PRINTER'S NO. 1360
No. 1173 Session of 2001
INTRODUCED BY FRANKEL, KENNEY, BELFANTI, BUTKOVITZ, BUXTON,
CALTAGIRONE, CAPPELLI, COLAFELLA, COSTA, DIVEN, EACHUS,
D. EVANS, FREEMAN, GRUCELA, HARHAI, HORSEY, JOSEPHS, KELLER,
LAUGHLIN, LEVDANSKY, MANDERINO, MARKOSEK, McGEEHAN, MELIO,
METCALFE, MICHLOVIC, PALLONE, PETRONE, PISTELLA, PRESTON,
READSHAW, ROBINSON, RUFFING, SANTONI, SOLOBAY, STEELMAN,
TANGRETTI, J. TAYLOR, THOMAS, TRAVAGLIO, TRELLO, WALKO,
WANSACZ, WATERS, J. WILLIAMS AND YOUNGBLOOD, MARCH 27, 2001
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, MARCH 27, 2001
AN ACT
1 Amending the act of December 18, 1984 (P.L.1005, No.205),
2 entitled "An act mandating actuarial funding standards for
3 all municipal pension systems; establishing a recovery
4 program for municipal pension systems determined to be
5 financially distressed; providing for the distribution of the
6 tax on the premiums of foreign fire insurance companies; and
7 making repeals," further providing for allocation of general
8 municipal pension system State aid.
9 The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11 Section 1. Section 402(e) of the act of December 18, 1984
12 (P.L.1005, No.205), known as the Municipal Pension Plan Funding
13 Standard and Recovery Act, amended July 11, 1990 (P.L.505,
14 No.119), is amended to read:
15 Section 402. Revision of financing from State revenue sources;
16 General Municipal Pension System State Aid
17 Program.
18 * * *
1 (e) Allocation of general municipal pension system State
2 aid.--
3 (1) General municipal pension system State aid shall be
4 distributed annually to each eligible recipient municipality
5 no later than the first business day occurring in the month
6 of October. For the period ending with the distribution made
7 during calendar year 1995, the allocation of aid for
8 distribution shall be pursuant to paragraph (4). For the
9 period commencing with the distribution made during calendar
10 [year] years 1996, 2006 and each calendar year after 2006,
11 the allocation of aid for distribution shall be pursuant to
12 paragraph (5). For the period commencing with the
13 distribution made during calendar year 2001 and ending with
14 the distribution made during calendar year 2005, the
15 allocation of aid for distribution shall be pursuant to
16 paragraph (8). Any allocation of aid per unit shall be based
17 on the number of units pursuant to paragraph (2) as certified
18 by the applicable eligible municipalities. Any allocation of
19 aid shall be pursuant to the maximums specified in subsection
20 (f).
21 (2) The applicable number of units shall be attributable
22 to each active employee who was employed on a full-time basis
23 for a minimum of six consecutive months prior to December 31
24 preceding the date of certification and who was participating
25 in a pension plan maintained by that municipality, provided
26 that the municipality maintains a generally applicable
27 pension plan for that type of employee which was either
28 established on or prior to December 31, 1984, or, if
29 established after December 31, 1984, has been maintained by
30 that municipality for at least three plan years. The
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1 applicable number of units per employee attributable to each
2 eligible recipient county of the second class shall be two
3 units for each police officer. The applicable number of units
4 attributable to each eligible recipient city, borough,
5 incorporated town and township shall be as follows:
6 (i) Police officer - two units.
7 (ii) Firefighter - two units.
8 (iii) Employee other than police officer or
9 firefighter - one unit.
10 (3) [The] (i) For the period ending with the
11 distribution made during calendar years 2000, 2006 and
12 each calendar year after 2006, the amount of general
13 municipal pension system State aid per unit shall be
14 initially determined by dividing the total amount of the
15 general municipal pension system State aid available by
16 the total number of units certified by all eligible
17 municipalities. If the maximum specified in subsection
18 (f)(1) is applicable, the amount of general municipal
19 pension system State aid per unit applicable to all
20 municipalities other than the municipality or
21 municipalities subject to the maximum aid amount
22 specified in subsection (f)(1) shall be adjusted. The
23 adjusted amount of general municipal pension system State
24 aid per unit attributable to municipalities unaffected by
25 the aid maximum specified in subsection (f)(1) shall be
26 determined by dividing the total amount of the general
27 municipal pension system State aid available, after
28 excluding 25% of the total for each municipality to which
29 the maximum aid amount is applicable, by the total number
30 of units certified by all eligible municipalities
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1 unaffected by the aid maximum specified in subsection
2 (f)(1).
3 (ii) For the period commencing with the distribution
4 made during calendar year 2001 and ending with the
5 distribution made during calendar year 2005, the amount
6 of general municipal pension system State aid per unit
7 shall be initially determined by dividing the total
8 amount of the general municipal pension system State aid
9 available during calendar year 2000 by the total number
10 of units certified by all eligible municipalities. If the
11 maximum specified in subsection (f)(1) is applicable, the
12 amount of general municipal pension system State aid per
13 unit applicable to all municipalities other than the
14 municipality or municipalities subject to the maximum aid
15 amount specified in subsection (f)(1) shall be adjusted.
16 The adjusted amount of general municipal pension system
17 State aid per unit attributable to municipalities
18 unaffected by the aid maximum specified in subsection
19 (f)(1) shall be determined by dividing the total amount
20 of the general municipal pension system State aid
21 available, after excluding 25% of the total for each
22 municipality to which the maximum aid amount is
23 applicable, by the total number of units certified by all
24 eligible municipalities unaffected by the aid maximum
25 specified in subsection (f)(1).
