PRINTER'S NO. 1891
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1610
Session of
2023
INTRODUCED BY D'ORSIE, KEEFER, FINK, BERNSTINE, ZIMMERMAN,
STEHR, M. JONES AND GROVE, AUGUST 8, 2023
REFERRED TO COMMITTEE ON FINANCE, AUGUST 8, 2023
AN ACT
Amending the act of December 18, 1984 (P.L.1005, No.205),
entitled "An act mandating actuarial funding standards for
all municipal pension systems; establishing a recovery
program for municipal pension systems determined to be
financially distressed; providing for the distribution of the
tax on the premiums of foreign fire insurance companies; and
making repeals," in financially distressed municipal pension
system recovery program, providing for disposition of money
from sale or lease of municipal assets; and, in foreign fire
insurance tax distribution, further providing for
distribution formula.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of December 18, 1984 (P.L.1005, No.205),
known as the Municipal Pension Plan Funding Standard and
Recovery Act, is amended by adding a section to read:
Section 610. Disposition of money from sale or lease of
municipal assets.
(a) Deposit of proceeds.--If a local government maintains a
pension plan or system that has been determined under section
503 to be in moderate distress or severe distress, after the
sale or lease of a municipal asset, the local government shall
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deposit enough proceeds generated by the sale or lease into the
distressed pension fund in accordance with subsection (b).
(b) Money for pension plans.--Notwithstanding any priority
payments necessary to satisfy secured or unsecured debt of a
local government or a local government authority, money
generated by the sale or lease of a municipal asset shall be
placed into the distressed pension fund until the distressed
pension fund is determined to be 80% funded by the Auditor
General in accordance with the procedures in Chapter 2.
Section 2. Section 704 of the act is amended to read:
Section 704. Distribution formula.
Except as provided in section 705, the amount [to be paid to
each municipality shall be determined as follows:
(1) fifty percent of the fund shall be distributed based
on the population of each municipality in proportion to the
population of the entire Commonwealth, based upon the latest
national population census as reported by the United States
Bureau of Census; and
(2) fifty percent of the fund shall be distributed based
on the market value of real estate of each municipality in
proportion to the market value of real estate for the entire
Commonwealth, based upon the most recent statistics from the
State Tax Equalization Board.] in the fund shall be divided
equally between all local governments that maintain a pension
plan or system that have been determined under section 503 to
be in moderate distress or severe distress status. All money
received by a local government shall make payments to satisfy
secured or unsecured debt.
Section 3. This act shall take effect in 60 days.
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