Struck = removed from the bill ·
added = the amendment's new text.
PRINTER'SH1379B1539A05600 DMS:JMT 09/13/24 #90 A05600 AMENDMENTS TO HOUSE BILL NO.
15391379 THESponsor: GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.
1379REPRESENTATIVE 2023MALAGARI INTRODUCEDPrinter's BYNo. MALAGARI, MADDEN, KULIK, VENKAT, SOLOMON, WEBSTER, HILL-EVANS, DELLOSO, McNEILL, GUENST, KAZEEM, SANCHEZ, KHAN, DEASY, GALLOWAY, MARSHALL, WARREN, HARKINS, STEELE, RIGBY, PISCIOTTANO, M.
MACKENZIE,1539 R.Amend Bill, page 1, lines 1 through 14, by striking out all of said lines and inserting Amending Titles 24 (Education), 53 (Municipalities Generally) and 71 (State Government) of the Pennsylvania Consolidated Statutes, in membership, contributions and benefits, providing for supplemental annuity commencing 2025;
MACKENZIE,in EMRICK,municipal D.pensions, providing for 2025 special ad hoc municipal police and firefighter postretirement adjustment;
WILLIAMS,and, MATZIE,in CERRATO,benefits, SHUSTERMAN,providing GALLAGHERfor ANDsupplemental O'MARA,annuity JUNEcommencing 12,2025. 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;
providingAmend forBill, thepage financing1, oflines these17 adjustments;through 22;
providingpages for2 thethrough administration6, oflines the1 Commonwealth'sthrough reimbursements30; for these adjustments;
andpage making7, repeals,"lines providing1 forthrough 202415; special ad hoc municipal police and firefighter postretirement adjustment;
inby financingstriking ofout specialall adof hocsaid adjustment,lines furtheron providingsaid forpages reimbursementand byinserting CommonwealthSection for1. 2002 special ad hoc adjustment;
and,Title in24 administrative provisions, certification of adjustmentsthe paidPennsylvania andConsolidated ofStatutes reimbursableis amountsamended andby foradding municipala receiptsection ofto reimbursementread: payment.
The§ General8348.8. Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:
SectionSupplemental 1.annuity commencing 2025.
The(a) actBenefits.--Commencing ofwith Decemberthe 14,first 1988monthly (P.L.1192,annuity No.147),payment knownafter asJuly the1, Special2025, Adan Hoceligible Municipalbenefit Policerecipient andshall Firefighterbe Postretiremententitled Adjustmentto Act,receive isan amendedadditional bymonthly addingsupplemental aannuity chapterfrom tothe read:system.
CHAPTERThe 4Aadditional 2024monthly SPECIALsupplemental ADannuity HOCunder MUNICIPALthis POLICEsection ANDshall FIREFIGHTERbe POSTRETIREMENTin ADJUSTMENTaddition Sectionto 4A01.the supplemental annuities provided for under sections 8348 (relating to supplemental annuities), 8348.1 (relating to additional supplemental annuities), 8348.2 (relating to further additional supplemental annuities), 8348.3 (relating to supplemental annuities commencing 1994), 8348.4 (relating to special supplemental postretirement adjustment), 8348.5 (relating to supplemental annuities commencing 1998), 8348.6 (relating to supplemental annuities commencing 2002) and 8348.7 (relating to supplemental annuities commencing 2003).
