PRINTER'S NO. 2819
No. 2142 Session of 1998
INTRODUCED BY NICKOL, JANUARY 27, 1998
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JANUARY 27, 1998
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," establishing a prerequisite to the issuance
8 of bonds or notes for pension planning funding.
9 The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11 Section 1. Section 404 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, is amended by adding a subsection to
14 read:
15 Section 404. Municipalities issuing bonds or notes for pension
16 plan funding.
17 * * *
18 (a.1) Prerequisite to issuance of bonds or notes.--Any
19 municipality subject to 53 Pa.C.S. Pt. VII Subpt. B (relating to
20 indebtedness and borrowing), known as the Local Government Unit
1 Debt Act, that receives general municipal pension system State
2 aid or supplemental State assistance under this act and that
3 intends to issue bonds or notes to fund all or a portion of an
4 unfunded actuarial liability shall prior to issuing the bonds or
5 notes seek financing for the amount of the unfunded actuarial
6 liability from the Pennsylvania Economic Development Financing
7 Authority. If the authority, in its discretion, does not approve
8 financing for all or a portion of the unfunded actuarial
9 liability, the municipality may issue bonds or notes in
10 accordance with law to fund that portion of the unfunded
11 actuarial liability not financed by the authority.
12 * * *
13 Section 2. This act shall take effect immediately.
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