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| PRIOR PRINTER'S NOS. 3730, 3853, 3916 | PRINTER'S NO. 3928 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY D. EVANS, BRIGGS, PARKER, WILLIAMS, GALLOWAY, DePASQUALE, KORTZ, W. KELLER, MYERS, SHAPIRO AND SIPTROTH, MAY 11, 2010 |
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| AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES, JUNE 16, 2010 |
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| AN ACT |
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1 | Amending Titles 24 (Education) and 71 (State Government) of the |
2 | Pennsylvania Consolidated Statutes, in Title 24, further |
3 | providing for definitions, for contributions by the |
4 | Commonwealth, for payments by employers, for actuarial cost |
5 | method, for additional supplemental annuities, for further |
6 | additional supplemental annuities, for supplemental annuities |
7 | commencing 1994, for supplemental annuities commencing 1998, |
8 | for supplemental annuities commencing 2002, for supplemental |
9 | annuities commencing 2003, for administrative duties of |
10 | board, for payments to school entities by Commonwealth, for |
11 | eligibility points for retention and reinstatement of service |
12 | credits and for creditable nonschool service; providing for |
13 | election to become a Class T-F member; further providing for |
14 | classes of service, for eligibility for annuities, for |
15 | eligibility for vesting, for member contributions for |
16 | creditable school service, for contributions for purchase of |
17 | credit for creditable nonschool service, for maximum single |
18 | life annuity, for disability annuities, for member's options, |
19 | for duties of board regarding applications and elections of |
20 | members and for rights and duties of school employees and |
21 | members; in Title 71, providing for definitions; further |
22 | providing for credited State service, for retention and |
23 | reinstatement of service credits, for creditable NONSTATE |
24 | service and for classes of service; providing for election to |
25 | become a Class A-4 member; further providing for eligibility |
26 | for annuities, for eligibility for vesting, for waiver of |
27 | regular member contributions and Social Security integration |
28 | member contributions, for member contributions for purchase |
29 | of credit for previous State service or to become a full |
30 | coverage member, for contributions for the purchase of credit |
31 | for creditable nonstate service, for contributions by the |
32 | Commonwealth and other employers, for actuarial cost method, |
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1 | for maximum single life annuity, for disability annuities and |
2 | for member's options; providing for payment of accumulated |
3 | deductions resulting from Class A-3 service; further |
4 | providing for additional supplemental annuities, for further |
5 | additional supplemental annuities, for supplemental annuities |
6 | commencing 1994, for supplemental annuities commencing 1998, |
7 | for supplemental annuities commencing 2002, for supplemental |
8 | annuities commencing 2003, for special supplemental |
9 | postretirement adjustment of 2002, for administrative duties |
10 | of the board, for duties of board to advise and report to |
11 | heads of departments and members, for duties of board |
12 | regarding applications and elections of members, for |
13 | installment payments of accumulated deductions, for rights |
14 | and duties of State employees and members, for State |
15 | accumulation account, for State Police Benefit Account, for |
16 | Enforcement Officers' Benefit Account, for supplemental |
17 | annuity account and for construction of part; and providing |
18 | for recertification to the Secretary of the Budget, for |
19 | holding certain public officials harmless, for construction |
20 | of calculation or actuarial method and for certain |
21 | operational provisions. |
22 | The General Assembly of the Commonwealth of Pennsylvania |
23 | hereby enacts as follows: |
24 | Section 1. The definitions of "basic contribution rate," |
25 | "class of service multiplier," "employer," "standard single life |
26 | annuity," "superannuation or normal retirement age" and "vestee" |
27 | in section 8102 of Title 24 of the Pennsylvania Consolidated |
28 | Statutes are amended to read: |
29 | § 8102. Definitions. |
30 | The following words and phrases when used in this part shall |
31 | have, unless the context clearly indicates otherwise, the |
32 | meanings given to them in this section: |
33 | * * * |
34 | "Basic contribution rate." For Class T-A, T-B and T-C |
35 | service, the rate of 6 1/4%. For Class T-D service, the rate of |
36 | 7 1/2%. For all active members on the effective date of this |
