PRIOR PRINTER'S NO. 1565 PRINTER'S NO. 2105
No. 1346 Session of 1999
INTRODUCED BY STAIRS, COLAFELLA, BAKER, BASTIAN, BELFANTI,
BENNINGHOFF, CIVERA, L. I. COHEN, M. COHEN, COY, DALEY,
DALLY, DEMPSEY, FAIRCHILD, FICHTER, FLEAGLE, FRANKEL,
GRUCELA, HALUSKA, HANNA, HERMAN, HERSHEY, HESS, HUTCHINSON,
MARKOSEK, McCALL, McILHATTAN, ORIE, PESCI, PIPPY, READSHAW,
SAINATO, SANTONI, SEMMEL, SHANER, STERN, STEVENSON,
E. Z. TAYLOR, THOMAS, VAN HORNE, WILLIAMS, WILT, WOGAN,
WOJNAROSKI, YEWCIC, ZIMMERMAN, YOUNGBLOOD, SNYDER AND BROWNE,
APRIL 20, 1999
AS REPORTED FROM COMMITTEE ON EDUCATION, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 16, 1999
AN ACT
1 Amending Title 24 (Education) of the Pennsylvania Consolidated
2 Statutes, further providing for creditable nonschool service.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Sections 8304(b) and 8324(e) of Title 24 of the
6 Pennsylvania Consolidated Statutes are amended to read:
7 § 8304. Creditable nonschool service.
8 * * *
9 (b) Limitations on nonschool service.--Creditable nonschool
10 service credit shall be limited to:
11 (1) Intervening military service.
12 (2) Military service other than intervening military
13 service and activated military service not exceeding five
14 years provided that a member with multiple service may not
1 purchase more than a total of five years of military service
2 in both the system and the State Employees' Retirement
3 System.
4 (3) Service in any public school or public educational
5 institution in any state other than this Commonwealth or in
6 any territory or area under the jurisdiction of the United
7 States. This paragraph includes service, prior to July 1,
8 1965, at a community college established under the act of
9 August 24, 1963 (P.L.1132, No.484), known as the Community
10 College Act of 1963.
11 (4) Service as an administrator, teacher, or instructor
12 in the field of public school education for any agency or
13 department of the government of the United States whether or
14 not such area was under the jurisdiction of the United
15 States.
16 (5) Previous service as an employee of a county board of
17 school directors which employment was terminated because of
18 the transfer of the administration of such service or of the
19 entire agency to a governmental entity.
20 (6) Previous service as a county employee as a nurse.
21 For every three years or major fraction thereof in previous
22 work experience, an individual may buy one year of creditable
23 service, not to exceed a total of five years. The purchase of
24 this service shall begin within three years of the employee's
25 eligibility to purchase this creditable service.
26 (7) (i) Service for the period of time spent on a
27 maternity leave of absence required by the employer,
28 which creditable service shall not exceed two years per
29 leave and shall be applicable only to a maternity leave
30 which was mandatory prior to May 17, 1975. The purchase
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1 of this service shall begin within one year of the
2 employee's eligibility to purchase the creditable service
3 under this subparagraph as originally enacted by the act
4 of August 5, 1991 (P.L.183, No.23), entitled "An act
5 amending Titles 24 (Education) and 71 (State Government)
6 of the Pennsylvania Consolidated Statutes, further
7 providing for the Public School Employees' Retirement
8 System and the State Employees' Retirement System; adding
9 and amending certain definitions; further providing for
10 membership in the systems, for creditable nonschool and
11 nonstate service and the purchase of credit, for
12 incentives for special early retirement, for
13 contributions to the retirement funds, for annuities and
14 the rights and duties of annuitants, for health insurance
15 premium assistance, for board membership and for the re-
16 amortization and management of the retirement funds."
17 (ii) Service for the period of time spent on a
18 maternity leave of absence required by the employer,
19 which creditable service shall not exceed two years per
20 leave and shall be applicable only to a maternity leave
21 that was mandatory and began after May 16, 1975, and
22 prior to November 1, 1978. The purchase of this service
23 shall begin within one year of the employee's eligibility
24 to purchase the creditable service under this
25 subparagraph.
26 (8) Service in the Cadet Nurse Corps with respect to any
27 period of training as a student or graduate nurse under a
28 plan approved under section 2 of the act of June 15, 1943
29 (Public Law 78-73, 57 Stat. 153), if the total period of
30 training under the plan was at least two years, the credit
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1 for such service not to exceed three years.
