all persons who are employed by the city after
the effective date of this amendment, who are required to become
contributors to the pension fund, shall be subject to the
provisions of this section.
(4.1 amended May 2, 1961, P.L.171, No.83)
Section 4.2. Any married person who retires under the
provisions of this act may elect in writing to reserve in the
pension fund up to one hundred dollars per month from his
monthly pension payments and said sum not to exceed one hundred
dollars per month shall be payable to his surviving spouse after
his death: Provided, That such person shall have been married to
his spouse for not less than two years prior to the date of his
death. Each surviving spouse shall be entitled to receive
payments up to one hundred dollars per month commencing the
first day of the month in which the death of the employe spouse
occurred and shall terminate upon the death or remarriage of
such surviving spouse: Provided, however, That in no case shall
total payments to a member or his surviving spouse be less than
the deceased member's contribution into the fund. In the event
the spouse of a retired city employe shall predecease such
employe, the employe shall revert to full pension payments for
the remainder of his or her life.
(4.2 added Jan. 14, 1970 (1969), P.L.516, No.194)
Section 5. The city employes shall, after the passage of
this act, pay unto the board of pensions monthly an amount equal
to not less than two nor more than five per centum of their
monthly salaries or wages, as fixed by the board of pensions; in
no event, however, paying at a rate greater than thirty-two
dollars and fifty cents per month, which shall be applied to the
purposes of this act. Payment of the monthly amount or
contribution herein mentioned shall cease and be discontinued at
the time the beneficiary received the pension herein provided if
such beneficiary has so contributed to the pension fund during a
period of twenty years. If at the time the beneficiary received
the pension herein provided he or she shall not have been a
contributor to the pension fund during a period of twenty years,
such person shall be required to pay unto the board of pensions
an amount equal to such amount as he or she would have been
required to contribute had he or she contributed during such
period as required by this act, until such time as his or her
contributions shall have extended during a period of twenty
years. If, for any cause, an employe contributing to the pension
fund shall cease to be an employe of any such cities of the
second class before said employe becomes entitled to the pension
conferred by this act, the total amount of the contributions
paid unto the pension fund by such employe shall be refunded to
him or her in full without interest unless he or she has less
than full pension rights under the provisions of section four of
this act, and elects at once to exercise such rights by keeping
such contributions in the fund and making such further payments
as may be required: Provided, however, If any such employe shall
have returned to him or her the amount contributed, as
aforesaid, and shall afterwards reenter the employ of such city,
said employe shall not be entitled to the pension designated
until twenty years after said reemployment, unless he or she
shall return to the pension fund the amount withdrawn; in which
event the period of twenty years shall be computed from the time
the said employe first entered the service of said city. In the
event of the death of any such employe before the said employe
becomes entitled to the pension aforesaid, the said total amount
of contributions aforesaid shall be paid over to such person or
persons as he or she shall have designated in writing and filed
with the board of pensions as his or her beneficiary or to his
or her estate.
(5 amended Jan. 14, 1970 (1969), P.L.516, No.194)
Section 5.1. Each person who shall become an employe of the
city after having been employed by the city in the bureau of
fire or the bureau of police, and who shall desire to have such
previous service counted for eligibility to receive a pension
under the provisions of section 3 of this act, shall be required
to pay to the fund an amount equal to five per centum of his or
her total salary or wages theretofore received by him or her,
but in no event contributing more than twenty-five dollars ($25)
per month for each previous month of service for which he
receives credit as an employe of the city in the bureau of fire
or the bureau of police with interest at the rate earned by the
fund during the period of such prior employment. Full payment of
such amount shall be a condition precedent to the member
receiving credit for all or any part of said period of previous
service for eligibility to receive a pension. Such amount shall
be collected from the monthly salary or wages of the member over
the period of two years in the manner provided in section 5 of
this act, or in such manner and period as the board of managers
may determine. If, however, any such member shall be injured
while in the actual performance of duty before he shall have
made such full contribution for past service, so long as the
disability continues, he or she shall be eligible to pension
under this act, but any amount which he or she shall not yet
have paid to the fund as a contribution for past services under
this section at the date of his or her injury shall be paid, if
the board, in its discretion, shall so determine, in such
monthly payments as the board may determine, which amounts shall
be deducted from his or her pension as and when monthly payments
thereof shall be made.