37 | provision who are currently paying 5 1/4% and elect Class T-D |
38 | service, the rate of 6 1/2%. For Class T-E service, the rate of |
39 | 7 1/2%. For Class T-F service, the rate of 10.30%. |
40 | * * * |
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1 | "Class of service multiplier." |
2 | Class of service | Multiplier | 3 | T-A | .714 | 4 | T-B | .625 | 5 | T-C | 1.000 | 6 | T-D | 1.000 | 7 | T-E | 1.000 | 8 | T-F | 1.000 |
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9 | * * * |
10 | "Employer." Any governmental entity directly responsible for |
11 | the employment and payment of the school employee and charged |
12 | with the responsibility of providing public education within |
13 | this Commonwealth, including but not limited to: State-owned |
14 | colleges and universities, the Pennsylvania State University, |
15 | community colleges, area vocational-technical schools, |
16 | intermediate units, the State Board of Education, Scotland |
17 | School for Veterans' Children, Thaddeus Stevens [State School] |
18 | College of Technology, and the [Pennsylvania State Oral] Western |
19 | Pennsylvania School for the Deaf. |
20 | * * * |
21 | "Standard single life annuity." For Class T-A, T-B and T-C |
22 | credited service of a member, an annuity equal to 2% of the |
23 | final average salary, multiplied by the total number of years |
24 | and fractional part of a year of credited service of a member. |
25 | For Class T-D credited service of a member, an annuity equal to |
26 | 2.5% of the final average salary, multiplied by the total number |
27 | of years and fractional part of a year of credited service. For |
28 | Class T-E credited service of a member, an annuity equal to 2% |
29 | of the final average salary, multiplied by the total number of |
30 | years and fractional part of a year of credited service of a |
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1 | member. For Class T-F credited service of a member, an annuity |
2 | equal to 2.5% of the final average salary, multiplied by the |
3 | total number of years and fractional part of a year of credited |
4 | service of a member. |
5 | * * * |
6 | "Superannuation or normal retirement age." |
7 | Class of service | Age | 8 9 | T-A | 62 or any age upon accrual of 35 eligibility points | 10 | T-B | 62 | 11 12 13 14 15 | T-C and T-D | 62 or age 60 provided the member has at least 30 eligibility points or any age upon accrual of 35 eligibility points | 16 17 18 19 | T-E and T-F | 65 with accrual of at least three eligibility points or any age upon accrual of 35 eligibility points |
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20 | * * * |
21 | "Vestee." A member with five or more eligibility points who |
22 | has terminated school service, has left his accumulated |
23 | deductions in the fund and is deferring filing of an application |
24 | for receipt of an annuity. For Class T-E and Class T-F members, |
25 | a member with ten or more eligibility points who has terminated |
26 | school service, has left his accumulated deductions in the fund |
27 | and is deferring filing of an application for receipt of an |
28 | annuity. |
29 | Section 2. Sections 8303(c) and 8304(a) of Title 24 are |
30 | amended to read: |
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1 | § 8303. Eligibility points for retention and reinstatement of |
2 | service credits. |
3 | * * * |
4 | (c) Purchase of previous creditable service.--Every active |
5 | member of the system or a multiple service member who is an |
6 | active member of the State Employees' Retirement System on or |
7 | after the effective date of this part may purchase credit and |
8 | receive eligibility points: |
9 | (1) as a member of Class T-C, Class T-E or Class T-F for |
10 | previous school service or creditable nonschool service; or |
11 | (2) as a member of Class T-D for previous school |
12 | service, provided the member elects to become a Class T-D |
13 | member pursuant to section 8305.1 (relating to election to |
14 | become a Class T-D member); |
15 | upon written agreement by the member and the board as to the |
16 | manner of payment of the amount due for credit for such service; |
17 | except, that any purchase for reinstatement of service credit |
18 | shall be for all service previously credited. |
19 | § 8304. Creditable nonschool service. |
20 | (a) Eligibility.--An active member or a multiple service |
21 | member who is an active member of the State Employees' |
22 | Retirement System shall be eligible to receive Class T-C, Class |
23 | T-E or Class T-F service credit for creditable nonschool service |
24 | and Class T-D, Class T-E or Class T-F service for intervening |
25 | military service, provided the member becomes a Class T-D member |
