PRINTER'S NO. 2705
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1963
Session of
2019
INTRODUCED BY EVERETT, TOBASH, KEEFER, B. MILLER, SCHMITT, RYAN,
OWLETT, GREINER, MILLARD, ZIMMERMAN, MOUL AND BERNSTINE,
OCTOBER 18, 2019
REFERRED TO COMMITTEE ON STATE GOVERNMENT, OCTOBER 18, 2019
AN ACT
Amending Titles 24 (Education) and 71 (State Government) of the
Pennsylvania Consolidated Statutes, in membership,
contributions and benefits, further providing for actuarial
cost method; and, in contributions, further providing for
actuarial cost method.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 8328(g) of Title 24 of the Pennsylvania
Consolidated Statutes is amended to read:
§ 8328. Actuarial cost method.
* * *
(g) Temporary application of collared contribution rate.--
(1) The collared contribution rate for each fiscal year
specified under paragraph (2) shall be determined by
comparing the actuarially required contribution rate,
calculated without regard for the costs added by legislation,
to the prior year's final contribution rate.
(2) If, for any of the fiscal years beginning July 1,
2011, July 1, 2012, and beginning on or after July 1, 2013,
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and ending June 30, 2019, the actuarially required
contribution rate, calculated without regard for the costs
added by legislation, is more than 3%, 3.5% and 4.5%,
respectively, of the total compensation of all active members
greater than the prior year's final contribution rate, then
the collared contribution rate shall be applied and be equal
to the prior year's final contribution rate increased by 3%,
3.5% and 4.5%, respectively, of total compensation of all
active members. Otherwise, and for all other fiscal years,
the collared contribution rate shall not be applicable. In no
case shall the collared contribution rate be less than 4% of
the total compensation of all active members.
* * *
Section 2. Section 5508(h) of Title 71 is amended to read:
§ 5508. Actuarial cost method.
* * *
(h) Temporary application of collared contribution rate.--
(1) The collared contribution rate for each fiscal year
under paragraph (2) shall be determined by comparing the
actuarially required contribution rate calculated without
regard for costs added by legislation to the prior year's
final contribution rate.
(2) If, for any of the fiscal years beginning July 1,
2011, July 1, 2012, and beginning on or after July 1, 2013,
and ending June 30, 2019, the actuarially required
contribution rate calculated without regard for costs added
by legislation is more than 3%, 3.5% and 4.5%, respectively,
of the total compensation of all active members greater than
the prior year's final contribution rate, then the collared
contribution rate shall be applied and be equal to the prior
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year's final contribution rate increased by the respective
percentage above of total compensation of all active members.
Otherwise, and for all subsequent fiscal years, the collared
contribution rate shall not apply. In no case shall the
collared contribution rate be less than 4% of total
compensation of all active members.
* * *
Section 3. This act shall take effect in 30 days.
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