H1962B2896A07580 PWK:EJH 10/06/20 #90 A07580
AMENDMENTS TO HOUSE BILL NO. 1962
Sponsor: SENATOR BROWNE
Printer's No. 2896
Amend Bill, page 1, line 4, by inserting after "employees,"
further
Amend Bill, page 1, line 4, by inserting after "for"
Public School Employees' Retirement Board and for
administrative duties of board and providing for
Amend Bill, page 1, line 6, by inserting after "officers,"
further
Amend Bill, page 1, line 7, by inserting after "for"
the State Employees' Retirement Board and for administrative
duties of the board and providing for
Amend Bill, page 1, lines 10 and 11, by striking out all of
said lines and inserting
Section 1. Section 8501(f) of Title 24 of the Pennsylvania
Consolidated Statutes, is amended and the section is amended by
adding a subsection to read:
§ 8501. Public School Employees' Retirement Board.
* * *
(f) Board training.--Each member of the board will be
required to obtain [eight] 10 hours of mandatory training in
investment strategies, actuarial cost analysis, asset
allocation, risk assessment and retirement portfolio management
on an annual basis.
(g) Committees.--
(1) In order to be appointed to the Audit/Compliance
Committee as a voting member, a board member must first
complete at least 16 hours of training in risk assessments,
internal controls and auditing standards. In order to
continue serving as a voting member of the Audit/Compliance
Committee following initial appointment, a board member must
complete at least eight hours of continuing education in risk
assessments, internal controls and auditing standards each
calendar year thereafter.
(2) The board shall establish an executive committee,
2020/90PWK/HB1962A07580 - 1 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
which shall consist of the board chair, the board vice chair,
if one has been appointed, the chair of the Audit/Compliance
Committee, the chair of the Bylaws/Policy Committee and the
chair of the Budget/Finance Committee.
(3) The board shall establish an Asset Liability
Contingency Operating Committee, which shall be charged with
evaluating the risk associated with the system's assets and
liabilities.
Section 2. Section 8502(o) of Title 24 is amended to read:
§ 8502. Administrative duties of board.
* * *
(o) Independent audits.--
(1) The board shall provide for annual audits of the
system and the plan by an independent certified public
accounting firm. The audits shall include the board's accrual
and expenditure of directed commissions. The board may use
the same independent certified public accounting firm for the
audits of both the system and the plan.
(2) The following shall apply:
(i) Except as provided under subparagraph (ii), the
board shall provide for an internal control audit of the
system and the plan at least every five years.
(ii) If an annual financial report prepared under
subsection (n) identifies a material weakness or
significant deficiency or an internal control audit
identifies a material weakness or significant deficiency,
the board shall provide for an additional internal
control audit of the system and the plan for the year
subsequent to the report or audit in which the weakness
or deficiency was identified.
* * *
Section 3. Title 24 is amended by adding a section to read:
Amend Bill, page 4, by inserting between lines 4 and 5
Section 4. Section 5901(f) of Title 71 is amended and the
section is amended by adding a subsection to read:
§ 5901. The State Employees' Retirement Board.
* * *
(f) Board training.--Each member of the board will be
required to obtain [eight] 10 hours of mandatory training in
investment strategies, actuarial cost analysis, asset
allocation, risk assessment and retirement portfolio management
on an annual basis.
(g) Committees.--
(1) In order to be appointed to the Audit Risk and
Compliance Committee as a voting member, a board member must
first complete at least 16 hours of training in risk
assessments, internal controls and auditing standards. In
order to continue serving as a voting member of the Audit
Risk and Compliance Committee following initial appointment,
2020/90PWK/HB1962A07580 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
a board member must complete at least eight hours of
continuing education in risk assessments, internal controls
and auditing standards each calendar year thereafter.
(2) The board shall establish an executive committee,
which shall consist of the board chair, the board vice chair,
if one has been appointed, the chair of the Audit Risk and
Compliance Committee and the chair of the Finance and Member
Services Committee.
(3) The board shall establish an Asset Liability
Contingency Operating Committee, which shall be charged with
evaluating the risk associated with the system's assets and
liabilities.
Section 5. Section 5902(n) of Title 71 is amended to read:
§ 5902. Administrative duties of the board.
* * *
(n) Independent audits.--
(1) The board shall provide for annual audits of the
system and the plan by independent certified public
accountants. The audits shall include the board's accrual and
expenditure of directed commissions. The board may use the
same independent certified public accountant for the audits
of both the system and the plan.
(2) The following shall apply:
(i) Except as provided under subparagraph (ii), the
board shall provide for an internal control audit of the
system and the plan at least every five years.
(ii) If an annual financial report prepared under
this section identifies a material weakness or
significant deficiency or an internal control audit
identifies a material weakness or significant deficiency,
the board shall provide for an additional internal
control audit of the system and the plan for the year
subsequent to the report or audit in which the weakness
or deficiency was identified.
* * *
Amend Bill, page 4, line 5, by striking out "2" and inserting
6
Amend Bill, page 6, line 19, by striking out "3" and
inserting
7
Amend Bill, page 6, line 24, by striking out all of said line
and inserting
(3) The amendment of 24 Pa.C.S. § 8501(f) and 71 Pa.C.S.
§ 5901(f) shall apply after December 31, 2020.
Section 8. This act shall take effect as follows:
(1) The following shall take effect in 60 days:
2020/90PWK/HB1962A07580 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
(i) The addition of 24 Pa.C.S. § 8510.
(ii) The addition of 71 Pa.C.S. § 5901.
(2) This section shall take effect immediately.
(3) The remainder of this act shall take effect in 90
days.
2020/90PWK/HB1962A07580 - 4 -
1
2
3
4
5