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PRINTER'S NO. 2592
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2237
Session of
2022
INTRODUCED BY WHITE, BERNSTINE, BRIGGS, BROOKS, CIRESI, DEASY,
DRISCOLL, ECKER, FARRY, GALLOWAY, GILLEN, GLEIM, HARKINS,
HARRIS, HILL-EVANS, HOHENSTEIN, JAMES, JOZWIAK, KAIL,
KNOWLES, KULIK, LEWIS DELROSSO, M. MACKENZIE, R. MACKENZIE,
MAJOR, MARKOSEK, MATZIE, McNEILL, MIHALEK, MILLARD, NEILSON,
O'MARA, O'NEAL, PENNYCUICK, PICKETT, POLINCHOCK, RIGBY,
ROTHMAN, SAINATO, SCHWEYER, SOLOMON AND THOMAS,
JANUARY 11, 2022
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JANUARY 11, 2022
AN ACT
Amending the act of December 14, 1988 (P.L.1192, No.147),
entitled "An act requiring municipal retirement systems to
pay special ad hoc postretirement adjustments to certain
retired police officers and firefighters; providing for the
financing of these adjustments; providing for the
administration of the Commonwealth's reimbursements for these
adjustments; and making repeals," providing for 2022 special
ad hoc municipal police postretirement adjustment; in
financing of special ad hoc adjustment, further providing for
reimbursement by Commonwealth for 2002 special ad hoc
adjustment; and, in administrative provisions, further
providing for municipal retirement system certification of
adjustments paid and of reimbursable amounts and for
municipal receipt of reimbursable payment.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of December 14, 1988 (P.L.1192, No.147),
known as the Special Ad Hoc Municipal Police and Firefighter
Postretirement Adjustment Act, is amended by adding a chapter to
read:
CHAPTER 4-A
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2022 SPECIAL AD HOC MUNICIPAL POLICE
POSTRETIREMENT ADJUSTMENT
Section 401-A. Entitlement to 2023 special ad hoc
postretirement adjustment.
A municipal retirement system shall pay a retired police
officer a special ad hoc postretirement adjustment under this
chapter if all of the following apply:
(1) The retiree has terminated active employment with
the municipality as a police officer.
(2) The retiree is receiving a retirement benefit from a
municipal retirement system on the basis of active employment
with the municipality as a police officer.
(3) The retiree began receiving the retirement benefit
before January 1, 2018.
Section 402-A. Amount of 2023 special ad hoc postretirement
adjustment.
(a) General rule.--Except as provided in subsections (b) and
(c), a municipal retirement system shall pay a retired police
officer a monthly special ad hoc postretirement adjustment under
section 401-A that shall be calculated as follows:
(1) The base adjustment shall be determined by
multiplying 20ยข by the years of service and then multiplying
that product by the years on retirement.
(2) The longevity factor shall be determined as the sum
of the products calculated by multiplying 0.025 by the years
on retirement and 0.05 by the years on retirement in excess
of 25, if any.
(3) The longevity adjustment shall be determined by
multiplying the base adjustment calculated under paragraph
(1) by the longevity factor calculated under paragraph (2).
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(4) The special ad hoc postretirement adjustment payable
under section 401-A shall be the sum of the base adjustment
calculated under paragraph (1) and the longevity adjustment
calculated under paragraph (3).
(b) Limitation.--If, under section 401-A, a retiree is
entitled to be paid a special ad hoc postretirement adjustment
by more than one municipal retirement system, the amount of the
special ad hoc postretirement adjustment under subsection (a)
shall be reduced so that the total of all these adjustments paid
to the retiree does not exceed the amount specified in
subsection (a).
(c) Modification in amount of 2023 special ad hoc
postretirement adjustment.--The amount of the special ad hoc
postretirement adjustment calculated under subsection (a) shall
be reduced annually by 65% of the total amount of any
postretirement adjustments provided to the retiree under the
municipal retirement plan after January 1, 2002, and before
December 31, 2022, and paid in the immediately preceding year.
Section 2. Sections 502.1, 901(a)(2) and 903(b) of the act
are amended to read:
Section 502.1. Reimbursement by Commonwealth for 2002 and 2023
special ad hoc adjustment.
(a) General rule.--
(1) Except as provided in subsection (b), beginning in
the year following the year in which the amortization
contribution requirement attributable to a special ad hoc
postretirement adjustment under [Chapter 4 is] Chapters 4 and
4-A are first reflected in the financial requirements of the
retirement system determined under Chapter 3 of the act of
December 18, 1984 (P.L.1005, No.205), known as the Municipal
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Pension Plan Funding Standard and Recovery Act, the Auditor
General shall determine the Commonwealth reimbursement
payable to the municipality representing the amortization
contribution requirement attributable to the special ad hoc
postretirement adjustment under [Chapter 4] Chapters 4 and 4-
A that was paid with revenues of the municipality other than
general municipal pension system State aid provided under the
Municipal Pension Plan Funding Standard and Recovery Act.
