§ 205.8. Supplemental State Assistance.
(a) Determination of eligibility for Supplemental State Assistance. Beginning in 1987, the Commission will determine annually, by December 1, the eligibility of each municipality participating in level II or level III of the recovery program to receive an allocation of Supplemental State Assistance in the following year. The determination of eligibility will be based on the following conditions:
(1) The municipality has complied with the actuarial reporting requirements of the act and has filed an actuarial valuation report for each self-insured defined benefit pension plan maintained by the municipality that utilizes the standardized actuarial cost method in section 202(b) of the act (53 P. S. § 895.202(b)) and economic actuarial assumptions within the range of actuarial assumptions in § 203.3 (relating to range of economic actuarial assumptions).
(2) The municipality has implemented the aggregation of pension trust funds under section 607(b) of the act (53 P. S. § 895.607(b)) and has submitted documentation to the Commission in accordance with § 205.3 (relating to aggregation of municipal pension plan assets).
(3) If participating in level III of the recovery program, the municipality has established a revised benefit plan for newly hired municipal employes under sections 606(b)(2) and 607(e) of the act and has submitted documentation to the Commission in accordance with § 205.4 (relating to revised benefit plan for newly hired municipal employes).
(4) If participating in level III of the recovery program, the municipality has prepared, submitted and implemented a plan for administrative improvements under sections 606(b)(3) and 607(i) of the act and § 205.5 (relating to plan for administrative improvements).
(5) The municipality has demonstrated prior good faith compliance with the applicable municipal pension plan actuarial funding standard, as determined by the Commission based on actuarial valuation reports submitted by the municipality in compliance with the reporting requirements of Chapter 2 of the act (53 P. S. § § 895.201—895.208).
(6) The municipality has identified and utilized omitted municipal revenue sources under section 401 of the act (53 P. S. § 895.401) and has submitted documentation to the Commission in accordance with § 205.6 (relating to identification and utilization of omitted municipal revenue sources).
(b) Determination of allocations of Supplemental State Assistance. Beginning in 1987, the Commission will calculate annually the allocation of Supplemental State Assistance payable to each eligible municipality in the following year. The calculations will be based on the most recent distress determination score of the municipality and on the full minimum municipal obligation and actual municipal contributions applicable to the most recent plan year for which actual municipal contributions have been reported on the actuarial valuation report filed with the Commission under Chapter 2 of the act.
(c) Certification of required Supplemental State Assistance appropriation. Beginning in 1987, the Commission will certify annually to the Governor and the General Assembly, by December 1, the required amount of the appropriation to the Supplemental State Assistance Account for the following fiscal year. The amount certified shall be the total amount of Supplemental State Assistance allocations determined by the Commission to be payable to eligible municipalities in the fiscal year for which the appropriation is applicable. The certification shall be transmitted to the Governor, the Secretary of the Budget, the President Pro Tempore of the Senate, the Speaker of the House and the Chairpersons of the House and Senate Appropriations Committees.
(d) Certification of allocations of Supplemental State Assistance. Beginning in 1988, the Commission will certify annually to the Auditor General, by October 15, the amount of Supplemental State Assistance to which each eligible municipality is entitled.
(e) Authorized use of Supplemental State Assistance. Supplemental State Assistance received by a municipality shall be deposited, within 30 days of receipt by the treasurer of the municipality, in the pension funds or alternate funding mechanisms applicable to the respective pension plans. The proportion of the total amount of the municipality’s allocation of Supplemental State Assistance that shall be credited to each pension plan shall be determined by the governing body of the municipality. The municipality’s allocation of Supplemental State Assistance may not offset any portion of the required municipal contributions to the pension plans as determined under the actuarial funding standard specified in section 302 or 303 of the act (53 P. S. § 895.302 or 895.303) as modified, if applicable, by section 607(g) or (h) of the act (53 P. S. § 895.607(g) or (h)).
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