Pension Disclosure Requirements

Tucked away in Act 44 of 2009, landmark legislation intended to relieve the significant financial strain on municipalities throughout Pennsylvania, in particular Philadelphia and Pittsburgh, the General Assembly imposed a set of best-practices standards on every municipal pension plan in the Commonwealth. Act 44 contains sweeping changes for the use of professionals by municipal pension systems by imposing substantial selection procedures and disclosure requirements.  Chapter 7-A of Act 44 mandates an open competitive selection process for any and all professional services contracts when the municipal pension system is a party. Basically, any entity receiving money from a municipal pension fund, such as actuaries, fund custodians, fund managers, plan advisors and other professional consultants, going forward, may be retained only after being selected through a competitive process. Furthermore, under Act 44, the “most qualified” bidder must be selected. Finally, Act 44 contains conflict-of-interest standards, restrictions on political contributions, and annual disclosure requirements.

This article explains the mandates of the new Act and provides a checklist of tasks necessary for compliance by a municipality.Continue Reading Best-Practices Standards Imposed on Pennsylvania Municipal Pension Systems