Source: https://ecode360.com/13738015
Timestamp: 2019-04-20 14:29:14+00:00

Document:
§ 2-705.2 Election to join Pennsylvania Municipal Retirement System; enrollment contract and assumption.
§ 2-705.3 Repeal of Plan B.
§ 2-705.4 Enrollment of Plan B employees.
§ 2-705.5 Transfer of Plan B assets.
§ 2-705.6 Transfer of Plan A benefits received as of August 31, 1984.
§ 2-705.7 Enrollment of Plan A employees.
§ 2-705.8 Transfer of Plan A assets.
§ 2-705.9 Transfer of Plan A benefits received from September 1, 1984 to December 31, 1986.
§ 2-705.18 Purchase of service.
§ 2-705.19 Intervening military service.
§ 2-705.20 Nonintervening military service.
§ 2-705.21 USERRA Service I HEART Act.
§ 2-705.23 Eligibility for superannuation retirement benefit.
§ 2-705.24 Eligibility for early retirement benefit.
§ 2-705.25 Eligibility for vested benefit.
§ 2-705.27 Excess interest benefit.
§ 2-705.29 Cost of living adjustment.
§ 2-705.30 Maximum benefit limitations.
§ 2-705.31 Social security offset.
§ 2-705.33 Optional form of payment.
§ 2-705.34 Required minimum distribution.
§ 2-705.43 Former members other than annuitants.
§ 2-705.44 Exemption from attachment or execution; nonassignability.
§ 2-705.45 Domestic relation orders.
§ 2-705.47 Medical premium payments.
§ 2-705.54 Custody of fund.
§ 2-705.55 Management and investment of fund.
§ 2-705.56 Allocation of regular interest.
§ 2-705.57 Allocation of excess interest.
§ 2-705.58 Interest after termination.
§ 2-705.59 General powers of Board.
§ 2-705.60 Retroactivity and correction of errors.
§ 2-705.61 Confidentiality of records.
§ 2-705.62 Benefits claims procedures.
§ 2-705.64 Filings with Board.
Pennsylvania Municipal Retirement System — see 53 P.S. § 881.101 et seq.
Editor's Note: This ordinance also repealed former Ch. 2-705, Non-Uniformed Municipal Employees Retirement System, adopted 9-16-2013 by Ord. No. 20-2013.
The following terms shall be defined as set forth below, provided that each term defined in the PMRL shall have the meaning set forth therein and shall be interpreted consistent with its definition under the PMRL.
The total amount deducted from the compensation of the member as set forth in this contract and paid over by the City or paid by the member or from any existing pension or retirement system directly into the fund and credited to the member's account, together with regular interest thereon, unless interest is specifically excluded in this contract.
A member who is earning credited service under this contract as a result of employment with a City.
Annuities or lump sum amounts of equal present value determined by appropriate actuarial factors based on mortality tables and interest rates currently adopted and used by the Board.
A firm, partnership or corporation of which one or more members meets the requirements of Subsection A or B above.
Any spouse, former spouse, child or dependent of a member who is recognized by an approved domestic relations order as having a right to receive all or a portion of the monies payable to that member.
Any member on or after the effective date of retirement until the member's annuity is terminated.
Any domestic relations order which has been approved by the system in accordance with the PMRL.
The member's accrued retirement benefit as calculated pursuant to Article VI, Section 6.1.
The person or persons last designated in writing to the Board by a member or an annuitant, or if one is not so designated, the estate or next of kin under 20 Pa.C.S.A. § 3101 (relating to payments to family and funeral directors), to the extent applicable, to receive any death benefit after the death of such member or annuitant.
The Pennsylvania Municipal Retirement Board.
Remuneration actually received for services rendered as a member including salary, overtime, longevity and shift differential payments, but excluding reimbursement for expenses incidental to employment. Payments received under the Act of June 2, 1915 (P.L. 736, No. 338), known as "the Pennsylvania Workmen's Compensation Act" shall not be included in compensation. Compensation shall be adjusted as appropriate to comply with the terms of the PMRL and this contract. For members who are enrolled in a plan that has adopted the provisions of IRC Section 414(h), compensation shall also include any such pickup contributions so designated.
Notwithstanding any provision to the contrary, a member's compensation shall not exceed the limitations under the IRC Section 401(a)(17) as adjusted in accordance with IRC Section 401(a)(17)(B). The adjustment in effect for a calendar year applies to any period, not exceeding 12 months, over which compensation is determined (the "determination period") beginning in such calendar year. If a determination period consists of fewer than 12 months, the compensation limit will be multiplied by a fraction, the numerator of which is the number of months in the determination period, and the denominator of which is 12. The OBRA '93 annual compensation limit is $150,000, as adjusted by the Commissioner of Internal Revenue for increases in the cost of living in accordance with IRC Section 401(a)(17)(B). Effective for calendar years beginning on and after January 1, 2002, the compensation limit shall be $170,000 as adjusted. Effective for calendar years beginning on and after January 1, 2003, compensation limit shall be $200,000. The cost-of-living adjustment in effect for a calendar year applied to any period, not exceeding 12 months, over which compensation is determined (the "determination period") beginning in such calendar year. If a determination period consists of fewer than 12 months, the compensation limit will be multiplied by a fraction, the numerator of which is the number of months in the determination period, and the denominator of which is 12.
The agreement between the Board and the City providing for retirement benefits to the members employed by the City.
Credited service shall begin to accrue as of the member's date of enrollment in the system.
The member's date of enrollment in the system shall be the date the City entered into the system or the member's date of hire, whichever is more recent.