2 (9) Previous work experience used by the member to
3 obtain certification as a vocational teacher under a
4 nonbaccalaureate program. The previous work experience used
5 to obtain certification shall be verified by the Department
6 of Education upon request of the member and shall be
7 transmitted to the system. For every two years of the
8 previous work experience, an individual can buy one year of
9 creditable service, not to exceed a total of three years. A
10 fraction of a year of the previous work experience that is
11 equal to or greater than one-half shall be considered one
12 year for purposes of this paragraph. The previous work
13 experience shall not include time served in an
14 apprenticeship. The purchase of this service shall begin
15 within three years of the employee's eligibility to purchase
16 this creditable service.
17 (10) PREVIOUS SERVICE AS A SCHOOL TEACHER OR INSTRUCTOR <--
18 OF SPECIAL EDUCATION CLASSES IN AN ACCREDITED PENNSYLVANIA-
19 APPROVED PRIVATE ELEMENTARY OR SECONDARY SCHOOL, IF THE
20 MEMBER WAS ENTITLED TO A PROVISIONAL OR PROFESSIONAL
21 CERTIFICATE TO TEACH IN THE PUBLIC SCHOOLS OF THIS
22 COMMONWEALTH AT THE TIME THIS SERVICE WAS RENDERED. FOR EVERY
23 THREE YEARS IN PREVIOUS WORK EXPERIENCE, AN INDIVIDUAL CAN
24 BUY ONE YEAR OF CREDITABLE SERVICE, NOT TO EXCEED A TOTAL OF
25 FIVE YEARS. THE PURCHASE OF THIS SERVICE SHALL BEGIN WITHIN
26 THREE YEARS OF THE EMPLOYEE'S ELIGIBILITY TO PURCHASE THIS
27 CREDITABLE SERVICE. THE DEPARTMENT OF EDUCATION MAY CHARGE AN
28 APPLICANT A FEE NECESSARY TO COVER ADMINISTRATIVE COSTS
29 INCURRED IN VERIFYING THE APPLICANT'S ELIGIBILITY FOR
30 CERTIFICATION.
19990H1346B2105 - 4 -
1 * * *
2 § 8324. Contributions for purchase of credit for creditable
3 nonschool service.
4 * * *
5 (e) Creditable work experience.--
6 (1) Contributions on account of T-C credit for
7 creditable work experience pursuant to section 8304(b)(6)
8 shall be the present value of the full actuarial cost of the
9 increase in the projected superannuation annuity caused by
10 the additional service credited on account of the purchase of
11 creditable work experience. [The amount paid for the purchase
12 of credit for creditable work experience shall not be payable
13 as a lump sum under section 8345(a)(4)(iii) (relating to
14 member's options).] Any individual eligible to receive an
15 annuity, excluding an annuity received under the Federal
16 Social Security Act (42 U.S.C. § 301 et seq.), in another
17 pension system, other than a military pension system, shall
18 not be eligible to purchase this service.
19 (2) Contributions on account of T-C credit for
20 creditable work experience pursuant to section 8304(b)(9)
21 shall be the increase in the present value at the time of
22 purchase attributable to the additional service credited on
23 account of the purchase of such creditable work experience,
24 calculated on the basis of the average annual compensation
25 received during the first three years of credited school
26 service subsequent to such creditable work experience.
27 (3) The amount paid for the purchase of service under
28 this subsection shall not be payable as a lump sum under
29 section 8345(a)(4)(iii) (relating to member's options).
30 (4) CONTRIBUTIONS ON ACCOUNT OF T-C CREDIT FOR <--
19990H1346B2105 - 5 -
1 CREDITABLE WORK EXPERIENCE PURSUANT TO SECTION 8304(B)(10)
2 SHALL BE THE PRESENT VALUE OF THE FULL ACTUARIAL COST OF THE
3 INCREASE IN THE PROJECTED SUPERANNUATION ANNUITY CAUSED BY
4 THE ADDITIONAL SERVICE CREDITED ON ACCOUNT OF THE PURCHASE OF
5 CREDITABLE WORK EXPERIENCE. ANY INDIVIDUAL ELIGIBLE TO
6 RECEIVE AN ANNUITY, EXCLUDING AN ANNUITY RECEIVED UNDER THE
7 SOCIAL SECURITY ACT, IN ANOTHER PENSION SYSTEM, OTHER THAN A
8 MILITARY PENSION SYSTEM, SHALL NOT BE ELIGIBLE TO PURCHASE
9 THIS SERVICE.
10 * * *
11 Section 2. This act shall take effect in 60 days.
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