Bill Text: PA SB1132 | 2011-2012 | Regular Session | Introduced

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Bill Title: In special funds, providing for the Pension Obligation Reserve Fund.

Spectrum: Moderate Partisan Bill (Republican 9-2)

Status: (Introduced - Dead) 2011-06-14 - Referred to FINANCE [SB1132 Detail]

Download: Pennsylvania-2011-SB1132-Introduced.html

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PRINTER'S NO. 1339
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1132 Session of2011
INTRODUCED BY BRUBAKER, D. WHITE, SCHWANK, ALLOWAY, ORIE, ARGALL, PICCOLA AND YUDICHAK, JUNE 14, 2011
REFERRED TO FINANCE, JUNE 14, 2011
AN ACT
Amending the act of April 9, 1929 (P.L.343, No.176), entitled,
as amended, "An act relating to the finances of the State
government; providing for the settlement, assessment,
collection, and lien of taxes, bonus, and all other accounts
due the Commonwealth, the collection and recovery of fees and
other money or property due or belonging to the Commonwealth,
or any agency thereof, including escheated property and the
proceeds of its sale, the custody and disbursement or other
disposition of funds and securities belonging to or in the
possession of the Commonwealth, and the settlement of claims
against the Commonwealth, the resettlement of accounts and
appeals to the courts, refunds of moneys erroneously paid to
the Commonwealth, auditing the accounts of the Commonwealth
and all agencies thereof, of all public officers collecting
moneys payable to the Commonwealth, or any agency thereof,
and all receipts of appropriations from the Commonwealth,
authorizing the Commonwealth to issue tax anticipation notes
to defray current expenses, implementing the provisions of
section 7(a) of Article VIII of the Constitution of
Pennsylvania authorizing and restricting the incurring of
certain debt and imposing penalties; affecting every
department, board, commission, and officer of the State
government, every political subdivision of the State, and
certain officers of such subdivisions, every person,
association, and corporation required to pay, assess, or
collect taxes, or to make returns or reports under the laws
imposing taxes for State purposes, or to pay license fees or
other moneys to the Commonwealth, or any agency thereof,
every State depository and every debtor or creditor of the
Commonwealth," in special funds, providing for the Pension
Obligation Reserve Fund.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Article XVII-A of the act of April 9, 1929
(P.L.343, No.176), known as The Fiscal Code, is amended by
adding a subarticle to read:
SUBARTICLE K
PENSION OBLIGATION RESERVE FUND
Section 1795.1-A. Establishment of Pension Obligation Reserve
Fund.
The Pension Obligation Reserve Fund is established as a
separate fund in the State Treasury.
Section 1795.2-A. Funding.
(a) Intent.--It is hereby declared as the intent and goal of
the General Assembly to create a reserve fund to provide for
future payments toward the Commonwealth's unfunded pension
liabilities.
(b) Transfer of portion of surplus.--For fiscal years
beginning after June 30, 2010, if the Secretary of the Budget
certifies that there is a surplus in the General Fund for a
specific fiscal year, the following shall apply:
(1) The Secretary of the Budget shall calculate a
transfer to the Pension Obligation Reserve Fund by
subtracting the transfer to the Budget Stabilization Reserve
Fund under section 1702-A from 50% of the surplus for the
fiscal year.
(2) The amount of the transfer determined under
paragraph (1) shall be deposited into the Pension Obligation
Reserve Fund by the end of the next succeeding quarter.
(c) Appropriated funds.--The General Assembly may at any
time provide additional amounts from any funds available to the
Commonwealth as an appropriation to the Pension Obligation
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Reserve Fund.
Section 1795.3-A. Disposition of Pension Obligation Reserve
Fund.
(a) General rule.--Subject to the provisions of subsection
(b), the General Assembly may appropriate money from the Pension
Obligation Reserve Fund to provide for the Commonwealth's
obligations under 24 Pa.C.S. § 8326 (relating to contributions
by the Commonwealth) or 8327 (relating to payments by employers)
or 71 Pa.C.S. § 5507 (relating to contributions by the
Commonwealth and other employers). Any money appropriated under
this section which lapses shall be returned to the Pension
Obligation Reserve Fund.
(b) Timing of appropriation.--An amount that is deposited in
the Pension Obligation Reserve Fund under section 1795.2-A may
be appropriated not sooner than the beginning of the second
fiscal year following the fiscal year for which the deposit was
calculated.
Section 2. The addition of Subarticle K of Article XVII-A of
the act shall apply to fiscal years beginning after June 30,
2010.
Section 3. This act shall take effect immediately.
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