A member who elects to receive a superannuation retirement benefit or early retirement benefit may elect with the City at the time of retirement to receive additional credited service for unused accrued sick leave; provided, however, that for every five whole days of unused accrued sick leave, the member will receive seven days of credited service. Such additional credited service shall not affect the member's effective date of retirement but will only be used to calculate the member's basic benefit. The City shall provide certification to the Board of the amount of additional credited service the member is entitled to receive together with the member's filing for retirement with the Board.
For an active member, the last day of employment in a status covered by the eligibility requirements of the contract. For an inactive member, the date on which formal action is taken by the City to separate the member from employment.
A member on or after the effective date of disability retirement until the disability annuity is terminated.
Any judgment, decree or order, including approval of a property settlement agreement, by a court of competent jurisdiction pursuant to a domestic relations law which relates to the marital property rights of the spouse or former spouse of a member, including the right to receive all or a portion of the monies payable to that member under the system in furtherance of the equitable distribution of marital assets. The term includes orders of support as that term is defined by 23 Pa.C.S.A. § 4302 (relating to definitions) and orders for the enforcement of arrearages as provided by 23 Pa.C.S.A. § 3703 (relating to enforcement of arrearages).
Due to member demographics, not applicable for Plan A members.
A Plan B member who terminates service after 10 years of credited service and who has attained at least 55 years of age may apply for an early retirement benefit. The early retirement benefit under this subsection will be actuarially reduced for each year or partial year thereof prior to superannuation retirement age for Plan B members that early retirement takes place.
The date following the last day for which compensation was paid or the date on which the member filed an effective application for disability benefits, whichever is later.
The date specified on the application.
For a member who applies for a disability retirement, the date certified by the Board as the effective date of disability retirement.
An eligible plan under IRC Section 457(b) which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state, and which accepts the member's eligible rollover distribution. However, in the case of an eligible rollover distribution to the nonspousal beneficiary of a member, an eligible retirement plan is an individual retirement account or individual retirement annuity.
The portion of any distribution which consists of after-tax employee contributions.
Benefits which have equal present value when computed on the basis of interest and the mortality tables adopted by the Board and in use at the date the benefit becomes effective.
The investment earnings on the fund in excess of that required for allocation to regular interest and expenses.
For Plan A members the annualized compensation rate at the time of retirement, or the average annual compensation earned and paid during the member's highest consecutive five years of credited service, whichever is higher; and for Plan B members the average annual compensation earned and paid during the Plan B member's highest consecutive three years of credited service or if not so long employed, then the average annual compensation earned and paid during the whole period of such employment.
The Pennsylvania Municipal Retirement Fund.
A member who is enrolled in the system but is no longer earning credited service under this contract as a result of separation from or leave from employment with a City.
The Internal Revenue Code of 1986, as designated and referred to in the Federal Tax Reform Act of 1986 (Public Law 99-514) as amended. A reference to "IRC Section _____" shall be deemed to refer to the identically numbered section and subsection or other subdivision of such section in 26 U.S.C. (relating to Internal Revenue Code), as such identically numbered section may be amended.
An elected official or municipal employee who meets the eligibility requirements of § 2-705.13 or 2-705.14 and is paid on a regular salary or per diem basis. The term shall not include elected officials and employees paid wholly on a fee basis. The term shall include, collectively, Plan A members and Plan B members unless otherwise stated.
The account to which shall be credited any accumulated deductions, municipal contributions made on behalf of the member and excess interest.
That portion or component of the basic benefit which is of equivalent actuarial value, at date of retirement, to the accumulated deductions of the member.
The account maintained for each member, to which shall be credited such excess interest deemed to be earned on accumulated deductions.
The account maintained for the City, to which shall be credited the contributions made by it toward the benefits of the members under the system.
City of Harrisburg, Dauphin County.
A member who was employed by the City as of the date the City joined the system.
53 P.S. § 881.101 et seq. A reference to "PMRL Section _____" shall be deemed to refer to the identically numbered subsection of 53 P.S. § 881 as may be amended.
A member who was hired before December 30, 1974.
A member who was hired on or after December 30, 1974, or a member who was employed prior to December 30, 1974, and elected to become a Plan B member in accordance with Ordinance No. 35 of 1984.
See the Pennsylvania Municipal Retirement Law.
A statement of rule adopted by the Board as provided in Article XIII, Section 13.3, and as authorized by PMRL Section 104(10).
All service as an original member completed at the time the City elected to join the system.
The rate fixed by the Board, from time to time, on the basis of earnings on investments to be applied to the member's accounts, municipal accounts and the retired member's reserve account.
The account from which all basic benefits shall be paid for superannuation, early and disability retirements.
Total and permanent disability of a member resulting from a condition arising out of and incurred in the course of employment, and which is compensable under the applicable provisions of the Act of June 2, 1915 (P.L. 736, No. 338), known as "the Pennsylvania Workmen's Compensation Act," or the act of June 21, 1939 (P.L. 566, No. 284), known as "the Pennsylvania Occupational Disease Act."
If involuntarily terminated, 55 years of age; provided the Plan A member has completed 20 years of credited service.
A Plan B member shall be eligible for a superannuation retirement benefit upon attainment of superannuation retirement age, which shall be 65 years of age.
Retirement window: Effective through December 31, 2014, a member, who by December 31, 2013, has attained an age, which when added to the member's number of completed years of credited service, is equal to or greater than the number 85, shall be eligible for a superannuation retirement benefit.
Retirement window: Effective through December 31, 2018, a member, who by December 31, 2018, has attained an age, which when added to the member's number of completed years of credited service, is equal to or greater than the number 80, shall be eligible for a superannuation retirement benefit.
The accrued unreduced basic benefit payable to a member upon attainment of superannuation retirement age.
