HARRIBURG – Legislation by Rep. Dawn Keefer (R-Dillsburg) to protect investments made in Pennsylvania’s retirement systems by requiring each to undergo yearly stress tests is now law.
“At the end of the day, the money in these retirement funds are that of the taxpayers, and policymakers must do all they can to protect it,” Keefer said.
House Bill 1962
, now Act128 of 2020 requires the State Employees’ Retirement System (SERS) and Public School Employees’ Retirement System (PSERS) to perform an annual stress test, which includes a scenario analysis, a simulation analysis and a sensitivity analysis.
It then requires each pension system to submit its stress test to the Independent Fiscal Office (IFO) so that it may prepare a report summarizing the stress test. That report from the IFO would then be available to legislators for use during annual budgetary considerations. Consideration of stress test results would aid in budget decisions by allowing legislators to see the potential long-term implications of pension funding decisions and market forces.
Another piece of legislation in the package, House Bill 1961, was previously signed into law. Act 94 of 2020 requires SERS to prepare a report on its investment performance data for the period of July 1 through June 30 of each year. This report is in addition to other reports SERS prepares. The Public School Employees’ Retirement System (PSERS) currently prepares investment performance data on the same basis.
“These bills complement the action previously taken by the General Assembly that became law to move all new employees to a 401(k)-style retirement plan.
Representative Dawn Keefer
92nd Legislative District
Pennsylvania House of Representatives
Media Contact: Greg Gross