PRINTER'S NO. 2872
No. 2197 Session of 2000
INTRODUCED BY NICKOL, JANUARY 31, 2000
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JANUARY 31, 2000
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 20000H2197B2872 - 2 -
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, 2001. A report for 24 a plan year that begins in 1999, which must be filed with the 25 Public Employee Retirement Commission in March of 2000, shall be 26 filed under the existing standards. A report for a plan year 27 that begins in 1999, which would be filed with the commission in 28 March of 2000, 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 20000H2197B2872 - 3 -
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. A14L53JS/20000H2197B2872 - 4 -