Any person who has been named by a member under a joint and survivor annuity option to receive an annuity upon the death of such member.
The Pennsylvania Municipal Retirement System, a multiple employer retirement system created pursuant to the PMRL.
The account to which shall be credited the contributions made by the City toward the disability retirement of members.
The federal Uniformed Services Employment and Reemployment Rights Act of 1994 (Pub. L. 101-353, 38 U.S.C. § 4303 et seq.).
A Plan A member shall vest upon the completion of 20 years of credited service provided the Plan A member files an application to vest with the Board within 90 days of the member's date of termination of service. A Plan A member who vests under this subsection shall receive a superannuation retirement benefit upon attainment of 60 years of age.
A Plan B member shall vest upon the completion of 10 years of credited service provided the member files an application to vest with the Board within 90 days of the member's date of termination of service. A Plan B member who vests under this subsection shall be entitled to a superannuation retirement benefit upon attainment of superannuation retirement age or an early retirement benefit upon attainment of 55 years of age that is actuarially reduced for each year or partial year thereof prior to superannuation retirement age.
In the event that a member fails to file within 90 days of the member's date of termination of service, the member shall be deemed ineligible for a vested benefit. The amount payable to the member shall be the accumulated deductions and the member's excess investment account standing to the credit of the member as of the date of termination of service.
Editor's Note: See the Municipal Pension Plan Contract on file in the City offices.
Editor's Note: See 77 P.S. § 1 et seq.
Editor's Note: See 77 P.S. § 1201 et seq.
The City hereby elects to join the Pennsylvania Municipal Retirement System, established by the Pennsylvania Municipal Retirement Law, Act 15 of 1974, as amended.The City hereby agrees to be bound by all the requirements and provisions of the Pennsylvania Municipal Retirement Law, the amendments thereto, regulations promulgated by the Pennsylvania Municipal Retirement Board, and the terms and conditions of the enrollment contract. The enrollment contract sets forth the benefits and obligations of the City employees, the City and the Pennsylvania Municipal Retirement Board vis-a-vis the pension plans hereby elected by the City. The City hereby assumes all obligations, financial and otherwise, placed upon member municipalities by the Pennsylvania Municipal Retirement Law, the amendments thereto, regulations promulgated thereunder, and the terms of the enrollment contract.
Editor's Note: See 53 P.S. § 881.101 et seq.
Plan B (non-uniformed) is hereby repealed.
All municipal employees of the City who were enrolled in Plan B are hereby enrolled in the Pennsylvania Municipal Retirement System, with the obligations and benefits set forth in the enrollment contract, the Pennsylvania Municipal Retirement Law, the amendments thereto, and the regulations promulgated thereunder.
Pursuant to the terms and conditions of the enrollment contract, the City hereby transfers all assets of Plan B, including contributions made by the members, to the Pennsylvania Municipal Retirement System to be placed in the advance payment account established by the Board. Such transfer shall be effective September 1, 1984.
The City hereby transfers the administration of all benefits of all members and beneficiaries of Plan A receiving benefits as of August 31, 1984, to the Pennsylvania Municipal Retirement Board, pursuant to the terms and conditions of the enrollment contract. The City hereby transfers all of the assets set aside as an actuarial reserve of these members into the advance payment account established pursuant to the enrollment contract. Pensioners or their successors receiving benefits as of August 31, 1984, shall not be considered members of the Pennsylvania Municipal Retirement System.
On January 1, 1987, all municipal employees of the City who are enrolled in Plan A hereby shall be enrolled in the Pennsylvania Municipal Retirement System, with the obligations and benefits set forth in the enrollment contract, the Pennsylvania Municipal Retirement Law, the amendments thereto, and the regulations promulgated thereunder.
Pursuant to the enrollment contract, the City hereby transfers all assets of Plan A as of January 1, 1987, to the Pennsylvania Municipal Retirement System to be placed in the advance payment account established by the Board.
Pursuant to the enrollment contract, the City hereby transfers, as of January 1, 1987, the administration of benefits of all members of Plan A or their beneficiaries who first began receiving payment between September 1, 1984, and December 31, 1986, inclusive, and all vested members of Plan A who have terminated employment with the City without receiving benefits, to the Board. The City shall also transfer all of the assets set aside as an actuarial reserve of these annuitants, beneficiaries and vested members into the advance payment account established pursuant to the enrollment contract. Such annuitants, vestees and beneficiaries shall not be enrolled in the Pennsylvania Municipal Retirement System.
The City guarantees payment of all benefits which may be payable under this chapter, the enrollment contract, Plan A or Plan B.
This chapter electing membership for the City in the Pennsylvania Municipal Retirement System shall be effective September 1, 1984, and shall be filed with the Board.
This chapter shall cover all full-time non-uniformed municipal employees of the City of Harrisburg.
Elected officials and part-time employees shall have the option of joining the system, and employees hired on a temporary or seasonal basis shall not be eligible for membership. Elected officials and part-time employees must elect membership in the system within one year after the start of employment for part-time employees and, for elected officials, within one year of assuming office. This decision shall be irrevocable and shall apply for the entire term of office. If membership is not elected, credit for that service may not be purchased at some later date. A membership election by an elected official shall be made for each term of office.
The probationary status of any new municipal employee otherwise covered by this chapter shall not affect that employee's eligibility for membership in the system.
Upon the affirmative vote of 75% of all municipal employees who are members of Plan B, all members of Plan B will be enrolled in the system and covered by the terms of the enrollment contract. After their enrollment they will have the benefits and obligations set forth in this chapter.
Upon the affirmative vote of 75% of the vestees and members of Plan A, but not before January 1, 1987, all former Plan A members will be enrolled in the system. Until the former Plan A members are enrolled in the system, they will continue to have their pension plan administered by the City. After their enrollment they will have the benefits set forth in this chapter, unless otherwise agreed to by the City and the Board.
