Governor Rendell Signs Bill to Increase Stability of Municipal Pension Funds
Also Signs Three Other Bills
HARRISBURG, Pa., Sept. 18 /PRNewswire-USNewswire/ -- Governor Edward G. Rendell today signed House Bill 1828, a measure that will increase the stability of thousands of municipal pension funds across the state.
"This reform bill is a good step forward to help communities across the state increase the transparency and accuracy of pension funds so that citizens and local officials know if their pension obligations are covered," Governor Rendell said. "As pension funds continue to grow and the national economic downturn takes a toll on tax revenues, it is more important than ever to have clear standards to compare municipal pension funds. Retirees and communities now have some protection from pension funds that, without action, could have been at risk of insolvency."
Municipal pension funds have two years to update information on the value and liability of their fund. Distressed pension funds -- those that have less than half of the liability funded -- must adhere to new standards and payment arrangements under state control.
The bill, which amends the Municipal Plan Funding Standard and Recovery Act, includes provisions to help Philadelphia and Pittsburgh -- the state's two largest municipal pension funds -- address pension liabilities. Philadelphia will collect an additional 1 percent sales tax for the next five years and defer its pension costs over the next three years. It allows Pittsburgh to lease or sell its parking garages and keep 2.5 percent of its parking tax revenue to pay for pension contributions.
Governor Rendell also signed into law the following bills:
House Bill 222 requires criminals convicted of identity theft to pay restitution to their victims for expenses including legal and accounting fees, charges from credit bureaus, and court costs and filing fees.
House Bill 348 authorizes a land conveyance in Canaan Township, Wayne County to the Waymart Area Historical Society and another in Altoona to the Altoona Regional Health System.
Senate Bill 925 requires licensed massage therapists to complete their training program at a regionally accredited college or university, Pennsylvania private licensed school, or its equivalent as determined by the State Board of Massage Therapy.
The Rendell administration is committed to creating a first-rate public education system, protecting our most vulnerable citizens and continuing economic investment to support our communities and businesses.To find out more about Governor Rendell's initiatives and to sign up for his newsletter, visit: www.governor.state.pa.us.
