Error in pension law thwarts mayor's plan

The Legislature must correct an error in Act 44, last year's pension system overhaul, if Pittsburgh is to raise the parking tax next year as part of Mayor Luke Ravenstahl's proposed lease of parking facilities.

Among other provisions affecting municipalities statewide, Act 44 gave Pittsburgh officials until the end of this year to get the city pension fund 50 % funded. Otherwise, the state would take it over.

As an incentive to act, the law says Pittsburgh can increase its parking tax from 37.5 % to 40 % if it leases or sells parking assets and uses the proceeds to help the pension fund.

But the law says the proceeds must be deposited with the Pennsylvania Municipal Retirement System, the entity that already manages 900 municipal pension plans. Instead, officials said, the law should say that Pittsburgh can raise the parking tax if it sells or leases the parking assets and applies the proceeds to the city pension fund.

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