News (This page was last updated on August 24, 2009)

NEWS / INFORMATION

2009 State Aid Unit Value is $3,128.0137, down 1.8 percent from the 2008 value of $3,186.3298. Download a chart of the complete state aid unit value history back to 1985.

LEGISLATIVE UPDATE

PA - 2009/2010 Session Recently Enacted Benefits Laws Mini-Cobra Act 2 of 2009 provides for the temporary continuation of health insurance coverage for some former employees. Mini-COBRA applies to employers with fewer than 20 employees. See our Summer 2009 newsletter for details. Extended coverage of Dependents Through Age 29 Act 4 of 2009 allows a policy holder to extend dependent care coverage through age 29, subject to certain eligibility requirements. See our Summer 2009 newsletter for details. Autism Insurance Law Act 62 of 2009 requires some health insurance plans to cover more autism related services. See our Summer 2009 newsletter for details. Bills Moving Through the Legislature Pension Funding Relief and Recovery Program. House Bills 1874 and 1884 are companion bills. House Bill 1874 allows some municipalities to temporarily reduce their annual funding requirements and provides for a state takeover of some pension plans. House Bill 1884 amends the Pennsylvania Municipal Retirement System law (Act 15) to allow for the takeover of the plans and makes other changes to Act 15. Watch for our September 2009 Special Update for details of these complex bills. Separate Funding Relief for Philadelphia. House Bill 1828 provides funding relief tailored to Philadelphia’s needs. Bills referred to committee with no further action DROP legislation activity. The DROP (or IROP) bill, which died at the end of the 2007/2008 legislative session (for the fourth time), was reintroduced on Jan. 30, 2009 as House Bill 129. For more information about DROP plans, see our Spring 2004 newsletter. (There have been two recent Court of Common Pleas decisions that have vacated portions of arbitration awards ordering the implementation of DROP provisions, see our Summer 2009 newsletter.) Automatic Cost-of Living Adjustments. House Bill 636 is another attempt to provide automatic cost-of-living adjustments to retirees of many local government pension plans. Money that would otherwise be paid as pension state aid would be used to partially fund these adjustments. Changes to Act 600 Police Pension Plans. House Bill 1179 would change retirement eligibility by eliminating the age requirement and lowering the years of service required for retirement. House Bill 1180 would increase the survivor benefit, allow benefits to be calculated using average pay in the final 24 months, allow for larger service increments and make a change to the cost-of-living calculation. Go to the Electronic Bill Room on our Links page to check the status of a bill or to download a copy of it.