Pennsylvania's house of representatives three bills designed to ensure that the $31.1 billion Pennsylvania State Employees' Retirement System and $55.8 billion Pennsylvania Public School Employees' Retirement System, both based in Harrisburg, remain solvent and resilient to market volatility.
The three bills — all sponsored by Republicans — passed 202-0 on Sept. 15, confirmed Gregory Gross, a state house spokesman, in an email.
House Bill 1961, sponsored by state Rep. Lou Schmitt, would require PennSERS to prepare a report on its investment performance data from July 1 through June 30 of each year. The report will be in addition to any other reports the fund currently prepares.
H.B. 1962, sponsored by Rep. Dawn Keefer, would require the actuary for PennSERS and PennPSERS to perform an annual stress test on the plans, which would include scenario, simulation and sensitivity analyses.
Finally, H.B. 1963, sponsored by Rep. Garth Everett, would remove phrasing from PennSERS and PennPSERS retirement codes to make it clear that contribution collars are no longer in effect and ensure that the state pays the annual required contribution each year.
"It is vital that we continue to manage government responsibly during these uncertain times," Mr. Everett said in a news release announcing the passage of the bills. "This package of bills fully funds the statewide pension systems, which is one of our most costly government services, and ensures that taxpayers will be protected from future tax hikes."
The legislation is the result of the Public Pension Management and Asset Investment Review Commission's report on the operations of the state's pension systems. As part of the study, the commission provided recommendations to improve the system, save taxpayer money and protect investments.
The bills have been sent to the state Senate for consideration.