Regular Session 2023-2024 Senate Bill 0854 P.N. 1010

PRINTER'S NO. 1010

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

854

Session of

2023

INTRODUCED BY PENNYCUICK, BREWSTER, DILLON AND SCHWANK,

JULY 6, 2023

REFERRED TO LAW AND JUSTICE, JULY 6, 2023

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 2024 special

ad hoc municipal police and firefighter 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 reimbursement 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

2024 SPECIAL AD HOC MUNICIPAL POLICE AND

FIREFIGHTER POSTRETIREMENT ADJUSTMENT

Section 401-A. Entitlement to 2024 special ad hoc

postretirement adjustment.

A municipal retirement system shall pay a retired police

officer or firefighter 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 or firefighter.

(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 or firefighter.

(3) The retiree began receiving the retirement benefit

before January 1, 2019.

Section 402-A. Amount of 2024 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 or firefighter a monthly special ad hoc postretirement

adjustment under section 401-A that shall be calculated as

follows:

(1) The sum of $75 a month if, on January 1, 2024, the

retiree has been retired at least 5 years but less than 10

years.

(2) The sum of $150 a month if, on January 1, 2024, the

retiree has been retired at least 10 years but less than 20

years.

(3) The sum of $300 a month if, on January 1, 2024, the

retiree has been retired at least 20 years.

(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)

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shall be reduced so that the total of all these adjustments paid

to the retiree does not exceed the amount specified in

subsection (a).

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 December 31, 2001, and before

January 1, 2024, 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 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 or 4-A is 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 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.

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(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

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.--

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(1) The Commonwealth shall not reimburse any

municipality for a special ad hoc adjustment paid under

Chapter 4 or 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 or 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.

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

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

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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 or 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 2024 postretirement adjustment reimbursement.--

Upon receipt of the reimbursement payment from the Commonwealth

for the postretirement adjustments under Chapter 4 or 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 of the act shall be effective on the date of

the first retirement benefit payment made after December 31,

2023. If the special ad hoc postretirement adjustment under

section 401-A of the act is not included in the initial

retirement benefit payment occurring after December 31, 2023,

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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 also shall

include the total amount of the special ad hoc postretirement

adjustments previously omitted from the retirement benefit

payments made after December 31, 2023.

Section 4. This act shall take effect immediately.

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