(a) Taxing authority.--In taxable years beginning after December 31, 2008, the following apply to a city of the second class which is a home rule municipality:

(b) Use of revenue.--Notwithstanding any other law to the contrary, 6.75% of the revenue received under subsection (a)(1) and 100% of the revenue received under subsection (a)(2) shall be used to pay the city's minimum municipal obligation required under section 302¹ and any interest accrued in any plan year.

(c) Mandatory administration by Pennsylvania Municipal Retirement Board.--A city of the second class that is determined to be in level III distress based upon the required actuarial valuation reports for a plan year beginning on January 1, 2011, shall transfer all existing benefit plans established by the city to the Pennsylvania Municipal Retirement Board solely for administration. The biennial actuarial valuation reports for the plan year beginning on January 1, 2011, shall be filed by the city with the commission by September 1, 2011. The transfer, if applicable, shall be accomplished within two years of the effective date of this subsection. Pension benefits and eligibility requirements shall continue to be subject to collective bargaining, if applicable. Such plans shall not be subject to the control or input of the board. No prior determination of level III distress based upon the required actuarial valuation reports for prior plan years shall result in transfer of the administration to the board. From and after a determination of level III distress based upon the required actuarial valuation reports for a plan year beginning on January 1, 2011, the biennial actuarial valuation report filed on behalf of the city shall utilize an actuarial assumption as to investment earnings equal to the regular interest rate fixed by the board plus 1.5%.