Section 81.1. Definitions

The following words and terms, when used in this part, have the following meanings, unless the context clearly indicates otherwise:

Accumulated deductions—The total amount deducted from the salary or compensation of the contributor plus regular interest credited thereon, based on a benefit plan selected and as determined by an actuary, and shall also include payments for arrearages for reinstatement or purchase of service, as otherwise permitted by law.

Active member—A municipal employe, municipal firefighter or municipal police officer who is earning credited service in a System pension plan as a result of employment with a municipality that has enrolled in the System.

Actuarially equivalent—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.

Beneficiary—A person last designated in writing by a contributor or a retired member, or if one is not so designated, the estate of the member or next of kin under 20 Pa.C.S. § 3101 (relating to payments to family and funeral directors), to the extent applicable.

Board—The Pennsylvania Municipal Retirement Board required by the law to administer the System.

Contributor—The term includes a member who has a member’s account with the System, regardless of whether the account contains accumulated deductions.

Date of termination of service—

(i) For an active member, the last day of employment in a status covered by the eligibility requirements of the pension plan.

(ii) For an inactive member, the date on which formal action is taken by the employer to separate the member from employment.

Effective date of disability retirement—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.

Inactive member—A municipal employe, municipal firefighter or municipal police officer who is enrolled in the System but is no longer earning credited service in a System pension plan as a result of separation from or leave from employment.

Law—The Pennsylvania Municipal Retirement Law (53 P. S. § § 881.101—881.502).

Optional membership—Shall be available to those categories of employes authorized by law, resolution or ordinance to elect or refrain from electing membership.

(i) If they choose not to join, the declination of membership shall apply for the period of time the employe serves continuously in that optional category.

(ii) If there is a break in service and the employe returns, the member may not be permitted to purchase optional membership time previously declined, but may be a member for future optional service, if the employe so chooses.

(iii) If the employe returns to service when there is mandatory membership, the member shall be required to join the plan, on a prospective basis only.

Portability—The condition by which a member leaves the employ of a System administered plan and within 1 year of the date of termination of service enters into the employ of another System administered plan and the member elects to transfer his previously accrued service credits to the new employer, subject to provision of municipalities’ contracts.

Prior service—This may not apply to municipal employes or officers who are returning to service in those municipalities which had optional plans in which the member chose not to enroll. The term includes service to the municipality prior to the effective date of the plan unless the municipality elects to limit credit for the service.

Regular interest—The rate fixed by the Board, on the basis of earnings on investments and, as applied to members’ contributions, means interest compounded annually to be calculated as follows: The sum of the accumulated deductions at the conclusion of the previous year and the mean balance of the current year’s contributions multiplied by the regular interest amount then in existence for the fractional part of a year for which the contributor was a member.

Retired member—A former municipal employe, municipal firefighter or municipal police officer, or the beneficiary or survivor annuitant of a municipal employe, municipal firefighter or municipal police officer who is entitled to a monthly benefit payment from the retired member’s reserve account of the System.

System—The Pennsylvania Municipal Retirement System created by the law.

Vested member—A member after a stipulated age or with sufficient years of service, or both, based on the plan in which the member is enrolled, who has terminated municipal service and has elected to leave total accumulated deductions in the Fund and to defer receipt of an annuity representing both the member’s and municipal benefits, provided the election is made within 90 days after the effective date of termination of service.

The provisions of this § 81.1 amended June 23, 2000, effective June 24, 2000, 30 Pa.B. 3168. Immediately preceding text appears at serial pages (260159) to (260161).