Section 4712 - Amount of retirement allowances(a)(1) For employes hired prior to the effective date of paragraph (2), the retirement allowance paid under the provisions of this article shall equal fifty per centum of the amount which would constitute the average monthly compensation as received by the county employe during the highest twenty-four months of the last four (4) years of his employment or two years on a bi-weekly pay basis in which period of time the said county employe made monthly or bi-weekly contributions into the retirement fund prior to his or her retirement.(2) For employes hired after the effective date of this paragraph, the retirement allowance paid under the provisions of this article shall be equal to fifty per centum of the amount which would constitute the average monthly compensation as received by the county employe during the highest forty-eight months of the last eight (8) years of his employment or four (4) years on a bi-weekly pay basis in which period of time the county employe made monthly or bi-weekly contributions into the retirement fund prior to his or her retirement.(3) Such average monthly compensation shall include the compensation which any county employe would have been entitled to and would have received except for deduction from compensation due to time spent in serving as an elected State official: Provided, That the county and the employe shall make monthly contributions based on the last compensation equal to the amount the county and he or she would have paid into the retirement fund had such compensation been paid by the county. In the event an employe, on the effective date of employment termination, shall have less than a full year of service for the purpose of computing the employe's service time, then the amount of the retirement allowance, which would have been computed had the employe completed a full twelve-month period for the year of the termination of employment, shall be prorated upon a full completed month basis for said last year of service. No retirement allowance shall be computed on a monthly compensation in excess of four thousand three hundred thirty-three dollars and thirty-three cents ($4,333.33) (referred to in this subsection as "excess compensation") unless the employe and the county have made contributions on all excess compensation received by the employe during the five-year period preceding the employe's retirement: Provided, That the required contribution is paid into the retirement system within ninety (90) days of the date of retirement. An employe who retires within five (5) years of the effective date of the compensation cap removal may elect to satisfy the contribution requirement by making a lump sum contribution that is calculated by applying the applicable contribution percentage rate to all excess compensation received by the employe during the prior five-year period on which contributions were not made. Within ninety (90) days of such contribution by an employe, contributions shall also be made by the county in an amount equal to the amount contributed by the employe. The effective date of the cap removal is December 31, 1999.(4) After the effective date of this amendment, certain former county employes who are now receiving a retirement allowance shall receive an increase of a certain per centum of such retirement allowance, which sum shall be computed on the average monthly retirement allowance as heretofore authorized by the board.(5) The per centum of increase in said monthly retirement allowance shall be a flat 10 per centum increase with the maximum amount not to exceed forty-five dollars ($45.00) per month.(6) Any employe who earns in excess of ten thousand eight hundred dollars ($10,800) per annum and shall retire during the period from January 1, 1973 to December 31, 1981 shall pay, as a condition to the payment of any benefits hereunder a lump sum contribution into the retirement fund, which contribution shall be computed as follows:(i) The difference between ten thousand eight hundred dollars ($10,800) and the annual salary of the employe multiplied by the number of years during which he was not an employe of the county for the period aforesaid and upon that amount the sum of two per centum which shall be the lump sum contribution as required herein.(ii) No person who is reemployed as a county employe shall be eligible to receive the benefit of a retirement allowance plus a service increment, if any, until he or she shall have made at least twenty-four monthly or fifty-two bi-weekly contributions into the retirement fund subsequent to his or her reemployment. The foregoing provisions shall not have a retroactive application and shall apply only to present and future county employes. The rate required to be paid in accordance with this provision shall apply to present county employes notwithstanding the rate of contribution that the present county employe has made into the retirement fund.(b.1)(1) In addition to the retirement allowance which is authorized by this article and notwithstanding the limitations therein placed upon retirement allowances, any county employe hired prior to the effective date of paragraph (2) who upon retirement shall be eligible to receive payment of a retirement allowance and who has been employed as such for twenty or more years during which period of time he or she shall have made monthly contributions into the retirement fund, shall also be eligible to the payment in addition to a retirement allowance a service increment of two per centum per year computed upon the annual retirement allowance to which he or she is entitled. Said service increment shall be the sum obtained by computing the number of full years, and any portion of a year, in excess of twenty years during which period of time he or she shall have made monthly or bi-weekly contributions into the retirement fund. No service increment shall be paid for more than twenty (20) such excess service years. Effective as of January 1, 1989, in the event an employe, on the effective date of employment termination, shall have less than a full year of service for the purpose of computing the employe's service increment, then the amount of the service increment which would have been computed had the employe completed a full twelve-month period for the year of the termination of employment shall be prorated upon a full completed month basis for said last year of service increment.