HB 1294 — An Act amending the act of May 29, 1956 (1955 P.L.1804, No.600), referred to as the Municipal Police Pension Law, further providing for credit for military service.

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
 1   Amending the act of May 29, 1956 (1955 P.L.1804, No.600),
 2      entitled "An act providing for the establishment of police
 3      pension funds or pension annuities in certain boroughs, towns
 4      and townships; authorizing the establishment of police
 5      pension funds or pension annuities by regional police
 6      departments; providing for the regulation and maintenance of
 7      police pension funds or pension annuities; providing for an
 8      actuary; continuance of existing funds or transfer thereof to
 9      funds herein established; prescribing rights of
10      beneficiaries; contributions by members; providing for
11      expenses of administration; continuation of existing
12      authority to provide annuity contracts; credit for military
13      service; refunds; exempting allowances from judicial process;
14      and repealing certain acts," further providing for credit for
15      military service.
16      The General Assembly of the Commonwealth of Pennsylvania
17   hereby enacts as follows:
18      Section 1.    Section 4(d) and (e) of the act of May 29, 1956
19   (1955 P.L.1804, No.600), referred to as the Municipal Police
20   Pension Law, are amended to read:
21      Section 4.    * * *
22      (d)   Whenever two or more boroughs, cities, towns or
23   townships establish a regional police department through an
24   intermunicipal agreement [under the act of July 12, 1972
25   (P.L.762, No.180), referred to as the Intergovernmental
 1   Cooperation Law] in accordance with 53 Pa.C.S. Ch. 23 Subch. A
 2   (relating to intergovernmental cooperation), the participating
 3   boroughs, cities, towns or townships shall individually adopt
 4   ordinances establishing the regional police pension fund which
 5   shall have a uniform benefit structure consistent with this act.
 6   Any member of the police force of any of the boroughs, cities,
 7   towns or townships establishing the regional police department,
 8   or any member of the police force of any of the boroughs,
 9   cities, towns or townships joining a previously established
10   regional police department, who is appointed as a member of the
11   regional police force [within six months of its establishment
12   shall have credited to his employment record for pension or
13   retirement benefit purposes all of the time spent by him as a
14   full-time member of the police pension fund of the municipality.
15   Prior to the adoption of the pension plan for the regional
16   police department, the municipalities shall obtain an actuarial
17   valuation report on the proposed pension plan. The actuarial
18   valuation report shall be prepared under Chapter 2 of the act of
19   December 18, 1984 (P.L.1005, No.205), known as the "Municipal
20   Pension Plan Funding Standard and Recovery Act."] within six
21   months of its establishment or within six months of the
22   subsequent joinder of a participating municipality, as
23   applicable, shall have credited to his employment record for
24   pension or retirement benefit purposes all of the time spent by
25   him as a full-time member of the police pension fund of the
26   municipality. If authorized in the intermunicipal agreement, a
27   participating municipality may transfer a combination of assets
28   or liabilities of its municipal police pension fund to the
29   regional police pension fund, and the regional police pension
30   fund shall become responsible for the transferred assets or

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 1   liabilities. Prior to the adoption of the pension plan for the
 2   regional police department or the subsequent assumption of
 3   additional assets or liabilities by the regional police pension
 4   fund in accordance with this subsection, the participating
 5   municipalities shall obtain an actuarial valuation report on the
 6   proposed pension plan. The actuarial valuation report shall be
 7   prepared under Chapter 2 of the act of December 18, 1984
 8   (P.L.1005, No.205), known as the "Municipal Pension Plan Funding
 9   Standard and Recovery Act."
10      (e)   If a borough, town or township disbands its police force
11   or regional police department and enters into an intermunicipal
12   agreement with another borough, town or township for the
13   provision of police services [under the Intergovernmental
14   Cooperation Law] in accordance with 53 Pa.C.S. Ch. 23 Subch. A,
15   including joining an existing regional police department, the
16   intermunicipal agreement may provide for the transfer of service
17   credits for any active member of the disbanded police force or
18   regional police department who is employed on or after January
19   1, 1995, as a member of the police force or regional police
20   department providing police services to the borough, town or
21   township that disbanded its police force or regional police
22   department, provided that the member is employed within six
23   months of the effective date of the disbandment. If authorized
24   in an intermunicipal agreement, the service credits transferred
25   for each eligible member shall be equal to the total time spent
26   by the member as a full-time member of the disbanded police
27   force. The intermunicipal agreement providing for the transfer
28   of service credits may provide for the transfer of all assets
29   from the police pension fund of the disbanded police force or
30   regional police department to the police pension fund of the

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 1   police force or regional police department of the borough, town
 2   or township providing the police services[, provided that the
 3   amount of the assets transferred does not exceed the actuarial
 4   accrued liability of the transferred members as calculated by
 5   the actuary of the police pension fund of the police force of
 6   the borough, town or township providing the police services. The
 7   actuarial valuation prepared by the actuary shall be prepared
 8   under Chapter 2 of the "Municipal Pension Plan Funding Standard
 9   and Recovery Act."]. The transfer of all assets from the police
10   pension fund of the disbanded police force or regional police
11   department to the police pension fund of the police force or
12   regional police department of the borough, town or township
13   providing the police services must occur no later than one year
14   from the date of disbandment. If all assets are not transferred
15   within one year from the date of disbandment, the borough, town
16   or township shall transfer the assets to the Commonwealth in a
17   manner determined by the State Treasurer. A borough, town or
18   township that retains the assets from a police pension fund of a
19   disbanded police force or regional police department after one
20   year from the date of disbandment shall be subject to a civil
21   penalty not to exceed ten per centum of the total aggregate of
22   assets retained. The Office of Attorney General may bring a
23   civil action in a court of competent jurisdiction to recover the
24   penalty specified under this subsection.
25      * * *
26      Section 2.   This act shall take effect in 60 days.




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