PRIOR PRINTER'S NO. 2310
PRINTER'S NO. 3056
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2010
Session of
2021
INTRODUCED BY RYAN, GAYDOS, GLEIM, GROVE, JAMES, KAUFFMAN,
STAMBAUGH, SAYLOR, LAWRENCE AND GILLEN, OCTOBER 26, 2021
AS REPORTED FROM COMMITTEE ON STATE GOVERNMENT, HOUSE OF
REPRESENTATIVES, AS AMENDED, APRIL 27, 2022
AN ACT
Amending Title 20 (Decedents, Estates and Fiduciaries) of the
Pennsylvania Consolidated Statutes, providing for training of
public pension fund and State fund fiduciaries.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 20 of the Pennsylvania Consolidated
Statutes is amended by adding a chapter to read:
CHAPTER 74
TRAINING OF PUBLIC PENSION FUND
AND STATE FUND FIDUCIARIES
Sec.
7401. Definitions.
7402. Training requirements.
7403. Content of training.
7404. Designee compensation.
7405. Legal fees.
§ 7401. Definitions.
The following words and phrases when used in this chapter
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shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Commonwealth agency." A department, board, commission,
agency, authority or other instrumentality of the Commonwealth.
"Designee." An individual appointed by, and authorized by
law to act in the stead of, a trustee, board member or other
appointed or elected official that stands in a fiduciary
relationship to the members and beneficiaries of a State fund or
a fund of a public pension system.
"Public pension system." The Public School Employees'
Retirement System, the State Employees' Retirement System, the
Pennsylvania Municipal Retirement System and any pension plan
maintained by a municipality or a county for its employees.
"State fund." A fund or account in the State Treasury or
under the care, custody or control of a Commonwealth agency.
§ 7402. Training requirements.
(a) Training.--A trustee, board member or other appointed or
elected official who stands in a fiduciary relationship to the
members and beneficiaries of a State fund or a fund of a public
pension system, or a designee thereof, shall complete training
in fiduciary law, as provided in subsection (b).
(b) Requirements.--
(1) An individual appointed or elected to a position
described in subsection (a) after the effective date of this
section shall complete:
(i) Two hours of training in fiduciary law within
one year of the date of appointment to the position.
(ii) One hour of training in fiduciary law annually,
each year thereafter.
(2) An individual who holds a position described in
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subsection (a) on the effective date of this paragraph is
exempt from the two-hour initial training requirement under
paragraph (1)(i). The individual shall complete one hour of
training in fiduciary law annually.
(c) Public School Employees' Retirement Board members.--
Training completed in accordance with this section by an
individual who is a member of the Public School Employees'
Retirement Board, or a designee of a board member, may be
applied toward the individual's board training requirement under
24 Pa.C.S. § 8501(f) (relating to Public School Employees'
Retirement Board) or Audit or Compliance Committee training
requirement under 24 Pa.C.S. § 8501(g), as applicable.
(d) State Employees' Retirement Board members.--Training
completed under this section by an individual who is a member of
the State Employees' Retirement Board, or a designee of a board
member, may be applied toward the individual's board training
requirement under 71 Pa.C.S. § 5901(f) (relating to the State
Employees' Retirement Board) or Audit Risk and Compliance
Committee training requirement under 71 Pa.C.S. § 5901(g), as
applicable.
§ 7403. Content of training.
(a) Initial training.--Initial training under section
7402(b)(1)(i) (relating to training requirements) shall, at a
minimum, cover the following concepts:
(1) The definition of fiduciary.
(2) Conflicts of interest.
(3) The prudent expert standard.
(4) Self-dealing.
(b) Annual training.--Annual training under section 7402(b)
(1)(ii) shall, at a minimum, cover updates and case studies
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related to the topics listed in subsection (a).
§ 7404. Designee compensation.
The board or other governing body of a Commonwealth agency or
a public pension system may compensate a designee of a member,
trustee or other official of the board or governing body in an
amount no greater than $5,000 annually.
§ 7405. Legal fees.
(a) Payment permitted.--Except as provided in subsection
(b), an individual who is a trustee, board member or other
appointed or elected official of a Commonwealth agency or a
public pension system that stands in a fiduciary relationship to
the members and beneficiaries of a State fund or a fund of a
public pension system, or a designee thereof, is entitled to
have expenses reasonably incurred by the individual in defending
a threatened, pending or completed legal action against the
individual in the individual's capacity as a trustee, board
member or other appointed or elected official of the
Commonwealth agency or public pension system paid by the
Commonwealth agency or public pension system, as applicable,
during the individual's tenure and, after the individual's
tenure, continuing through the period of time established in any
applicable statute of limitations.
(b) Payment prohibited.--Payment of expenses to an
individual under subsection (a) shall be prohibited if a court
of competent jurisdiction finds that the conduct of the
individual as alleged or proved in the legal action constituted
a criminal offense, willful misconduct or self-dealing.
Section 2. This act shall take effect December 31, 2021, or
immediately, whichever is later.
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