PRINTER'S NO. 1445

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1263 Session of 1987


        INTRODUCED BY HERMAN, CAWLEY, NOYE, PETRARCA, E. Z. TAYLOR,
           HALUSKA, J. L. WRIGHT, RUDY, SHOWERS, DONATUCCI, REBER AND
           FOX, MAY 4, 1987

        REFERRED TO COMMITTEE ON STATE GOVERNMENT, MAY 4, 1987

                                     AN ACT

     1  Amending Title 71 (State Government) of the Pennsylvania
     2     Consolidated Statutes, adding provisions relating to credited
     3     service as a retirement incentive.

     4     The General Assembly of the Commonwealth of Pennsylvania
     5  hereby enacts as follows:
     6     Section 1.  Section 5302 of Title 71 of the Pennsylvania
     7  Consolidated Statutes is amended by adding a subsection to read:
     8  § 5302.  Credited State service.
     9     * * *
    10     (d)  Credited service as retirement incentive.--
    11  Notwithstanding any provisions of this title to the contrary,
    12  for the period only of June 30, 1987, through September 30,
    13  1987, any active member having at least ten eligibility points
    14  who has attained age 55 and, upon termination of service, has
    15  filed with the board an application for retirement shall be
    16  credited with an additional three years of Class A service. This
    17  subsection shall not apply in the case of judges or justices,
    18  legislators or other elected officials.

     1     Section 2.  Section 5706(a) of Title 71 is amended to read:
     2  § 5706.  Termination of annuities.
     3     (a)  General rule.--If the annuitant returns to State service
     4  or enters school service and elects multiple service membership,
     5  any annuity payable to him under this part shall cease and in
     6  the case of an annuity other than a disability annuity the
     7  present value of such annuity, adjusted for full coverage in the
     8  case of a joint coverage member who makes the appropriate back
     9  contributions for full coverage, shall be frozen as of the date
    10  such annuity ceases. An annuitant who is credited with an
    11  additional three years of Class A service as provided in section
    12  5302(d) (relating to credited service as retirement incentive)
    13  and who returns to State service shall forfeit such credited
    14  service and shall have his frozen present value adjusted
    15  accordingly. In the event that the cost-of-living increase
    16  enacted December 18, 1979 occurred during the period of such
    17  State or school employment, the frozen present value shall be
    18  increased, on or after the member attains superannuation age, by
    19  the percent applicable had he not returned to service. This
    20  subsection shall not apply in the case of any annuitant who may
    21  render services to the Commonwealth in the capacity of an
    22  independent contractor or as a member of an independent board or
    23  commission or as a member of a departmental administrative or
    24  advisory board or commission when such members of independent or
    25  departmental boards or commissions are compensated on a per diem
    26  basis for not more than 100 days per calendar year.
    27     * * *
    28     Section 3.  This act shall take effect immediately.


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