Amendment 8036 to Senate Bill 1227 P.N. 1759, Regular Session 2015-2016

S1227B1759A08036 MSP:NLH 06/06/16 #90 A08036

AMENDMENTS TO SENATE BILL NO. 1227

Sponsor: SENATOR BLAKE

Printer's No. 1759

Amend Bill, page 1, lines 30 and 31; pages 2 through 4, lines

1 through 30; page 5, lines 1 through 6; by striking out all of

said lines on said pages and inserting

Section 1. The act of April 9, 1929 (P.L.177, No.175), known

as The Administrative Code of 1929, is amended by adding an

article to read:

Amend Bill, page 5, by inserting between lines 29 and 30

"Proposed collective bargaining agreement." The terms of

bargaining between a public employer and an employee

organization which:

(1) Apply to wages, hours, terms and conditions of

employment, benefits and working conditions.

(2) Are:

(i) Reduced to writing.

(ii) Agreed upon by designated representatives of

the public employer and the employee organization.

(iii) Submitted for acceptance as a contract to the

public employer and the public employee organization.

"Public employee retirement plan." Any of the following:

(1) The State Employees' Retirement System established

under 71 Pa.C.S. Pt. XXV (relating to retirement for State

employees and officers).

(2) The Public School Employees' Retirement System

established under 24 Pa.C.S. Pt. IV (relating to retirement

for school employees).

(3) The Pennsylvania Municipal Retirement System

established under the act of February 1, 1974 (P.L.34,

No.15), known as the Pennsylvania Municipal Retirement Law.

(4) Any other independent pension or retirement plan for

public officers and employees of the Commonwealth.

(5) Pension or retirement plans established under 11

Pa.C.S. Ch. 143 (relating to pensions).

(6) Pension or retirement plans created pursuant to the

act of May 29, 1956 (1955 P.L.1804, No.600), referred to as

the Municipal Police Pension Law.

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Amend Bill, page 7, by inserting between lines 11 and 12

(8) Provide a cost analysis for the current fiscal year and

remaining subsequent fiscal years of the impact of each proposed

collective bargaining agreement under the jurisdiction of the

Governor prior to execution, including the costs to cover public

employee wages, benefits, pensions and working conditions that

have been reduced in writing under section 701 of the act of

July 23, 1970 (P.L.563, No.195), known as the Public Employe

Relations Act .

Amend Bill, page 13, by inserting between lines 22 and 23

(g) Collective bargaining agreements.--The Office of

Administration and the Office of the Budget shall:

(1) Submit to the office at least 20 days, excluding

weekends and holidays, in advance of its execution, copies of

each proposed collective bargaining agreement under the

jurisdiction of the Governor.

(2) Concurrent with each submission under paragraph (1),

provide the office with a detailed cost analysis of the

proposed collective bargaining agreement. The analysis shall

compare the collective bargaining agreement in effect at the

time of submission to projections for the proposed collective

bargaining agreement for the current fiscal year and the

remaining subsequent fiscal years in the agreement. The

analysis shall include:

(i) The number of employees covered by the

agreement, by fund.

(ii) Wages and salaries, by fund.

(iii) Employer costs for employee benefits,

including pension contributions, by fund.

(iv) A summary of the changes to paid leave, working

hours, working conditions or any other term of employment

in the proposed collective bargaining agreement and the

projected cost of such changes, by fund.

(v) A statement explaining the data, assumptions and

methodology used to make the projections.

(3) Within four days, excluding weekends and holidays,

of a request by the director, provide the office with any in-

formation, data, statistics or analysis determined by the

director to be necessary to fulfill the office's obligations

under section 604-B.

Amend Bill, page 15, by inserting between lines 18 and 19

Section 615-B. Additional duties.

(a) Actuarial notes.--The office shall prepare actuarial

notes by selecting an enrolled pension actuary to prepare an

actuarial note. Actuarial notes shall include a reliable

estimate of the financial and actuarial effect of the proposed

change in any pension or retirement system. The financial

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analysis contained in actuarial notes for legislation that

proposes substantial benefit design changes under 24 Pa.C.S. Pt.

IV (relating to retirement for school employees) and 71 Pa.C.S.

Pt. XXV (relating to retirement for State employees and

officers) shall include, but not be limited to, a risk transfer

analysis. The actuarial note shall be factual, and shall, if

possible, provide a reliable estimate of both the immediate cost

and effect of the bill and, if determinable or reasonably

forseeable, the long-range actuarial cost and effect of the

bill. The office shall transmit actuarial notes to the Governor

and the officers listed in this subsection within the time

periods specified under this section upon the request of any of

the following:

(1) The President pro tempore of the Senate or the

Speaker of the House of Representatives.

(2) The Majority Leader or the Minority Leader of the

Senate.

(3) The Majority Leader or the Minority Leader of the

House of Representatives.

(4) The chairperson or minority chairperson of the

Appropriations Committee of the Senate.

(5) The chairperson or minority chairperson of the

Appropriations Committee of the House of Representatives.

