Current through Pa Acts 2024-53, 2024-56 through 2024-92
Section 895.306 - Enforcement of funding standard by mandamus action(a)Legislative finding and declaration.--The General Assembly finds and declares that any actual or potential failure by a municipality to comply with the applicable funding standard established by this act threatens serious injury to the affected municipal pension plan, to the entire system of public employee pension plans in the Commonwealth and to the Commonwealth itself. By expressly authorizing the remedy of mandamus in this section, the General Assembly intends to assist all persons with a beneficial or special interest in a municipal pension plan, in addition to all persons or entities with a special responsibility or duty in relation to municipal pension plans, in securing that compliance.(b)Generally.--In the event that a municipality fails to comply with its duty either to provide for in its budget, or to pay, the full amount of the minimum obligation of the municipality towards the municipal pension plan as specified in this chapter, or as modified pursuant to section 605(6) or 606(a)(4) and section 607(g) or (h), whichever determination of the minimum obligation of the municipality towards the municipal pension plan is applicable, the failure may be remedied by the institution of legal proceedings for mandamus. Every municipality is by this act on notice as to its duty to fund its municipal pension plan. The provisions of this act shall be deemed to be sufficient demand to the municipality for it to comply with its duty and the failure by the municipality for the year or years in question to include in its budget, or to pay, the full amount of the minimum obligation of the municipality towards the municipal pension plan shall be deemed to be sufficient refusal by the municipality 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 (c) or (d) to institute the action shall be deemed to have been injured by the failure of the municipality to comply with its legal duty to fund its municipal pension plan and that injury shall be deemed to be immediate. No issuance of mandamus in connection with the legal duty of a municipality to fund its municipal pension plan shall be deemed to threaten the creation of confusion, disorder or excessive burden on the municipality or to threaten a result which is detrimental to the public interest.(c)Persons beneficially interested.--Any person who is beneficially interested in the affairs of the municipal pension plan 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 municipal 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 municipal pension plan; or(vi) a spouse, child or other potential beneficiary pursuant to the terms of the plan document of the municipal pension plan of any person described in subparagraphs (i) and (v);(2) serves in the position of a fiduciary with respect to the municipal pension plan;(3) represents active members of the municipal pension plan as collective bargaining agent; or(4) serves as an elected or appointed official of the municipality.(d)Others with standing to bring action.--The Public Employee Retirement Study Commission shall have standing to institute a legal proceeding for mandamus as provided for in this section. The Attorney General, or the district attorney of the county in which the municipality is located, in addition to any other powers and duties conferred on that office by law, shall also proceed in the name of the Commonwealth, upon request of the commission or upon the person's own motion, to institute a legal proceeding for mandamus as provided for in this section.(e)Scope of remedy.--Any mandamus pursuant to this section may compel the addition by the municipality to the current municipal budget of any omitted amount of the minimum obligation of the municipality and the subsequent payment of any budgeted amount, or the immediate or scheduled periodic payment of any omitted amount of minimum obligation of the municipality with interest at the applicable compound rate, whichever is applicable.(f)Reimbursement for certain costs.--In any action pursuant to this section which is instituted or joined by any person who is beneficially interested, unless the court otherwise directs, party costs, disbursements, reasonable attorney fees and witness fees relating to the action shall be allowed to the prevailing party upon a motion by the prevailing party if:(1) the prevailing party is a person who is beneficially interested and has given the opposing party or parties timely notice of intent to claim an award, which notice shall have been given prior to the issuance of the mandamus; or(2) the prevailing party is the municipality and the complaining party has brought an action which the complaining party knew or ought to have known was groundless, frivolous, without merit and without a basis in fact. 1984, Dec. 18, P.L. 1005, No. 205, § 306.