(5.1 added Jun. 19, 1961, P.L.485, No.246)
Section 6. (a) Should any person holding position in said
cities of the second class as laborer, at a per diem wage, he or
she shall not be compelled to pay or contribute toward the
pension fund herein provided for, but shall have the option or
choice of so doing at any time within six months after the date
of their employment, and, in that event only, of becoming
entitled to the pension provided by this act.
(b) Every new full time employe except as provided in
subsection (a) of this section shall after serving a ninety (90)
day probation period be required to join the pension fund and
shall thereafter make contributions to such fund as provided in
section five of this act. Every temporary employe who was
formerly a full time employe and a member of the pension fund,
and who did not withdraw money he paid into such fund when he
became separated from full time employment with the city, shall,
upon becoming a temporary employe, be required to immediately
rejoin the pension fund and shall thereafter, for the remainder
of the temporary employment, make contributions to such fund as
required by section five of this act. ((b) amended Nov. 25,
1970, P.L.758, No.248)
(c) Any city employe who holds a position as a school guard
or meter maid shall, within thirty (30) days after the passage
of this act, be required to join the pension fund and shall
thereafter make contributions to such fund as provided in
section five of this act. Every new employe holding a position
of school guard or meter maid shall, after completing six (6)
months of continuous employment, be required to join the pension
fund and shall thereafter make contributions to such fund as
provided in section five of this act.
(d) Any city employe who holds a position as a school guard
or meter maid, upon joining the pension fund, shall have the
option of making back payments at the same rate as if she had
been a member of the pension fund during the period of her
employment as a school guard or meter maid, in a lump sum or by
installments over a one (1) year period, in a manner to be
determined by the pension board, and shall receive full credit
towards her pension, provided she produces proof satisfactory to
the pension board of the number of years of such service.
(6 amended Feb. 13, 1970, P.L.17, No.9)
Section 7. The heads of every department and office,
employing persons entitled under the provisions of this act to
receive a pension, shall certify to the board of pensions all
persons so employed, and the amount of salary or wages which is
paid to said employe, together with dismissals, resignations, or
terminations of services, and from the records of their office
or department furnish such other relative information as the
board of pensions shall require.
Section 8. It shall be the duty of the board of pensions to
receive and retain, and, when deemed advisable, to invest, the
funds payable in accordance with the provisions of this act, and
to pay over by warrant or check the amount due to said employes.
Section 9. The public authorities of every city of the
second class, charged with the disbursements, expenditures, and
appropriations, shall annually set aside, apportion, and
appropriate, out of all taxes and income of the said cities,
unto the board of pensions, a sum sufficient to maintain the
pensions or compensations due under this act. If the total
disbursements from the pension fund for the payment of pensions,
refund of contributions of employes, and administration expenses
shall exceed in any year the total revenues of the pension fund
from the contributions of employes and the interest and premiums
earned on investments and bank deposits, then the amount to be
set aside, apportioned, and appropriated by the public
authorities of such city of the second class to the pension fund
shall not be less than the difference between the total
disbursements and receipts of the pension fund, as aforesaid.
(9 amended May 14, 1925, P.L.742, No.404)
Section 10. The benefits conferred by this act shall apply
to all persons employed in any capacity by or holding positions
in the cities included in its provisions, which shall include
all persons employed in any capacity by or holding position in a
credit union maintained by and for city employes or in an
authority created by said cities, or created by said cities
jointly with another political subdivision or other political
subdivisions or created by another political subdivision or
other political subdivisions and joined by said cities, except
where such authority has in effect its own pension or retirement
plan, maintained without reference to the provisions of this
act, in which case such authority's pension or retirement plan
shall be exclusive and such authority's employes shall not be
entitled to any rights under this act; and the words "city" or
"cities," as used in sections three, four, five, six, seven,
eight, ten, eleven, twelve and fourteen of this act shall be
construed to mean "credit union," "authority" or "authorities"
so created where appropriate: Provided, That this act shall not
apply to employes of such departments, bureaus, or offices as
are now protected by pension authorized by the laws of this
State, and in force at the time of the passage of this act, and
shall not apply to employes of a joint authority who are members
of a pension fund established for the benefit of the employes of
a political subdivision other than the city which is a member of
the joint authority.