(b) Analysis.--At the request of an officer listed in

subsection (a), the office shall analyze the provisions of a

bill relating to public employee retirement or pension policy

and issue a report on the bill in a timely fashion. The report

shall provide a synopsis of the bill and financial cost and

shall identify proposed changes to current law and current

policy. The report, after consultation with the requesting

officer, may include an assessment of the actuarial impact and

shall be submitted to the Governor and the officers listed in

subsection (a).

plans for actuarial soundness and report the results to the

Governor and the General Assembly.

(d) Website.--Maintain the following on its Internet website

in a publicly accessible and searchable area:

(1) All actuarial notes issued by the Public Employee

Retirement Commission prior to the effective date of this

section.

(2) All actuarial notes prepared pursuant to subsection

(a) and reports under subsection (b) issued by the office,

which shall be posted at the time they are transmitted under

subsection (a).

(3) Any other information that is requested to be posted

by an officer listed in subsection (a).

(e) Reimbursement.--The office shall request, after

expending all appropriations for the performance of its duties

under this section, a reimbursement of expenses from the entity

requesting the preparation of materials under this subsection. A

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restricted account is established in the General Fund which

shall consist of reimbursement payments received by the office

under this paragraph. The money in the restricted account is

appropriated on a continuing basis to the office for the purpose

of the performance of its duties under this act, except that the

money in the restricted account may not be expended unless the

office expends all other appropriations for the performance of

its duties under this section.

(f) Formulation.--The office shall study generally the

subject of retirement, income after retirement, disability and

death benefits and the retirement needs of public employees. The

office shall formulate principles and objectives and recommend

any new legislation it deems advisable as requested by an

officer listed in subsection (a).

(g) Study.--The office shall study the relationship of

retirement and pension policy to other aspects of public

personnel policy and to the effective operation of government

generally, as requested by an officer listed in subsection (a).

(h) Note required for bills.--Except as otherwise provided

in subsection (k)(1), no bill proposing any change relative to a

public employee pension or retirement plan may be given second

consideration in either House of the General Assembly, until the

office has attached an actuarial note prepared by an enrolled

pension actuary which shall include a reliable estimate of the

cost and actuarial effect of the proposed change in the pension

or retirement system.

(i) Note required for amendments.--Except as otherwise

provided in subsection (k)(2), no amendment to any bill

concerning any public employee pension or retirement plan may be

considered by either House of the General Assembly until an

actuarial note prepared by an enrolled pension actuary has been

attached.

(j) Notes for proposed constitutional amendments.--The

office shall issue an actuarial note, prepared by an enrolled

pension actuary, for any joint resolution proposing an amendment

to the Constitution of Pennsylvania which initially passes

either House of the General Assembly. If the joint resolution is

subsequently amended and passes either House of the General

Assembly, a new actuarial note shall be prepared.

(k) Effect of failure of office to attach note.--

(1) If the office fails to attach an actuarial note

within 20 legislative days after a bill proposing a change

relative to a public employee pension or retirement plan has

received first consideration in either House of the General

Assembly, the bill may be further considered in the same

manner as if the actuarial note had been attached to the

bill.

(2) If the office fails to attach an actuarial note

within 20 legislative days after an amendment to a bill

proposing a change relative to a public employee pension or

retirement has been submitted to the office by an officer

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listed in subsection (a), the amendment may be considered in

the same manner as if the actuarial note had been attached to

the amendment.

Amend Bill, page 15, line 19, by striking out "3" and

inserting

Amend Bill, page 17, line 11, by striking out "Chapter 5 of"

Amend Bill, page 17, by inserting between lines 24 and 25

(f) No bond or note issued to fund an unfunded actuarial

accrued liability may be valid or obligatory in the hands of an

original purchaser until certified copies of the ordinance or

ordinances authorizing bonds or notes, the ordinance or

resolution awarding the bonds or notes and the certificate of

approval of the department have been filed with the Auditor

General. Approval of the Auditor General shall be not be

required.

Amend Bill, page 17, line 30, by striking out "4" and

inserting

Amend Bill, page 18, lines 1 and 2, by striking out "The

following apply:

(1)"

Amend Bill, page 18, lines 13 through 17, by striking out all

of said lines and inserting

Section 4. The following shall apply:

(1) Except as provided under Article VI-B of the act,

any report required prior to the effective date of this

section to be filed with the Public Employee Retirement

Commission shall, on and after the effective date of this

section, be filed with the Auditor General.

(2) The Independent Fiscal Office may utilize existing

contracts for actuarial services or may contract with other

vendors for actuarial services approved by the Department of

General Services. The department shall assist in technical

revisions required to any existing contracts.

Amend Bill, page 18, lines 19 and 20, by striking out "repeal

under paragraph (2) is" and inserting

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repeals under paragraphs (2) and (3) are

Amend Bill, page 18, by inserting between lines 22 and 23

(3) The provisions of 53 Pa.C.S. § 8116 are repealed.

Amend Bill, page 18, line 23, by striking out "(3)" and

inserting

(4)

Amend Bill, page 18, line 26, by striking out all of said

line and inserting

Section 6. This act shall take effect July 1, 2016, or

immediately, whichever is later.

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