THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY DALEY, THOMAS, SCAVELLO, BELFANTI, BUXTON, CARROLL, COHEN, DONATUCCI, GEORGE, GIBBONS, GOODMAN, GRUCELA, HARHAI, HORNAMAN, KOTIK, MANN, MELIO, MURT, MUSTIO, MYERS, PASHINSKI, PRESTON, READSHAW, ROAE, SIPTROTH, McILVAINE SMITH, K. SMITH, SOLOBAY, VULAKOVICH, WANSACZ, WHITE AND YOUNGBLOOD, FEBRUARY 18, 2009

REFERRED TO COMMITTEE ON STATE GOVERNMENT, FEBRUARY 18, 2009  

AN ACT

Amending Title 71 (State Government) of the Pennsylvania

Consolidated Statutes, further providing for eligibility for

early retirement benefits.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Title 71 of the Pennsylvania Consolidated

Statutes is amended by adding a section to read:

§ 5308.3.  Eligibility for special early retirement.

(a)  Eligibility.--Notwithstanding any provisions of this

title to the contrary, any member who, during the period of time

from March 1, 2009, through June 1, 2009:

(1)  has attained either 30 eligibility points or a

combination of age and eligibility points that totals 80;

(2)  terminated State service; and

(3)  files an application for an annuity with an

effective date of retirement not later than July 1, 2009,

shall be entitled to receive a maximum single life annuity

calculated pursuant to section 5702 without any reduction by

virtue of an effective date of retirement which is under the

superannuation age and shall be entitled to any insurance

coverage under any contract of insurance affecting the member

that is in effect on the effective date of retirement of the

member.

(b)  Net savings cost.--

(1)  Each calendar quarter, the secretary shall do all of

the following:

(i)  Reduce the allocation for each Commonwealth

agency for the ensuing calendar quarter by an amount

equal to 60% of the net savings cost for that agency.

(ii)  Transfer the amount reduced under subparagraph

(i) to the fund.

(2)  This subsection shall expire June 30, 2012.

(c)  Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection:

"Net savings cost."  The difference between:

(1)  25% of the total of the final salaries for members

who retire from a Commonwealth agency under this section; and

(2)  the total salaries of all new hires in the six-month

period before, and the six-month period after, July 1, 2009,

but in no case less than 20% of the total of the entry level

salaries to replace retired members in that Commonwealth

agency.

"Secretary."  The Secretary of the Budget.

Section 2.  This act shall take effect immediately.