26 | pursuant to section 8305.1 (relating to election to become a |
27 | Class T-D member) or Class T-F member pursuant to section 8305.2 |
28 | (relating to election to become a Class T-F member) or 8305 |
29 | (relating to classes of service), as set forth in subsection (b) |
30 | provided that he is not entitled to receive, eligible to receive |
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1 | now or in the future, or is receiving retirement benefits for |
2 | such service under a retirement system administered and wholly |
3 | or partially paid for by any other governmental agency or by any |
4 | private employer, or a retirement program approved by the |
5 | employer in accordance with section 8301(a)(1) (relating to |
6 | mandatory and optional membership), and further provided that |
7 | such service is certified by the previous employer and the |
8 | manner of payment of the amount due is agreed upon by the |
9 | member, the employer, and the board. |
10 | * * * |
11 | Section 3. Section 8305 of Title 24 is amended by adding |
12 | subsections to read: |
13 | § 8305. Classes of service. |
14 | * * * |
15 | (d) Class T-E membership.--Notwithstanding any other |
16 | provision, a person who first becomes a school employee and an |
17 | active member, or a person who first becomes a multiple service |
18 | member who is a State employee and a member of the State |
19 | Employees' Retirement System, on or after the effective date of |
20 | this subsection shall be classified as a Class T-E member upon |
21 | payment of regular member contributions. |
22 | (e) Class T-F membership.--Notwithstanding any other |
23 | provision, a person who first becomes a school employee and an |
24 | active member, or a person who first becomes a multiple service |
25 | member who is a State employee and a member of the State |
26 | Employees' Retirement System, on or after the effective date of |
27 | this subsection, and who is eligible to become a Class T-E |
28 | member, shall have the right to elect into Class T-F membership, |
29 | provided the person elects to become a Class T-F member pursuant |
30 | to section 8305.2 (relating to election to become a Class T-F |
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1 | member), upon written election filed with the board and payment |
2 | of regular member contributions. |
3 | Section 4. Title 24 is amended by adding a section to read: |
4 | § 8305.2. Election to become a Class T-F member. |
5 | (a) General rule.--A person who first becomes a school |
6 | employee and an active member, or a person who first becomes a |
7 | multiple service member who is a State employee and a member of |
8 | the State Employees' Retirement System, on or after the |
9 | effective date of this subsection and who is eligible to become |
10 | a Class T-E member may elect to become a member of Class T-F. |
11 | (b) Time for making election.--A member must elect to become |
12 | a Class T-F member by filing a written election with the board |
13 | within 45 days of notification by the board that such member is |
14 | eligible for such election. |
15 | (c) Effect of election.--An election to become a Class T-F |
16 | member shall be irrevocable. A member who elects Class T-F |
17 | membership shall receive Class T-F service credit on any and all |
18 | future service, regardless of whether the member terminates |
19 | service or has a break in service. |
20 | (d) Effect of failure to make election.--If a member fails |
21 | to timely file an election to become a Class T-F member, then |
22 | the member shall be enrolled as a member of Class T-E and the |
23 | member shall never be able to elect Class T-F service, |
24 | regardless of whether the member terminates service or has a |
25 | break in service. |
26 | Section 5. Sections 8307(b), 8308, 8323(a), (c) and (c.1), |
27 | 8324(a), (b), (d), (e) and (f), 8326(a), 8327(a) and (c), 8328, |
28 | 8342(a), 8344(d), 8345(a), 8348.1(f), 8348.2(f), 8348.3(f), |
29 | 8348.5(f), 8348.6(f), 8348.7(f) and 8502(k) of Title 24 are |
30 | amended to read: |
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1 | § 8307. Eligibility for annuities. |
2 | * * * |
3 | (b) Withdrawal annuity.--A vestee in Class T-C or Class T-D |
4 | with five or more eligibility points or an active or inactive |
5 | Class T-C or Class T-D member who terminates school service |
6 | having five or more eligibility points shall, upon filing a |
7 | proper application, be entitled to receive an early annuity. A |
8 | vestee in Class T-E or Class T-F with ten or more eligibility |
9 | points or an active or inactive Class T-E or Class T-F member |
10 | who terminates school service having ten or more eligibility |
11 | points shall, upon filing a proper application, be entitled to |
12 | receive an early annuity. |
13 | * * * |
