Test Drive Our New Site! We have some improvements in the works that we're excited for you to experience. Click here to try our new, faster, mobile friendly beta site. We will be maintaining our current version of the site thru the end of 2024, so you can switch back as our improvements continue.
Legislation Quick Search
04/19/2024 01:21 AM
Pennsylvania House of Representatives
Home / House Co-Sponsorship Memoranda

House Co-Sponsorship Memoranda

Subscribe to PaLegis Notifications

Subscribe to receive notifications of new Co-Sponsorship Memos circulated

By Member | By Date | Keyword Search

House of Representatives
Session of 2017 - 2018 Regular Session


Posted: January 24, 2017 03:22 PM
From: Representative Tim Briggs
To: All House members
Subject: Act 44 Amendments Regarding Municipal Pension Plan Management
In the near future, I intend to re-introduce legislation which would amend Act 44, dealing with municipal pension plan management (HB 414 of last session).

Currently, Act 44 requires a Request for Proposal (RFP) if a municipality intends to change any professional advisors, if those advisors would be paid from plan assets. This measure was put in place to protect plan assets but it has had the unintended effect of locking small municipal pension plans into their existing professional advisors, even if they are unhappy with their advice or service.

In order to assist with compliance to Act 44 municipalities are hiring outside legal services to navigate the RFP process. Since the fees for these services cannot be paid out of plan assets, municipalities are unable to find the money in their general fund budgets complete the RFP process as required by Act 44. The end result is that no small municipalities are able to change advisors.

My legislation would fix this unintended consequence by limiting the professional services contracting requirements of Act 44 to municipal pension systems with 100 or more active members. This would exempt those municipalities that can least afford additional payments outside of plan assets and allow pension plans to find the professional advisor who works best for them.


Introduced as HB1142