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House Co-Sponsorship Memoranda
House of Representatives
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | July 17, 2023 07:31 AM |
|---|---|
| From: | Representative Joseph D'Orsie |
| To: | All House members |
| Subject: | Amending Municipal Pension Plan Funding Standard and Recovery Act to provide relief to distressed municipal pension systems. |
| Upon the one-time sale of an asset, a local government that has a distressed pension system has a choice under current statute: do they adequately apply proceeds from the sale to fund their municipal pension and cut taxes, or do they simply pay past due debt service obligations while keeping taxpayers on the hook for a burdensome tax as a continuous revenue stream? This latter option is irresponsible and unfair to taxpayers. In the near future I intend to introduce legislation that will amend the Municipal Pension Plan Funding Standard and Recovery Act to require local governments that maintain a pension plan or system that have been identified as moderate or severely distressed to use any and all proceeds from the sale or leased asset to satisfy secured or unsecured debt of the local government. In addition to the amendatory changes above, my legislation will redirect all tax dollars generated by the tax on gross premiums paid by foreign fire insurance companies to be divided equally to local governments that have pension systems or plans that have been identified as moderate or severely distressed. Please join me as a co-sponsor of this important legislation. |
Introduced as HB1610