Employer FAQs - State Pension Aid

It is important to know that PMRS does not calculate, provide, or audit state aid to municipal pension plans in Pennsylvania. That work is conducted by the Municipal Pension Reporting Program (MPRP) within the Department of the Auditor General's Office of Budget and Financial Management. If you have questions about the state aid process, you are encouraged to contact MPRP at 717-787-3637 or MPRP@PaAuditor.gov

 

Is our pension plan eligible for state aid reimbursement?

Cities, boroughs, towns and townships who establish a pension plan and fund it for three calendar years are eligible for state pension aid. State aid is paid by the Auditor General's Office to cities, boroughs, towns and townships. Authorities and counties are not eligible for state pension aid.


How does a municipality apply for state pension aid?

In January of each year, the Auditor General's Office mails a Certification for Foreign Fire Insurance Tax Distribution and General Municipal Pension System State Aid form to each municipality eligible to participate in the state aid program. Completing this form and returning it to the Auditor General's Office will make a municipality eligible for state pension aid. Information from the Act 205 actuarial valuation that is submitted to the Public Employee Retirement Commission (usually every two years) also is used to calculate state aid.


How is the state pension aid program financed?

The state pension aid program is financed by a 2% tax on out-of-state insurance companies. Presently, the Commonwealth collects approximately $150 million each year and these monies then are allocated by the Auditor General's Office by the last business day of September each year to help defray pension expenses in that calendar year.

Important note: Information contained in these frequently-asked questions and answers is general in nature. In case of any conflict, the actual contract language between the employing municipality and PMRS along with PMRS law will prevail. Also, existing regulations, policies and procedures will apply in all cases.