PRINTER'S NO. 2138
No. 1714 Session of 1997
INTRODUCED BY NICKOL, JULY 11, 1997
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JULY 11, 1997
AN ACT
1 Amending the act of December 6, 1972 (P.L.1383, No.293),
2 entitled "An act requiring municipal pension systems to have
3 an actuarial investigation of the fund made by an actuary who
4 shall report his findings to the Department of Community
5 Affairs," further providing for actuarial investigation; and
6 providing for the filing of reports with the Public Employee
7 Retirement Commission.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. The title and sections 1, 2 and 3 of the act of
11 December 6, 1972 (P.L.1383, No.293), entitled "An act requiring
12 municipal pension systems to have an actuarial investigation of
13 the fund made by an actuary who shall report his findings to the
14 Department of Community Affairs," are amended to read:
15 AN ACT
16 Requiring municipal pension systems to have an actuarial
17 investigation of the fund made by an actuary who shall report
18 his findings to the [Department of Community Affairs] Public
19 Employee Retirement Commission.
20 Section 1. [All pension] Pension systems for municipal
1 employes, police [and firemen] officers or firefighters, that
2 are not subject to the reporting requirements of the act of
3 December 18, 1984 (P.L.1005, No.205), known as the "Municipal
4 Pension Plan Funding Standard and Recovery Act," shall employ or
5 retain an actuary who shall be paid by the municipality to make
6 an actuarial investigation of the sufficiency of pension funds
7 to pay retirement benefits.
8 Section 2. Upon the completion of the actuarial
9 investigation, the actuary shall send a copy of [his findings]
10 the applicable report to the [Department of Community Affairs]
11 commission. [For pension systems having less than fifty members,
12 the report shall be made every four years; for pension systems
13 having fifty or more members, the] The report shall be made
14 [every two years] as of the beginning of the plan year occurring
15 in the first odd-numbered calendar year occurring after December
16 31, 1998, and thereafter as of the beginning of each succeeding
17 plan year, occurring in an odd-numbered calendar year and shall
18 be filed with the commission no later than the last business day
19 of March occurring in the following calendar year.
20 Section 3. The [Department of Community Affairs] commission
21 shall have the power to specify the form and content of reports
22 of actuaries and to supply copies of the forms for reports of
23 actuaries.
24 Section 2. Section 4 of the act, amended January 12, 1974
25 (1973 P.L.444, No.158), is amended to read:
26 Section 4. If an actuary study is not performed and
27 submitted to the [Department of Community Affairs] commission
28 within ninety days after December 31 of the year in which the
29 actuary study is required in sections 2 and 5 of the act, any
30 and all pension reimbursements from any sources which are
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1 payable by the Commonwealth shall be withheld until such study
2 is completed. The actuary study shall be performed by the
3 [Department of Community Affairs] commission and the
4 municipality shall reimburse the [Department of Community
5 Affairs] commission the actual cost of performing the study.
6 Section 3. The act is amended by adding a section to read:
7 Section 6. The following words and phrases when used in this
8 act shall have the meanings given to them in this section unless
9 the context clearly indicates otherwise:
10 "Actuarial investigation or study." An actuarial valuation
11 report which complies with, or is substantially equal to, the
12 municipal pension plan actuarial reporting requirements
13 specified in the act of December 18, 1984 (P.L.1005, No.205),
14 known as the "Municipal Pension Plan Funding Standard and
15 Recovery Act."
16 "Actuary." A person who has at least five years of actuarial
17 experience with public pension plans and who is either enrolled
18 as a member of the American Academy of Actuaries or enrolled as
19 an actuary pursuant to the Employee Retirement Income Security
20 Act of 1974 (Public Law 93-406, 88 Stat. 829).
21 "Commission." The Public Employee Retirement Commission.
22 Section 4. Municipalities shall file under the new standards
23 any and all reports issued after December 31, 1998. A report for
24 a plan year that begins in 1996, which must be filed with the
25 Public Employee Retirement Commission in March of 1997, shall be
26 filed under the existing standards. A report for a plan year
27 that begins in 1998, which would be filed with the commission in
28 March of 1999, need not be filed.
29 Section 5. All acts and parts of acts are repealed insofar
30 as they are inconsistent with this act provided that nothing in
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1 this act shall be construed to repeal, alter or amend the
2 provisions of the act of December 18, 1984 (P.L.1005, No.205),
3 known as the Municipal Pension Plan Funding Standard and
4 Recovery Act.
5 Section 6. This act shall take effect immediately.
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