PRINTER'S NO. 476
No. 417 Session of 1991
INTRODUCED BY VROON, FARGO, GEIST, FLICK, CLYMER, GANNON,
BARLEY, DEMPSEY, WILSON, FOX, NOYE, NYCE, BIRMELIN, HECKLER,
JOHNSON, CIVERA, SAURMAN AND FARMER, MARCH 11, 1991
REFERRED TO COMMITTEE ON EDUCATION, MARCH 11, 1991
AN ACT
1 Amending Title 24 (Education) of the Pennsylvania Consolidated
2 Statutes, further providing for administrative duties of the
3 board, for management of the fund and accounts and for
4 crediting of moneys to the fund.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Sections 8502(b), (g) and (l), 8521(c), (d) and
8 (g) and 8522 of Title 24 of the Pennsylvania Consolidated
9 Statutes are amended to read:
10 § 8502. Administrative duties of board.
11 * * *
12 (b) Professional personnel.--The board shall contract for
13 the services of a chief medical examiner, an actuary, investment
14 advisors, counselors, an investment coordinator, a master
15 trustee and such other professional personnel as it deems
16 advisable.
17 * * *
18 (g) Performance of employer duties.--In the event the
1 employer fails to comply with the procedures as mandated in
2 section 8506 (relating to duties of employers), the board shall
3 perform such duties and bill the employer who shall pay for the
4 cost of same. In the event the employer is delinquent in payment
5 of contributions in accordance with section 8327 (relating to
6 payments by employers), the board shall notify the Secretary of
7 Education and the [State Treasurer] master trustee of such
8 delinquency.
9 * * *
10 (l) Commonwealth payments.--The board shall within 30 days
11 following the end of each quarter determine the amount due to
12 the fund from the Commonwealth during that quarter and submit at
13 that time a requisition for the amount determined to be due from
14 the Commonwealth to the State Treasurer. The State Treasurer
15 shall transfer the Commonwealth payment to the board's master
16 trustee to be credited to the fund in accordance with section
17 8522 (relating to public school employees' retirement fund).
18 * * *
19 § 8521. Management of fund and accounts.
20 * * *
21 (c) Custodian of fund.--The [State Treasurer shall be] board
22 shall select a master trustee to serve as the custodian of the
23 fund.
24 (d) Payments from fund.--All payments from the fund shall be
25 made [by the State Treasurer in accordance with requisitions
26 signed] by the secretary of the board, or his designee, and
27 shall be ratified by resolution of the board. All payments shall
28 be made and reported in accordance with generally accepted
29 accounting principles and shall be reconciled monthly by the
30 secretary and audited annually by the board's independent
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1 auditor.
2 * * *
3 (g) Deposits in banks and trust companies.--For the purpose
4 of meeting disbursements for annuities and other payments in
5 excess of the receipts, there shall be kept available by the
6 [State Treasurer] board an amount, not exceeding 10% of the
7 total amount in the fund, on deposit in any bank, savings bank
8 or savings and loan association in this Commonwealth organized
9 under the laws thereof or under the laws of the United States or
10 with any trust company or companies incorporated by any law of
11 this Commonwealth, provided any of such banks, trust companies,
12 savings banks or savings and loan associations shall furnish
13 adequate security for said deposit. The sum deposited in any one
14 bank or trust company shall not exceed 25% of the paid-up
15 capital and surplus of said bank or trust company or, in the
16 case of savings banks or savings and loan associations, shall
17 not exceed 25% of the unappropriated surplus.
18 * * *
19 § 8522. Public School Employees' Retirement Fund.
20 The fund shall consist of all moneys in the several separate
21 funds [in the State Treasury] set apart to be used under the
22 direction of the board for the benefit of members of the
23 system[; and the Treasury Department shall credit]. The board
24 shall cause to be credited to the fund all moneys received from
25 the Department of Revenue and the employers arising from the
26 contributions required under the provisions of Chapter 83
27 (relating to membership, contributions and benefits) and all
28 earnings from investments or moneys of said fund. There shall be
29 established and maintained by the board the several ledger
30 accounts specified in sections 8523 (relating to members'
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1 savings account), 8524 (relating to State accumulation account)
2 and 8525 (relating to annuity reserve account).
3 Section 2. All acts and parts of acts are repealed insofar
4 as they are inconsistent with this act.
5 Section 3. This act shall take effect immediately.
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