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                                                       PRINTER'S NO. 152

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

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;
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     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.















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