act-1998-0-82•Pennsylvania Act 1998-82 — MUNICIPAL PENSION PLAN FUNDING STANDARD AND RECOVERY ACT - AMEND
Pennsylvania Act 1998-82 — MUNICIPAL PENSION PLAN FUNDING STANDARD AND RECOVERY ACT - AMEND
act-1998-0-821998 Pa. Act 82Law
Act text
MUNICIPAL PENSION PLAN FUNDING STANDARD AND RECOVERY ACT - AMEND
Act of Jun. 18, 1998, P.L. 626, No. 82 Cl. 72
Session of 1998
No. 1998-82
SB 284
AN ACT
Amending the act of December 18, 1984 (P.L.1005, No.205),
entitled "An act mandating actuarial funding standards for
all municipal pension systems; establishing a recovery
program for municipal pension systems determined to be
financially distressed; providing for the distribution of the
tax on the premiums of foreign fire insurance companies; and
making repeals," further providing for additions to the
actuarial valuation report, for supplemental State assistance
and for a home rule municipality formerly classified as a
city of the second class; authorizing the reestablishment of
initial unfunded actuarial accrued liability; specifying a
new 40-year amortization period; prescribing the calculation
of the amortization contribution for the pension funds; and
providing for alternative funding mechanism.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 102 of the act of December 18, 1984
(P.L.1005, No.205), known as the Municipal Pension Plan Funding
Standard and Recovery Act, is amended by adding definitions to
read:
Section 102. Definitions.
Except as provided in Chapter 7, the following words and
phrases when used in this act shall have the meanings given to
them in this section unless the context clearly indicates
otherwise:
* * *
"Alternative funding mechanism." A method adopted by a city
of the first class to fund all or a portion of an unfunded
actuarial accrued liability calculated as of the date of an
actuarial valuation report prepared under Chapter 3, which
method shall include either the entering into a service
agreement between the city and an authority established under
the act of August 23, 1967 (P.L.251, No.102), known as the
Economic Development Financing Law, in which the authority
agrees to provide financial services to the city, including the
funding in whole or in part of an unfunded actuarial accrued
liability of the city's pension system, or the sale to such an
authority by the board of pensions and retirement established
pursuant to the city's Home Rule Charter of the board's right,
title and interest in and to any payments due to the board of
pensions and retirement from the city pursuant to this or any
other statute, including general municipal pension system State
aid or supplemental State assistance that the city is entitled
to receive under this act.
* * *
"Proceeds of bonds, notes or an alternative funding
mechanism." The amount of funding obtained by a municipality
for the purpose of reducing or eliminating the unfunded
actuarial accrued liability of its pension system through the
issuance of debt instruments under the applicable laws of this
Commonwealth or through the use of an alternative funding
mechanism authorized under Chapter 10.
* * *
Section 2. Section 404 of the act, amended or added December
28, 1994 (P.L.1433, No.168) and December 10, 1996 (P.L.934,
No.150), is amended to read:
Section 404. Municipalities issuing bonds or notes for pension
plan funding.
(a) Application.--This section applies to the following:
(1) a municipality that has issued bonds or notes to
fund an unfunded actuarial accrued liability under the act of
July 12, 1972 (P.L.781, No.185), known as the Local
Government Unit Debt Act, or under other laws applicable to
the municipality[.]; or
(2) a municipality that has entered into an alternative
funding mechanism.
(b) Additions to actuarial valuation report.--[The] For the
duration of the aggregated amortization period established under
paragraph (1), the actuarial valuation report prepared under
sections 201 and 202 shall [include], in addition to the
exhibits required by section 202, include:
(1) an exhibit stating the amount and date of each
contribution to the pension plan comprised of the proceeds of
bonds and notes or an alternative funding mechanism and
disclosing the initial and remaining aggregated amortization
periods for each contribution calculated as of the date of
the initial actuarial valuation report filed after the
contribution using the total unfunded actuarial accrued
liability of the pension plan and the aggregated additional
funding requirements, as determined under paragraph (2);
(2) an exhibit prepared in conformance with section
202(b)(3) and (4), except that the actuarial value of assets
[subtracted from the actuarial accrued liability shall not
take into account contributions comprised of] shall be
computed as the actuarial value of assets that would have
existed had the proceeds of bonds and notes [and earnings on
such contributions for the duration of the aggregated
amortization period established under paragraph (1)] or an
alternative funding mechanism not been contributed to the
pension fund; and
(3) for each series of bonds or notes issued to fund an
unfunded actuarial accrued liability and for each series of
bonds or notes issued to refund such bonds or notes, an
exhibit of the debt and debt service requirements that shall
disclose the original principal amount of the bonds or notes
issued, the date and amount of each required principal and
interest payment, the amortization of premium or discount, if
applicable, and the remaining amount of bond or note
principal upon application of each payment, and for each use
of an alternative funding mechanism an exhibit of payment
requirements of the alternative funding mechanism that shall
disclose the original principal amount, the date and amount
of each required payment and the remaining amount of the
principal upon application of each payment.