Entitlement(b) toAmount 2024of specialadditional adsupplemental hocannuity.--The postretirementamount adjustment.of the supplemental annuity payable under this section shall be a percentage of the amount of the monthly annuity payment on July 1, 2025, determined on the basis of the most recent effective date of retirement as follows:
A2024/90DMS/HB1379A05600 municipal- 1 - Most recent effective date Percentage factor of retirement systemJuly shall2, pay2000, athrough retiredJuly police1, officer2001 or15% firefighterJuly a2, special1999, adthrough hocJuly postretirement1, adjustment2000 15.5% July 2, 1998, through July 1, 1999 16% July 2, 1997, through July 1, 1998 16.5% July 2, 1996, through July 1, 1997 17% July 2, 1995, through July 1, 1996 17.5% July 2, 1994, through July 1, 1995 18% July 2, 1993, through July 1, 1994 18.5% July 2, 1992, through July 1, 1993 19% July 2, 1991, through July 1, 1992 19.5% July 2, 1990, through July 1, 1991 20% July 2, 1989, through July 1, 1990 20.5% July 2, 1988, through July 1, 1989 21% July 2, 1987, through July 1, 1988 21.5% July 2, 1986, through July 1, 1987 22% July 2, 1985, through July 1, 1986 22.5% July 2, 1984, through July 1, 1985 23% July 2, 1983, through July 1, 1984 23.5% July 2, 1982, through July 1, 1983 24% Prior to July 2, 1982 24.5% (c) Payment.--The supplemental annuity provided under this chaptersection ifshall allbe ofpaid automatically unless the followingannuitant apply:files a written notice with the board requesting that the additional monthly supplemental annuity not be paid.
(d) Conditions.--The supplemental annuity provided under this section shall be payable under the same terms and conditions as provided under the option plan in effect as of July 1, 2025, and shall be subject to any subsequent modification of that option plan.
(e) Benefits to beneficiaries or survivors.--No supplemental annuity provided under this section shall be payable to the beneficiary or survivor annuitant of a member who dies before July 1, 2025.
(f) Funding.--Notwithstanding any other provision of law to the contrary, the additional liability for the increase in benefits provided under this section shall be funded in equal dollar annual installments over a period of 10 years beginning July 1, 2025.
(g) Eligible benefit recipient.-- (1) An eligible benefit recipient is an individual:
(i) who is receiving a superannuation, withdrawal or disability annuity on July 1, 2025;
(ii) whose most recent effective date of retirement is prior to July 2, 2001;
and (iii) whose credited service does not include any service credited as either Class T-D, Class D-4 or Class AA service.
(2) A supplemental annuity provided under this section shall not be payable to an annuitant receiving a withdrawal 2024/90DMS/HB1379A05600 - 2 - annuity prior to the first day of July coincident with or following the annuitant's attainment of superannuation age.
Section 2.
Chapter 91 of Title 53 is amended by adding a subchapter to read:
SUBCHAPTER D 2025 SPECIAL AD HOC MUNICIPAL POLICE AND FIREFIGHTER POSTRETIREMENT ADJUSTMENT Sec.
9131.
Definitions.
9132.
Entitlement to 2025 special ad hoc postretirement adjustment.
9133.
Amount of 2025 special ad hoc postretirement adjustment.
9134.
Reimbursement by Commonwealth for 2025 special ad hoc adjustment.
9135.
Municipal retirement system certification of adjustments paid and of reimbursable amounts.
9136.
Municipal receipt of reimbursement payment.
§ 9131.
Definitions.
The following words and phrases when used in this subchapter shall have the meanings given to them in this section unless the context clearly indicates otherwise:
"Act 147." The act of December 14, 1988 (P.L.1192, No.147), known as the Special Ad Hoc Municipal Police and Firefighter Postretirement Adjustment Act.
"Active employment." The situation of an individual, other than an independent contractor, who performs for compensation regular services for a municipality and who is regularly entered on the payroll of the municipality.
"Firefighter." A municipal employee who holds a full-time position in the firefighting service of a municipality and has retirement coverage provided by a retirement system.
"Municipality." A borough, city, county of the second class, incorporated town or township, however constituted, whether operating under a legislative charter;
a municipal code;
an optional charter adopted under the act of July 15, 1957 (P.L.901, No.399), known as the Optional Third Class City Charter Law;
a home rule charter or an optional plan adopted under the former act of April 13, 1972 (P.L.184, No.62), known as the Home Rule Charter and Optional Plans Law;
or other arrangement;
or an association of these municipalities cooperating under the former act of July 12, 1972 (P.L.762, No.180), referred to as the Intergovernmental Cooperation Law.
