PRINTER'S NO. 1089
No. 1007 Session of 1993
INTRODUCED BY TRELLO, PISTELLA, CESSAR, COLAFELLA, GIGLIOTTI,
HALUSKA, PESCI, PRESTON, OLASZ, LAUGHLIN, DALEY AND KAISER,
MARCH 25, 1993
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, MARCH 25, 1993
AN ACT
1 Amending the act of December 18, 1984 (P.L.1005, No.205),
2 entitled "An act mandating actuarial funding standards for
3 all municipal pension systems; establishing a recovery
4 program for municipal pension systems determined to be
5 financially distressed; providing for the distribution of the
6 tax on the premiums of foreign fire insurance companies; and
7 making repeals," further providing for general municipal
8 pension system State aid for paid firefighters in counties of
9 the second class and for actuarial valuation reporting by
10 eligible recipient municipalities.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. Section 402(e)(2) and (h) of the act of December
14 18, 1984 (P.L.1005, No.205), known as the Municipal Pension Plan
15 Funding Standard and Recovery Act, are amended and the section
16 is amended by adding a subsection to read:
17 Section 402. Revision of financing from State revenue sources;
18 General Municipal Pension System State Aid
19 Program.
20 * * *
21 (e) Allocation of general municipal pension system State
1 aid.--
2 * * *
3 (2) The applicable number of units shall be attributable
4 to each active employee who was employed on a full-time basis
5 for a minimum of six consecutive months prior to December 31
6 preceding the date of certification and who was participating
7 in a pension plan maintained by that municipality, provided
8 that the municipality maintains a generally applicable
9 pension plan for that type of employee which was either
10 established on or prior to December 31, 1984, or, if
11 established after December 31, 1984, has been maintained by
12 that municipality for at least three plan years. The
13 applicable number of units per employee attributable to each
14 eligible recipient county of the second class shall be two
15 units for each police officer and firefighter. The applicable
16 number of units attributable to each eligible recipient city,
17 borough, incorporated town and township shall be as follows:
18 (i) Police officer - two units.
19 (ii) Firefighter - two units.
20 (iii) Employee other than police officer or
21 firefighter - one unit.
22 * * *
23 (h) Certification of employees by eligible recipient
24 municipalities.--Each eligible recipient county of the second
25 class shall certify annually to the Auditor General the number
26 of police officers and firefighters and each other eligible
27 recipient municipality shall certify annually to the Auditor
28 General the number of police officers, firefighters and
29 municipal employees other than police officers and firefighters
30 who meet the qualification requirements specified in subsection
19930H1007B1089 - 2 -
1 (e)(2), and whatever additional information the Auditor General
2 requires to verify the number of units attributable to the
3 municipality. No unit or units shall be attributable to any
4 municipal employee who is not certified to the Auditor General
5 in a timely manner.
6 (h.1) Actuarial valuation reporting by eligible
7 recipients.--All eligible recipient counties of the second class
8 and municipalities, as defined in subsection (d), shall comply
9 with the municipal pension plan actuarial reporting requirements
10 established in Chapter 2. The actuarial valuation reports
11 prepared and filed by any county of the second class pursuant to
12 this subsection shall disclose the following:
13 (1) The aggregate normal cost, amortization contribution
14 requirements and administrative expenses for the county
15 pension plan including supplemental benefits provided to
16 police officers and firefighters, whether or not the
17 supplemental pension benefits are provided through the county
18 pension plan or an alternative administrative arrangement.
19 (2) The normal cost, amortization contribution
20 requirements and administrative expenses attributable to the
21 participation of police officers in the county pension plan,
22 prorating the amortization contribution requirements and the
23 administrative expenses on the basis of payroll.
24 (3) The normal cost and amortization contribution
25 requirements attributable to the supplemental benefits
26 provided to firefighters.
27 The sum of the costs attributable to police officer
28 participation in the county pension plan determined pursuant to
29 paragraph (2) and the costs attributable to firefighter
30 supplemental pension benefits determined pursuant to paragraph
19930H1007B1089 - 3 -
1 (3) shall determine the aggregate actual financial requirements
2 of the county pension plan for the purposes of determining the
3 maximum aid amount applicable to the county pursuant to
4 subsection (f)(2).
5 * * *
6 Section 2. This act shall apply to actuarial valuation
7 reports due March 31, 1993, and thereafter and to distributions
8 of general municipal pension system State aid made in 1993 and
9 thereafter.
10 Section 3. This act shall take effect in 60 days.
B3L72DGS/19930H1007B1089 - 4 -