14 | § 8308. Eligibility for vesting. |
15 | Any Class T-C or Class T-D member who terminates school |
16 | service with five or more eligibility points shall be entitled |
17 | to vest his retirement benefits until attainment of |
18 | superannuation age. Any Class T-E or Class T-F member who |
19 | terminates school service with ten or more eligibility points |
20 | shall be entitled to vest his retirement benefits until |
21 | attainment of superannuation age. |
22 | § 8323. Member contributions for creditable school service. |
23 | (a) Previous school service, sabbatical leave and full |
24 | coverage.--The contributions to be paid by an active member or |
25 | an eligible State employee for credit for reinstatement of all |
26 | previously credited school service, school service not |
27 | previously credited, sabbatical leave as if he had been in full- |
28 | time daily attendance, or full-coverage membership shall be |
29 | sufficient to provide an amount equal to the accumulated |
30 | deductions which would have been standing to the credit of the |
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1 | member for such service had regular member contributions been |
2 | made with full coverage at the rate of contribution necessary to |
3 | be credited as Class T-C service [or], Class T-D service if the |
4 | member is a Class T-D member, or Class T-E service if the member |
5 | is a Class T-E member, or Class T-F service if the member is a |
6 | Class T-F member, and had such contributions been credited with |
7 | statutory interest during the period the contributions would |
8 | have been made and during all periods of subsequent school and |
9 | State service up to the date of purchase. |
10 | * * * |
11 | (c) Approved leave of absence other than sabbatical leave |
12 | and activated military service leave.--The contributions to be |
13 | paid by an active member for credit for an approved leave of |
14 | absence, other than sabbatical leave and activated military |
15 | service leave, shall be sufficient to transfer his membership to |
16 | Class T-C or to Class T-D if the member is a Class T-D member or |
17 | to Class T-E if the member is a Class T-E member or to Class T-F |
18 | if the member is a Class T-F member and further to provide an |
19 | annuity as a Class T-C member or Class T-D member if the member |
20 | is a Class T-D member or Class T-E if the member is a Class T-E |
21 | member or to Class T-F if the member is a Class T-F member for |
22 | such additional credited service. Such amount shall be the sum |
23 | of the amount required in accordance with the provisions of |
24 | subsection (b) and an amount determined as the sum of the |
25 | member's basic contribution rate and the normal contribution |
26 | rate as provided in section 8328 (relating to actuarial cost |
27 | method) during such period multiplied by the compensation which |
28 | was received or which would have been received during such |
29 | period and with statutory interest during all periods of |
30 | subsequent school and State service up to the date of purchase. |
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1 | (c.1) Activated military service leave.--The contributions |
2 | to be paid by an active member for credit for all activated |
3 | military service leave as if he had been in regular attendance |
4 | in the duties for which he is employed shall be sufficient to |
5 | provide an amount equal to the accumulated deductions which |
6 | would have been standing to the credit of the member for such |
7 | service had regular member contributions been made with full |
8 | coverage at the rate of contribution necessary to be credited as |
9 | Class T-C service or Class T-D service if the member is a Class |
10 | T-D member or Class T-E service if the member is a Class T-E |
11 | member or Class T-F if the member is a Class T-F member and had |
12 | such contributions been credited with statutory interest during |
13 | the period the contributions would have been made and during all |
14 | periods of subsequent State and school service up to the date of |
15 | purchase. In the case of activated military service leave |
16 | beginning after the date of enactment of this subsection, |
17 | contributions due from the member shall be made as if he is in |
18 | regular attendance in the duties for which he is employed. |
19 | * * * |
20 | § 8324. Contributions for purchase of credit for creditable |
21 | nonschool service. |
22 | (a) Source of contributions.--The total contributions to |
23 | purchase credit as a member of Class T-C, Class T-E or Class T-F |
24 | for creditable nonschool service of an active member or an |
25 | eligible State employee shall be paid either by the member, the |
26 | member's previous employer, the Commonwealth, or a combination |