"Police officer." A municipal employee who holds a full-time position in the police service of a municipality and has retirement coverage provided by a retirement system.
"Postretirement adjustment." An increase in or change in the amount of a retirement annuity, retirement benefit, service pension or disability pension benefit granted or effective after active employment ceases.
"Public employee retirement system." An entity, whether a separate entity or part of a governmental entity, that collects 2024/90DMS/HB1379A05600 - 3 - retirement and other employee benefit contributions from government employees and employers;
holds and manages the resulting assets as reserves for present and future retirement annuity, retirement benefit, service pension or disability pension benefit payments;
and makes provision for these payments to qualified retirees and beneficiaries.
"Retirement benefit." The amount paid on a regular basis to a retired or disabled police officer or firefighter by a municipal retirement system established for police officers or firefighters.
"Retirement system." A public employee retirement system.
"Special ad hoc adjustment" or "special ad hoc postretirement adjustment." An increase in the amount of a retirement benefit as provided for under Act 147 and this subchapter.
§ 9132.
Entitlement to 2025 special ad hoc postretirement adjustment.
A municipal retirement system shall pay a retired police officer or firefighter a special ad hoc postretirement adjustment under this subchapter if all of the following apply:
Section§ 4A02.9133.
Amount of 20242025 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 4A019132 (relating to entitlement to 2025 special ad hoc postretirement adjustment) as follows:
(1) The sum of $75 per month if, on January 1, 2024,2025, 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, 2024,2025, 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, 2024,2025, the retiree has been retired for at least 20 years.
(b) Limitation.--If, under section 4A01,9132, 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 20242025 special ad hoc postretirement adjustment.--The amount of the special ad hoc postretirement adjustment calculated under subsection (a) shall 2024/90DMS/HB1379A05600 - 4 - 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, 2023,2024, and paid in the immediately preceding year.
Section§ 2.9134.
SectionsReimbursement 502.1by andCommonwealth 901(a)(2)for of2025 thespecial actad arehoc amendedadjustment. to read:
Section(a) 502.1.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 under this subchapter is 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 under this subchapter that was paid with revenues of the municipality other than general municipal pension system State aid provided under the Municipal Pension Plan Funding Standard and Recovery Act.
Reimbursement(2) byThe Commonwealthdetermination forof 2002the andreimbursable 2024amount of the amortization contribution requirement attributable to the special ad hoc [adjustment]postretirement adjustments.adjustment under this subchapter in any year shall be calculated as the amortization contribution requirement attributable to the special ad hoc postretirement adjustments under this subchapter 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.
(a)Where Generala rule.--municipality (1)has Exceptissued asbonds providedor innotes subsectionto (b),fund beginningan inunfunded theactuarial yearaccrued followingliability theunder yearSubpart inB whichof thePart amortizationVII contribution(relating requirement attributable to aindebtedness specialand adborrowing) hocor postretirement [adjustment] adjustments under [Chapterother 4laws is]applicable Chaptersto 4the andmunicipality, 4A are first reflected in the financialgeneral requirementsmunicipal ofpension the retirement system determinedState underaid Chapter 3 of the act of December 18, 1984 (P.L.1005, No.205), known as the Municipal Pension Plan Funding Standard and Recoverymunicipal Act,contributions theused Auditorby General shall determine the Commonwealthmunicipality reimbursement payable to themake municipalitydebt representingservice thepayments amortizationon contribution requirement attributable to the specialbonds ador hocnotes, postretirementor [adjustment]both, adjustmentsissued underto [Chapterfund 4]an Chaptersunfunded 4actuarial andaccrued 4Aliability thatshall wasbe paidincluded within revenuesthe calculation of the municipalityratio otherapplied thanto 20230HB1379PN1539 - 3 - general municipal pension system State aid provided under the Municipalamortization Pensioncontribution Planrequirement. Funding Standard and Recovery Act.