Membership for non-uniform full-time employees of the City is mandatory.
Eligibility. Membership for elected officials and part-time employees is optional.
Election. To become a member, an employee eligible under Subsection A must file an election with the system within one year after the employee first enters the service of the City regardless of the employee's probationary status.
Declination of optional membership. If the employee eligible under Subsection A elects not to join, the declination of membership under this contract shall be irrevocable and shall apply for the period of time the employee serves continuously in that optional category. If there is a break in service and the employee returns to service in any employment capacity, the employee shall not be eligible to purchase the optional membership time previously declined.
Membership for seasonal employees and temporary employees is prohibited, as is membership for individuals paid only on a fee basis.
An original member shall be granted credited service for prior service from the date of hire, except for members who were hired prior to December 30, 1974, and elected Plan B benefits in accordance with Ordinance No. 35 of 1984, who shall not be granted credited service for prior service.
If a former member of the City returns to service with the City and becomes a member, the member may restore to the fund the amounts refunded under § 2-705.32. The member's annuity rights shall be restored as they existed at the time of separation from service provided the member pays the amount due plus regular interest up to the date of purchase in a lump sum within 30 days after billing, or through salary deductions amortized with regular interest through a repayment period of not more than five years.
Any member who enters the uniformed services as defined by USERRA and returns to service as a member within the authorized time period of the law shall have the authorized time spent in such service credited to the member's employment record for pension or retirement benefits if the member makes the required member contributions.
The amount due from the member shall be certified by the system and shall be paid by the member in accordance with applicable law.
A member may purchase credit for intervening military service only if discharge or separation from the service was granted under other than dishonorable conditions. A member may not purchase military credit for any service that is covered by another retirement system administered and wholly or partially paid for by any other government agency or private employer.
An active member may purchase credit for other than intervening military service performed for the United States in times of war, armed conflict or national emergency, so proclaimed by the President of the United States, for a period not to exceed five years, provided the member has completed five years of service to the City subsequent to such military service. Within 90 days of enrollment in the system a member shall file with the City a notification of the member's intent to purchase nonintervening military service. A member who does not file such a notice shall not be eligible to purchase nonintervening military service. The Board shall immediately inform a member who filed said notice of the cost to purchase the nonintervening military service. When the member has completed five years of service with the City, the member shall then have 90 days to initiate the purchase of nonintervening military service.
The rate of interest charged a member on purchase of credit for nonintervening military service shall be the regular interest in effect on the date of the member's application.
An active member may purchase credit for nonintervening military service only if discharge or separation from the service was granted under other than dishonorable conditions. A member may not purchase military credit for any service that is covered by another retirement system administered and wholly or partially paid for by any other government agency or private employer.
Qualified military service. Notwithstanding any provisions herein to the contrary, contributions, benefits and service credit with respect to "qualified military service" within the meaning of IRC Section 414(u)(5) will be provided in accordance with IRC Section 414(u).
Death benefits. In the case of a death or disability occurring on or after January 1, 2007, if a member dies while performing qualified military service [as defined in IRC Section 414(u)], the survivors of the member are entitled to any additional benefits (other than benefit accruals relating to the period of qualified military service) provided under the system as if the member had resumed and then terminated employment on account of death.
Benefit accrual. For benefit accrual purposes, the system will treat an individual who dies or becomes disabled (as determined by the system) while performing qualified military service with respect to the member as if the member had resumed employment in accordance with the member's reemployment rights under USERRA, on the day preceding death or disability (as the case may be) and terminated employment on the actual date of death or disability.
If service with the City is less than such twelve-month period, the actual length of continuous service with the City.
The system shall not be treated as failing to meet the requirements of any provision described in IRC Section 414(u)(1)(C) by reason of any contribution or benefit which is based on the differential wage payment.
When a member leaves the employ of the City and enters within one year of separation into the employ of another municipality that has joined the system, the member's service credits shall remain unimpaired. Should a member from the employ of another municipality that has joined the system separate from service and within one year of separation be employed by the City and qualify for membership under this chapter, the member's service credits will remain unimpaired. In such cases, the municipal liability for past service shall be prorated by the system between the municipalities on an equitable basis.
Retirement window. Effective through December 31, 2014, a member, who by December 31, 2013, has attained an age, which when added to the member's number of completed years of credited service, is equal to or greater than the number 85, shall be eligible for a superannuation retirement benefit.
Retirement window. Effective through December 31, 2018, a member, who by December 31, 2018, has attained an age, which when added to the member's number of completed years of credited service, is equal to or greater than the number 80, shall be eligible for a superannuation retirement benefit.
Due to member demographics; not applicable for Plan A members.
A Plan B member who terminates service after 10 years of credited service and who has attained at least 55 years of age may apply for an early retirement benefit. The early retirement benefit under this Subsection B will be actuarially reduced for each year or partial year thereof prior to superannuation retirement age for Plan B members that early retirement takes place.
In the event that a member fails to file within 90 days of the member's date of termination of service, the member shall be deemed ineligible for a vested benefit. The amount payable to the member shall be determined in accordance with § 2-705.32.
For Plan A members, the annual basic benefit shall be 50% of the Plan A member's final salary.
For Plan B members, the annual basic benefit shall be calculated by multiplying the Plan B member's final salary by all years of credited service and multiplied by the benefit accrual rate of 2.0%; provided, however, in no event shall the annual basic benefit exceed 75% of the Plan B member's final salary.
