§ 205.1. Procedure for applying for distress determination and participation in recovery program.
(a) A municipality choosing to apply for a determination of financial distress shall do so by filing a letter request for determination of financial distress.
(1) A municipality choosing to apply for a determination of financial distress shall file a letter request for determination of financial distress with the Commission by the last business day in June preceding the calendar year in which initial implementation of the recovery program provisions is anticipated. If the letter request for determination of financial distress is not submitted in a timely fashion, a distress determination will not be made and the municipality will be ineligible to participate in the recovery program until a distress determination is made for the municipality in the following calendar year.
(2) A municipality that has previously received a distress determination under this section and has elected to participate in the recovery program is not required to apply for subsequent distress determinations. The municipality’s initial application for a distress determination shall be considered as continuing until the municipality notifies the Commission to the contrary.
(b) The Commission annually will make a distress determination for a municipality that applies for a distress determination under this section based on actuarial indicators and municipal financial indicators as provided in Chapter 5 of the act (53 P. S. § § 895.501—895.504).
(1) The Commission will calculate the actuarial indicators under Chapter 5 of the act using the applicable municipal pension plan data submitted by municipalities in compliance with the act of December 6, 1972 (P. L. 1383, No. 293) (53 P. S. § § 730.1—730.5) or the act.
(2) The Department of Community Affairs will calculate the municipal financial indicators under Chapter 5 of the act using the applicable municipal finance data submitted to and compiled by the Department of Community Affairs. The Secretary of the Department of Community Affairs, or a designee, will annually certify the municipal financial indicators for municipalities to the Executive Director of the Commission by June 15.
(c) The Commission will transmit an individual notification of the distress determination to a municipality applying for a distress determination under this section and to a municipality that has previously elected to participate in the recovery program by August 15 of each year. An election form will be enclosed with the notification of the distress determination transmitted to a municipality.
(d) A municipality initially electing to participate in the recovery program shall file an election form with the Commission by the last business day in October following the receipt of the notification of the distress determination. The governing body of the municipality shall adopt a resolution specifying the applicable recovery program provisions to be implemented or utilized by the municipality. An official copy of the municipal resolution shall be submitted with the election form to the Commission.
(e) If a municipality has previously elected to participate in the recovery program, the municipality’s initial election form and municipal resolution shall be considered as continuing until the municipality elects to modify the recovery program level or specific remedies previously elected. The governing body of a municipality electing to modify the recovery program level or specific remedies previously elected shall adopt a resolution amending or replacing the original resolution. An official copy of the resolution shall be submitted to the Commission accompanied by an election form specifying the modified level or recovery program provisions to be implemented or utilized by the municipality. The municipal resolution and election form shall be filed with the Commission by the last business day in October preceding the beginning of the plan year during which the modified recovery program provisions will be implemented.
(f) If the Commission determines that a municipality that has elected to participate in the recovery program is in compliance with applicable mandatory recovery program provisions, the Commission will certify compliance to the municipality annually before the last business day in December. The recovery program provisions specified on the election form may be implemented or continued upon certification of compliance issued by the Commission.
(g) The address to which a letter of intent and election form shall be mailed is: Commonwealth of Pennsylvania, Public Employee Retirement Study Commission, Post Office Box 1429, Harrisburg, Pennsylvania 17105-1429.
(h) The Commission will accept as timely filed a letter of intent or election form that bears a United States Postal Service postmark dated on or before the applicable filing deadlines established in this section.
Source The provisions of this § 205.1 adopted December 18, 1987, effective December 19, 1987, 17 Pa. B. 5234; amended July 24, 1992, effective July 25, 1992, 22 Pa. B. 3839. Immediately preceding text appears at serial pages (123173) to (123175).
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