(2)(3) The determinationCommonwealth 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 bereimburse calculateda asmunicipality, thefrom amortization contribution requirement attributable to the special adaccount hocestablished postretirement adjustments under [Chaptersection 4]701 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 147, for the immediatereimbursable prior year less the product of that amortization contribution requirement multiplied by the ratio of the amount ofdetermined generalfor municipaleach pension system State aid allocated to the retirement system in the immediate prior year tounder thethis totalparagraph. amount of municipal contributions made to the retirement system from all sources other than employee contributions in the immediate prior year.
Where2024/90DMS/HB1379A05600 a- 5 - (b) Limitation of eligibility.-- (1) The Commonwealth shall not reimburse any municipality hasfor issueda bondsspecial orad noteshoc toadjustment fundpaid anunder unfundedthis actuarialsubchapter accruedif liabilitythe information required under 53section Pa.C.S.901(a) (2) of Act 147 either was not certified to the Auditor General or was certified after April 1 of the year the certification was due.
Pt.(2) The Commonwealth shall not reimburse a municipality for the reimbursable amount of the amortization contribution requirement attributable to the special ad hoc postretirement adjustment under this subchapter if the municipality fails to submit a complete certification of the reimbursable amount of the amortization contribution requirement determined under subsection (a) to the Auditor General before April 1 of the year in which the reimbursement is payable.
[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.
(2) The Commonwealth shall not reimburse a municipality for the reimbursable amount of the amortization contribution requirement attributable to the special ad hoc postretirement [adjustment] adjustments under [Chapter 4] Chapters 4 and 4A if the municipality fails to submit a complete certification of the reimbursable amount of the amortization contribution requirement determined under subsection (a) to the Auditor General before April 1 of the year in which the reimbursement is payable.
(1) In a municipal pension plan with defined benefits for which the municipality determines the financial requirements of the pension plan under section 302 of the Municipal Pension Plan Funding Standard and Recovery Act, the term "amortization contribution requirement" shall mean the amortization contribution requirement attributable to the special ad hoc postretirement adjustments under [Chapterthis 4]subchapter Chapters 4 and 4A that was reflected in the financial 20230HB1379PN1539 - 5 - requirements of the pension plan determined for the immediate prior year.
(2) In a municipal pension plan without defined benefits for which the municipality determines the financial requirements of the pension plan under section 303 of the Municipal Pension Plan Funding Standard and Recovery Act, the term "amortization contribution requirement" shall mean the sum of the payments made to the retirement system in the immediate prior year in order to provide the special ad hoc postretirement adjustments under [Chapterthis 4]subchapter Chapters 4 and 4A in that year.
Section§ 901.9135.
(a) Certification.-- * * * (2) Beginning in the year 2002, a municipality with a retirement system that pays a special ad hoc postretirement [adjustment]adjustment adjustments under [Chapterthis 4]subchapter Chapters 4 and 4A in a year shall certify its reimbursable amount under section 502.1(a) of Act 147 to the Auditor General not later than April 1 of the following year.
*§ *9136. * Section 3.
Section 903 of the act is amended by adding a subsection to read:
Section 903.
*Upon * * (c) 2024 postretirement adjustment reimbursement.--Upon receipt of the reimbursement payment from the Commonwealth for the postretirement adjustments under Chapterthis 4A,subchapter, the treasurer of the municipality shall deposit the reimbursement payment into 20230HB1379PN1539 - 6 - the municipality's general fund.
Section 3.
Title 71 is amended by adding a section to read:
§ 5708.9.
Supplemental annuity commencing 2025.
2024/90DMS/HB1379A05600 - 6 - (a) Benefits.--Commencing with the first monthly annuity payment after January 1, 2025, an eligible benefit recipient shall be entitled to receive an additional monthly supplemental annuity from the system.
The additional monthly supplemental annuity under this section shall be in addition to the supplemental annuities provided for under sections 5708 (relating to supplemental annuities), 5708.1 (relating to additional supplemental annuities), 5708.2 (relating to further additional supplemental annuities), 5708.3 (relating to supplemental annuities commencing 1994), 5708.4 (relating to special supplemental postretirement adjustment), 5708.5 (relating to supplemental annuities commencing 1998), 5708.6 (relating to supplemental annuities commencing 2002), 5708.7 (relating to supplemental annuities commencing 2003) and 5708.8 (relating to special supplemental postretirement adjustment of 2002).