Effective January 1, 2017, through December 31, 2018, the annual basic benefit shall be calculated by multiplying that member's final salary by all years of credited service and multiplied by the benefit accrual rate of 2.5%; provided, however, in no event, shall the annual basic benefit exceed 75% of that member's final salary.
An annual excess interest benefit shall be equal to a single life annuity starting on the effective date of retirement with a present value equal to the member's excess investment account.
In addition to the basic benefit, an annuitant who was a Plan A member and who is certified by the City as eligible to receive a service increment shall receive a yearly service increment to be determined by computing the number of whole years of credited service beyond 20 years and multiplying this number by an amount equal to 1.5% of the member's final salary provided such annuitant made the required contributions set forth in § 2-705.41A(4).
General limitation. Except as otherwise provided in this chapter, the annual retirement benefit payable to any member shall not exceed the maximum permissible amount for the system year pursuant to IRC Section 415(b).
To the extent the limitations set forth herein may be from time to time adjusted by statutes, regulations or other publications issued by the Internal Revenue Service, such adjusted amounts shall be substituted for the amounts set forth in this section, provided that no such adjustment shall reduce a member's accrued benefit unless such adjustment is required to preserve the qualified status of the system or the applicable plan.
If a benefit is to be distributed in a form other than a single or straight life annuity or joint and survivor annuity (including any death benefit payable as a survivor's annuity), the actuarial equivalent [as determined pursuant to IRC Section 415(b)(2)(B)] of a single life annuity of such benefit must satisfy the limitations set forth in this section. Further adjustments may be made by the Board, as permitted by IRC Section 415 and the regulations promulgated thereunder, under the appropriate circumstances including, if authorized by the Board, receipt by the system of rollover contributions or assets or liabilities transferred from another qualified plan.
In the event that a member's benefit is to be distributed prior to age 62, the currently effective dollar amount in Subsection A of this section shall be actuarially reduced to the actuarial equivalent [as determined pursuant to IRC Section 415(b)(2)(C)] of an annual benefit equal to the dollar amount commencing at age 62 in the manner as prescribed by IRC Section 415.
In the event that a member's benefit is to be distributed after age 65, the currently effective dollar amount in Subsection A of this section shall be actuarially increased to the actuarial equivalent [as determined pursuant to IRC Section 415(b)(2)(D)] of an annual benefit equal to such dollar amount commencing at age 65 in the manner as prescribed by IRC Section 415.
With regard to any member identified in IRC Section 415(b)(2)(H), this Subsection B shall not serve to reduce the limitation set forth in Subsection A.
This section shall be interpreted consistent with the limitations on annual benefits set forth under IRC Section 415(b) and Treasury regulations thereunder as applicable to governmental plans under IRC Section 414(d).
Upon attainment of the age at which full social security benefits are payable or upon retirement of the Plan A member after attaining such age, the Plan A member's eligibility to the old age insurance benefits and the primary insurance amount of social security, upon which the reduction in the benefits shall be based, shall be computed by the Board in the manner specified in the federal Social Security Act, except that in determining such eligibility and such amount, only compensation for services performed in the employ of the City shall be included.
Once the amount of the reduction from the basic benefit has been determined, it shall remain fixed, except that any decrease in the primary amount paid under the Social Security Act shall result in a corresponding decrease in the amount of the reduction of the basic benefit.
The total sum, including social security benefits, to be received upon retirement by the Plan A member shall not be less than the benefits that would be paid by the system in absence of the social security benefits reduction.
The reduction shall not apply to a disability annuitant or an annuitant who was a Plan B member.
A member who terminates service may elect to receive the accumulated deductions and the member's excess investment account standing to the credit of the member as of the date of termination of service, in lieu of receipt of a benefit provided under §§ 2-705.16 to 2-705.22.
Upon attainment of eligibility to receive a superannuation retirement benefit or eligibility to elect an early retirement benefit, a member separating from service may elect to receive the benefits provided in §§ 2-705.26 to 2-705.31. Such benefits shall be calculated in accordance with §§ 2-705.26 to 2-705.31 and shall be paid throughout the member's life.
In the event of the death of an annuitant who has elected to receive a single life annuity before the annuitant has received in total annuity payments an amount equal to the full amount of the accumulated deductions plus excess interest standing to the member's credit on the effective date of retirement, the difference between the total payments made to the date of death and the accumulated deductions plus excess interest shall be paid to the beneficiary.
A Plan A member who has elected a single life annuity shall automatically be deemed to have elected the spouse's death benefit found in § 2-705.39C.
In a lump-sum payment and an annuity. Such annuity shall be of equivalent actuarial value to the balance payable less the amount of the lump-sum payment specified by the beneficiary.
Option 2: Upon the annuitant's death, the joint and survivor annuity shall be continued throughout the life of and paid to the survivor annuitant, if then living.
Option 3: Upon the annuitant's death, one-half of the joint and survivor annuity shall be continued throughout the life of and paid to the survivor annuitant, if then living.
If a member has elected a joint and survivor annuity option and the member and survivor annuitant die before receiving in annuity payments the full amount of the total accumulated deductions and excess interest standing to the credit of the member on the effective date of retirement, the balance shall be paid to the beneficiary.
In no event may a member or beneficiary be entitled to a form of payment which commences or is payable over a period which fails to satisfy the required distribution provisions of IRC Section 401(a)(9), including the incidental benefit distribution requirements. The Board shall adopt procedures as necessary to comply with IRC Section 401(a)(9) and Treasury regulations thereunder as applicable to governmental plans.
Notwithstanding any other provision, a member, a member's surviving spouse or a member's former spouse who is an alternate payee under an approved domestic relations order pursuant to § 2-705.45 may elect, at the time and in the manner prescribed by the Board, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan utilizing a direct rollover.
