PRINTER'S NO. 2601
No. 2026 Session of 1975
INTRODUCED BY WARGO AND PERRY, DECEMBER 10, 1975
REFERRED TO COMMITTEE ON STATE GOVERNMENT, DECEMBER 10, 1975
AN ACT
1 Amending Title 71 (State Government) of the Pennsylvania
2 Consolidated Statutes, increasing the basic contribution rate
3 in order to anticipate the potential increases in costs to
4 the State Employees' Retirement Fund due to the compounding
5 effect of the increasing salary scales on the current
6 liberalizations in retirement benefits and anticipated future
7 cost-of-living increases.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. The definition of "basic contribution rate" of
11 section 5102 of Title 71, act of November 25, 1970 (P.L.707,
12 No.230), known as the Pennsylvania Consolidated Statutes, added
13 March 1, 1974 (P.L.125, No.31), is amended to read:
14 § 5102. Definitions.
15 The following words and phrases as used in this part, unless
16 a different meaning is plainly required by the context, shall
17 have the following meanings:
18 * * *
19 "Basic contribution rate." [Five per cent (5%)] Prior to
20 July 1, 1976, 5%, except that in no case shall any member be
21 required to contribute, excluding contributions for social
1 security integration credit, at a rate greater than his
2 contribution rate on the effective date of this part so long as
3 he does not elect additional coverage or membership in another
4 class of service. Beginning July 1, 1976 each active member's
5 basic contribution rate shall be increased by 1%.
6 * * *
7 Section 2. Section 5502 of the act amended October 7, 1975
8 (No.101), is amended to read:
9 § 5502. Social security integration member contributions.
10 A member of any class who prior to March 1, 1974 has elected
11 social security integration coverage shall contribute 5% of that
12 portion of his compensation in excess of the maximum wages
13 taxable under the provisions of the Federal Social Security Act,
14 42 U.S.C.A. § 301 et seq., in addition to the regular member
15 contributions [which, after such election, shall be determined
16 on the basis of the basic contribution rate of 5%]: Provided,
17 That a member may elect to discontinue contributions on account
18 of social security integration coverage and shall thereafter be
19 ineligible to accrue any further social security integration
20 credits or any additional benefits on account of social security
21 integration membership.
22 Section 3. This act shall take effect immediately.
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