PRINTER'S NO. 283
No. 284 Session of 1997
INTRODUCED BY MOWERY AND STOUT, JANUARY 29, 1997
REFERRED TO FINANCE, JANUARY 29, 1997
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 supplemental State
8 assistance.
9 The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11 Section 1. Section 607(j) of the act of December 18, 1984
12 (P.L.1005, No.205), known as the Municipal Pension Plan Funding
13 Standard and Recovery Act, amended December 10, 1996 (P.L. ,
14 No.150), is amended to read:
15 Section 607. Remedies applicable to various recovery program
16 levels.
17 * * *
18 (j) Supplemental State assistance.--If every pension plan of
19 the municipality which is a defined benefit plan and which is
20 self-insured in whole or in part has filed an actuarial
1 valuation report utilizing the standardized actuarial cost
2 method and economic actuarial assumptions within the range of
3 actuarial assumptions specified in section 202(b) and if the
4 municipality has implemented the aggregation of trust funds
5 pursuant to subsection (b), the municipality may receive
6 supplemental State assistance from the Supplemental State
7 Assistance Fund established pursuant to section 608. The amount
8 of the supplemental State assistance to which the municipality
9 is entitled shall be determined annually based on the
10 determination scoring which the municipality received from the
11 commission pursuant to section 503, as follows:
12 (1) The determination score of the municipality shall be
13 reduced by an amount equal to 25% of the maximum possible
14 determination score.
15 (2) The result calculated pursuant to paragraph (1)
16 shall be expressed as a percentage of the maximum possible
17 determination score.
18 (2.1) For the supplemental State assistance distributed
19 in December of 1997, the percentage calculated pursuant to
20 paragraph (2) shall be applied to the dollar amount of
21 difference between the greater of the amount of the municipal
22 contribution or the amount of the actual municipal deposit to
23 all municipal pension plans in aggregate and the full minimum
24 municipal obligation with respect to the pension plans
25 pursuant to section 302 or 303, whichever is applicable, to
26 determine the amount of supplemental State assistance for the
27 municipality.
28 (3) [The] For the supplemental State assistance
29 distributed in December of 1998 and thereafter, the
30 percentage calculated pursuant to paragraph (2) shall be
19970S0284B0283 - 2 -
1 applied to the dollar amount of difference between the amount
2 of the municipal contribution to all municipal pension plans
3 in aggregate and the full minimum municipal obligation with
4 respect to the pension plan pursuant to section 302 or 303,
5 whichever is applicable, to determine the amount of
6 supplemental State assistance for the municipality. For the
7 purposes of this paragraph, the municipal contribution of a
8 municipality that has issued bonds or notes to fund an
9 unfunded actuarial accrued liability under the act of July
10 12, 1972 (P.L.781, No.185), known as the Local Government
11 Unit Debt Act, or under other laws applicable to the
12 municipality, shall include debt service on the bonds or
13 notes, or both, issued to fund an unfunded actuarial accrued
14 liability.
15 In the event that the total amount of supplemental State
16 assistance determined as payable to all municipalities entitled
17 to receive supplemental State assistance exceeds the maximum
18 appropriation provided for in section 608(b), the amount of
19 supplemental State assistance which shall be payable to each
20 municipality shall be proportionately reduced. The supplemental
21 State assistance shall be distributed annually on the first
22 business day occurring in December. For the purposes of this
23 subsection, the term "municipal contribution" shall mean the sum
24 of the current year's minimum municipal obligation, the annual
25 interest payable on any current or prior period funding
26 deficiencies and the total amount of any discretionary deposits
27 to the pension fund in the current year.
28 * * *
29 Section 2. This act shall take effect immediately.
L13L72PJP/19970S0284B0283 - 3 -