THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY BELFANTI, GERGELY, GOODMAN, MENSCH, BRENNAN, SIPTROTH, HORNAMAN, CALTAGIRONE, PASHINSKI, DeLUCA, GEORGE, HALUSKA, GRUCELA, FRANKEL, MURPHY, KORTZ, FABRIZIO AND CARROLL, JUNE 24, 2009

REFERRED TO COMMITTEE ON LABOR RELATIONS, JUNE 24, 2009  

AN ACT

Amending the act of June 2, 1915 (P.L.736, No.338), entitled, as

reenacted and amended, "An act defining the liability of an

employer to pay damages for injuries received by an employe

in the course of employment; establishing an elective

schedule of compensation; providing procedure for the

determination of liability and compensation thereunder; and

prescribing penalties," further providing for investment of

surplus. 

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 1512 of the act of June 2, 1915 (P.L.736,

No.338), known as the Workers' Compensation Act, reenacted and

amended June 21, 1939 (P.L.520, No.281) and added June 24, 1996

(P.L.350, No.57), is amended to read:

Section 1512.  (a)  The board may invest any of the surplus

or reserve belonging to the fund in such securities and

investments as are authorized for investment by savings banks.

All such securities or evidences of indebtedness shall be placed

in the hands of the State Treasurer who shall be the custodian

thereof. He shall collect the principal and interest thereof

when due and pay the same into the fund. The State Treasurer

shall pay for all such securities or evidences of indebtedness

by check issued upon requisition of the secretary. All such

payments shall be made only upon delivery of such securities or

evidences of indebtedness to the State Treasurer. To all

requisitions calling upon the State Treasurer to pay for any

securities or evidences of indebtedness there shall be attached

a certified copy of the resolution of the board authorizing the

investment. The board may, upon like resolution, sell any of

such securities.

(b)  Notwithstanding subsection (a) or the provisions of any

other law, the power of the board to invest money under this

section shall include the power to hold, purchase, sell, assign,

transfer and dispose of securities. The following shall apply:

(1)  Investments in equities may not exceed the lesser of:

(i)  20% of the fund's assets; or

(ii)  the fund's statutory surplus after discount.

(2)  The board shall establish a policy for investments and

shall meet at least annually to develop a schedule for

rebalancing its investments in securities to meet the

restriction of paragraph (1).

Section 2.  This act shall take effect immediately.