SB 344 — An Act amending the act of December 14, 1988 (P.L.1192, No.147), known as the Special Ad Hoc Municipal Police and Firefighter Postretirement Adjustment Act, providing for 2026 special ad hoc municipal police and firefighter postretirement adjustment; in financing of special ad hoc adjustment, further providing for reimbursement by Commonwealth for 2002 special ad hoc adjustment; and, in administrative provisions, further providing for municipal retirement system certification of adjustments paid and of reimbursable amounts and for municipal receipt of reimbursement payment.

PRINTER'S NO.   281

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                        SENATE BILL
                        No. 344
                                                Session of
                                                  2025

     INTRODUCED BY PENNYCUICK, FONTANA, SCHWANK, TARTAGLIONE, COSTA
        AND FARRY, FEBRUARY 26, 2025

     REFERRED TO LAW AND JUSTICE, FEBRUARY 26, 2025


                                    AN ACT
 1   Amending the act of December 14, 1988 (P.L.1192, No.147),
 2      entitled "An act requiring municipal retirement systems to
 3      pay special ad hoc postretirement adjustments to certain
 4      retired police officers and firefighters; providing for the
 5      financing of these adjustments; providing for the
 6      administration of the Commonwealth's reimbursements for these
 7      adjustments; and making repeals," providing for 2026 special
 8      ad hoc municipal police and firefighter postretirement
 9      adjustment; in financing of special ad hoc adjustment,
10      further providing for reimbursement by Commonwealth for 2002
11      special ad hoc adjustment; and, in administrative provisions,
12      further providing for municipal retirement system
13      certification of adjustments paid and of reimbursable amounts
14      and for municipal receipt of reimbursement payment.
15      The General Assembly of the Commonwealth of Pennsylvania
16   hereby enacts as follows:
17      Section 1.    The act of December 14, 1988 (P.L.1192, No.147),
18   known as the Special Ad Hoc Municipal Police and Firefighter
19   Postretirement Adjustment Act, is amended by adding a chapter to
20   read:
21                                CHAPTER 4-A
22               2026 SPECIAL AD HOC MUNICIPAL POLICE AND
23                   FIREFIGHTER POSTRETIREMENT ADJUSTMENT
24   Section 401-A.    Entitlement to 2026 special ad hoc
 1                  postretirement adjustment.
 2      A municipal retirement system shall pay a retired police
 3   officer or firefighter a special ad hoc postretirement
 4   adjustment under this chapter if all of the following apply:
 5            (1)   The retiree has terminated active employment with
 6      the municipality as a police officer or firefighter.
 7            (2)   The retiree is receiving a retirement benefit from a
 8      municipal retirement system on the basis of active employment
 9      with the municipality as a police officer or firefighter.
10            (3)   The retiree began receiving the retirement benefit
11      before January 1, 2021.
12   Section 402-A.     Amount of 2026 special ad hoc postretirement
13                  adjustment.
14      (a)     Amount.--Except as provided in subsections (b) and (c),
15   a municipal retirement system shall pay a retired police officer
16   or firefighter a monthly special ad hoc postretirement
17   adjustment under section 401-A that shall be calculated as
18   follows:
19            (1)   The sum of $75 a month if, on January 1, 2026, the
20      retiree has been retired at least 5 years but less than 10
21      years.
22            (2)   The sum of $150 a month if, on January 1, 2026, the
23      retiree has been retired at least 10 years but less than 20
24      years.
25            (3)   The sum of $300 a month if, on January 1, 2026, the
26      retiree has been retired at least 20 years.
27      (b)     Limitation.--If, under section 401-A, a retiree is
28   entitled to be paid a special ad hoc postretirement adjustment
29   by more than one municipal retirement system, the amount of the
30   special ad hoc postretirement adjustment under subsection (a)

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 1   shall be reduced so that the total of all these adjustments paid
 2   to the retiree does not exceed the amount specified in
 3   subsection (a).
 4      (c)   Modification in amount of 2026 special ad hoc
 5   postretirement adjustment.--The amount of the special ad hoc
 6   postretirement adjustment calculated under subsection (a) shall
 7   be reduced annually by 65% of the total amount of any
 8   postretirement adjustments provided to the retiree under the
 9   municipal retirement plan after December 31, 2001, and before
10   January 1, 2026, and paid in the immediately preceding year.
11      Section 2.     Sections 502.1, 901(a)(2) and 903(b) of the act
12   are amended to read:
13   Section 502.1.     Reimbursement by Commonwealth for 2002 special
14                  ad hoc adjustment.
15      (a)   General rule.--
16            (1)   Except as provided in subsection (b), beginning in
17      the year following the year in which the amortization
18      contribution requirement attributable to a special ad hoc
19      postretirement adjustment under Chapter 4 or 4-A is first
20      reflected in the financial requirements of the retirement
21      system determined under Chapter 3 of the act of December 18,
22      1984 (P.L.1005, No.205), known as the Municipal Pension Plan
23      Funding Standard and Recovery Act, the Auditor General shall
24      determine the Commonwealth reimbursement payable to the
25      municipality representing the amortization contribution
26      requirement attributable to the special ad hoc postretirement
27      adjustment under [Chapter 4] Chapters 4 and 4-A that was paid
28      with revenues of the municipality other than general
29      municipal pension system State aid provided under the
30      Municipal Pension Plan Funding Standard and Recovery Act.

