Co-Sponsorship Memo Details

Memorandum
 
TO:                 All House Members
 
FROM:           Honorable Mike Turzai, Majority Leader
                      Honorable Frank Dermody, Minority Leader
 
DATE:           January 31, 2013
 
SUBJECT:    Allegheny County Pension Preservation Legislation
 
In an effort to work towards keeping the Allegheny County Pension Fund actuarially sound, we are  working with the Allegheny County Retirement Board to enact the following changes for future employees only who are hired or reemployed on or after the effective date of this act. 

1. Elimination of overtime in the calculation of pension benefits;
2. Composition of the Board – Technical change.  This section would be updated for uniformity purposes to the existing language of the Allegheny County Home Rule Charter;
3. Calculation for retirement would be the average monthly compensation received by the County employee during the highest 48 months of the last 8 years of employment on a bi-weekly basis;
4. In order for the Allegheny County Retirement Board (ACRB) to be compliant with the IRS rules and regulations, the proposal gives authority to ACRB to take such actions that are necessary to be in compliance with IRS rules and regulations on an ongoing basis.

The following proposed changes to the Allegheny County Pension Fund were made to the State Pension system through the enactment of HB 2497 PN 4476 which was signed by Governor Rendell on November 23, 2010 and is commonly referred to as Act 120 of 2010.  Act 120 passed both the House and the Senate overwhelmingly.  The Allegheny County Pension Fund changes proposed in our legislation were not included in Act 120.  These changes will include: 

5. Increase vesting from 8 years to 10 years;
6. Reduce the benefit multiplier from 2.5% to 2%;
7. The provisions will take effect 60 days after enactment.

This legislation was introduced last session by now Senator Matt Smith as HB 1761.  HB 1761 passed the House unanimously on February 6, 2012.  Additionally, this legislation is supported by all members of the Allegheny County Retirement Board.

PRIOR CO-SPONSORS of HB 1761:  M. SMITH, TURZAI, WAGNER, DERMODY, FRANKEL, MUSTIO, P. COSTA, DEASY, FABRIZIO, READSHAW, WHITE AND CALTAGIRONE

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