Pennsylvania 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.

Bill Text

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
Amending the act of December 14, 1988 (P.L.1192, No.147),
entitled "An act requiring municipal retirement systems to
pay special ad hoc postretirement adjustments to certain
retired police officers and firefighters; providing for the
financing of these adjustments; providing for the
administration of the Commonwealth's reimbursements for these
adjustments; and making repeals," 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.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act 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:
CHAPTER 4-A
2026 SPECIAL AD HOC MUNICIPAL POLICE AND
FIREFIGHTER POSTRETIREMENT ADJUSTMENT
Section 401-A. Entitlement to 2026 special ad hoc
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postretirement adjustment.
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, 2021.
Section 402-A. Amount of 2026 special ad hoc postretirement
adjustment.
(a) Amount.--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 401-A that shall be calculated as
follows:
(1) The sum of $75 a month if, on January 1, 2026, the
retiree has been retired at least 5 years but less than 10
years.
(2) The sum of $150 a month if, on January 1, 2026, the
retiree has been retired at least 10 years but less than 20
years.
(3) The sum of $300 a month if, on January 1, 2026, the
retiree has been retired at least 20 years.
(b) Limitation.--If, under section 401-A, a retiree is
entitled to be paid a special ad hoc postretirement adjustment
by more than one municipal retirement system, the amount of the
special ad hoc postretirement adjustment under subsection (a)
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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 2026 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 December 31, 2001, and before
January 1, 2026, and paid in the immediately preceding year.
Section 2. Sections 502.1, 901(a)(2) and 903(b) of the act
are amended to read:
Section 502.1. Reimbursement by Commonwealth for 2002 special
ad hoc adjustment.
(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 under Chapter 4 or 4-A 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 [Chapter 4] Chapters 4 and 4-A 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.
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(2) The determination of the reimbursable amount of the
amortization contribution requirement attributable to the
special ad hoc postretirement adjustment under [Chapter 4]
Chapters 4 and 4-A in any