Section 605. Recovery program level II.
(a) Mandatory remedies.--Any municipality to which level II of the recovery program applies shall utilize the following remedies:
(1) The aggregation of trust funds pursuant to section 607(b).
(2) The submission of a plan for administrative improvement pursuant to section 607(i).
(b) Discretionary remedies.--Any municipality to which level II of the recovery program applies may utilize the following remedies:
(1) The establishment of total member contributions pursuant to section 607(c).
(2) The deviation from municipal contribution limitations pursuant to section 607(d).
(3) The establishment of a revised benefit plan for newly hired municipal employees pursuant to section 607(e).
(4) The special municipal taxing authority pursuant to section 607(f).
(5) (Deleted by amendment).
(6) (Deleted by amendment).
(7) (Deleted by amendment).
(8) (i) A level II municipality may elect to pay a reduced minimum municipal obligation consisting of the normal cost and administrative expenses of the pension plan plus:
(A) 75% of the amortization contribution requirement, calculated according to section 202(b)(4); minus
(B) anticipated member contributions.
(ii) This reduction of payments to amortize the actuarial accrued liability shall be authorized for a period of two consecutive actuarial valuation reporting periods (total of four years) under section 607(h.1). At the end of this period, section 302(c) shall apply to the minimum municipal obligation calculation.
(9) (i) Following the expiration of the period applicable to the asset valuation provisions of section 210(c), for an additional period of two biennial actuarial valuation reporting periods (allowing an additional four years for a total of six years), a level II municipality may utilize a method for valuing assets that may not produce a result that in total is:
(A) greater than 130% of a period of two consecutive actuarial valuation reporting periods (total of four years); or
(B) less than 70% of the fair market value of the assets of the municipal pension plan.
(ii) At the end of the additional period under subparagraph (i), section 210 shall apply to the actuarial valuation of assets.
(605 amended Sept. 18, 2009, P.L.396, No.44)