53 Pa. Stat. § 881.102
As used in this act:
"Accumulated deductions" means the total amount deducted from the salary or compensation of the contributor and paid over by the municipality or paid by the member or from any existing pension or retirement system directly into the retirement fund and credited to the member's account, together with regular interest thereon, unless interest is excluded in a contract for an optional retirement plan entered into under the provisions of clause (11) of section 104 of this act.
"Actuarially sound" means a plan which is being operated under supervision of an actuary and which is being funded annually at a level not lower than the normal cost of the plan plus a contribution towards the unfunded accrued liability sufficient to complete the funding thereof within thirty years of the effective date of the system. If the unfunded accrued liability is increased subsequent to the effective date of the system, such additional liability shall be funded within a period of thirty years from the effective date of the increase. If deemed advisable by the actuary, the initial liability and any increase thereof, may be combined and amortized over a period of years, not to exceed thirty.
"Actuary" means:
"Alternate payee" means a spouse, former spouse, child or dependent of a member, who is recognized by an approved domestic relations order as having a right to receive all or a portion of the money payable to the member under this act.
"Annuitant" means a member during the time period:
"Approved domestic relations order" means a domestic relations order which has been approved under this act.
"Beneficiary" means a person designated by a contributor or an annuitant to receive benefits after the death of such contributor or annuitant.
"Board" means the Pennsylvania Municipal Retirement Board created by this act.
"Compensation" means remuneration actually received for services rendered as a municipal employee, municipal fire fighter or municipal police officer, excluding reimbursement for expenses incidental to employment. The following apply:
"Contributor" means a member who has accumulated deductions standing to his credit in the member's account of the fund created by this act.
"Date of termination of service" means:
"Domestic relations order" means any judgment, decree or order, including approval of a property settlement agreement, entered on or after the effective date of this definition by a court of competent jurisdiction pursuant to a domestic relations law which relates to the marital property rights of the spouse or former spouse of a member, including the right to receive all or a portion of the money payable to that member under this act, in furtherance of the equitable distribution of marital assets. The term includes an "order of support" under 23 Pa.C.S. § 4302 (relating to definitions) and an order for the enforcement of arrearages under 23 Pa.C.S. § 3703 (relating to enforcement of arrearages).
"DROP" means the Deferred Retirement Option Plan established by the board under this act and by a municipality under Chapter 11 of the act of December 18, 1984 (P.L. 1005, No. 205), known as the Municipal Pension Plan Funding Standard and Recovery Act.
"DROP interest" means the actual rate earned and credited by the board on the subsidiary DROP participant accounts, which shall not be less than zero percent nor more than four and one-half percent, annually.
"DROP participant" means an annuitant who has elected to participate in the DROP.
"Effective date of retirement" means one of the following:
"Equivalent actuarial value" means benefits which have equal present value when computed on the basis of regular interest and the mortality tables adopted by the board and in use at the date the benefit becomes effective.
"Excess interest" means the investment earnings on the fund in excess of that required for allocation to regular interest and expenses.
"Final salary" means the average annual salary or compensation earned by a member and paid by the municipality during the highest three, four, or five non-overlapping periods of twelve consecutive months as stipulated by the municipality, or if not so long employed, then the average annual salary or compensation earned and paid during the whole period of such employment; or, if applicable, the amount or formula stipulated between the municipality and the board in a contract for an optional retirement plan entered into under the provisions of clause (11) of section 104 of this act.
"Fund" means the Pennsylvania Municipal Retirement Fund created by this act.
"Internal Revenue Code" means the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.).
"Joint coverage member" means a member who shall have become a member of the retirement system subsequent to the last date permitted by the municipality employing him for statement of preference concerning social security coverage, or who, having become a member on or before such date, shall have filed with the municipality a written statement that he elects social security coverage under an agreement with the Federal Secretary of Health, Education and Welfare entered into by the Commonwealth.
"Member" means an individual that is:
"Member's account" means the account to which shall be credited the payroll deductions and other contributions, plus interest, if any, of the members.
"Member's annuity" means that portion or component of the retirement allowance which is of equivalent actuarial value, at date of retirement, to the accumulated deductions of the member.