For the purposes of this act the solicitor and all employes
of the office of the solicitor for delinquent real estate tax
and water rate liens provided for by the act, approved the
twenty-sixth day of May, one thousand nine hundred forty-three
(Pamphlet Laws six hundred twenty-nine), shall be regarded as
persons employed by or holding positions in the cities included
in the provisions of this act, to the extent that they may, if
they so desire, avail themselves of the benefits of the act to
which this is an amendment by paying to the board of pensions
monthly the amount provided for by said act.
(10 amended Dec. 19, 1975, P.L.563, No.160)
Section 11. The time of service herein specified, namely
twenty years, shall be computed from the time of the first or
original employment; said employment to consist of service to
such city of the second class, and need not be continuous:
Provided, That in no case shall a period of more than eighteen
years be credited to the service record of any person who shall
be employed after the passage of this act and who shall have
been employed by such city prior to the passage of this act. If
an employe shall have enlisted or shall have been drafted to
serve in the Army or Navy of the United States in time of war,
or shall have been drafted to serve in the Army or Navy of the
United States in time of peace, such service in the Army or Navy
of the United States shall be credited in full to the service
record of such employe as service to such city of the second
class.
(11 amended Aug. 1, 1941, P.L.748, No.283)
Section 12. The compensation or pension herein mentioned
shall be payable only to the beneficiary designated by this act,
and shall not be subject to assignment or transfer. (12 repealed
in part Apr. 28, 1978, P.L.202, No.53)
Section 13. All acts or parts of acts inconsistent herewith
are hereby repealed.
Section 14. If a pensioner of the cities of the second class
shall or may hereafter be employed by the government of the
United States, or the Commonwealth of Pennsylvania, or the same
county in which such cities are, or by any subdivision of such
counties, then such pension board of said cities of the second
class shall not have the authority to suspend the pension
payments to such pensioner during the period of such employment.
(14 amended Nov. 21, 1959, P.L.1593, No.573)
Section 15. Every authority, the employes of which are
members of the fund as hereinabove provided for, shall pay to
the board of pensions an amount sufficient to reimburse the
board of pensions for the amount of benefits paid employes of
such authority, as provided for by the act of which this
amendment is a part, after receiving credit for all
contributions made to the pension fund by employes of such
authority: Provided, however, That where an employe of any
authority formerly worked for the city creating the authority,
or for the city joining in the creation of the authority, or for
the city joining an authority already created, the annual
pension requirement or other benefits shall be prorated on the
basis that the number of years such employe worked for the
authority bears to total years of service in city and authority
employment, and the authority shall reimburse the board of
pensions for that proportionate part of the pension or other
benefits paid which the authority service bears to the total,
and the balance of annual pension requirements or other benefits
shall be paid by such cities.
Every authority employe shall have the option of joining or
refusing to join the pension fund on or before March 1, 1960, or
within twelve months of the date when the privilege of joining
occurs, whichever is later. Any authority employe shall receive
full credit toward his pension under the act for each year of
service as the employe of the authority, upon his producing
proof satisfactory to the pension board of the number of years
of his service as an employe of the authority, and upon his
making back payments at the same rate as if he had been a city
employe, in a lump sum or by installments, as may be determined
by the board. If the employe is retired under this act before
the back payments have been completed, the annuity shall be
reduced by an amount equivalent to the unpaid back payments or
deduction increases not anticipated.
(15 amended Apr. 15, 1959, P.L.44, No.19)
Section 16. (a) Any employe who has left or who shall
hereafter leave the employ of any city of the second class to
become an employe of any free public library located in any city
of the second class and having in effect its own pension or
retirement plan and who was a contributor to a retirement system
in any city of the second class before leaving the city's employ
may add to and retain his full membership rights under the
retirement system of the city of the second class to which he
contributed upon compliance with the provisions of this section.
(b) Any such employe as provided in subsection (a) shall
receive full credit toward his retirement rights under the
retirement system of the city of the second class if the
following requirements are met.
(1) If the employe shall waive in writing and upon a form
prescribed by the pension board in the city of the second class
all rights and benefits under the retirement system of any free
public library in any city of the second class.
(2) If the employe shall produce proof satisfactory to the
pension board in the city of the second class that he was
employed by the city of the second class and the number of years
of his service prior to transfer.
(3) If the employe shall produce proof that he is employed
with a free public library in a city of the second class which
has its own retirement or pension plan and the number of years
of his service.