(2) The determination of the reimbursable amount of the
amortization contribution requirement attributable to the
special ad hoc postretirement adjustment under [Chapter 4]
Chapters 4 and 4-A in any year shall be calculated as the
amortization contribution requirement attributable to the
special ad hoc postretirement adjustments under [Chapter 4]
Chapters 4 and 4-A and reflected in the determination of the
financial requirements of the pension plan under Chapter 3 of
the Municipal Pension Plan Funding Standard and Recovery Act
for the immediate prior year less the product of that
amortization contribution requirement multiplied by the ratio
of the amount of general municipal pension system State aid
allocated to the retirement system in the immediate prior
year to the total amount of municipal contributions made to
the retirement system from all sources other than employee
contributions in the immediate prior year. Where a
municipality has issued bonds or notes to fund an unfunded
actuarial accrued liability under 53 Pa.C.S. Pt. V Subpt. B
(relating to indebtedness and borrowing) or under other laws
applicable to the municipality, the general municipal pension
system State aid and municipal contributions used by the
municipality to make debt service payments on the bonds or
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notes, or both, issued to fund an unfunded actuarial accrued
liability shall be included in the calculation of the ratio
applied to the amortization contribution requirement.
(3) The Commonwealth shall reimburse a municipality,
from the special account established under section 701, for
the reimbursable amount determined for each year under this
paragraph.
(b) Limitation of eligibility.--
(1) The Commonwealth shall not reimburse any
municipality for a special ad hoc adjustment paid under
[Chapter 4] Chapters 4 and 4-A if the information required
under section 901(a)(2) either was not certified to the
Auditor General or was certified after April 1 of the year
the certification was due.
(2) The Commonwealth shall not reimburse a municipality
for the reimbursable amount of the amortization contribution
requirement attributable to the special ad hoc postretirement
adjustment under [Chapter 4] Chapters 4 and 4-A if the
municipality fails to submit a complete certification of the
reimbursable amount of the amortization contribution
requirement determined under subsection (a) to the Auditor
General before April 1 of the year in which the reimbursement
is payable.
(c) Variable definition of amortization contribution
requirement.--For purposes of this section, the term
"amortization contribution requirement" shall have the meaning
specified in this subsection as follows:
(1) In a municipal pension plan with defined benefits
for which the municipality determines the financial
requirements of the pension plan under section 302 of the
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Municipal Pension Plan Funding Standard and Recovery Act, the
term "amortization contribution requirement" shall mean the
amortization contribution requirement attributable to the
special ad hoc postretirement adjustments under [Chapter 4]
Chapters 4 and 4-A that was reflected in the financial
requirements of the pension plan determined for the immediate
prior year.
(2) In a municipal pension plan without defined benefits
for which the municipality determines the financial
requirements of the pension plan under section 303 of the
Municipal Pension Plan Funding Standard and Recovery Act, the
term "amortization contribution requirement" shall mean the
sum of the payments made to the retirement system in the
immediate prior year in order to provide the special ad hoc
postretirement adjustments under [Chapter 4] Chapters 4 and
4-A in that year.
Section 901. Municipal retirement system certification of
adjustments paid and of reimbursable amounts.
(a) Certification.--
* * *
(2) Beginning in the year 2002, a municipality with a
retirement system that pays a special ad hoc postretirement
adjustment under [Chapter 4] Chapters 4 and 4-A in a year
shall certify its reimbursable amount under section 502.1(a)
to the Auditor General not later than April 1 of the
following year.
* * *
Section 903. Municipal receipt of reimbursement payment.
* * *
(b) 2002 or 2023 postretirement adjustment reimbursement.--
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Upon receipt of the reimbursement payment from the Commonwealth
for the postretirement adjustments under [Chapter 4] Chapters 4
and 4-A, the treasurer of the municipality shall deposit the
reimbursement payment into the municipality's general fund.
Section 3. The special ad hoc postretirement adjustment
under section 401-A shall take effect on the date of the first
retirement benefit made after January 1, 2023. If the special ad
hoc postretirement adjustment under section 401-A is not
included in the initial retirement benefit payment occurring
after January 1, 2023, the special ad hoc postretirement
adjustment shall be included as soon as practicable in the
retirement benefit payment of the retiree, and the initial
retirement benefit payment that includes the special ad hoc
postretirement adjustment shall also include the total amount of
the special ad hoc postretirement adjustments previously omitted
from the retirement benefit payments made after January 1, 2023.
Section 4. This act shall take effect immediately.
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