PRINTER'S NO. 649
No. 600 Session of 1987
INTRODUCED BY VAN HORNE, TRELLO, IRVIS, MOWERY, FOSTER, NOYE,
KUKOVICH, VEON, GODSHALL, HECKLER, PRESTON, BURD, HALUSKA,
OLASZ, FARGO, SEVENTY, COLAFELLA AND WOZNIAK, MARCH 3, 1987
REFERRED TO COMMITTEE ON FINANCE, MARCH 3, 1987
AN ACT
1 Amending the act of December 6, 1972 (P.L.1383, No.293),
2 entitled "An act requiring municipal pension systems to have
3 an actuarial investigation of the fund made by an actuary who
4 shall report his findings to the Department of Community
5 Affairs," further providing for reports by certain
6 municipalities and local governmental units, for the filing
7 of reports and for failure to file timely reports.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. Sections 1, 2 and 3 of the act of December 6,
11 1972 (P.L.1383, No.293), entitled "An act requiring municipal
12 pension systems to have an actuarial investigation of the fund
13 made by an actuary who shall report his findings to the
14 Department of Community Affairs," are amended to read:
15 Section 1. [All pension systems] Any municipality or other
16 local governmental unit which maintains a pension system for
17 municipal employes, police [and firemen] officers or
18 firefighters and which is not required to file an actuarial
19 valuation report pursuant to the act of December 18, 1984
20 (P.L.1005, No.205), known as the "Municipal Pension Plan Funding
1 Standard and Recovery Act," shall employ or retain an actuary
2 who shall be paid by the municipality or other local
3 governmental unit to make an actuarial investigation of the
4 sufficiency of pension funds to pay retirement benefits.
5 Section 2. Upon the completion of the actuarial
6 investigation, the actuary shall send a copy of [his findings to
7 the Department of Community Affairs] the applicable report to
8 the municipality which shall file the report with any other
9 required information with the executive director of the Public
10 Employee Retirement Study Commission. [For pension systems
11 having less than fifty members, the report shall be made every
12 four years; for pension systems having fifty or more members,
13 the] The report shall be made [every two years] as of the
14 beginning of the plan year occurring in the first odd-numbered
15 calendar year occurring after the date of enactment of this act
16 and thereafter as of the beginning of each succeeding plan year
17 occurring in an odd-numbered calendar year and shall be filed
18 with the executive director of the commission no later than the
19 last business day of March occurring in the following calendar
20 year.
21 Section 3. [The Department of Community Affairs shall have
22 the power to specify the form and content of reports of
23 actuaries and to supply copies of the forms for reports of
24 actuaries.] Unless otherwise modified by action of the Public
25 Employee Retirement Study Commission, the actuarial report and
26 additional municipal information required pursuant to section 1
27 shall be in accordance with the applicable contents requirements
28 of the act of December 18, 1984 (P.L.1005, No.205), known as the
29 "Municipal Pension Plan Funding Standard and Recovery Act."
30 Section 2. Section 4 of the act, amended January 12, 1974
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1 (1973 P.L.444, No.158), is amended to read:
2 Section 4. If [an actuary study is not performed and
3 submitted to the Department of Community Affairs within ninety
4 days after December 31 of the year in which the actuary study is
5 required in sections 2 and 5 of the act, any and all pension
6 reimbursements from any sources which are payable by the
7 Commonwealth shall be withheld until such study is completed.
8 The actuary study shall be performed by the Department of
9 Community Affairs and the municipality shall reimburse the
10 Department of Community Affairs the actual cost of performing
11 the study] a complete actuarial report and complete additional
12 municipal information are not filed with the executive director
13 of the Public Employee Retirement Study Commission in a timely
14 fashion, the commission shall have the actuarial report prepared
15 and the municipality or other local governmental unit shall
16 reimburse the commission for the actual cost of the preparation
17 of the report. The commission shall utilize any powers it has
18 pursuant to the act of July 9, 1981 (P.L.208, No.66), known as
19 the "Public Employee Retirement Study Commission Act," to obtain
20 necessary information for preparation of the actuarial report or
21 to obtain the necessary additional municipal information.
22 Section 3. This act shall take effect immediately.
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