(b) Amount of additional supplemental annuity.--The amount of the supplemental annuity under this section shall be a percentage of the amount of the monthly annuity payment on January 1, 2025, determined on the basis of the most recent effective date of retirement as follows:
Most recent effective date Percentage factor of retirement July 2, 2000, through July 1, 2001 15% July 2, 1999, through July 1, 2000 15.5% July 2, 1998, through July 1, 1999 16% July 2, 1997, through July 1, 1998 16.5% July 2, 1996, through July 1, 1997 17% July 2, 1995, through July 1, 1996 17.5% July 2, 1994, through July 1, 1995 18% July 2, 1993, through July 1, 1994 18.5% July 2, 1992, through July 1, 1993 19% July 2, 1991, through July 1, 1992 19.5% July 2, 1990, through July 1, 1991 20% July 2, 1989, through July 1, 1990 20.5% July 2, 1988, through July 1, 1989 21% July 2, 1987, through July 1, 1988 21.5% July 2, 1986, through July 1, 1987 22% July 2, 1985, through July 1, 1986 22.5% July 2, 1984, through July 1, 1985 23% July 2, 1983, through July 1, 1984 23.5% July 2, 1982, through July 1, 1983 24% Prior to July 2, 1982 24.5% (c) Payment.--The supplemental annuity provided under this section shall be paid automatically unless the annuitant files a written notice with the board requesting that the additional monthly supplemental annuity not be paid.
(d) Conditions.--The supplemental annuity provided under this section shall be payable under the same terms and conditions as provided under the option plan in effect as of January 1, 2025, and shall be subject to any subsequent 2024/90DMS/HB1379A05600 - 7 - modification of that option plan.
(e) Benefits to beneficiaries or survivors.--No supplemental annuity provided under this section shall be payable to the beneficiary or survivor annuitant of a member who dies before January 1, 2025.
(f) Funding.-Notwithstanding any other provision of law to the contrary, the additional liability for the increase in benefits provided under this section shall be funded in equal dollar annual installments over a period of 10 years beginning July 1, 2025.
(g) Eligible benefit recipient.-- (1) An eligible benefit recipient is an individual:
(i) who is receiving a superannuation, withdrawal or disability annuity on January 1, 2025;
(ii) whose most recent effective date of retirement is prior to July 2, 2001;
and (iii) whose credited service does not include any service credited as either Class T-D, Class D-4 or Class AA service.
(2) A supplemental annuity provided under this section shall not be payable to an annuitant receiving a withdrawal annuity prior to the first day of July coincident with or following the annuitant's attainment of superannuation age.
The specialfollowing adshall hocapply: postretirement adjustment under section 4A01 of the act is effective on the date of the first retirement benefit made after January 1, 2024.
If(1) theThe special ad hoc postretirement adjustment under section53 4A01Pa.C.S. of the act is not included in the initial retirement benefit payment occurring after January 1, 2024, the special ad hoc postretirement adjustment shall be included as soon as practicable in the retirement benefit payment of the retiree, and the initial retirement benefit payment that includes the special ad hoc postretirement adjustment also shall include the total amount of the special ad hoc postretirement adjustments previously omitted from the retirement benefit payments made after January 1, 2024.
Ch.
91 Subch.
D shall be effective on the date of the first retirement benefit made after January 1, 2025.
(2) If the special ad hoc postretirement adjustment under 53 Pa.C.S.
Ch.
91 Subch.
D is not included in the initial retirement benefit payment occurring after January 1, 2025, the special ad hoc postretirement adjustment shall be included as soon as practicable in the retirement benefit payment of the retiree, and the initial retirement benefit payment that includes the special ad hoc postretirement adjustment shall also include the total amount of the special ad hoc postretirement adjustments previously omitted from the retirement benefit payments made after January 1, 2025.
20230HB1379PN15392024/90DMS/HB1379A05600 - 78 -