Section 503. Determination procedure.
(a) Generally.--The determination provided for in this chapter shall be made by the commission using the actuarial indicator specified in subsection (b).
(b) Actuarial indicator.--The actuarial indicator shall be based on the most current actuarial valuation report or reports filed by the applicable municipality with the commission pursuant to law and shall be made in aggregate for all pension plans maintained by the applicable municipality.
The actuarial indicator shall be the ratio of the actuarial value of assets to the actuarial accrued liability, expressed as a percentage known as the funding ratio, and shall be applied in accordance with the following actuarial distress scoring system:
Funding Ratio
Score
90% or over
0
70 - 89%
1
50 - 69%
2
Less than 50%
3
(c) Municipal finance indicators.--(Deleted by amendment).
(d) Levels of distress.--The three levels of municipal pension system financial distress shall be as follows:
(1) Minimal distress, which shall include any municipality which has a distress determination scoring equal to one.
(2) Moderate distress, which shall include any municipality which has a distress determination scoring equal to two.
(3) Severe distress, which shall include any municipality which has a distress determination scoring equal to three.
(503 amended Sept. 18, 2009, P.L.396, No.44)
Compiler's Note: The Department of Community Affairs, referred to in subsec. (c), was abolished by Act 58 of 1996 and its functions were transferred to the Department of Community and Economic Development.