(2) In addition to the retirement allowance which is authorized by this article and notwithstanding the limitations therein placed upon retirement allowances, any county employe hired on or after the effective date of this paragraph who upon retirement shall be eligible to receive payment of a retirement allowance and who has been employed as such for twenty-five or more years during which period of time he or she shall have made monthly or bi-weekly contributions into the retirement fund, shall also be eligible to the payment in addition to a retirement allowance a service increment of two per centum per year computed upon the annual retirement allowance to which he or she is entitled. Said service increment shall be the sum obtained by computing the number of full years, and any portion of a year, in excess of twenty-five years during which period of time he or she shall have made monthly or bi-weekly contributions into the retirement fund. No service increment shall be paid for more than twenty (20) such excess service years. In the event an employe, on the effective date of employment termination, shall have less than a full year of service for the purpose of computing the employe's service increment, then the amount of the service increment which would have been computed had the employe completed a full twelve-month period for the year of the termination of employment shall be prorated upon a full completed month basis for said last year of service increment.(c) Any person receiving a retirement allowance and is subsequently reemployed as a county employe, during the period of such reemployment his or her retirement allowance plus a service increment, if any, shall cease until subsequent retirement. The subsequent retirement allowance and service increment, if any, in the case of persons reemployed prior to the first day of June, one thousand nine hundred fifty-three, and retiring at any time after the first day of August, one thousand nine hundred fifty-three, shall be at the rate he or she would have received had there been no previous retirement. In the case of persons reemployed after the thirty-first day of May, one thousand nine hundred fifty-three, the subsequent retirement allowance, plus a service increment, if any, shall be the same as he or she received prior to his or her reemployment. All present and future reemployed retired employes shall have the option to make bi-weekly contributions to the fund to qualify for an increased retirement allowance upon subsequent retirement: Provided, That he or she make retirement contributions to the fund with interest at the legal rate, for said period of time when no contributions were made from the earnings of said employe during the period of such reemployment. Upon subsequent retirement, the reemployed service credit, which shall equal one-twentieth for each full year's service, shall be added to the previous retirement allowance and in one amount, be paid monthly to the reemployed retiree. In no event shall increments be paid for any such reemployment service credit.(d) Retirement allowance plus a service increment, if any, shall be paid in monthly installments on warrants of the board. No retirement allowance plus a service increment, if any, granted to any person who has heretofore retired or who shall hereafter retire shall be decreased or revoked during the life of any such person, except as the board may decide in accordance with the provisions of subsection (b) of section 1711, as well as a suspension thereof in accordance with the provisions of subsection (c) of this section.(e) Any present or future married county employe covered under the provisions of this article may receive retirement benefits in accordance with the provisions of this section to which such county employe may be entitled or he or she may elect at anytime before retirement, to receive in lieu thereof benefits under the option as hereinafter set forth. The option shall consist of retirement benefits in accordance with the provisions of subsection (a) of this section but reduced at age fifty-five, or on commencement of retirement benefits if later, by ten per centum plus one per centum for each full year in excess of five years by which the spouse is younger than the married county employe, with a maximum reduction to seventy per centum of such retirement benefits, and minus one-half of one per centum for each year by which the spouse is older, with a maximum increase to ninety-five per centum of such retirement benefits. The reduced amount of such retirement benefits shall commence at the time of retirement, but not before age fifty-five, and shall be paid to the employe subject to the provisions of subsection (d) of this section.
(f)(1) The election by said county employe of the option as provided in subsection (e) of this section shall be final on attainment of age fifty or on later election prior to retirement, and no further election shall be permitted: Provided, That the election shall automatically be cancelled if the county employe shall either be divorced or if his or her spouse shall die, in each case before retirement benefits under the option shall commence. In the event the designated spouse shall predecease, or if a legal separation occurs, while on retirement, the reduced retirement option benefit shall be reinstated to the full amount had there been no option exercised. Said reinstated amount to commence immediately upon the death of the spouse so designated or upon satisfactory proof of legal separation.(2) All employes hired prior to the effective date of paragraph (3) may elect to provide survivorship option benefits for a spouse in the following classifications if the following conditions are satisfied: Class I. The deceased employe shall have attained the age of fifty years and had completed between the minimum number of years of service specified in subsection (a) of section 1710 and nineteen years of service and dies before reaching the age of fifty-five years. The reduced retirement option benefit to commence to the survivor at the time the deceased employe would have attained the age of fifty-five years. Said benefits to be paid in accordance with the provisions set forth under subsection (d), Option II, of section 1713.