27 | thereof, as provided by law. |
28 | (b) Nonintervening military service.--The amount due for the |
29 | purchase of credit for military service other than intervening |
30 | military service shall be determined by applying the member's |
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1 | basic contribution rate plus the normal contribution rate as |
2 | provided in section 8328 (relating to actuarial cost method) at |
3 | the time of entry of the member into school service subsequent |
4 | to such military service to one-third of his total compensation |
5 | received during the first three years of such subsequent |
6 | credited school service and multiplying the product by the |
7 | number of years and fractional part of a year of creditable |
8 | nonintervening military service being purchased together with |
9 | statutory interest during all periods of subsequent school and |
10 | State service to date of purchase. Upon certification of the |
11 | amount due, payment may be made in a lump sum within 90 days or |
12 | in the case of an active member or an eligible State employee |
13 | who is an active member of the State Employees' Retirement |
14 | System it may be amortized with statutory interest through |
15 | salary deductions in amounts agreed upon by the member and the |
16 | board. The salary deduction amortization plans agreed to by |
17 | members and the board may include a deferral of payment amounts |
18 | and statutory interest until the termination of school service |
19 | or State service as the board in its sole discretion decides to |
20 | allow. The board may limit salary deduction amortization plans |
21 | to such terms as the board in its sole discretion determines. In |
22 | the case of an eligible State employee who is an active member |
23 | of the State Employees' Retirement System, the agreed upon |
24 | salary deductions shall be remitted to the State Employees' |
25 | Retirement Board, which shall certify and transfer to the board |
26 | the amounts paid. Application may be filed for all such military |
27 | service credit upon completion of three years of subsequent |
28 | credited school service and shall be credited as Class T-C |
29 | service. In the event that a Class T-E member makes a purchase |
30 | of credit for such military service, then such service shall be |
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1 | credited as Class T-E service. In the event that a Class T-F |
2 | member makes a purchase of credit for such military service, |
3 | then such service shall be credited as Class T-F service. |
4 | * * * |
5 | (d) Other creditable nonschool service.--Contributions on |
6 | account of Class T-C, Class T-E or Class T-F credit for |
7 | creditable nonschool service other than military service shall |
8 | be determined by applying the member's basic contribution rate |
9 | plus the normal contribution rate as provided in section 8328 at |
10 | the time of the member's entry into school service subsequent to |
11 | such creditable nonschool service to his total compensation |
12 | received during the first year of subsequent credited school |
13 | service and multiplying the product by the number of years and |
14 | fractional part of a year of creditable nonschool service being |
15 | purchased together with statutory interest during all periods of |
16 | subsequent school or State service to the date of purchase, |
17 | except that in the case of purchase of credit for creditable |
18 | nonschool service as set forth in section 8304(b)(5) (relating |
19 | to creditable nonschool service) the member shall pay only the |
20 | employee's share unless otherwise provided by law. Upon |
21 | certification of the amount due, payment may be made in a lump |
22 | sum within 90 days or in the case of an active member or an |
23 | eligible State employee who is an active member of the State |
24 | Employees' Retirement System it may be amortized with statutory |
25 | interest through salary deductions in amounts agreed upon by the |
26 | member and the board. The salary deduction amortization plans |
27 | agreed to by the members and the board may include a deferral of |
28 | payment amounts and statutory interest until the termination of |
29 | school service or State service as the board in its sole |
30 | discretion decides to allow. The board may limit salary |
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1 | deduction amortization plans to such terms as the board in its |
2 | sole discretion determines. In the case of an eligible State |
3 | employee who is an active member of the State Employees' |
4 | Retirement System, the agreed upon salary deductions shall be |
5 | remitted to the State Employees' Retirement Board, which shall |