General rule. A member may, upon application or on application of one acting on the member's behalf, or upon application of a responsible official of the City, be retired by the Board on a disability retirement if the medical examiner designated by the Board following a review of the application and any supporting medical records and other documentation submitted with the application certifies to the Board that the member is unable to engage in any gainful employment and that said member ought to be retired.
Once every year the Board may require a medical review of subsequent medical documentation of the disability annuitant, while still under superannuation retirement age, by the medical examiner designated by the Board. Should the medical examiner recommend to the Board that such disability annuitant is no longer physically or mentally incapacitated and is able to engage in a gainful occupation, then the portion of the annuity funded from the total disability reserve account shall be discontinued.
Should a disability annuitant, while under superannuation retirement age, refuse to submit to at least one medical review in any year, the disability retirement shall be discontinued until the withdrawal of such refusal, and should such refusal continue for one year, then all rights in and to any disability retirement or for early involuntary retirement as may be provided under the contract, shall be forfeited.
Should a disability annuitant die before the amount payable under this section equals the amount of accumulated deductions plus the balance in the member's excess investment account as of the effective date of disability retirement, the Board shall pay to the beneficiary (if living, or if the beneficiary predeceased the disability annuitant, or no beneficiary was named, then to the disability annuitant's estate) an amount equal to the difference between such amounts paid under this section and the accumulated deductions and the balance in the member's excess investment account. If such difference is less than $100 and no letters have been taken out on the estate within six months after the disability annuitant's death, such difference may be paid to the undertaker or to any person or City who or which shall have paid the claim of the undertaker.
A Plan A member shall be eligible to apply for a disability retirement if the Plan A member has completed 15 years of credited service.
A disability annuitant who was a Plan A member shall receive an annual benefit equal to 50% of the disability annuitant's final salary, plus the benefit provided in § 2-705.28.
The disability annuitant's annuity shall not be affected by the amount of any payments for which the disability annuitant shall be eligible under the Act of June 2, 1915 (P.L. 736, No. 338), known as "the Pennsylvania Workmen's Compensation Act" or the Act of June 21, 1939 (P.L. 566, No. 284), known as "the Pennsylvania Occupational Disease Act."
When the disability of a Plan B member is determined to be a service-connected disability, no minimum period of credited service shall be required for eligibility to receive a disability retirement.
A service-connected disability shall equal an annual benefit of 50% of the disability annuitant's final salary.
When the disability of a Plan B member is determined to be non-service-connected, the Plan B member shall be eligible to apply for a disability retirement if the Plan B member has completed 10 years of credited service.
A non-service-connected disability shall equal an annual benefit of 30% of the disability annuitant's final salary.
The portion of the disability annuity funded from the total disability reserve account for Plan B members shall be reduced by the amount of any payments for which the disability annuitant shall be eligible under the Act of June 2, 1915 (P.L. 736, No. 338), known as "the Pennsylvania Workmen's Compensation Act" or the Act of June 21, 1939 (P.L. 566, No. 284), known as "the Pennsylvania Occupational Disease Act."
For Plan A members, an active member or vested member who has met the eligibility requirements for a superannuation retirement benefit found in § 2-705.23A will be deemed to have elected the spouse's death benefit found in § 2-705.39C unless such Plan A member filed with the Board a waiver of the spouse's death benefit within 90 days of the Plan A member's date of enrollment as determined under § 2-705.16.
Met the eligibility requirements for an early retirement benefit found in § 2-705.24B, may file a written application for retirement requesting that such retirement become effective at the time of death.
When filing an application under this part, one of the options provided in § 2-705.33 may be elected. The application shall be held by the Board until: 1) a later application for a retirement is filed; or 2) the death of the active member or vested member prior to the effective date of retirement.
If any active member or vested member dies before becoming eligible for any benefits under this chapter, the balance of the member's account shall be paid to the beneficiary.
If an active member or vested member meets the eligibility requirements of § 2-705.37 and files an application under this part, benefits shall become effective as if such active member or vested member had retired on the day immediately preceding death in accordance with the annuity option elected in the application.
If a waiver was not filed with the Board under this part by a Plan A member, the surviving spouse (or in the absence of a spouse, any surviving children under the age of 18, or if attending college under or attaining the age of 23) of the Plan A member will receive a pension equal to one-half of the pension which such active member or vested member would have been eligible to receive if the individual had been retired at the time of death or, in the case of an annuitant, a pension equal to one-half of the pension which the annuitant was actually receiving. If there is no surviving spouse or children eligible for the benefit, the balance of the Plan A member's account on the date of death shall be paid to the beneficiary.
If an option was not filed with the Board under this part by a Plan B member, it shall be considered that such active member or vested member elected Option 1 as provided in § 2-705.33. In such event, payment under Option 1 shall be made to the beneficiary.
The Board will actuarially determine the normal cost of the benefits provided under this chapter and any liability associated with the actuarial experience of such benefits which shall be contributed annually by the City. The Board shall determine and the City shall be charged an additional amount to be contributed annually toward a reserve account for any disability benefit which may be payable under this chapter.
The amounts so determined shall be computed in accordance with the Municipal Pension Plan Funding Standard and Recovery Act, 53 P.S. § 895.101 et seq., and the PMRL.
A Plan A member classified by the City as a single coverage member shall contribute an amount equal to 4% of compensation.
A Plan A member classified by the City as a joint coverage member shall contribute an amount equal to 4.5% of compensation on which social security taxes are payable, and 6% of compensation in excess of that on which social security taxes are payable, as determined under the Social Security Act, 42 U.S.C. § 301 et seq.
A Plan A member classified by the City as a dual coverage member shall contribute an amount equal to 6% of compensation.
