1Providing for school pension liability assistance; and
2establishing the School Pension Liability Assistance Fund.

3The General Assembly of the Commonwealth of Pennsylvania
4hereby enacts as follows:

5CHAPTER 1

6PRELIMINARY PROVISIONS

7Section 101. Short title.

8This act shall be known and may be cited as the School
9Pension Liability Assistance Act.

10Section 102. Definitions.

11The following words and phrases when used in this act shall
12have the meanings given to them in this section unless the
13context clearly indicates otherwise:

14"Department." The Department of Education of the
15Commonwealth.

16"Fund." The School Pension Liability Assistance Fund
17established in section 301.

18"Local taxing effort." A rate determined by the Department

1of Education based on a school district's combined real estate
2property tax rate and income tax rate.

3"School district." A school district of the first class A,
4second class, third class or fourth class.

5CHAPTER 3

6SCHOOL PENSION LIABILITY ASSISTANCE

7Section 301. School Pension Liability Assistance Fund.

8(a) Establishment.--The School Pension Liability Assistance
9Fund is established as a separate fund in the State Treasury.

10(b) Sources.--The following are sources of the fund:

11(1) Appropriations.

12(2) Return on money in the fund.

13(c) Use.--The department shall use the fund to make
14disbursements as provided under section 302.

15Section 302. Distribution of funds.

16Notwithstanding any other law, the department shall
17distribute money in the fund in accordance with the calculation
18under section 303.

19Section 303. Calculation of distribution.

20The department shall calculate the payment to be distributed
21to each school district based on the following:

22(1) The total pension liability for the school district.

23(2) The local taxing effort of the school district.

24Section 304. Restrictions.

25All money in the fund shall be used as authorized under this
26act.

27Section 305. Eligibility.

28A school district with a school pension liability after June
2930, 2013, shall be eligible to receive a distribution from the
30fund.

1Section 306. Pro rata distribution.

2If insufficient funds are appropriated to make payments to
3school districts under this act, the payments shall be made on a
4pro rata basis.

5CHAPTER 51

6MISCELLANEOUS PROVISIONS

7Section 5101. Effective date.

8This act shall take effect in 60 days.