Section 895.1001 - 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 prior to July 1, 2009.--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, but before July 1, 2009, the period described in paragraph (1) shall be the period of the city's payment requirements.
(b.1)Period of payment requirements beginning July 1, 2009.--The period of the city's payment requirements under an alternative funding mechanism implemented or refinanced in whole or in part on or after July 1, 2009, and prior to the beginning of the plan year that commences July 1, 2019, 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 latest 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 July 1, 2019, 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;(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. 1984, Dec. 18, P.L. 1005, No. 205, § 1001, added 1998, June 18, P.L. 626, No. 82, § 4, imd. effective. Amended 2009, Sept. 18, P.L. 396, No. 44, § 17, imd. effective.