PRINTER'S NO. 4175
No. 2759 Session of 2004
INTRODUCED BY CLYMER, BAKER, BARRAR, BASTIAN, BELFANTI, BROWNE,
CAUSER, CRAHALLA, CRUZ, DAILEY, DALEY, DENLINGER, DeWEESE,
FAIRCHILD, FICHTER, GEORGE, GOODMAN, HARHAI, HARRIS, HERSHEY,
HESS, HORSEY, KILLION, KOTIK, LAUGHLIN, MANN, MARKOSEK,
McILHATTAN, NAILOR, O'NEILL, PICKETT, REED, RUBLEY, SAINATO,
SANTONI, SATHER, SEMMEL, SOLOBAY, STERN, THOMAS, TIGUE, TRUE,
WATSON, WEBER, WOJNAROSKI, YOUNGBLOOD, SURRA, LEVDANSKY,
BENNINGHOFF AND HUTCHINSON, JUNE 28, 2004
REFERRED TO COMMITTEE ON FINANCE, JUNE 28, 2004
AN ACT
1 Amending the act of July 9, 1981 (P.L.208, No.66), entitled, as
2 amended, "An act creating the Public Employee Retirement
3 Commission to make a continuing study of all public employee
4 retirement and pension systems; and making an appropriation,"
5 further providing for actuarial notes.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Section 7 of the act of July 9, 1981 (P.L.208,
9 No.66), known as the Public Employee Retirement Commission Act,
10 amended December 20, 1991 (P.L.393, No.42), is amended to read:
11 Section 7. Actuarial notes.
12 (a) Note required for bills.--Except as otherwise provided
13 in subsection (f)(1), no bill proposing any change relative to a
14 public employee pension or retirement plan shall be given second
15 consideration in either House of the General Assembly, until the
16 commission has attached an actuarial note prepared by an
1 enrolled pension actuary which shall include a reliable estimate
2 of the cost and actuarial effect of the proposed change in any
3 such pension or retirement system.
4 (b) Note required for amendments.--Except as otherwise
5 provided in subsection (f)(2), no amendment to any bill
6 concerning any public employee pension or retirement plan shall
7 be considered by either House of the General Assembly until an
8 actuarial note prepared by an enrolled pension actuary has been
9 attached.
10 (c) Preparation of note.--The commission shall select an
11 enrolled pension actuary to prepare an actuarial note which
12 shall include a reliable estimate of the financial and actuarial
13 effect of the proposed change in any such pension or retirement
14 system.
15 (d) Contents of note.--The actuarial note shall be factual,
16 and shall, if possible, provide a reliable estimate of both the
17 immediate cost and effect of the bill and, if determinable or
18 reasonably foreseeable, the long-range actuarial cost and effect
19 of the measure. If the proposed change is to a benefit formula,
20 the actuarial note shall include an estimate of the cost of
21 applying the change to persons retiring in the future and
22 persons who are presently retired.
23 (e) Notes for proposed constitutional amendments.--The
24 commission shall issue an actuarial note, prepared by an
25 enrolled pension actuary, for any joint resolution proposing an
26 amendment to the Constitution of Pennsylvania which initially
27 passes either House of the General Assembly. If said joint
28 resolution is subsequently amended and passes either House of
29 the General Assembly, a new actuarial note shall be prepared.
30 (f) Effect of failure of commission to attach note.--
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1 (1) If the commission fails to attach an actuarial note
2 within 20 legislative days after a bill proposing a change
3 relative to a public employee pension or retirement plan has
4 received first consideration in either House of the General
5 Assembly, the bill may be further considered in the same
6 manner as if the actuarial note had been attached to the
7 bill.
8 (2) If the commission fails to attach an actuarial note
9 within 20 legislative days after an amendment to a bill
10 proposing a change relative to a public employee pension or
11 retirement has submitted to the commission, the amendment may
12 be considered in the same manner as if the actuarial note had
13 been attached to the amendment.
14 Section 2. This act shall take effect in 60 days.
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