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 1          (2)   The determination of the reimbursable amount of the
 2    amortization contribution requirement attributable to the
 3    special ad hoc postretirement adjustment under [Chapter 4]
 4    Chapters 4 and 4-A in any year shall be calculated as the
 5    amortization contribution requirement attributable to the
 6    special ad hoc postretirement adjustments under [Chapter 4]
 7    Chapters 4 and 4-A and reflected in the determination of the
 8    financial requirements of the pension plan under Chapter 3 of
 9    the Municipal Pension Plan Funding Standard and Recovery Act
10    for the immediate prior year less the product of that
11    amortization contribution requirement multiplied by the ratio
12    of the amount of general municipal pension system State aid
13    allocated to the retirement system in the immediate prior
14    year to the total amount of municipal contributions made to
15    the retirement system from all sources other than employee
16    contributions in the immediate prior year. Where a
17    municipality has issued bonds or notes to fund an unfunded
18    actuarial accrued liability under 53 Pa.C.S. Pt. V Subpt. B
19    (relating to indebtedness and borrowing) or under other laws
20    applicable to the municipality, the general municipal pension
21    system State aid and municipal contributions used by the
22    municipality to make debt service payments on the bonds or
23    notes, or both, issued to fund an unfunded actuarial accrued
24    liability shall be included in the calculation of the ratio
25    applied to the amortization contribution requirement.
26          (3)   The Commonwealth shall reimburse a municipality,
27    from the special account established under section 701, for
28    the reimbursable amount determined for each year under this
29    paragraph.
30    (b)   Limitation of eligibility.--

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 1             (1)   The Commonwealth shall not reimburse any
 2      municipality for a special ad hoc adjustment paid under
 3      Chapter 4 or 4-A if the information required under section
 4      901(a)(2) either was not certified to the Auditor General or
 5      was certified after April 1 of the year the certification was
 6      due.
 7             (2)   The Commonwealth shall not reimburse a municipality
 8      for the reimbursable amount of the amortization contribution
 9      requirement attributable to the special ad hoc postretirement
10      adjustment under Chapter 4 or 4-A if the municipality fails
11      to submit a complete certification of the reimbursable amount
12      of the amortization contribution requirement determined under
13      subsection (a) to the Auditor General before April 1 of the
14      year in which the reimbursement is payable.
15      (c)    Variable definition of amortization contribution
16   requirement.--For purposes of this section, the term
17   "amortization contribution requirement" shall have the meaning
18   specified in this subsection as follows:
19             (1)   In a municipal pension plan with defined benefits
20      for which the municipality determines the financial
21      requirements of the pension plan under section 302 of the
22      Municipal Pension Plan Funding Standard and Recovery Act, the
23      term "amortization contribution requirement" shall mean the
24      amortization contribution requirement attributable to the
25      special ad hoc postretirement adjustments under [Chapter 4]
26      Chapters 4 and 4-A that was reflected in the financial
27      requirements of the pension plan determined for the immediate
28      prior year.
29             (2)   In a municipal pension plan without defined benefits
30      for which the municipality determines the financial

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 1      requirements of the pension plan under section 303 of the
 2      Municipal Pension Plan Funding Standard and Recovery Act, the
 3      term "amortization contribution requirement" shall mean the
 4      sum of the payments made to the retirement system in the
 5      immediate prior year in order to provide the special ad hoc
 6      postretirement adjustments under [Chapter 4] Chapters 4 and
 7      4-A in that year.
 8   Section 901.     Municipal retirement system certification of
 9                  adjustments paid and of reimbursable amounts.
10      (a)   Certification.--
11            * * *
12            (2)   Beginning in the year 2002, a municipality with a
13      retirement system that pays a special ad hoc postretirement
14      adjustment under Chapter 4 or 4-A in a year shall certify its
15      reimbursable amount under section 502.1(a) to the Auditor
16      General not later than April 1 of the following year.
17      * * *
18   Section 903.     Municipal receipt of reimbursement payment.
19      * * *
20      (b)   2002 or 2026 postretirement adjustment reimbursement.--
21   Upon receipt of the reimbursement payment from the Commonwealth
22   for the postretirement adjustments under Chapter 4 or 4-A, the
23   treasurer of the municipality shall deposit the reimbursement
24   payment into the municipality's general fund.
25      Section 3.     The special ad hoc postretirement adjustment
26   under section 401-A of the act shall be effective on the date of
27   the first retirement benefit payment made after December 31,
28   2025. If the special ad hoc postretirement adjustment under
29   section 401-A of the act is not included in the initial
30   retirement benefit payment occurring after December 31, 2025,

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1   the special ad hoc postretirement adjustment shall be included
2   as soon as practicable in the retirement benefit payment of the
3   retiree, and the initial retirement benefit payment that
4   includes the special ad hoc postretirement adjustment also shall
5   include the total amount of the special ad hoc postretirement
6   adjustments previously omitted from the retirement benefit
7   payments made after December 31, 2025.
8      Section 4.   This act shall take effect immediately.




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