Greiner County Pension Reform Legislation Signed into Law
11/30/2015
HARRISBURG- Legislation sponsored by state Rep. Keith J. Greiner (R-Lancaster) was signed into law by Gov. Tom Wolf last week. House Bill 239, now Act 63 of 2015, amends Pennsylvania’s county pension law to provide for new financial controls as well as requiring counties to adopt best management practices.

Under current law, counties are required to review a cost-of-living adjustment (COLA) for retired county employees every three years. The county pension law, however, lacked specificity on how COLAs were to be applied to retirees’ benefits and what index of inflation is to be used. Act 63 requires that any COLA should not be applied retroactively to the last adjustment and secondly, that the Consumer Price Index for Urban Consumers, which is the level of inflation calculated for states in the northeast, be used to as the benchmark for any COLA.

Additionally, Greiner’s legislation sets a funding threshold for when a COLA may be granted. Any county that has a pension system below an 80 percent funding ratio would not be able to grant a COLA. Act 63 also requires counties to adopt actuarial best management practices, by required counties to have an actuarial note prepared when considering any COLA.

“My legislation provides clarity and much needed reforms to the Commonwealth’s county pension law. As a former Lancaster County Controller and member of Lancaster County’s Retirement Board, I know first-hand how the ambiguity of the county pension law could lead counties into financial difficulties, making taxpayers responsible for that burden. Ultimately, my legislation provides protections to taxpayers by ensuring that counties’ pension systems remain well-funded and county retirement boards follow best management practices,” said Greiner.

Representative Keith J. Greiner, CPA
43rd Legislative District
Pennsylvania House of Representatives

Media Contact: Eric Reath
717.260.6187
ereath@pahousegop.com
RepGreiner.com / Facebook.com/RepGreiner
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