THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY DALEY, CALTAGIRONE, CARROLL, COHEN, DAVIS, FABRIZIO, GEORGE, GERGELY, GIBBONS, GOODMAN, HARHAI, HORNAMAN, JOSEPHS, KOTIK, MANN, MYERS, M. O'BRIEN, READSHAW, ROAE, SAINATO, SCAVELLO, STABACK, THOMAS AND WHITE, JUNE 17, 2011

REFERRED TO COMMITTEE ON STATE GOVERNMENT, JUNE 17, 2011  

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.--

(1)  Notwithstanding any provisions of this title to the

contrary, this section shall apply to a member who, during

the period of time after February 28, 2011, and before June

2, 2011:

(i)  has attained either 30 eligibility points or a

combination of age and eligibility points that totals 80;

(ii)  has terminated State service; and

(iii)  files an application for an annuity with an

effective date of retirement not later than July 1, 2011.

(2)  A member under paragraph (1) shall be entitled to

receive a maximum single life annuity calculated pursuant to

section 5702 (relating to maximum single life annuity)

without any reduction by virtue of an effective date of

retirement which is under the superannuation age and shall be

entitled to insurance coverage under a 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 greater of paragraph (1) or (2):

(1)  The difference between:

(i)  25% of the total of the final salaries for

members who retire from a Commonwealth agency under this

section; and

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

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

1, 2009.

(2)  Twenty percent 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.