A Plan A member certified by the City as eligible for the service increment set forth in § 2-705.28 shall contribute an additional amount equal to 0.5% of compensation.
Contributions shall be deducted from payroll and transmitted to the system by the City in accordance with the Board's policy regarding the treatment of member contributions.
Member contributions will be treated as taxed at the time they are made to the system, will be tracked separately, and will not be treated as taxable when paid out to the member.
Plan B members shall contribute 5% of their compensation. However, effective July 1 of the calendar year following the Plan B member's completion of 37.5 years of credited service, the Plan B member shall no longer be required to contribute.
All mandatory member contributions made on or after January 1, 1999, by Plan B members shall be deemed "pick up" contributions and shall be treated as contributions made by the City for purposes of IRC Section 414(h).
Beginning November 4, 2013, through to the end of the calendar year 2014 only, the required member contribution rate for all members under Subsections A(1) to (3) and B(1) shall be 3% of compensation. For calendar years 2015 and 2016 only, the required member contribution rate for all members under Subsections A(1) to (3) and B(1) shall be 4% of compensation.
If sufficient funds exist, the City may annually elect to lower or waive the required member contribution rate by adopting a resolution and filing it with the Board.
If an annuitant, other than a disability annuitant, returns to service with the same City, the annuity shall cease, and in the case of an annuity, other than a disability annuity, the present value of such annuity shall be frozen as of the date such annuity ceases.
Upon subsequent discontinuance of service, such annuitant, other than a former disability annuitant, shall be entitled to an annuity which is actuarially equivalent to the sum of the present value of the annuity previously being paid and the present value of the annuity earned by further service and further deductions added upon reemployment.
The above notwithstanding, if the annuitant is otherwise eligible to receive an in-service distribution of the annuity due to: i) attainment of normal retirement age as defined in the IRC; ii) operation of IRC Section 401(a)(36); or iii) operation of any other provision as may be adopted by the Board and consistent with the tax qualification provisions of the IRC, the annuity shall continue to be paid through the period of such reemployment; but the annuitant shall not be enrolled as a member or receive credited service during any period of an in-service distribution.
The City is required to notify the Board immediately of the reemployment status of any annuitant.
If a former member of the City returns to service with the City and becomes a member, the member may restore to the fund the amounts refunded under § 2-705.32 that represent that member's previous service, and continue accruing credited service for service rendered subsequent to the return to service.
The member's annuity rights shall be restored as they existed at the time of separation from service provided the member pays the amount due plus regular interest up to the date of purchase in a lump sum within 30 days after billing, or through salary deductions amortized with regular interest through a repayment period of not more than five years.
The basic benefit, accumulated deductions and the moneys in the fund shall be exempt from any state or municipal tax. Further, these monies shall not be subject to attachment or execution and shall not be the subject of assignment or transfer except to a duly designated beneficiary.
Rights under this contract shall be subject to attachment in favor of an alternate payee as set forth in an approved domestic relations order.
Rights under this contract shall be subject to forfeiture as required under the act of July 8, 1978 (P.L. 752, No. 140), known as the "Public Employee Pension Forfeiture Act." Forfeitures under this clause or under any other provision of law may not be applied to increase the benefits that any member would otherwise receive under this act.
Editor's Note: See 43 P.S. § 1311 et seq.
The Public Employee Pension Forfeiture Act states that all benefits payable to a public employee must be forfeited if the employee is convicted of, or pleads guilty or no defense to, a crime related to public office or public employment enumerated in the Public Employee Pension Forfeiture Act.
In the event a member is convicted of, pleads guilty or no defense to, a forfeitable crime, the member will be entitled to receive the retirement contributions the member made, without regular interest or excess interest, unless a court of competent jurisdiction orders the member's contributions to be paid as restitution to the City.
All service and benefits forfeited by operation of the Public Employee Pension Forfeiture Act shall be ineligible for retirement coverage should the member later gain public employment and qualify for membership in the system, regardless of the employing City.
The Board shall withhold medical premium payments from annuitants' and survivor annuitants' monthly payments as directed by the City. Such withheld premiums shall be forwarded to the City on a monthly basis.
The Pennsylvania Municipal Retirement Fund shall consist of contributions by municipalities from payroll deductions, from other contributions made by members through the employing municipality to the system, transfers made from municipal retirement or pension systems and investment earnings.
The Board shall keep separate accounts for each municipality, except the total disability reserve account and the retired member's reserve account which shall be maintained as pooled accounts. The City and the members shall be liable to the Board for the amount of contributions required to cover the cost of the basic benefit and other benefits payable to such members.
Upon the granting of a disability retirement, there shall be transferred to the retired member's reserve account the amount of the disability annuitant's member's account, together with an amount from the municipal account to equal the amount of the equivalent actuarial value of the basic benefit, and such additional amount from the total disability reserve account as may be needed to provide the actuarial equivalent of the disability retirement to which the disability annuitant is entitled.
Upon the granting of a basic benefit, there shall be transferred to the retired member's reserve account the amount of the member's account, plus an amount from the municipal account such that the sum will equal the equivalent actuarial value to the annuity provided in § 2-705.33A.
The regular interest charges payable and the creation and maintenance of the necessary reserves for the payment of the benefits, as to the City and its members are hereby made the obligation of the City in accordance with PMRL Section 111 and shall not otherwise attach to those assets of the fund attributable to any other municipality and its members.
Necessary and appropriate expenses of the system.
All moneys and securities in the fund shall be placed in the custody of the State Treasurer as is required by PMRL Section 109.
