PRINTER'S NO. 152
No. 126 Session of 2007
INTRODUCED BY GODSHALL, BELFANTI, BOYD, CALTAGIRONE, CLYMER, CURRY, DALEY, GEIST, GOODMAN, HALUSKA, HARPER, HENNESSEY, MOYER, MUNDY, MUSTIO, NICKOL, RAPP, REICHLEY, SCAVELLO, SIPTROTH, STEIL, STERN, YOUNGBLOOD AND ROSS, JANUARY 31, 2007
REFERRED TO COMMITTEE ON STATE GOVERNMENT, JANUARY 31, 2007
AN ACT 1 Amending Titles 24 (Education) and 71 (State Government) of the 2 Pennsylvania Consolidated Statutes, further providing for 3 employer contribution rates on behalf of active members. 4 The General Assembly of the Commonwealth of Pennsylvania 5 hereby enacts as follows: 6 Section 1. Section 8328(a) of Title 24 of the Pennsylvania 7 Consolidated Statutes is amended to read: 8 § 8328. Actuarial cost method. 9 (a) Employer contribution rate on behalf of active 10 members.--The amount of the total employer contributions on 11 behalf of all active members shall be computed by the actuary as 12 a percentage of the total compensation of all active members 13 during the period for which the amount is determined and shall 14 be so certified by the board. The total contribution rate on 15 behalf of all active members shall consist of the normal 16 contribution rate as defined in subsection (b), the accrued 17 liability contribution rate as defined in subsection (c) and the
1 supplemental annuity contribution rate as defined in subsection 2 (d). Beginning July 1, 2004, the total contribution rate shall 3 be modified by the experience adjustment factors as calculated 4 in subsection (e) but in no case shall it be less than: 5 (1) 4% plus the premium assistance contribution rate[.] 6 for the fiscal years beginning July 1, 2004, 2005 and 2006; 7 (2) 7% plus the premium assistance contribution rate for 8 the fiscal year beginning July 1, 2007; and 9 (3) the employer normal contribution rate plus the 10 premium assistance contribution rate for the fiscal year 11 beginning July 1, 2008, and thereafter. 12 * * * 13 Section 2. Section 5508(a) of Title 71 is amended to read: 14 § 5508. Actuarial cost method. 15 (a) Employer contribution rate on behalf of active 16 members.--The amount of the Commonwealth and other employer 17 contributions on behalf of all active members shall be computed 18 by the actuary as a percentage of the total compensation of all 19 active members during the period for which the amount is 20 determined and shall be so certified by the board. The total 21 employer contribution rate on behalf of all active members shall 22 consist of the employer normal contribution rate, as defined in 23 subsection (b), and the accrued liability contribution rate as 24 defined in subsection (c). The total employer contribution rate 25 shall be modified by the experience adjustment factor as 26 calculated in subsection (f) but in no case shall it be less 27 than zero. The total employer contribution rate shall be 28 modified by the experience adjustment factor as calculated in 29 subsection (f), but in no case shall it be less than: 30 (1) 2% for the fiscal year beginning July 1, 2004; 20070H0126B0152 - 2 -
1 (2) 3% for the fiscal year beginning July 1, 2005; [and] 2 (3) 4% for the fiscal year beginning July 1, 2006[.]; 3 (4) 5% for the fiscal year beginning July 1, 2007; 4 (5) 6% for the fiscal year beginning July 1, 2008; and 5 (6) the employer normal contribution rate for the fiscal 6 year beginning July 1, 2009, and thereafter. 7 * * * 8 Section 3. This act shall take effect in 60 days. L11L24MSP/20070H0126B0152 - 3 -