New Pension Disclosure Rules for PA - Act 44
Pennsylvania Amends Disclosure Rules for Municipal Pensions
Pennsylvania Act 44 was signed by the Governor in September, 2009. It amended Act 205. Specifically, Chapter 7-A of Act 44 requires the disclosure of certain information about any professional advisors receiving compensation for services provided to a municipal pension plan.
The initial disclosure must be designed by the municipality, presented to the service providers and returned to the municipality by December, 2010.
An area of concern is determining the required content of the disclosure questionnaire. As usual, legislation is long on mandates, but short on details. We suggest that Pennsylvania municipalities have their solicitor or other outside counsel review Chapter 7-A of Act 44 and draft a disclosure questionnaire in a good-faith effort to comply with the legislation.
Independent firms providing actuarial services or investment advisory services should have no difficulty responding to the disclosure questionnaire. An issue may exist for municipalities using the services of Pennsylvania Municipal Retirement System (PMRS) or the Pennsylvania State Association of Boroughs (PSAB) or any other agency that offers actuarial or investment programs on a group basis. Those municipalities should contact their respective group providers to determine their policy on responding to the Act 44 disclosure questionnaire.