Pennsylvania Act 1915-242 — PENSION FUND FOR FIRST CLASS CITY EMPLOYEES

Act text

AN ACT

Requiring cities of the first class to establish a pension fund for employes of said cities, and all county or other public employes, if any, paid by appropriation of the city councils thereof, and out of the treasury of said cities; and regulating the administration and the payment of such pensions.

Section 1. Be it enacted, &c., That all cities of the first class shall create a pension fund for the pensioning of employes of said cities, and of all county or other public employes, if any, paid by appropriation of the city councils thereof, and out of the city treasury thereof, in the manner and under the conditions, and subject to the qualifications, following.

Section 2. In every such city of the first class there shall be created a board to be known as the Pension Board, consisting of the mayor, the city treasurer, the city controller, one member of select council, and one member of common council of said city, to be selected annually by the respective bodies. It shall be the duty of said board to register all persons employed by the said city, and all other public employes paid out of the treasury thereof, as aforesaid, if any, 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 effectually carry into effect the provisions of this act.

Section 3. Every person now or hereafter employed by the said cities, or paid out of the city treasury thereof, as herein above 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 a pension or compensation fixed by this act, subject to such qualifications as are herein contained: Provided, That if any person or persons had been employed by the said cities for a period covering eighteen years or more prior to the passage of this act, and shall thereafter be reemployed, it shall be necessary that the period of their reemployment shall extend over a period of two years or more before such person or persons shall be entitled to receive the pension fixed by this act.

(3 amended July 5, 1917, P.L.689, No.255)

Section 4. During the lifetime of the said person he or she shall be entitled to receive a pension, from the fund set aside for the purpose, of fifty per centum of the amount which would constitute the average rate of pay at which he or she was employed during the highest salaried five years of his or her employment by the said city, or other public employment, as aforesaid. Said pension shall be paid in monthly payments: Provided, That 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 into the board of pensions, monthly, an amount equal to four per centum of his or her pension, until such time as his or her contribution shall have extended during a period of twenty years. Should any person so employed, after twenty years of service, be dismissed, voluntarily retire, or be in any manner deprived of his position or employment, before attaining the age of sixty years, upon continuing a monthly payment to the fund equal to the last amount due and paid monthly while in active service, said person shall be entitled to a pension above mentioned, notwithstanding he or she has not attained the age of sixty years at the time of his or her separation from the public service; but said pension shall not commence until he or she has attained the age of sixty years. Should any employe, however, become totally and permanently disabled while in the service, after twenty years of service and before attaining the age of sixty years, he or she shall be entitled to the said 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: Provided, That in cases where the nature of such disability is such as to disable the employe from performing any work whatsoever, either within or without the scope of his regular duties or within or without the service of such city or county, the board may, upon a recommendation of the three practicing physicians herein provided for, retire upon pension such applicant after a service of fifteen years: Provided further, That the benefits of this amendment shall apply to members of the pension fund who have been contributors to the said fund for five years or more. The pension paid to any one employe whose monthly payments into the pension fund have been four dollars or less a month, shall not exceed one hundred dollars per month. The pension paid to any one employe whose monthly payments into the pension fund have been more than four dollars a month for a period of at least two years, may exceed one hundred dollars per month, but shall not exceed two hundred dollars per month: Provided, That if an employe, upon the date of retirement from service, shall have made payments of more than four dollars a month unto the pension fund for a period of less than two years, his or her pension shall not exceed one hundred dollars per month, but an amount equal to the total amount paid in excess over four dollars a month shall be returned to such employe.

The pension to be paid to any former employe who was dismissed, voluntarily retired, or in any manner was deprived of his position and employment, after having twenty years of service as an employe of said city, and who has continued making payments to the fund equal to the last amount due and paid monthly while in active service, and who has not accepted any pension under the provisions of the act to which this is an amendment, shall be at the pension rate as provided in section five, and his payments to the board of pensions after the first day of September, one thousand nine hundred forty-five, shall be in an amount equal to the amount which he would have been permitted to make had he continued in the employ of said city after the first day of September, one thousand nine hundred forty-five, and had continued to be paid the same salary as he received when he was last employed by said city. This new amount, whether it be more, less, or the same as, the amount which he paid prior to the first day of September, one thousand nine hundred forty-five, he shall continue to pay until he applies for a pension under the provisions of this act. If there be any difference between the amount which he has paid from the first day of September, one thousand nine hundred forty-five, and the amount which he has elected to pay under the provisions of section five, he shall pay such difference into the board of pensions on or before the first day of December, one thousand nine hundred fifty-one.

