PRIOR PRINTER'S NOS. 265, 511
PRINTER'S NO. 1120
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
129
Session of
2015
INTRODUCED BY WILEY, EICHELBERGER, BLAKE, COSTA, HUGHES,
WILLIAMS, FONTANA, YUDICHAK, BOSCOLA, BROWNE, ARGALL,
GORDNER, GREENLEAF, HUTCHINSON, VOGEL, VULAKOVICH, WARD,
BREWSTER, KITCHEN, SCHWANK, SMITH, TARTAGLIONE, AUMENT AND
BROOKS, JANUARY 29, 2015
AS AMENDED ON THIRD CONSIDERATION, JUNE 25, 2015
AN ACT
Amending the act of August 31, 1971 (P.L.398, No.96), entitled
"An act providing for the creation, maintenance and operation
of a county employes' retirement system, and imposing certain
charges on counties and providing penalties," further
providing for definitions and for supplemental benefits.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2 of the act of August 31, 1971 (P.L.398,
No.96), known as the County Pension Law, is amended by adding a
definition to read:
Section 2. Definitions.--As used in this act:
* * *
(5.1) "Cost-of-living index" means the Consumer Price Index
for All Urban Consumers (CPI-U) for the Pennsylvania, New
Jersey, Delaware and Maryland area.
* * *
Section 2. Section 30(b) of the act, amended July 18, 1986
(P.L.1410, No.126), is amended AND THE SECTION IS AMENDED BY
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ADDING A SUBSECTION to read:
Section 30. Supplemental Benefits.--* * *
(b) The cost-of-living increase shall be reviewed at least
once in every three years by the board which may adjust the
current monthly benefit by the percentages in accordance with
cost-of-living index at the time of review[.], provided that the
adjustment need not be calculated retroactively to the date of
the previous cost-of- living increase approved by the board under
this section and need not apply the cost-of-living index change
for each year since such previous cost-of-living increase.
(C) BEFORE APPROVING ANY COST-OF-LIVING ADJUSTMENT, THE
BOARD SHALL HAVE AN ACTUARIAL NOTE PREPARED REGARDING THE
PROPOSED ADJUSTMENT. A COST-OF-LIVING ADJUSTMENT SHALL ONLY BE
PROVIDED IF THE COUNTY RETIREMENT SYSTEM CALCULATES A FUNDED
RATIO BASED UPON AN ENTRY AGE NORMAL METHODOLOGY OF EIGHTY PER
CENT OR HIGHER AFTER THE ACTUARIAL COST OF THE ADJUSTMENT IS
DETERMINED. ANY COUNTY RETIREMENT SYSTEM THAT UTILIZES AN
ACCOUNTING METHOD THAT DOES NOT DETERMINE A FUNDED RATIO BASED
UPON AN ENTRY AGE NORMAL METHODOLOGY SHALL, EACH YEAR, USE AN
ENTRY AGE NORMAL ACTUARIAL COST METHODOLOGY TO CALCULATE A
FUNDED RATIO IN ORDER TO DETERMINE IF THE FUND MEETS THE EIGHTY
PER CENT OR HIGHER FUNDING LEVEL. THE FUNDING LEVEL CALCULATION
SHALL BE REPORTED TO THE PUBLIC EMPLOYEE RETIREMENT COMMISSION
IN CONJUNCTION WITH ESTABLISHED REPORTING REQUIREMENTS.
Section 3. This act shall take effect in 60 days.
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