6 | certify and transfer to the board the amounts paid. |
7 | (e) Creditable work experience.--Contributions on account of |
8 | Class T-C, Class T-E or Class T-F credit for creditable work |
9 | experience pursuant to section 8304(b)(6) shall be the present |
10 | value of the full actuarial cost of the increase in the |
11 | projected superannuation annuity caused by the additional |
12 | service credited on account of the purchase of creditable work |
13 | experience. The amount paid for the purchase of credit for |
14 | creditable work experience shall not be payable as a lump sum |
15 | under section 8345(a)(4)(iii) (relating to member's options). |
16 | Any individual eligible to receive an annuity, excluding an |
17 | annuity received under the Federal Social Security Act (42 |
18 | U.S.C. § 301 et seq.), in another pension system, other than a |
19 | military pension system, shall not be eligible to purchase this |
20 | service. |
21 | (f) Creditable maternity leave.--Contributions on account of |
22 | Class T-C, Class T-E or Class T-F credit for creditable |
23 | maternity leave pursuant to section 8304(b)(7) shall be |
24 | determined by applying the member's basic contribution rate plus |
25 | the normal contribution rate as provided in section 8328 at the |
26 | time of the member's return to school service to the total |
27 | compensation received during the first year of subsequent school |
28 | service and multiplying the product by the number of years and |
29 | fractional part of a year of creditable service being purchased, |
30 | together with statutory interest during all periods of |
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1 | subsequent school or State service to the date of purchase. The |
2 | amount paid for the purchase of credit for creditable maternity |
3 | leave shall not be eligible for withdrawal as a lump sum under |
4 | section 8345(a)(4)(iii). |
5 | § 8326. Contributions by the Commonwealth. |
6 | (a) Contributions on behalf of active members.--The |
7 | Commonwealth shall make contributions into the fund on behalf of |
8 | all active members, including members on activated military |
9 | service leave, in an amount equal to one-half the amount |
10 | certified by the board as necessary to provide, together with |
11 | the members' contributions, annuity reserves on account of |
12 | prospective annuities as provided in this part in accordance |
13 | with section 8328[(a), (b), (c) and (e)] (relating to actuarial |
14 | cost method). In case a school employee has elected membership |
15 | in a retirement program approved by the employer, the |
16 | Commonwealth shall contribute to such program on account of his |
17 | membership an amount no greater than the amount it would have |
18 | contributed had the employee been a member of the Public School |
19 | Employees' Retirement System. |
20 | * * * |
21 | § 8327. Payments by employers. |
22 | (a) General rule.--Each employer, including the Commonwealth |
23 | as employer of employees of the Department of Education, State- |
24 | owned colleges and universities, Thaddeus Stevens [State School] |
25 | College of Technology, [Pennsylvania State Oral] Western |
26 | Pennsylvania School for the Deaf, Scotland School for Veterans' |
27 | Children, and the Pennsylvania State University, shall make |
28 | payments to the fund each quarter in an amount equal to one-half |
29 | the sum of the percentages, as determined under section 8328 |
30 | (relating to actuarial cost method), applied to the total |
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1 | compensation during the pay periods in the preceding quarter of |
2 | all its employees who were members of the system during such |
3 | period, including members on activated military service leave. |
4 | In the event a member on activated military service leave does |
5 | not return to service for the necessary time or receives an |
6 | undesirable, bad conduct or dishonorable discharge or does not |
7 | elect to receive credit for activated military service under |
8 | section 8302(b.1)(3) (relating to credited school service), the |
9 | contributions made by the employer on behalf of such member |
10 | shall be returned with valuation interest upon application by |
11 | the employer. |
12 | * * * |
13 | (c) Payments by employers after June 30, 1995.--After June |
14 | 30, 1995, each employer, including the Commonwealth as employer |
15 | of employees of the Department of Education, State-owned |
16 | colleges and universities, Thaddeus Stevens [State School] |
17 | College of Technology, [Pennsylvania State Oral] Western |
18 | Pennsylvania School for the Deaf, Scotland School for Veterans' |
19 | Children and The Pennsylvania State University, shall make |
20 | payments to the fund each quarter in an amount computed in the |
