PRIOR PRINTER'S NOS. 139, 412, 2121           PRINTER'S NO. 2229

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 125 Session of 1983


        INTRODUCED BY GALLAGHER, BURNS, J. L. WRIGHT, FISCHER AND
           MICOZZIE, FEBRUARY 1, 1983

        AS AMENDED ON THIRD CONSIDERATION, HOUSE OF
           REPRESENTATIVES, NOVEMBER 30, 1983

                                     AN ACT

     1  Amending Title 24 (Education) of the Pennsylvania Consolidated
     2     Statutes, providing an additional limitation on creditable
     3     nonschool service.

     4     The General Assembly of the Commonwealth of Pennsylvania
     5  hereby enacts as follows:
     6     Section 1.  Section 8304(a) of Title 24 of the Pennsylvania
     7  Consolidated Statutes is amended and subsection (b) is amended
     8  by adding a paragraph to read:
     9  § 8304.  Creditable nonschool service.
    10     (a)  Eligibility.--An active member or a multiple service
    11  member who is an active member of the State Employees'
    12  Retirement System shall be eligible to receive Class T-C service
    13  credit for creditable nonschool service as set forth in
    14  subsection (b) provided that he is not [entitled to receive,
    15  eligible to receive now or in the future, or is] currently
    16  vested or receiving retirement benefits for such service under a
    17  retirement system administered and wholly or partially paid for


     1  by any other governmental agency or by any private employer, or
     2  a retirement program approved by the employer in accordance with
     3  section 8301(a)(1) (relating to mandatory and optional
     4  membership), and further provided that such service is certified
     5  by the previous employer and the manner of payment of the amount
     6  due is agreed upon by the member, the employer, and the board.
     7  However, an active member who is not actually receiving benefits
     8  from a retirement system of another state may divest himself of
     9  his entitlement or eligibility for future benefits in that
    10  system in order to receive creditable nonschool service credit
    11  under subsection (b)(3). The divestiture shall be certified to
    12  the board by the out-of-state system before the member applies
    13  for the creditable nonschool service credit.  CONTRIBUTIONS FOR   <--
    14  THE PURCHASE OF CREDIT IN THE EVENT OF A DIVESTITURE OF
    15  ENTITLEMENT OR ELIGIBILITY FOR FUTURE BENEFITS SHALL BE
    16  CALCULATED AND PAID PURSUANT TO SECTION 8324 (E) (RELATING TO
    17  CONTRIBUTIONS FOR PURCHASE OF CREDIT FOR CREDITABLE NONSCHOOL
    18  SERVICE).
    19     (b)  Limitations on nonschool service.--Creditable nonschool
    20  service credit shall be limited to:
    21     * * *
    22         (6)  Previous work experience of the type required for
    23     permanent certification as a vocational teacher. For every
    24     three years or major fraction thereof, an individual can buy
    25     one year of creditable service, not to exceed a total of five
    26     years. Previous work experience shall not include time served
    27     in an apprenticeship. The purchase of this service shall
    28     begin within three years of the employee's eligibility to
    29     purchase this creditable service.
    30     * * *
    19830H0125B2229                  - 2 -

     1     Section 2.  Section 8324 of Title 24 is amended by adding a
     2  subsection to read:
     3  § 8324.  Contributions for purchase of credit for creditable
     4           nonschool service.
     5     * * *
     6     (e)  Creditable work experience.--Contributions on account of
     7  CLASS T-C credit for creditable work experience described in      <--
     8  section 8304(b)(3) AND (6) (relating to creditable nonschool      <--
     9  service) shall be the present value of the full actuarial cost
    10  of the increase in the projected superannuation annuity caused
    11  by the additional service credited on account of the purchase of
    12  creditable work experience. The amount paid for the purchase of
    13  credit for creditable work experience under section 8304(b)(3)
    14  AND (6) shall not be payable as a lump sum under section          <--
    15  8345(a)(4)(iii) (relating to member's options). HOWEVER, WITH     <--
    16  REGARD TO CREDITABLE WORK EXPERIENCE DESCRIBED IN SECTION 8304
    17  (B)(3), THIS SUBSECTION SHALL APPLY ONLY TO THOSE INSTANCES IN
    18  WHICH DIVESTITURE OF ENTITLEMENT OR ELIGIBILITY FOR FUTURE
    19  BENEFITS IS UTILIZED IN ORDER TO RECEIVE CREDITABLE NONSCHOOL
    20  SERVICE CREDIT UNDER THAT SECTION.
    21     Section 3.  This act shall take effect in 60 days.






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