PRINTER'SH1379B1539A05727 MSP:EJH 09/30/24 #90 A05727 AMENDMENTS TO HOUSE BILL NO.

15391379 THESponsor: GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

1379REPRESENTATIVE 2023B. INTRODUCED BY MALAGARI, MADDEN, KULIK, VENKAT, SOLOMON, WEBSTER, HILL-EVANS, DELLOSO, McNEILL, GUENST, KAZEEM, SANCHEZ, KHAN, DEASY, GALLOWAY, MARSHALL, WARREN, HARKINS, STEELE, RIGBY, PISCIOTTANO, M.

MACKENZIE,MILLER R.Printer's No.

MACKENZIE,1539 EMRICK,Amend D.Bill, page 1, lines 10 and 11, by striking out all of line 10 and "special ad hoc adjustment" in line 11 and inserting providing for prepayment of 2024 special ad hoc adjustment Amend Bill, page 3, lines 12 through 30;

WILLIAMS,pages MATZIE,4 CERRATO,and SHUSTERMAN,5, GALLAGHERlines AND1 O'MARA,through JUNE30; 12, 2023 REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JUNE 12, 2023 AN ACT Ameentitled "An act requiring municipal retirement systems to pay special ad hoc postretirement adjustments to certain retired police officers and firefighters;

providingpage for6, thelines financing1 ofthrough these11; adjustments;

providingby forstriking theout administrationall of thesaid Commonwealth'slines reimbursementson forsaid thesepages adjustments;and inserting Section 2.

andThe makingact repeals,"is providingamended forby 2024adding speciala adsection hocto municipalread: police and firefighter postretirement adjustment;

inSection financing502.2. of special ad hoc adjustment, further providing for reimbursement by Commonwealth for 2002 special ad hoc adjustment;

and,Prepayment in administrative provisions, certification of adjustments2024 paidspecial andad ofhoc reimbursableadjustment. amounts and for municipal receipt of reimbursement payment.

The General Assembly ofshall appropriate enough money from the CommonwealthGeneral Fund for the purpose of Pennsylvaniareimbursing herebythe enactsmunicipal aspensions follows:for all unfunded liabilities generated by the special ad hoc adjustment under section 4A01.

SectionThe 1.amount appropriated shall equal the total unfunded liability as determined by the Independent Fiscal Office and shall be distributed to the municipalities in an amount equal to the unfunded liability incurred by each municipal retirement system, as determined by the Auditor General.

TheSection act3. of December 14, 1988 (P.L.1192, No.147), known as the Special Ad Hoc Municipal Police and Firefighter Postretirement Adjustment Act, is amended by adding a chapter to read:

CHAPTERSection 4A901(a)(2) 2024of SPECIALthe ADact HOCis MUNICIPALamended POLICEto ANDread: FIREFIGHTER POSTRETIREMENT ADJUSTMENT Section 4A01.

EntitlementAmend toBill, 2024page special6, adline hoc23, postretirementby adjustment.striking out "3" and inserting 4 Amend Bill, page 7, line 2, by striking out "4" and inserting 5 Amend Bill, page 7, line 15, by striking out "5" and inserting 6 2024/90MSP/HB1379A05727 - 1 -

A municipal retirement system shall pay a retired police officer or firefighter a special ad hoc postretirement adjustment under this chapter if all of the following apply:

(1) The retiree has terminated active employment with the municipality as a police officer or firefighter.

(2) The retiree is receiving a retirement benefit from a municipal retirement system on the basis of active employment with the municipality as a police officer or firefighter.

(3) The retiree began receiving the retirement benefit before January 1, 2019.

Section 4A02.

Amount of 2024 special ad hoc postretirement adjustment.

(a) General rule.--Except as provided in subsections (b) and (c), a municipal retirement system shall pay a retired police officer or firefighter a monthly special ad hoc postretirement adjustment under section 4A01 as follows:

(1) The sum of $75 per month if, on January 1, 2024, the retiree has been retired for at least five years but less than 10 years.

(2) The sum of $150 per month if, on January 1, 2024, the retiree has been retired for least 10 years but less than 20 years.

(3) The sum of $300 per month if, on January 1, 2024, the retiree has been retired for at least 20 years.

(b) Limitation.--If, under section 4A01, a retiree is entitled to be paid a special ad hoc postretirement adjustment by more than one municipal retirement system, the amount of the 20230HB1379PN1539 - 2 - special ad hoc postretirement adjustment under subsection (a) shall be reduced so that the total of all these adjustments paid to the retiree does not exceed the amount specified in subsection (a).

(c) Modification in amount of 2024 special ad hoc postretirement adjustment.--The amount of the special ad hoc postretirement adjustment calculated under subsection (a) shall be reduced annually by 65% of the total amount of any postretirement adjustments provided to the retiree under the municipal retirement plan after January 1, 2002, and before December 31, 2023, and paid in the immediately preceding year.

Section 2.

Sections 502.1 and 901(a)(2) of the act are amended to read:

Section 502.1.

Reimbursement by Commonwealth for 2002 and 2024 special ad hoc [adjustment] adjustments.

(a) General rule.-- (1) Except as provided in subsection (b), beginning in the year following the year in which the amortization contribution requirement attributable to a special ad hoc postretirement [adjustment] adjustments under [Chapter 4 is] Chapters 4 and 4A are first reflected in the financial requirements of the retirement system determined under Chapter 3 of the act of December 18, 1984 (P.L.1005, No.205), known as the Municipal Pension Plan Funding Standard and Recovery Act, the Auditor General shall determine the Commonwealth reimbursement payable to the municipality representing the amortization contribution requirement attributable to the special ad hoc postretirement [adjustment] adjustments under [Chapter 4] Chapters 4 and 4A that was paid with revenues of the municipality other than 20230HB1379PN1539 - 3 - general municipal pension system State aid provided under the Municipal Pension Plan Funding Standard and Recovery Act.

(2) The determination of the reimbursable amount of the amortization contribution requirement attributable to the special ad hoc postretirement [adjustment] adjustments under [Chapter 4] Chapters 4 and 4A in any year shall be calculated as the amortization contribution requirement attributable to the special ad hoc postretirement adjustments under [Chapter 4] Chapters 4 and 4A and reflected in the determination of the financial requirements of the pension plan under Chapter 3 of the Municipal Pension Plan Funding Standard and Recovery Act for the immediate prior year less the product of that amortization contribution requirement multiplied by the ratio of the amount of general municipal pension system State aid allocated to the retirement system in the immediate prior year to the total amount of municipal contributions made to the retirement system from all sources other than employee contributions in the immediate prior year.

Where a municipality has issued bonds or notes to fund an unfunded actuarial accrued liability under 53 Pa.C.S.

Pt.

[V] VII Subpt.

B (relating to indebtedness and borrowing) or under other laws applicable to the municipality, the general municipal pension system State aid and municipal contributions used by the municipality to make debt service payments on the bonds or notes, or both, issued to fund an unfunded actuarial accrued liability shall be included in the calculation of the ratio applied to the amortization contribution requirement.

(3) The Commonwealth shall reimburse a municipality, from the special account established under section 701, for 20230HB1379PN1539 - 4 - the reimbursable amount determined for each year under this paragraph.

(b) Limitation of eligibility.-- (1) The Commonwealth shall not reimburse any municipality for a special ad hoc [adjustment] adjustments paid under [Chapter 4] Chapters 4 and 4A if the information required under section 901(a)(2) either was not certified to the Auditor General or was certified after April 1 of the year the certification was due.