(4 amended Jan. 21, 1952 (1951), P.L.2184, No.625)

Section 4.1. (a) Anything in this act to the contrary notwithstanding and except as otherwise provided in this section, any employe of such cities or paid out of the city treasuries thereof, in active service on or after the effective date of this act, who is a contributor to and member of the pension fund of such cities, may elect to receive and shall be paid a lesser pension during his lifetime, if and when he meets the requirements of this section. Such election shall be made by application to the board of pensions.

(b) Every employe in active service on or after the effective date of this act who is dismissed, voluntarily retired, or in any manner deprived of his position or employment, with fifteen years or more but less than twenty years of service and who has contributed to the pension fund for a like period and who has reached the age of sixty years or upwards, may apply for such lesser pension.

(c) Every employe in active service on or after the effective date of this act who is dismissed voluntarily retired, or in any manner deprived of his position or employment after fifteen years or more but less than twenty years of service before attaining the age of sixty years, upon continuing until he reaches the age of sixty years a monthly payment to the fund equal to the last amount due and paid monthly while in active service, may apply for such lesser pension when he reaches the age of sixty years.

(d) Every such lesser pension shall be proportionate to the pension which the employe would be entitled to receive after twenty years of service and contribution, computed as if he had continued to receive, during the remainder of the twenty years, the average rate of pay at which he was employed during the highest salaried five years of his active service as his number of months of service is to two hundred forty months. ((d) amended Jan. 21, 1952 (1951), P.L.2184, No.625)

(e) Payment of the monthly amount of contribution shall cease and be discontinued at the time any such employe begins to receive the lesser pension provided by this section.

(4.1 added May 2, 1949, P.L.845, No.223)

Section 4.2. In no event shall the pension hereafter payable after twenty (20) years of service be less than seventy-five dollars ($75.00) a month, or after fifteen (15) years and less than twenty (20) years of service be less than sixty dollars ($60.00) a month, to any person now or hereafter entitled to a pension under the provisions of this act.

(4.2 added Jan. 21, 1952 (1951), P.L.2184, No.625)

Section 4.3. Any married person retiring under the provisions of this act shall, at the time of his or her retirement, receive the pension provided by this act during his or her lifetime, and a pension after his or her death, payable to his or her surviving spouse at the time of retirement, equal to fifty per centum of his or her pension: Provided, That such person so retiring shall have been married to his or her spouse for not less than five years prior to the date of retirement and the spouse is dependent upon such deceased employe at the time of his or her death.

The pension to be paid to such surviving spouse shall begin on the first day of the month in which the death of the deceased spouse occurs or the first day of the month following the surviving spouse's attainment of the age of fifty-five, whichever is the later, and shall continue to and terminate upon the death of such surviving spouse, unless such surviving spouse shall remarry, in which event the payment of his or her survivor's pension shall thereupon be terminated.

The word "pension" as used in this section shall be construed to mean the sum of the pension provided by this act plus the amount of service increment, if any, to which the married person retiring under the provisions of this act shall be entitled.

(4.3 added Jan. 21, 1952 (1951), P.L.2184, No.625)

Section 5. The city, county, or other public employes, if any, herein mentioned, shall, after the passage of this act, pay unto the board of pensions, monthly, an amount equal to two per centum of their monthly salaries or wages,--in no event, however, except as herein provided, shall such employe be required to pay at a rate greater than four dollars a month,--which shall be applied to the purposes of this act. Whenever two per centum of the monthly salary or wages of any such employe shall exceed the sum of four dollars a month, then such employe, shall pay unto the board of pensions four per centum of the portion of his or her salary, or other compensation, which is over and above the amount of salary, or other compensation, which is sufficient to require the monthly payment of four dollars a month at the rate of two per centum of such salary, or other compensation, and he or she shall thereafter be required to pay such increased monthly rate without regard to the limit of four dollars a month: Provided, That such additional monthly payments shall not exceed eight dollars a month and the total monthly payment shall not exceed twelve dollars a month. Payment of the monthly amount or contribution herein mentioned shall cease and be discontinued at the time the beneficiary receives 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 receives the pension herein provided, he or she shall not have been a contributor to the pension fund during a period of twenty years, such persons shall be required to pay unto the board of pensions an amount equal to four per centum of his or her monthly pension until such time as his or her contribution 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 first class, or other county or public employes paid out of the treasury of such cities, before said employe becomes entitled to the pension conferred by this act, the total amount of the contributions paid into the pension fund by such employe shall be refunded to him in full, without interest: Provided, however, If any such employe shall have returned to him or her the amount contributed, as aforesaid, and shall afterward re-enter such public employment, said employe shall not be entitled to the pension designated until twenty years after the 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 said employe first entered the such public service. In the event of the death of any employe before the said employe becomes entitled to the pension aforesaid, the said total amount of contributions aforesaid shall be paid over to the estate of said deceased employe.