21 | following manner: |
22 | (1) For an employer that is a school entity, the amount |
23 | shall be the sum of the percentages as determined under |
24 | section 8328 applied to the total compensation during the pay |
25 | periods in the preceding quarter of all employees who were |
26 | active members of the system during such period, including |
27 | members on activated military service leave. In the event a |
28 | member on activated military service leave does not return to |
29 | service for the necessary time or receives an undesirable, |
30 | bad conduct or dishonorable discharge or does not elect to |
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1 | receive credit for activated military service under section |
2 | 8302(b.1)(3), the contribution made by the employer on behalf |
3 | of such member shall be returned with valuation interest upon |
4 | application by the employer. |
5 | (2) For an employer that is not a school entity, the |
6 | amount computed under subsection (a). |
7 | (3) For any employer, whether or not a school entity, in |
8 | computing the amount of payment due each quarter, there shall |
9 | be excluded from the total compensation referred to in this |
10 | subsection and subsection (a) any amount of compensation of a |
11 | noneligible member on the basis of which member contributions |
12 | have not been made by reason of the limitation under IRC § |
13 | 401(a)(17). Any amount of contribution to the fund paid by |
14 | the employer on behalf of a noneligible member on the basis |
15 | of compensation which was subject to exclusion from total |
16 | compensation in accordance with the provisions of this |
17 | paragraph shall, upon the board's determination or upon |
18 | application by the employer, be returned to the employer with |
19 | valuation interest. |
20 | § 8328. Actuarial cost method. |
21 | (a) Employer contribution rate [on behalf of active |
22 | members].--The amount of the total employer contributions [on |
23 | behalf of all active members] shall be computed by the actuary |
24 | as a percentage of the total compensation of all active members |
25 | during the period for which the amount is determined and shall |
26 | be so certified by the board. The total employer contribution |
27 | rate shall be the sum of the final contribution rate as computed |
28 | in subsection (h) plus the premium assistance contribution rate |
29 | as computed in subsection (f). The [total] actuarially required |
30 | contribution rate [on behalf of all active members] shall |
|
1 | consist of the normal contribution rate as defined in subsection |
2 | (b), the accrued liability contribution rate as defined in |
3 | subsection (c) and the supplemental annuity contribution rate as |
4 | defined in subsection (d). Beginning July 1, 2004, the [total] |
5 | actuarially required contribution rate shall be modified by the |
6 | experience adjustment factors as calculated in subsection (e) |
7 | [but in no case shall it be less than 4% plus the premium |
8 | assistance contribution rate]. |
9 | (b) Normal contribution rate.--The normal contribution rate |
10 | shall be determined after each actuarial valuation. [Until all |
11 | accrued liability contributions have been completed, the] The |
12 | normal contribution rate shall be determined, on the basis of |
13 | the actuarial cost method, an annual interest rate and such |
14 | mortality and other tables as shall be adopted by the board in |
15 | accordance with generally accepted actuarial principles, as a |
16 | level percentage of the compensation of the average new active |
17 | member, which percentage, if contributed on the basis of his |
18 | prospective compensation through the entire period of active |
19 | school service, would be sufficient to fund the liability for |
20 | any prospective benefit payable to him, in excess of that |
21 | portion funded by his prospective member contributions[, except |
22 | for the supplemental benefits provided in sections 8348 |
23 | (relating to supplemental annuities), 8348.1 (relating to |
24 | additional supplemental annuities), 8348.2 (relating to further |
25 | additional supplemental annuities), 8348.3 (relating to |
26 | supplemental annuities commencing 1994), 8348.4 (relating to |
27 | special supplemental postretirement adjustment), 8348.5 |
28 | (relating to supplemental annuities commencing 1998), 8348.6 |
29 | (relating to supplemental annuities commencing 2002) and 8348.7 |
30 | (relating to supplemental annuities commencing 2003)]. |
|
1 | (c) Accrued liability contribution rate.-- |
2 | (1) For the fiscal [year] years beginning July 1, 2002, |
3 | and ending June 30, 2011, the accrued liability contribution |
4 | rate shall be computed as the rate of total compensation of |