(c) Determination of general municipal pension system State
aid and supplemental State assistance.--Solely for the purposes
of determining the amount of general municipal pension system
State aid allocable to such a municipality under section 402 and
the amount of supplemental State assistance allocable to such
municipality under sections 607(j) and 608, the actual financial
requirements certified for the pension plan for each plan year
shall be determined based upon the exhibits prepared under
subsection (b) so that the amount of general municipal pension
system State aid and supplemental State assistance to the
municipality shall not be reduced or increased as a result of
any contributions to the pension plan comprised of the proceeds
of bonds and notes for which the remaining aggregated
amortization period, as disclosed in the exhibit required in
subsection [(a)] (b), is one or more years. In making these
determinations, the commission may adjust the data used to
calculate the actuarial indicators or municipal finance
indicators, or both, defined in Chapter 5 to insure that the
amount of supplemental State assistance to the municipality
shall not be reduced or increased as a result of any debt issued
or alternative funding mechanism used to fund an unfunded
actuarial accrued liability and the debt service on that debt or
the payment requirements of an alternative funding mechanism.
(d) Application of general municipal pension system State
aid and supplemental State assistance.--In addition to the
expenditures authorized in section 402(g), general municipal
pension system State aid or supplemental State assistance, or
both, may be used by a municipality to pay debt service on bonds
or notes, or both, issued to fund an unfunded actuarial accrued
liability or to meet its payment requirements under an
alternative funding mechanism.
(e) Pledge of general municipal pension system State aid and
supplemental State assistance authorized.--A municipality may
pledge to the holders of its bonds or notes issued to fund an
unfunded actuarial accrued liability or to a trustee or paying
agent acting on behalf of the holders, as security for the
payment of the bonds or notes, all of the municipality's right,
title and interest in and to any general municipal pension
system State aid or supplemental State assistance that the
municipality is entitled to receive under this act. A
municipality using an alternative funding mechanism may pledge
to the authority or a board of pensions and retirement, to the
holders of bonds or notes issued by the authority or to a
trustee or paying agent acting on behalf of the holders, as
security for the payment of the payment requirements of the
municipality under an alternative funding mechanism, all of the
municipality's right, title and interest in and to any general
municipal pension system State aid or supplemental State
assistance that the municipality is entitled to receive under
this act. The pledge shall be valid and binding from the time
the pledge is made, and the lien of the pledge is valid and
binding as against all persons having claims of any kind in
tort, contract or otherwise against the municipality, whether or
not the persons have notice. Except as provided in the Local
Government Unit Debt Act, neither the proceedings of the
municipality relating to the bonds or notes nor any other
instrument by which a pledge is made nor any financing statement
in respect thereof need be recorded or filed.
(f) Withholding remedy provided.--If, in accordance with
subsection (e), a municipality has pledged, as security for its
bonds or notes issued to fund an unfunded actuarial accrued
liability, or as security for the performance of its obligations
under an alternative funding mechanism, its right, title and
interest in and to any general municipal pension system State
aid or supplemental State assistance that the municipality is
entitled to receive under this act and it fails to pay or
provide for payment of debt service on the bonds or notes in
accordance with the terms thereof, or fails to perform its
payment obligations under an alternative funding mechanism, the
trustee or paying agent for the bonds or notes, or, in the case
of an alternative funding mechanism, the authority, the board of
pensions and retirement, or any person either entity authorizes
to act on its behalf, may certify in writing to the State
Treasurer that a pledge has been made and that a failure to pay
has occurred, and, upon receipt of the certification, the State
Treasurer shall:
(1) notify the municipality of the withholding
provisions of this section;
(2) withhold, out of any general municipal pension
system State aid or supplemental State assistance payable to
the municipality, an amount equal to the unpaid debt service
or an amount equal to the unpaid payment requirements under
an alternative funding mechanism; and
(3) notify the Auditor General of these actions and
request the Auditor General to issue a warrant for payment of
the amount withheld to the trustee or paying agent [of the
amount so withheld] in the case of bonds or notes, or to the
authority, the board of pensions and retirement, or any
person either entity authorizes to act on its behalf, in the
case of an alternative funding mechanism.