(5 amended May 31, 1947, P.L.383, No.176)

Section 6. Should any person holding position in any city of the first class, or any county or other public employe, if any, paid out of the treasury of any such city, as aforesaid, be employed at temporary work, with the understanding that it probably will be for a period of not more than three months, such employe 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, and, in that event only, becoming entitled to the pension provided by this act.

(6 amended May 31, 1947, P.L.383, No.176)

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, changes, 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 first 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.

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, or paid out of the treasury thereof, as aforesaid: 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.

Section 11. The time of service herein specified, namely, twenty years, or in case of the lesser pension, fifteen years or more but less than twenty years, shall be computed from the time of the first or original employment; said employment to consist of service either to such cities or to the county, or other public service paid out of the city treasury, or both, as aforesaid, 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 or persons who shall be employed after the passage of this act, and who shall have been employed by the said cities prior to the passage of this act. No pensions shall be paid under the provisions of this act, however until, after January first, one thousand nine hundred and seventeen.

The time of service shall include service with a school district of the first class coterminous with the city or county of the first class if the person claiming such credit shall, within one year after the effective date of this amending act, or within one year after joining the pension fund in the case of any person who may hereafter join the pension fund, pay into the fund the contributions he or she would have paid had he or she been employed during the period of credited service by the city or county at the same salary received from the school district. In no case shall credited service with a school district exceed twelve years.

For the purpose of determining the total number of years or months of service or contribution under this act, any period of fifteen days or more but less than a month beyond the total number of full months shall be considered a "month of service".

(11 amended May 31, 1956 (1955), P.L.1905, No.631)

Section 12. The compensation or pension herein mentioned shall be payable only to the beneficiary designated in this act, and shall not be subject to assignment or transfer.

(12 repealed in part Apr. 28, 1978, P.L.202, No.53)

Section 14. In addition to the pension which is authorized by this act and notwithstanding the limitations therein placed upon pensions and upon contributions, every contributor who shall become entitled to the payment of a pension and who has been employed by the said city or county for at least twenty-one years shall also be entitled to the payment, in addition to the said pension, of a "service increment" in accordance with and subject to the condition hereinafter set forth.

(1) Service increment shall be the sum obtained by computing the number of whole years in excess of twenty years during which a contributor has been employed by such city or county and paid out of the city treasury and multiplying the said number of years so computed by an amount equal to one-fortieth of the pension which has become payable to such contributor in accordance with the provisions of this act: Provided, That no service increment may be paid for employment of more than twenty such excess years nor for any excess years which shall accrue after a contributor has reached the age of seventy years and no service increment shall be paid in excess of one hundred dollars ($100.00) per month. ((1) amended Jan. 21, 1952 (1951), P.L.2184, No.625)

(2) Each contributor, from and after the effective date of this amendment, shall pay into the board of pensions a monthly sum, in addition to his or her pension contribution, which shall be equal to one-half of one per centum of his or her salary: Provided, That such payment shall not exceed the sum of one dollar ($1.00) per month nor shall the total payment for pension contribution and service increment contribution exceed thirteen dollars ($13.00) per month: And Provided, That such service increment contribution shall not be paid after a contributor has reached the age of sixty-five years.

(3) Persons who are pension fund 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.

(4) Any pension fund contributor who shall, after the effective date of this act, leave the service of such city or county after having completed at least twenty years' service but before reaching the age of sixty years and who shall continue to pay pension contributions into the pension fund, shall not pay service increment contributions after the date of leaving the service of such city or county and shall have his or her service increment limited to the actual years spent in the service of such city or county.

(5) 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 such city or county, subject to the same conditions by which pension contributions may be withdrawn. When any person is re-employed by the city or county 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.

(6) All employes of such city or county who are now contributors to the pension fund, and all persons who are employed by such city and county 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 amendment.

(14 added May 2, 1949, P.L.852, No.227)

APPENDIX

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Supplementary Provisions of Amendatory Statutes

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1952, JANUARY 21, 1951 P.L.2184, NO.625

Section 5. Nothing contained in this act shall be construed to affect the power of a city of the first class or the powers or duties of any board, department or the council thereof to provide and administer pension and retirement systems covering officers and employes of the city, as provided by and authorized and directed under the Home Rule Charter of such city.

Compiler's Note: Act 625 amended or added sections 4, 4.1, 4.2, 4.3 and 14 of Act 242.