Regular Session 2023-2024 House Bill 1379 P.N. 1539

PRINTER'S NO. 1539

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1379

Session of

2023

INTRODUCED BY MALAGARI, MADDEN, KULIK, VENKAT, SOLOMON, WEBSTER,

HILL-EVANS, DELLOSO, McNEILL, GUENST, KAZEEM, SANCHEZ, KHAN,

DEASY, GALLOWAY, MARSHALL, WARREN, HARKINS, STEELE, RIGBY,

PISCIOTTANO, M. MACKENZIE, R. MACKENZIE, EMRICK, D. WILLIAMS,

MATZIE, CERRATO, SHUSTERMAN, GALLAGHER AND O'MARA,

JUNE 12, 2023

REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JUNE 12, 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 4A

2024 SPECIAL AD HOC MUNICIPAL POLICE

AND FIREFIGHTER POSTRETIREMENT ADJUSTMENT

Section 4A01. 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 4A02. 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 4A01 as follows:

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

retiree has been retired for at least five years but less

than 10 years.

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

the retiree has been retired for least 10 years but less than

20 years.

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

the retiree has been retired for at least 20 years.

(b) Limitation.--If, under section 4A01, a retiree is

entitled to be paid a special ad hoc postretirement adjustment

by more than one municipal retirement system, the amount of the

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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).

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, 2023, and paid in the immediately preceding year.

Section 2. Sections 502.1 and 901(a)(2) of the act are

amended to read:

Section 502.1. Reimbursement by Commonwealth for 2002 and 2024

special ad hoc [adjustment] adjustments.

(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] adjustments under [Chapter 4 is]

Chapters 4 and 4A 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 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] adjustments under [Chapter 4] Chapters 4 and 4A

that was paid with revenues of the municipality other than

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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] adjustments under

[Chapter 4] Chapters 4 and 4A 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 4A 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] VII

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

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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] adjustments

paid under [Chapter 4] Chapters 4 and 4A 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] adjustments under [Chapter 4] Chapters 4 and 4A

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 4A that was reflected in the financial

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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

4A 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] adjustments under [Chapter 4] Chapters 4 and 4A

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 3. Section 903 of the act is amended by adding a

subsection to read:

Section 903. Municipal receipt of reimbursement payment.

* * *

receipt of the reimbursement payment from the Commonwealth for

the postretirement adjustments under Chapter 4A, the treasurer

of the municipality shall deposit the reimbursement payment into

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the municipality's general fund.

Section 4. The special ad hoc postretirement adjustment

under section 4A01 of the act is effective on the date of the

first retirement benefit made after January 1, 2024. If the

special ad hoc postretirement adjustment under section 4A01 of

the act is not included in the initial retirement benefit

payment occurring after January 1, 2024, 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 January 1, 2024.

Section 5. This act shall take effect immediately.

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