1Amending the act of December 18, 1984 (P.L.1005, No.205),
2entitled, as amended, "An act mandating actuarial funding
3standards for all municipal pension systems; establishing a
4recovery program for municipal pension systems determined to
5be financially distressed; providing for the distribution of
6the tax on the premiums of foreign fire insurance companies;
7and making repeals," in financially distressed municipal
8pension system recovery program, further providing for
9remedies applicable to various recovery program levels.

10The General Assembly of the Commonwealth of Pennsylvania
11hereby enacts as follows:

12Section 1. Section 607(f)(1) of the act of December 18, 1984
13(P.L.1005, No.205), known as the Municipal Pension Plan Funding
14Standard and Recovery Act, amended September 18, 2009 (P.L.396,
15No.44), is amended to read:

16Section 607. Remedies applicable to various recovery program
17levels.

18* * *

19(f) Special municipal taxing authority.--

20(1) If the tax rates set by the municipality on earned
21income or on real property are at the maximum provided by

1applicable law, the municipality may increase its tax on
2either the earned income of residents or real property above
3those maximum rates. The proceeds of this special municipal
4tax increase shall be used solely to defray the additional
5costs required to be paid pursuant to this act which are
6directly related to the pension plans of the municipality.
7The municipality utilizing this special municipal taxing
8authority shall not reduce the level of municipal
9contributions to the pension plans prior to the
10implementation of the special municipal taxing authority.

11* * *

12Section 2. The amendment of section 607(f)(1) of the act
13shall apply to municipalities that impose tax on the earned
14income of nonresidents prior to the effective date of this
15section.

16Section 3. This act shall take effect January 1 of the year
17that commences at least 30 days after the date of enactment.