"Member's excess investment account" means the account maintained for each member, to which shall be credited such excess interest deemed to be earned on member contributions.
"Municipal account" means the account maintained for each municipality, to which shall be credited the contributions made by it toward the superannuation retirement and death benefits of members.
"Municipal annuity" means that portion or component of the retirement allowance computed in accordance with the formula applicable to each municipality.
"Municipal employe" means a person holding an office or position, other than that of a municipal fireman or municipal policeman, under a municipality or a municipal government association and paid on a regular salary or per diem basis. The term shall not include officers and employes paid wholly on a fee basis.
"Municipal fireman" means a person holding a full-time position in the fire department of a municipality and who works for a stated salary or compensation.
"Municipal Pension Funding Standard and Recovery Act" means the act of December 18, 1984 (P.L. 1005, No. 205), known as the Municipal Pension Plan Funding Standard and Recovery Act.
"Municipal policeman" means a person holding a full-time position in the police department of a municipality and who works for a stated salary or compensation.
"Municipality" means a city, borough, town, township, county, institution district, or any newly created governmental unit, or an authority created by a city, borough, town, township, county or county institution district, or jointly by any such political subdivisions, or an institution supported and maintained by a municipality or a municipal government association, or an industrial development agency as defined by the act of May 31, 1956 (P.L. 1911, No. 635), known as the "Industrial Development Assistance Law," which has adopted bylaws and the governing body of which is organized and holds regular public meetings.
"New member" means a municipal officer, employe, fireman or policeman, or an employe of a municipal government association who first becomes a member after the date the municipality by which he is employed joined the retirement system created by this act.
"Original member" means a municipal officer, employe, fireman or policeman, or an employe of a municipal government association who was employed by the municipality at the date the municipality joined the system.
"Prior salary" means the annual salary or compensation earned by a member and paid by the municipality during the year immediately preceding the date the municipality by which he is employed joined the system.
"Prior service" means all service as a municipal employe, municipal fireman or municipal policeman completed at the time the municipality by which he is or was employed elected to join the system or the same municipality under a prior name or classification, unless the municipality has elected to limit the period of such service for municipal employes enrolled in a plan under Article II or Article IV of this act.
"Regular interest" means the rate fixed by the board, from time to time, on the basis of earnings on investments to be applied to the member's accounts, to the municipal accounts and to the retired member's reserve account.
"Retired member's reserve account" means the account from which all retirement allowances shall be paid for superannuation and total disability retirement and voluntary and involuntary withdrawals.
"Retirement allowance" means the sum of the municipal annuity and the member's annuity and, if the member is entitled to a disability annuity under the provisions of this act, the disability annuity.
"Service connected disability" means total and permanent disability of a member prior to eligibility for superannuation retirement resulting from a condition arising out of and incurred in the course of his employment, and which is compensable under the applicable provisions of the act of June 2, 1915 (P.L. 736, No. 338), known as "The Pennsylvania Workmen's Compensation Act," or the act of June 21, 1939 (P.L. 566, No. 284), known as "The Pennsylvania Occupational Disease Act."
"Single coverage member" means a member who shall become a member of the retirement system on or before the last date permitted by the municipality employing him for statement of preference concerning social security coverage and who either shall have filed with the municipality a written statement that he does not elect social security coverage under any agreement with the Federal Secretary of Health, Education and Welfare entered into by the Commonwealth, or shall not have filed with the municipality any written statement.
"Subsidiary DROP participant account" has the meaning given in section 1102 of the Municipal Pension Funding Standard and Recovery Act.
"Subsidiary DROP participant reserve account" means the account maintained for each subsidiary DROP participant account.
"Superannuation retirement age" means sixty-five years of age for municipal employes, fifty-five years of age for municipal firemen and municipal police or such other age as may be stipulated between the municipality and the board in a contract for an optional retirement plan entered into under the provisions of clause (11) of section 104 of this act.
"Survivor annuitant" means any person who has been named by a member under a joint and survivor annuity option to receive an annuity upon the death of such member.
"System" means the Pennsylvania Municipal Retirement System as established herein.
"Total disability reserve account" means the account to which shall be credited the contributions made by municipalities toward the disability retirement of members.
53 P.S. § 881.102