PRINTER'S NO. 2487
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE RESOLUTION
No.
522
Session of
2017
INTRODUCED BY RYAN, GROVE, ENGLISH, PHILLIPS-HILL, KAUFER,
KNOWLES, D. MILLER, READSHAW, ROTHMAN, SAYLOR AND WHEELAND,
SEPTEMBER 27, 2017
REFERRED TO COMMITTEE ON STATE GOVERNMENT, SEPTEMBER 27, 2017
A CONCURRENT RESOLUTION
Urging the Treasurer of Pennsylvania to petition the Federal
Reserve to remit $24 billion to the Commonwealth to reimburse
State and municipal pension plans for lost earnings due to
quantitative easing.
WHEREAS, The Federal Reserve System is a Federal agency,
comprised of a board of governors and 12 independent regional
reserve banks; and
WHEREAS, The Federal Reserve directs the central banking
system of the United States and was created to respond to
banking panics; and
WHEREAS, In response to various financial troubles, the
Federal Reserve introduced new money into America's financial
system by purchasing assets from commercial banks at various
points between 2009 and 2014 by a process called quantitative
easing; and
WHEREAS, Quantitative easing had negative side effects that
limited the earning potential of municipal and Commonwealth
pension portfolios; and
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
WHEREAS, Pennsylvania seeks restitution from the Federal
Reserve to reimburse the Commonwealth for lost earnings of
pension plans due to the negative impacts of quantitative
easing; and
WHEREAS, The estimated amount of damages for the years 2009
to 2016 is 200 basis points per year for 40% of the
Commonwealth's portfolio and municipal portfolio of pension
assets; and
WHEREAS, Those damages amount to an estimated loss of $24
billion; and
WHEREAS, The Treasurer of Pennsylvania should petition the
Federal Reserve to remit $24 billion to the Commonwealth of
Pennsylvania; and
WHEREAS, Any money received from the Federal Reserve shall be
deposited into a special account within the General Fund to be
used for funding municipal and State pension plans; therefore be
it
RESOLVED (the Senate concurring), That the General Assembly
of the Commonwealth urge the Treasurer of Pennsylvania to
petition the Federal Reserve to remit $24 billion to the
Commonwealth to reimburse State and municipal pension plans for
lost earnings due to quantitative easing; and be it further
RESOLVED, That a certified copy of this resolution be
transmitted by the Clerk of the House of Representatives to the
Governor, the Treasurer of Pennsylvania and to each member of
Congress from Pennsylvania.
20170HR0522PN2487 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26