PRINTER'S NO. 1474
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.1294
Session of
2025
INTRODUCED BY MAJOR, APRIL 23, 2025
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, APRIL 23, 2025
AN ACT
Amending the act of May 29, 1956 (1955 P.L.1804, No.600),
entitled "An act providing for the establishment of police
pension funds or pension annuities in certain boroughs, towns
and townships; authorizing the establishment of police
pension funds or pension annuities by regional police
departments; providing for the regulation and maintenance of
police pension funds or pension annuities; providing for an
actuary; continuance of existing funds or transfer thereof to
funds herein established; prescribing rights of
beneficiaries; contributions by members; providing for
expenses of administration; continuation of existing
authority to provide annuity contracts; credit for military
service; refunds; exempting allowances from judicial process;
and repealing certain acts," further providing for credit for
military service.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 4(d) and (e) of the act of May 29, 1956
(1955 P.L.1804, No.600), referred to as the Municipal Police
Pension Law, are amended to read:
Section 4. * * *
(d) Whenever two or more boroughs, cities, towns or
townships establish a regional police department through an
intermunicipal agreement [ under the act of July 12, 1972
(P.L.762, No.180), referred to as the Intergovernmental
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25 Cooperation Law] in accordance with 53 Pa.C.S. Ch. 23 Subch. A
(relating to intergovernmental cooperation) , the participating
boroughs, cities, towns or townships shall individually adopt
ordinances establishing the regional police pension fund which
shall have a uniform benefit structure consistent with this act.
Any member of the police force of any of the boroughs, cities,
towns or townships establishing the regional police department ,
or any member of the police force of any of the boroughs,
cities, towns or townships joining a previously established
regional police department, who is appointed as a member of the
regional police force [ within six months of its establishment
shall have credited to his employment record for pension or
retirement benefit purposes all of the time spent by him as a
full-time member of the police pension fund of the municipality.
Prior to the adoption of the pension plan for the regional
police department, the municipalities shall obtain an actuarial
valuation report on the proposed pension plan. The actuarial
valuation report shall be prepared under Chapter 2 of the act of
December 18, 1984 (P.L.1005, No.205), known as the "Municipal
Pension Plan Funding Standard and Recovery Act." ] within six
months of its establishment or within six months of the
subsequent joinder of a participating municipality, as
applicable, shall have credited to his employment record for
pension or retirement benefit purposes all of the time spent by
him as a full-time member of the police pension fund of the
municipality. If authorized in the intermunicipal agreement, a
participating municipality may transfer a combination of assets
or liabilities of its municipal police pension fund to the
regional police pension fund, and the regional police pension
fund shall become responsible for the transferred assets or
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30 liabilities. Prior to the adoption of the pension plan for the
regional police department or the subsequent assumption of
additional assets or liabilities by the regional police pension
fund in accordance with this subsection, the participating
municipalities shall obtain an actuarial valuation report on the
proposed pension plan. The actuarial valuation report shall be
prepared under Chapter 2 of the act of December 18, 1984
(P.L.1005, No.205), known as the "Municipal Pension Plan Funding
Standard and Recovery Act."
(e) If a borough, town or township disbands its police force
or regional police department and enters into an intermunicipal
agreement with another borough, town or township for the
provision of police services [ under the Intergovernmental
Cooperation Law] in accordance with 53 Pa.C.S. Ch. 23 Subch. A,
including joining an existing regional police department , the
intermunicipal agreement may provide for the transfer of service
credits for any active member of the disbanded police force or
regional police department who is employed on or after January
1, 1995, as a member of the police force or regional police
department providing police services to the borough, town or
township that disbanded its police force or regional police
department, provided that the member is employed within six
months of the effective date of the disbandment. If authorized
in an intermunicipal agreement, the service credits transferred
for each eligible member shall be equal to the total time spent
by the member as a full-time member of the disbanded police
force. The intermunicipal agreement providing for the transfer
of service credits may provide for the transfer of all assets
from the police pension fund of the disbanded police force or
regional police department to the police pension fund of the
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30 police force or regional police department of the borough, town
or township providing the police services[ , provided that the
amount of the assets transferred does not exceed the actuarial
accrued liability of the transferred members as calculated by
the actuary of the police pension fund of the police force of
the borough, town or township providing the police services. The
actuarial valuation prepared by the actuary shall be prepared
under Chapter 2 of the "Municipal Pension Plan Funding Standard
and Recovery Act."]. The transfer of all assets from the police
pension fund of the disbanded police force or regional police
department to the police pension fund of the police force or
regional police department of the borough, town or township
providing the police services must occur no later than one year
from the date of disbandment. If all assets are not transferred
within one year from the date of disbandment, the borough, town
or township shall transfer the assets to the Commonwealth in a
manner determined by the State Treasurer. A borough, town or
township that retains the assets from a police pension fund of a
disbanded police force or regional police department after one
year from the date of disbandment shall be subject to a civil
penalty not to exceed ten per centum of the total aggregate of
assets retained. The Office of Attorney General may bring a
civil action in a court of competent jurisdiction to recover the
penalty specified under this subsection.
* * *
Section 2. This act shall take effect in 60 days.
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