Upon receipt of a notice from the State Treasurer, the Auditor
General shall issue a warrant to the State Treasurer for payment
to the trustee or paying agent in the case of bonds or notes, or
to the authority, the board of pensions and retirement or any
person either entity authorizes to act on its behalf in the case
of an alternative funding mechanism, and the State Treasurer
immediately shall pay over the amount so withheld to the trustee
or paying agent[. The] in the case of bonds or notes, or to the
authority, the board of pensions and retirement or any person
either entity authorizes to act on its behalf, in the case of an
alternative funding mechanism. In the case of bonds or notes,
the trustee or paying agent shall apply the amount to the debt
service due from the municipality. In the case of an alternative
funding mechanism, the authority, the board of pensions and
retirement or any person either entity authorizes to act on its
behalf shall apply the amount to unpaid obligations of the
municipality under the alternative funding mechanism.
(g) State Treasurer authorized to enter into certain
agreements.--The State Treasurer is authorized to enter into an
agreement with a municipality that has issued its bonds or notes
to fund an unfunded actuarial accrued liability providing for
the payment directly to the trustee or paying agent for the
bonds or notes of any general municipal pension system State aid
or supplemental State assistance that the municipality is
entitled to receive under this act, regardless of whether the
municipality has failed to pay or provide for payment of debt
service on the bonds or notes in accordance with the terms
thereof. The State Treasurer is authorized to enter into an
agreement with a municipality that has used an alternative
funding mechanism providing for the payment directly to the
authority, to the board of pensions and retirement, or to any
person either entity authorizes to act on its behalf of the
general municipal pension system State aid or supplemental State
assistance that the municipality is entitled to receive under
this act, regardless of whether the municipality has failed to
pay or provide for payment of its obligations under an
alternative funding mechanism.
(h) Modification of the determination of minimum municipal
obligations.--Any unpaid portion of the amortization
contribution requirement component of the minimum municipal
obligation determined under section 302 for any municipality
that issues bonds or notes to fund an unfunded actuarial accrued
liability, or that uses an alternative funding mechanism, shall
be canceled until deposit of the [bond or note] proceeds of
bonds, notes or an alternative funding mechanism can be
reflected in the minimum municipal obligation adopted by the
governing body of the municipality. Cancellation of the
amortization contribution requirement component of a minimum
municipal obligation under this subsection shall be in
proportion to the reduction in the unfunded actuarial accrued
liability of the pension fund, as determined in the last
actuarial valuation report submitted to the commission under
Chapter 2, that results from the deposit of the proceeds [from
the bonds or notes] of bonds, notes or an alternative funding
mechanism.
(1) In the case of municipalities submitting annual
actuarial valuation reports pursuant to section 201, the
cancellation of the amortization contribution requirement
component of the minimum municipal obligation shall be
effective for the year following the valuation date of the
first actuarial valuation report prepared under Chapter 2
reflecting the deposit of the [bond or note] proceeds of
bonds, notes or an alternative funding mechanism. The
cancellation of the amortization contribution requirement
component of the minimum municipal obligation shall also be
effective for the year preceding the valuation date of the
first actuarial valuation report prepared under Chapter 2
reflecting the deposit of the [bond or note] proceeds of
bonds, notes or an alternative funding mechanism if the
effective date of the deposit of the [bond or note] proceeds
of bonds, notes or an alternative funding mechanism is not
January 1.
(2) In the case of municipalities submitting biennial
actuarial valuation reports pursuant to section 201, the
cancellation of the amortization contribution requirement
component of the minimum municipal obligation shall be
effective as follows:
(i) if the effective date of the deposit of the bond
or note proceeds is January 1 of an odd-numbered year,
the cancellation shall be effective for the year
following the valuation date of the first actuarial
valuation report prepared under Chapter 2 reflecting the
deposit of the bond or note proceeds;
(ii) if the effective date of the deposit of the
bond or note proceeds is in an odd-numbered year but not
on January 1, the cancellation shall be effective for the
two years preceding and the year following the valuation
date of the first actuarial valuation report prepared
under Chapter 2 reflecting the deposit of the bond or
note proceeds;
(iii) if the effective date of the deposit of the
bond or note proceeds is in an even-numbered year, the
cancellation shall be effective for the year preceding
and the year following the valuation date of the first
actuarial valuation report prepared under Chapter 2
reflecting the deposit of the bond or note proceeds.