Class II. All employes hired prior to the effective date of paragraph (3), who after completion of twenty or more years of service and shall die before reaching the age of fifty years, his or her spouse shall be eligible to receive the reduced retirement option immediately, in accordance with the provisions set forth under subsection (d), Option II of section 1713.
(3) All employes hired on or after the effective date of this paragraph may elect to provide survivorship option benefits for a spouse in the following classifications if the following conditions are satisfied: Class I-A. The deceased employe shall have attained the age of fifty years and had completed between the minimum number of years of service specified in subsection (a) of section 1710 and twenty-four years of service and dies before reaching the age of fifty-five years. The reduced retirement option benefit to commence to the survivor at the time the deceased employe would have attained the age of fifty-five years. Said benefits to be paid in accordance with the provisions set forth under subsection (d), Option II, of section 1713.
Class II-A. All employes hired on or after the effective date of this paragraph, who after completion of twenty-five or more years of service and shall die before reaching the age of fifty years, his or her spouse shall be eligible to receive the reduced retirement option immediately, in accordance with the provisions set forth under subsection (d), Option II of section 1713.
(g) Sections 1710, 1711 and 1713 are to be construed as applying to the provisions of subsection (e) of this section insofar as the aforesaid sections are applicable.(h) Survivorship benefits at age fifty-five shall be determined according to the following table: | Maximum 95% | | Minimum 70% or $75.00 |
| Spouse Years Older | | Spouse Years Younger |
| Same Age = 90% | Same Age = 90% | -15 years = 80% |
| + 1 year = 90 1/2 % | - 5 years = 90% | -16 years = 79% |
| + 2 years = 91% | - 6 years = 89% | -17 years = 78% |
| + 3 years = 91 1/2 % | - 7 years = 88% | -18 years = 77% |
| + 4 years = 92% | - 8 years = 87% | -19 years = 76% |
| + 5 years = 92 1/2 % | - 9 years = 86% | -20 years = 75% |
| + 6 years = 93% | -10 years = 85% | -21 years = 74% |
| + 7 years = 93 1/2 % | -11 years = 84% | -22 years = 73% |
| + 8 years = 94% | -12 years = 83% | -23 years = 72% |
| + 9 years = 94 1/2 % | -13 years = 82% | -24 years = 71% |
| + 10 years = 95% | -14 years = 81% | -25 years = 70% |
One-half of the rate specified in the table shall be paid to the surviving spouse on the death of the retired employe.
(i)(1) Any county employe hired prior to the effective date of paragraph (2) retiring under disability retirement benefits shall qualify for survivorship option benefits if he or she shall have reached the age of fifty-five years and having twenty or more years of service credit will be eligible for same benefits had he retired under the normal retirement provided for in this act. Any county employe retiring under disability retirement and having twelve years but less than twenty years of service credit, upon reaching age fifty-five will be eligible for survivorship option benefits and his or her spouse shall receive the maximum amount of seventy-five dollars ($75.00) per month upon his or her death under the option benefit clause as set forth under subsection (e) of this section.(2) Any county employe hired on or after the effective date of this paragraph retiring under disability retirement benefits shall qualify for survivorship option benefits if he or she shall have reached the age of fifty-five years and having twenty-five or more years of service credit will be eligible for same benefits had he retired under the normal retirement provided for in this act. Any county employe retiring under disability retirement and having twelve years but less than twenty-five years of service credit, upon reaching age fifty- five will be eligible for survivorship option benefits and his or her spouse shall receive the maximum amount of seventy-five dollars ($75.00) per month upon his or her death under the option benefit clause as set forth under subsection (e) of this section.Amended by P.L. 1242 2013 No. 125, § 5, eff. 2/21/2014.1953, July 28, P.L. 723, art. XVII, § 1712. Amended 1955, May 31, P.L. 111, § 1; 1956, Feb. 1, P.L. (1955) 987, § 1; 1959, Aug. 14, P.L. 710, § 1; 1967, Nov. 30, P.L. 653, § 2, imd. effective; 1970, Dec. 10, P.L. 919, No. 291, § 6; 1973, June 1, P.L. 37, No. 19, § 1, imd. effective; 1976, June 29, P.L. 461, No. 116, §§ 3, 4, imd. effective; 1980, Dec. 10, P.L. 1165, No. 213, § 2, imd. effective; 1984, Feb. 9, P.L. 12, No. 6, § 3, effective in 60 days; 1989, Dec. 14, P.L. 631, No. 75, § 5, imd. effective; 1998, Jan. 27, P.L. 1, No. 1, § 5, imd. effective; 2000, Oct. 30, P.L. 616, No. 85, § 2, imd. effective.