(4) If the employe shall pay back in a lump sum or otherwise
as may be determined by the pension board of the city of the
second class all accumulated deductions withdrawn by him when he
terminated his employ with the city of the second class, and if
he shall pay into the retirement system of the city of the
second class the difference, if any, in the amount he
contributed as a member of the retirement system of any free
public library in any city of the second class and the amount he
would have contributed based on his salary and age during such
employment had he been an employe of any city of the second
class: Provided, That if the amount contributed to the
retirement system of the free public library was greater than
the amount he would have contributed to the second class city
retirement system, then the difference in amounts shall be
credited to the employe's account towards the required back
payments of withdrawn deductions or in lieu thereof as a credit
towards future contributions in the retirement system of the
city of the second class.
(5) If the officials in charge of the pension plan of the
free public library shall forward to the pension board of the
city of the second class all moneys contributed by the employe
to the free public library pension plan, and if the officials of
the free public library pension plan shall forward an amount
equal to the amount, if any, which the city of the second class
would have been required to pay towards an additional employe
annuity had he been an employe of the second class city during a
period corresponding to the period of his employment with the
free public library based on his age and salary during such
period.
(c) Upon the contributor accepting the provisions of this
section and if the requirements of subsection (b) are satisfied
the officials in charge of the free public library pension plan
in a city of the second class shall deduct from the employe's
salary the amount of contribution that the pension board of the
city of the second class shall prescribe and shall forward to
the pension board of the city of the second class on the first
Monday of each month the amounts deducted.
(d) Any contributor desiring to accept the benefits of this
section shall, if he is presently an employe of any free public
library in any city of the second class which has its own
retirement or pension plan, make application to the pension
board of the city of the second class therefor within one year
from the effective date of this act. Any contributor thereafter
separating from the employment of any city of the second class
to become an employe of any free public library in any city of
the second class having its own retirement or pension plan and
desiring to accept the provisions of this section shall make
application to the pension board of the city of the second class
within sixty days of such separation.
(16 added Jul. 27, 1955, P.L.292, No.107)
Section 17. In cities of the second class A, each employe of
the office of collector of taxes who became a member of the
retirement system in 1962, shall receive full credit toward his
pension under this act for each year of service as the employe
of a school district collecting such taxes prior thereto, upon
his producing proof satisfactory to the pension board of the
number of years of such service and upon his making back
payments at the same rate as if he had been a city employe, in a
lump sum or by installments, as may be determined by the board.
If the employe is retired under this act before the back
payments have been completed, the annuity shall be reduced by an
amount equivalent to the unpaid back payments or deduction
increases not anticipated. The contributions required to build
up the reserves necessary for the payment of city annuities to
such employes, including back payments to match employe back
payments, shall be made jointly, one-half each by the city and
the school district within the territorial limits of such city.
The board of school directors of each such school district and
the council of each such city, are hereby authorized and
directed to appropriate moneys for the purpose of making such
contributions.
(17 added Jun. 22, 1970, P.L.402, No.731)
Section 18. Every credit union, the employes of which are
members of the pension fund as hereinabove provided for, shall
pay to the board of pensions an amount sufficient to reimburse
the board of pensions for the amount of benefits paid employes
of such credit union as provided for by the act to which this
amendment is a part after receiving credit for all contributions
made to the pension fund by employes of such credit union:
Provided, however, That where an employe of any credit union
formerly worked for the city, the annual pension requirement or
other benefits shall be prorated on the basis that the number of
years such employe worked for the credit union bears to total
years of service in city and credit union employment; and the
credit union shall reimburse the board of pensions for that
proportionate part of the pension or other benefits paid which
the credit union service bears to the total; and the balance of
annual pension requirements or other benefits shall be paid by
such cities.
Every credit union employe shall have the option of joining
or refusing to join the pension fund within twelve months after
the effective date of this act or within twelve months of the
date when the privilege of joining occurs, whichever is later.
Any credit union employe shall receive full credit toward his
pension under the act for each year of service as the employe of
the credit union upon his producing proof satisfactory to the
pension board of the number of years of his service as an
employe of the credit union and upon his making back payments at
the same rate as if he had been a city employe in a lump sum or
by installments as may be determined by the board. If the
employe is retired under this act before the back payments have
been completed, the annuity shall be reduced by an amount
equivalent to the unpaid back payments or deduction increases
not anticipated.
(18 added Dec. 19, 1975, P.L.563, No.160)
Continue your research in ChatGPT or Claude
Connect Omnilex to search the legal corpus from your AI assistant.