(i) Deposit and use of [bond or note] proceeds of bonds,
notes or an alternative funding mechanism.--The total net
proceeds [from the issuance of bonds or notes] of bonds, notes
or an alternative funding mechanism shall be deposited into the
pension fund of the municipality within 30 days of receipt by
the municipality or the effective date of this act, shall be
treated as an amortization contribution for the purposes of
reporting under Chapter 2 and shall not be used to pay any
portion of the municipality's minimum municipal obligation
determined under section 302.
Section 3. Section 607(j) of the act, amended December 10,
1996 (P.L.934, No.150), is amended to read:
Section 607. Remedies applicable to various recovery program
levels.
* * *
(j) Supplemental State assistance.--If every pension plan of
the municipality which is a defined benefit plan and which is
self-insured in whole or in part has filed an actuarial
valuation report utilizing the standardized actuarial cost
method and economic actuarial assumptions within the range of
actuarial assumptions specified in section 202(b) and if the
municipality has implemented the aggregation of trust funds
pursuant to subsection (b), the municipality may receive
supplemental State assistance from the Supplemental State
Assistance Fund established pursuant to section 608. The amount
of the supplemental State assistance to which the municipality
is entitled shall be determined annually based on the
determination scoring which the municipality received from the
commission pursuant to section 503, as follows:
(1) The determination score of the municipality shall be
reduced by an amount equal to 25% of the maximum possible
determination score.
(2) The result calculated pursuant to paragraph (1)
shall be expressed as a percentage of the maximum possible
determination score.
(2.1) For the supplemental State assistance distributed
in December of 1997, the percentage calculated pursuant to
paragraph (2) shall be applied to the dollar amount of
difference between the greater of the amount of the municipal
contribution or the amount of the actual municipal deposit to
all municipal pension plans in aggregate and the full minimum
municipal obligation with respect to the pension plans
pursuant to section 302 or 303, whichever is applicable, to
determine the amount of supplemental State assistance for the
municipality.
(3) [The] For the supplemental State assistance
distributed in December of 1998 and thereafter, the
percentage calculated pursuant to paragraph (2) shall be
applied to the dollar amount of difference between the amount
of the municipal contribution to all municipal pension plans
in aggregate and the full minimum municipal obligation with
respect to the pension plan pursuant to section 302 or 303,
whichever is applicable, to determine the amount of
supplemental State assistance for the municipality. For the
purposes of this paragraph, the municipal contribution of a
municipality that has issued bonds or notes to fund an
unfunded actuarial accrued liability under the act of July
12, 1972 (P.L.781, No.185), known as the Local Government
Unit Debt Act, or under other laws applicable to the
municipality, shall include debt service on the bonds or
notes, or both, issued to fund an unfunded actuarial accrued
liability.
In the event that the total amount of supplemental State
assistance determined as payable to all municipalities entitled
to receive supplemental State assistance exceeds the maximum
appropriation provided for in section 608(b), the amount of
supplemental State assistance which shall be payable to each
municipality shall be proportionately reduced. The supplemental
State assistance shall be distributed annually on the first
business day occurring in December. For the purposes of this
subsection, the term "municipal contribution" shall mean the sum
of the current year's minimum municipal obligation, the annual
interest payable on any current or prior period funding
deficiencies and the total amount of any discretionary deposits
to the pension fund in the current year.
* * *
Section 4. The act is amended by adding chapters to read:
CHAPTER 9
MODIFICATION OF ACTUARIAL FUNDING STANDARD
Section 901. Modification of actuarial funding standard.
(a) Modification of actuarial funding standard.--The
actuarial reporting and funding requirements established under
Chapters 2, 3 and 6 are modified by this section for a
municipality. The amortization contribution established for each
pension fund under this section shall be an integral component
of the aggregate amortization contribution requirements
determined under section 302(b)(3). A municipality determining
amortization contributions under this section shall continue to
determine the total financial requirements of its pension funds
under section 302. If a municipality is delinquent in satisfying
the total financial requirements of its pension funds, it shall
be subject to the penalty and enforcement provisions specified
in sections 302(e), 306 and 307.
