|Posted:||December 2, 2020 05:28 PM|
|From:||Representative Francis X. Ryan|
|To:||All House members|
|Subject:||LEGISLATION: CREATION OF THE UNFUNDED LIABILITY SOLVENCY RESERVE FUND|
|In the very near future, I intend to introduce legislation (former HB67) which will create the Unfunded Liability Solvency Reserve Fund. This legislation will help Pennsylvania address our unfunded pension liability which has now crept passed the $70 billion mark.
Nationally, the unfunded liabilities of state public pension plans are measured in the trillions and continue to increase despite the attention those liabilities are receiving. A recent study by the National Association of State Retirement Administrators found that Pennsylvania has the second most underfunded pension plan in the United States. This liability represents a significant threat to the solvency of state retirement system and to the financial condition of our Commonwealth.
In order to help address these growing concerns, my legislation will create the Unfunded Liability Solvency Reserve Fund. If the Secretary of the Budget certifies that there is a surplus in the General Fund for a specific fiscal year, any amount of the surplus which is not deposited in the Budget Stabilization Reserve Fund will be deposited into the Fund. Additionally, the General Assembly may appropriate an additional amount to be deposited into the Fund. The fund will be used exclusively to make an additional contribution to the SERS and PSERS Funds in excess of the actuarially required contribution for the fiscal year.
Creating an automatic reserve fund dedication to paying down our unfunded liabilities will help to direct money to these funds which otherwise might never get there. I hope you will join me in cosponsoring this important legislation.
Introduced as HB1008