26 (4) For the period ending with the distribution made
27 during calendar year 1995, each eligible municipality shall
28 be entitled to receive as general municipal pension system
29 State aid the greater of the following amounts:
30 (i) The adjusted amount of general municipal pension
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1 system State aid per unit multiplied by the number of
2 units certified by that municipality and an additional
3 amount necessary for the total to equal the lesser of the
4 total amount of any foreign casualty insurance premium
5 tax allocation and any foreign fire insurance premium tax
6 allocation attributable to paid firefighters which the
7 municipality was entitled to receive during the regular
8 allocation occurring in calendar year 1982, or the
9 aggregate actual financial requirement of any police or
10 paid fire pension plans maintained by the municipality
11 less the amount of aggregate annual member or employee
12 contributions during the plan year as reported in the
13 most recent complete actuarial report filed with the
14 commission.
15 (ii) The revised amount of general municipal pension
16 system State aid per unit multiplied by the number of
17 units certified by that municipality, which revised
18 amount shall be determined pursuant to paragraph (6).
19 (5) For the period commencing with the distribution made
20 during calendar [year] years 1996, 2006 and each calendar
21 year after 2006, each eligible municipality shall be entitled
22 to receive as general municipal pension system State aid the
23 greater of the following amounts:
24 (i) the adjusted amount of general municipal pension
25 system State aid per unit multiplied by the number of
26 units certified by that municipality less any amount by
27 which the adjusted amount exceeds the maximum aid amount
28 applicable to the municipality pursuant to subsection
29 (f)(2); or
30 (ii) the revised amount of general municipal pension
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1 system State aid per unit multiplied by the number of
2 units certified by that municipality, which revised
3 amount shall be determined pursuant to paragraph (6).
4 (6) The revised amount of general municipal pension
5 system State aid per unit shall be determined by the
6 following procedure:
7 (i) The amount of the total distribution made
8 pursuant to paragraph (4)(i) or (5)(i), whichever is
9 applicable, the amount of the general municipal pension
10 system State aid payable to any municipality or
11 municipalities to which the limitation provided in
12 subsection (f)(1) is applicable and the amount of the
13 total potential distribution pursuant to paragraph (7)
14 shall be totaled.
15 (ii) The total calculated pursuant to subparagraph
16 (i) shall be subtracted from the total amount of the
17 general municipal pension system State aid available.
18 (iii) The number of units attributable to the
19 municipalities which are entitled to receive an aid
20 amount calculated pursuant to paragraph (4)(i) or (5)(i),
21 whichever is applicable, the number of units attributable
22 to the municipalities or municipality to which the
23 limitation provided in subsection (f)(1) applies and the
24 number of units attributable to the municipalities
25 included in the potential distribution pursuant to
26 paragraph (7) shall be totaled.
27 (iv) The total calculated pursuant to subparagraph
28 (iii) shall be subtracted from the total number of units
29 certified by all eligible municipalities.
30 (v) The number resulting from the calculation
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1 pursuant to subparagraph (ii) shall be divided by the
2 number resulting from the calculation pursuant to
3 subparagraph (iv), which shall be the revised amount of
4 general municipal pension system State aid per unit.
5 (7) Any municipality which has not filed with the
6 commission on a timely basis, pursuant to the applicable
7 municipal pension plan actuarial reporting law, an actuarial
8 report for each of the municipal pension plans which it has
9 established or maintains shall be entitled to receive as
10 general municipal pension system State aid, at such time as
11 compliance with the actuarial reporting requirement occurs,
12 the adjusted amount of general municipal pension system State
13 aid per unit pursuant to paragraph (3) multiplied by the
14 number of units certified by that municipality, but not to
15 exceed the maximum aid amount applicable to the municipality
16 pursuant to subsection (f). The amount of any difference
17 between the adjusted amount of general municipal pension
18 system State aid per unit multiplied by the number of units
19 certified by a municipality and the maximum aid amount
20 applicable to the municipality pursuant to subsection (f) for
21 that municipality shall be added to the amount of the general
22 municipal pension system State aid available for distribution
23 in the succeeding calendar year.
24 (8) For the period commencing with the distribution made
25 during calendar year 2001, and ending with the distribution
26 made during calendar year 2005, notwithstanding any sum
27 distributed to an eligible municipality pursuant to paragraph
28 (9), each eligible municipality shall be entitled to receive,
29 as general municipal pension system State aid the greater of
30 the following amounts:
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1 (i) the adjusted amount of general municipal pension
2 system State aid per unit multiplied by the number of
3 units certified by that municipality less any amount by
4 which the adjusted amount exceeds the maximum aid amount
5 applicable to the municipality pursuant to subsection
6 (f)(2); or
7 (ii) the revised amount of general municipal pension
8 system State aid per unit multiplied by the number of
9 units certified by that municipality, which revised
10 amount shall be determined pursuant to paragraph (6).
11 (9) For the period commencing with the distribution made
12 during calendar year 2001 and ending during calendar year
13 2005, any general municipal pension system State aid
14 remaining after the distribution pursuant to paragraph (8)
15 shall be distributed to each of the municipal pension plans
16 established by an eligible municipality that has an unfunded
17 actuarial accrued liability according to the most recent
18 actuarial valuation report. The per-unit rate of funds
19 distributed under this paragraph shall be determined by
20 dividing the total amount of general municipal pension State
21 aid remaining by the total number of units certified by all
22 municipal pension plans with an unfunded actuarial accrued
23 liability. The amount to be distributed to each municipal
24 pension plan shall equal the per-unit rate multiplied by the
25 number of units certified by that municipal pension plan.
26 * * *
27 Section 2. This act shall take effect immediately.
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