(b) Calculation of unfunded actuarial accrued liability.--A
municipality shall determine the unfunded actuarial accrued
liability for each of its pension funds as of January 1, 1998.
The calculation of the unfunded actuarial accrued liability
shall be made and certified by an approved actuary under section
202(b)(3) using the actuarial assumptions employed in
preparation of the January 1, 1997, actuarial valuation report
required under section 201 except that the actuarial value of
assets calculated under section 202(e)(1) shall reflect as
assets the value of all deposits to the pension fund made within
the plan year commencing January 1, 1998, that were comprised of
the proceeds from pension bonds.
(c) Required amortization contributions.--Commencing in the
plan year beginning January 1, 1998, a municipality shall make
annual level dollar amortization contributions to each of its
pension funds that are sufficient to fully amortize the unfunded
actuarial accrued liabilities over the following 40 years. The
annual level dollar amortization contribution for each pension
fund shall be calculated by an approved actuary assuming 10%
investment earnings on the amortization contributions throughout
the 40-year period. The level dollar amortization contribution
for a pension fund is subject to the limit on the additional
funding costs in section 202(b)(4).
(d) Determination and amortization of actuarial gain or
loss.--
(1) For each pension fund subject to the provisions of
this section, the municipality shall establish and maintain a
comparative interest rate amortization tabulation for the
duration of the 40-year amortization period. The tabulation
shall reflect the calculation of a balance as of the end of
each plan year that shall be calculated as the sum of the
previous year's balance and the amortization contribution
determined under this section plus interest on that sum to
the end of the plan year assuming a 10% rate of return. The
tabulation shall also reflect an annual interest adjustment
for each year calculated as the amount of the interest
credited in the determination of the balance less the amount
of the interest that would have been credited if the balance
had been calculated using the actual rate of return for the
applicable plan year rather than the assumed 10% rate of
return. The actual rate of return used to calculate the
annual interest adjustment shall be the rate of return
realized on the market value of the pension fund's assets
during the applicable plan year.
(2) In each actuarial valuation report prepared under
Chapter 2 that reflects an amortization contribution
determined under this section, the annual interest adjustment
calculated under this subsection shall be treated as an
actuarial gain or loss and amortized under section 202(b)(4).
(e) Effect of future pension bonds.--If an unfunded
actuarial accrued liability being funded with amortization
contributions determined under this section is reduced through
the deposit of pension bonds proceeds, the remaining balance of
the unfunded actuarial accrued liability calculated under this
section shall be reduced proportionately as specified in section
202(b)(4) and an approved actuary shall recalculate the annual
level dollar amortization contribution required to fully
amortize the remaining balance of the unfunded actuarial accrued
liability over the remaining years of the amortization period
assuming a 10% rate of return on the amortization contributions.
The recalculated unfunded actuarial accrued liability and the
recalculated amortization contribution shall be reflected in the
actuarial valuation report and the comparative interest rate
amortization tabulation prepared as of the beginning of the plan
year following the deposit of the pension bond proceeds.
(f) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection:
"Amortization contribution." That portion of the pension
plan contribution which is designed to pay interest on and to
amortize the unfunded actuarial accrued liability.
"Municipality." A home rule municipality formerly classified
as a city of the second class that issues pension bonds and
deposits the proceeds in a pension fund within the plan year
commencing January 1, 1998, and increases the ratio of the
actuarial value of assets to the actuarial accrued liability of
its pension funds by more than 0.25.
"Pension bonds." Bonds or notes issued by a municipality
under 53 Pa.C.S. Pt. VII Subpt. B (relating to indebtedness and
borrowing) to finance reduction of the unfunded actuarial
accrued liability of one or more pension funds.
CHAPTER 10
ALTERNATIVE FUNDING MECHANISM
Section 1001. Alternative funding mechanism.
(a) Authorization for alternative funding mechanism.--A city
of the first class shall be authorized to use an alternative
funding mechanism for the purpose of reducing or eliminating the
unfunded actuarial accrued liability of its pension system.
