Pennsylvania HB 1322: An Act amending Title 20 (Decedents, Estates and Fiduciaries) of the Pennsylvania Consolidated Statutes, providing for training of certain State fiduciaries.

Bill Text

PRIOR PRINTER'S NO. 1514 PRINTER'S NO. 2363
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1322
Session of
2025
INTRODUCED BY MULLINS, GUENST, PIELLI, GIRAL, HILL-EVANS,
SANCHEZ, DONAHUE, SCHLOSSBERG, NEILSON, CEPEDA-FREYTIZ,
CERRATO, GROVE, CIRESI, GREEN AND FINK, APRIL 28, 2025
AS REPORTED FROM COMMITTEE ON STATE GOVERNMENT, HOUSE OF
REPRESENTATIVES, AS AMENDED, SEPTEMBER 30, 2025
AN ACT
Amending Title 20 (Decedents, Estates and Fiduciaries) of the
Pennsylvania Consolidated Statutes, providing for training of
certain State fiduciaries.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 20 of the Pennsylvania Consolidated
Statutes is amended by adding a chapter to read:
CHAPTER 74
TRAINING OF STATE FUND FIDUCIARIES
Sec.
7401. Definitions.
7402. Training requirements.
7403. Content of training.
7404. Legal fees.
§ 7401. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17

context clearly indicates otherwise:
"Commonwealth agency." A department, board, commission,
agency, authority or other instrumentality of the Commonwealth.
"Designee." An individual appointed by, and authorized by
law to act in the stead of, a trustee, board member or other
appointed or elected official that stands in a fiduciary
relationship to the members and beneficiaries of a State fund or
a fund of a public pension system.
"Public pension system." The Public School Employees'
Retirement System, the State Employees' Retirement System, the
Pennsylvania Municipal Retirement System and any pension plan
maintained by a municipality or a county for its employees.
"State fiduciary." A trustee, board member or other
appointed or elected official, or a designee thereof, who stands
in a fiduciary relationship to the members and beneficiaries of
a State fund or a fund of a public pension system.
"State fund." A fund or account in the State Treasury or
under the care, custody or control of a Commonwealth agency.
§ 7402. Training requirements.
(a) Training.--A State fiduciary shall complete training in
fiduciary law, as provided in subsection (b).
(b) Requirements.--
(1) An individual who becomes a State fiduciary after
the effective date of this section shall complete:
(i) Two hours of training in fiduciary law within
one year of becoming a State fiduciary.
(ii) One hour of training in fiduciary law annually,
each year thereafter.
(2) An individual who is a State fiduciary on the
effective date of this paragraph is exempt from the two-hour
20250HB1322PN2363 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

initial training requirement under paragraph (1)(i). The
individual shall complete one hour of training in fiduciary
law annually.
(c) Public School Employees' Retirement Board members.--
Training completed in accordance with this section by an
individual who is a member of the Public School Employees'
Retirement Board, or a designee of a board member, may be
applied toward the individual's board training requirement under
24 Pa.C.S. § 8501(f) (relating to Public School Employees'
Retirement Board) or AND Audit/Compliance Committee training
requirement under 24 Pa.C.S. § 8501(g), as applicable.
(d) State Employees' Retirement Board members.--Training
completed under this section by an individual who is a member of
the State Employees' Retirement Board, or a designee of a board
member, may be applied toward the individual's board training
requirement under 71 Pa.C.S. § 5901(f) (relating to the State
Employees' Retirement Board) or AND Audit Risk and Compliance
Committee training requirement under 71 Pa.C.S. § 5901(g), as
applicable.
(E) MULTIPLE SYSTEMS.--IF AN INDIVIDUAL SERVES AS A STATE
FIDUCIARY TO MULTIPLE STATE FUNDS OR PENSION SYSTEMS, THE
INDIVIDUAL'S TRAINING CREDITS SHALL CROSS APPLY TO ALL THE STATE
FUNDS OR A FUND OF A PUBLIC PENSION SYSTEM.
§ 7403. Content of training.
(a) Initial training.--Initial training under section
7402(b)(1)(i) (relating to training requirements) shall, at a
minimum, cover the following concepts:
(1) The definition of fiduciary.
(2) Conflicts of interest.
(3) The prudent expert standard DUTY OF PRUDENCE .
20250HB1322PN2363 - 3 -
<--
<--
<--
<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

(4) Self-dealing.
(b) Annual training.--Annual training under section 7402(b)
(1)(ii) shall, at a minimum, cover updates and case studies
related to the topics listed in subsection (a).
§ 7404. Legal fees.
(a) Payment permitted.--Except as provided in subsection
(b), a State fiduciary is entitled to have expenses reasonably
incurred by the State fiduciary in defending a threatened,
pending or completed legal action against the State fiduciary in
the State fiduciary's capacity as a trustee, board member or
other appointed or elected official of the Commonwealth agency
or pu