PRINTER'S NO. 832
No. 767 Session of 1999
INTRODUCED BY GREENLEAF, HART, MUSTO AND CONTI, APRIL 12, 1999
REFERRED TO FINANCE, APRIL 12, 1999
AN ACT
1 Amending the act of February 1, 1974 (P.L.34, No.15), entitled
2 "An act creating a Pennsylvania Municipal Retirement System
3 for the payment of retirement allowances to officers,
4 employes, firemen and police of political subdivisions and
5 municipal authorities and of institutions supported and
6 maintained by political subdivisions and municipal government
7 associations and providing for the administration of the same
8 by a board composed of the State Treasurer and others
9 appointed by the Governor; imposing certain duties on the
10 Pennsylvania Municipal Retirement Board and the actuary
11 thereof; providing the procedure whereby political
12 subdivisions and municipal authorities may join such system,
13 and imposing certain liabilities and obligations on such
14 political subdivisions and municipal authorities in
15 connection therewith, and as to certain existing retirement
16 and pension systems, and upon officers, employes, firemen and
17 police of such political subdivisions, institutions supported
18 and maintained by political subdivisions, and upon municipal
19 authorities; providing for the continuation of certain
20 municipal retirement systems now administered by the
21 Commonwealth; providing certain exemptions from taxation,
22 execution, attachment, levy and sale and providing for the
23 repeal of certain related acts," further providing for the
24 allocation of excess interest by successor municipalities in
25 the case of certain authorities that have their operating
26 functions transferred back or dissolved.
27 The General Assembly of the Commonwealth of Pennsylvania
28 hereby enacts as follows:
29 Section 1. Section 110 of the act of February 1, 1974
30 (P.L.34, No.15), known as the Pennsylvania Municipal Retirement
1 Law, amended May 17, 1980 (P.L.135, No.50), is amended to read:
2 Section 110. Management and Investment of Fund; Interest
3 Credits.--The members of the board shall be trustees of the
4 fund, and shall have the exclusive management of said fund, with
5 full power to invest the moneys therein, subject to the terms,
6 conditions, limitations and restrictions imposed by law upon
7 fiduciaries. The said trustees shall have power to hold,
8 purchase, sell, assign, transfer and dispose of any securities
9 and investments in said fund, as well as the proceeds of such
10 investments, and of the money belonging to such fund.
11 The board shall annually allow regular interest to the credit
12 on each contributor's account, municipal account, the retired
13 members reserve account and the total disability reserve
14 account. In addition, the board shall, after paying expenses,
15 annually allow such excess interest as each municipality deems
16 appropriate to the credit of the municipal accounts, member's
17 accounts, the member's excess investment accounts, retired
18 members reserve accounts and total disability reserve accounts.
19 If a municipal plan is created by an authority, the authority
20 is either dissolved under the laws of this Commonwealth or the
21 operating functions have been transferred back to the creating
22 municipality, there are no active members left in the plan, and
23 the plan has no unfunded actuarial accrued liability as of the
24 most recently filed actuarial valuation report required under
25 the act of December 18, 1984 (P.L.1005, No.205), known as the
26 "Municipal Pension Plan Funding Standard and Recovery Act," the
27 municipality responsible for any remaining financial obligations
28 of the plan, including, but not limited to, the administrative
29 fees associated with any vested or retired members of the plan,
30 shall allocate the excess interest allowed by the board to the
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1 pension plan on an equalized basis among the municipal account,
2 the vested members' accounts and the retired members' reserve
3 accounts based upon the present values of the accounts.
4 Section 2. This act shall take effect in 60 days.
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