(b) Period of payment requirements.--The period of the
city's payment requirements under an alternative funding
mechanism implemented prior to December 31, 2002, shall be the
greater of:
(1) the remaining period not exceeding 30 years during
which the city would have amortized the unfunded actuarial
accrued liability reported in its last actuarial valuation
report filed under Chapter 2 using the total amortization
payment and interest assumption, reported in that actuarial
valuation report; or
(2) 30 years.
If an alternative funding mechanism is implemented after
December 31, 2002, the period described in paragraph (1) shall
be the period of the city's payment requirements.
(c) Condition precedent.--No alternative funding mechanism
shall become effective until a certified copy of the ordinance
or ordinances authorizing the alternative funding mechanism and
a certified copy of the final instrument setting forth the
payment requirements of the alternative funding mechanism have
been filed with the commission. The commission may request and
the city shall provide any additional information necessary for
the administration of Chapter 4. No approval of the commission
shall be required.
(d) Treatment of payment requirements under alternative
funding mechanism.--The obligations of the city to make payments
pursuant to the provisions of an alternative funding mechanism
shall not be considered to be a part of the indebtedness of the
city.
(e) Enforcement of payment requirement.--The payment
requirements of an alternative funding mechanism shall be paid
when due. In the event that the city fails to comply with its
duty to provide for in its budget or to pay the full amount of
the payment requirements of an alternative funding mechanism
when due, the failure may be remedied by the institution of
legal proceedings for mandamus. The city is by this act on
notice as to its duty to fund its payment requirements under an
alternative funding mechanism. The provisions of this act shall
be deemed to be sufficient demand to the city for it to comply
with its duty, and the failure by the city for the year or years
in question to include in its budget or to pay when due the full
amount of the payment requirements of an alternative funding
mechanism shall be deemed to be sufficient refusal by the city
to comply with its duty antecedent to the commencement of the
action. No other remedy at law shall be deemed to be
sufficiently adequate and appropriate to bar the commencement of
this action. Any person or entity authorized pursuant to
subsection (f) or (g) to institute the action shall be deemed to
have been injured by the failure of the city to comply with its
legal duty to fund the payment requirements of an alternative
funding mechanism, and that injury shall be deemed to be
immediate. No issuance of mandamus in connection with the legal
duty of the city to fund the payment requirements of an
alternative funding mechanism shall be deemed to threaten the
creation of confusion, disorder or excessive burden on the city
or to threaten a result which is detrimental to the public
interest.
(f) Persons beneficially interested.--Any person who is
beneficially interested in the alternative funding mechanism
shall have standing to institute a legal proceeding for mandamus
as provided for in this section. A beneficially interested
person is any person who:
(1) has the relationship with the city's pension plan
of:
(i) an active member, whether or not any minimum
service requirement for acquiring a vested right to a
retirement benefit has been met;
(ii) an inactive member with a vested right to
deferred receipt of a retirement benefit;
(iii) a retired member;
(iv) a recipient of retirement benefit other than a
retired member;
(v) a former member with member contributions to the
credit of the member with the city's pension plan; or
(vi) a spouse, child or other potential beneficiary
pursuant to the terms of the plan document of the city's
pension plan of any person described in subparagraphs (i)
and (v);
(2) serves in the position of fiduciary with respect to
the city's pension plan;
(3) represents active members of the city's pension plan
as collective bargaining agent;
(4) serves as an elected or appointed official of the
city; or
(5) is an authority or the board of pensions and
retirement with which the city has implemented an alternative
funding mechanism or is any person either entity authorizes
to act on its behalf.
(g) Others with standing to bring action.--The Attorney
General or the district attorney of the county in which the city
is located, in addition to any other powers and duties conferred
on that office by law, shall have standing to institute a legal
proceeding for mandamus as provided for in this section.
(h) Scope of remedy.--Any mandamus pursuant to this section
may compel the addition by the city to the current city budget
of any omitted amount of the payment requirements under an
alternative funding mechanism and the subsequent payment of any
budgeted amount or the immediate or scheduled periodic payment
of any omitted amount of the payment requirements under an
alternative funding mechanism, whichever is applicable.
Section 5. The amendment of section 404(b) of the act shall
apply to actuarial exhibits of additional funding costs
associated with the amortization of any unfunded actuarial
accrued liability prepared for plan years beginning after the
effective date of this act.
Section 6. The addition of section 901 of the act shall
apply to plan years commencing January 1, 1998, and thereafter.
Section 7. This act shall take effect immediately.
APPROVED--The 18th day of June, A. D. 1998.
THOMAS J. RIDGE
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