Providing what could be significant relief for many municipal police pension plans, Governor Edward G. Rendell signed Act 51 of 2009 into law on October 9, 2009. Effective immediately, Act 51 provides for a killed-in-service benefit to be funded by the Commonwealth of Pennsylvania equal to the monthly salary of the deceased officer, adjusted annually for the cost of living. The benefit is payable to the deceased's surviving spouse or, if there is no surviving spouse, to the deceased's minor children under the age of 18. If those children are attending college, they can receive the benefit up to the age of 23.
Act 51 specifically repeals the current Act 600 killed-in-service benefit. In addition to law enforcement officers, the new benefit applies to paid firefighters, ambulance service members, and rescue squad members. The Act 51 benefit is offset by any workers' compensation benefits or pension benefits paid to the surviving spouse pursuant to a collective bargaining agreement.
Many municipalities with Act 600 pension plans provide for the former Act 600 killed-in-service benefit in their collective bargaining agreements and pension plans. This can result in significant costs to a local municipal plan, particularly if the benefit becomes payable. Municipal employers with Act 600 plans should immediately meet with their police bargaining units to remove the Act 600 benefit to the fullest extent possible.
Contact Information
For questions on Act 51 and the repeal of the Act 600 killed-in-service benefit or for assistance in making adjustments to a pension plan, please feel free to call John P. McLaughlin (215.864.8241 or mclaughlinj@ballardspahr.com), Patrick J. Harvey (215.864.8240 or harveyp@ballardspahr.com), William K. Kennedy II (215.864.8243 or kenedyw@ballardspahr.com), or any other member of Ballard Spahr's Labor, Employment and Immigration Group.
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