The members of the Board shall be trustees of the fund, and shall have the exclusive management of said fund, with full power to invest the moneys therein, subject to the terms, conditions, limitations and restrictions imposed by law upon fiduciaries. The Board shall have power to hold, purchase, sell, assign, transfer and dispose of any securities and investments in said fund, as well as the proceeds of such investments, and of the money belonging to such fund.
The Board shall annually allocate regular interest to the credit of each member's account, municipal account, and the retired member's reserve account.
The Board may, after deducting money to pay for regular interest and any appropriate expenses of the system, award excess interest to the City in accordance with Board adopted policy.
Notwithstanding any other provision, excess interest shall not be allocated to the member's accounts and/or retired members' reserve account if the City's funding status in relation to the benefit structure set forth under this contract is less than 95% funded as of the most recent actuarial report filed pursuant to the Municipal Pension Plan Funding Standard and Recovery Act, 53 P.S. § 895.101 et seq.
In the event that the municipality's funding status in relation to the benefit structure set forth under this contract is less than 95% funded as of the most recent actuarial report filed pursuant to the Municipal Pension Plan Funding Standard and Recovery Act, 53 P.S. § 895.101 et seq., all excess interest awarded by the Board shall be allocated to the municipal account.
Zero percent to the retired member's reserve account.
Except for the accounts of vestees or when a member transfers membership due to portability, no interest or excess interest shall be credited to a member's account after termination of employment with the City that entitles him or her to membership in the system under this chapter.
Perform such other functions as are required for the execution of the PMRL and of any other federal and state law and to administer and interpret this contract to ensure that the system is maintained as tax qualified under the IRC.
The Board retains the right to correct any errors in collection of contributions or payments of benefits and awarding of service credits or amount credited to the accumulated deduction accounts, excess interest accounts or other accounts, whether caused by mistake of fact or law, regardless of the fault or lack thereof of the members, the City or the Board, or whether the errors were made under this chapter or Plan A or Plan B prior to enrollment in the system.
The City agrees that all reports and documents relating to the fund which it may prepare and deliver hereunder shall be confidential and shall become the property of the Board and shall not be published, circulated, or used in any manner by the City without prior written approval of the Board.
The City shall preserve all financial and accounting records pertaining or prepared pursuant to this chapter during the agreement period, and any amendment thereof, for six years from the termination date of the enrollment of the City in the system. During such period the Board, or any other department or representative of the Commonwealth of Pennsylvania, upon reasonable notice, shall have the right to audit such books and records for the purpose of verifying all the salary contribution payments, to the extent authorized and permitted by law. The City shall have the right to preserve all records and accounts in original form or on microfilm, magnetic tape, or any other similar process.
The Board is statutorily vested with the exclusive jurisdiction to administer and interpret this contract in accordance with the PMRL. The parties hereby waive any claim or defense that such forum is not convenient or proper.
If a member and/or City believe that a right or benefit under this contract has been improperly denied, a written request for a final determination must be filed with the system.
If the member and/or municipality disagrees with the final determination reached by the system, the member and/or the City has the right to file an appeal and request an administrative hearing before the Board. See 1 Pa. Code §§ 31.11, 31.15, 33.31, 33.34, and 35.20. The appeal and request for an administrative hearing must include a statement of the facts that forms the basis of the requested relief and all points of law that support the claim.
An administrative hearing is a process in which evidence is presented before an independent hearing examiner who makes a recommendation to the Board, following which the Board renders a final adjudication. All administrative hearings are conducted at the Board's headquarters in Harrisburg. The Board's final adjudication is subject to an appeal before the Commonwealth Court of Pennsylvania.
If the appeal and request for an administrative hearing is not received by the Board within the thirty-day period, the member and/or City will no longer have the right to administratively appeal the denial of its request to the Board.
The City has been enrolled in the system for a period of at least five years.
The City has met all of its financial obligations to the system.
The City has passed an ordinance signifying its intention to withdraw from the system.
The City has certified to the Board that an affirmative vote approving withdrawal from the system had been obtained from at least 75% of all active members, inactive members, vested members, annuitants, and survivor annuitants.
The City has acknowledged its responsibility to assume and provide for all future benefit payments to the existing active members, inactive members, vested members, annuitants, survivor annuitants, and their beneficiaries effective upon the withdrawal.
The application has specified a date for the withdrawal to become effective, provided if there are annuitants and/or survivor annuitants in active pay status the effective date is the first day of a month no earlier than the month after which the Board is scheduled to take action on the withdrawal application.
In the event that the City elects to terminate its participation in the system, a member's basic benefit under this contract shall be immediately vested to the extent funded as of the effective date of the withdrawal.
In the event the City withdraws from the system, the City shall only be entitled to the assets credited to the municipal account and the members' accounts in accordance with the provisions of the PMRL and policy statements. Assets that are actuarially determined by the Board's actuary to be matched to the City's annuitants and survivor annuitants will also be returned to the City in accordance with the PMRL and policy statements.
Receipt. Any filing, election or notice required to be made under this chapter or the PMRL by a member must be made by written statement, duly attested, and filed in the office of the Board or deposited in the United States Mail, addressed to the Board.
Timeliness. Subject to any exceptions provided for in the PMRL, the timeliness of any filing, election or notice required to be made under this contract or the PMRL to the Board by a member shall be governed by the actual receipt of the filing, election or notice rather than the date of mailing.
In the event the system receives an application for a benefit from a member in which certification by the City with regard to the data used to calculate such benefit is needed but such certification has not been made by the City, the system shall issue a formal demand to the City for such certification of the necessary data.
Any certification required to be made by the City with regard to any application for benefits by a member under this contract shall be made by the City within 45 days following the date of the system's formal demand.
Failure of the City to provide such requested certification within the forty-five-day period shall result in the system utilizing the most current reliable data maintained by the system for the member.

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