5 | all active members which shall be certified by the actuary as |
6 | sufficient to fund over a period of ten years from July 1, |
7 | 2002, the present value of the liabilities for all |
8 | prospective benefits of active members, except for the |
9 | supplemental benefits provided in sections 8348 (relating to |
10 | supplemental annuities), 8348.1 (relating to additional |
11 | supplemental annuities), 8348.2 (relating to further |
12 | additional supplemental annuities), 8348.3 (relating to |
13 | supplemental annuities commencing 1994), 8348.4 (relating to |
14 | special supplemental postretirement adjustment), 8348.5 |
15 | (relating to supplemental annuities commencing 1998), 8348.6 |
16 | (relating to supplemental annuities commencing 2002) and |
17 | 8348.7 (relating to supplemental annuities commencing 2003), |
18 | in excess of the total assets in the fund (calculated by |
19 | recognizing the actuarially expected investment return |
20 | immediately and recognizing the difference between the actual |
21 | investment return and the actuarially expected investment |
22 | return over a five-year period), excluding the balance in the |
23 | annuity reserve account, and of the present value of normal |
24 | contributions and of member contributions payable with |
25 | respect to all active members on July 1, 2002, during the |
26 | remainder of their active service. |
27 | (2) [Thereafter] For the fiscal years beginning July 1, |
28 | 2003, and ending June 30, 2011, the amount of each annual |
29 | accrued liability contribution shall be equal to the amount |
30 | of such contribution for the fiscal year, beginning July 1, |
|
1 | 2002, except that, if the accrued liability is increased by |
2 | legislation enacted subsequent to June 30, 2002, but before |
3 | July 1, 2003, such additional liability shall be funded over |
4 | a period of ten years from the first day of July, coincident |
5 | with or next following the effective date of the increase. |
6 | The amount of each annual accrued liability contribution for |
7 | such additional legislative liabilities shall be equal to the |
8 | amount of such contribution for the first annual payment. |
9 | (3) Notwithstanding any other provision of law, |
10 | beginning July 1, 2004, and ending June 30, 2011, the |
11 | outstanding balance of the increase in accrued liability due |
12 | to the change in benefits enacted in 2001 and the outstanding |
13 | balance of the net actuarial loss incurred in fiscal year |
14 | 2000-2001 shall be amortized in equal dollar annual |
15 | contributions over a period that ends 30 years after July 1, |
16 | 2002, and the outstanding balance of the net actuarial loss |
17 | incurred in fiscal year 2001-2002 shall be amortized in equal |
18 | dollar annual contributions over a period that ends 30 years |
19 | after July 1, 2003. For fiscal years beginning on or after |
20 | July 1, 2004, if the accrued liability is increased by |
21 | legislation enacted subsequent to June 30, 2003, such |
22 | additional liability shall be funded in equal dollar annual |
23 | contributions over a period of ten years from the first day |
24 | of July coincident with or next following the effective date |
25 | of the increase. |
26 | (4) For the fiscal year beginning July 1, 2011, the |
27 | accrued liability contribution rate shall be computed as the |
28 | rate of total compensation of all active members which shall |
29 | be certified by the actuary as sufficient to fund as a level |
30 | percentage of compensation over a period of 30 years from |
|
1 | July 1, 2011, the present value of the liabilities for all |
2 | prospective benefits calculated as of June 30, 2010, |
3 | including the supplemental benefits as provided in sections |
4 | 8348, 8348.1, 8348.2, 8348.3, 8348.4, 8348.5, 8348.6 and |
5 | 8348.7, in excess of the actuarially calculated assets in the |
6 | fund (calculated recognizing all realized and unrealized |
7 | investment gains and losses each year in level annual |
8 | installments over a ten-year period). In the event that the |
9 | accrued liability is increased by legislation enacted |
10 | subsequent to June 30, 2010, such additional liability shall |
11 | be funded as a level percentage of compensation over a period |
12 | of ten years from the July 1 second succeeding the date such |
13 | legislation is enacted. |
14 | (d) Supplemental annuity contribution rate.--[Contributions] |
15 | (1) For the period of July 1, 2002, to June 30, 2011, |
16 | contributions from the Commonwealth and other employers |
17 | required to provide for the payment of the supplemental |
18 | annuities provided for in sections 8348, 8348.1, 8348.2, |
19 | 8348.4 and 8348.5 shall be paid over a period of ten years |
20 | from July 1, 2002. The funding for the supplemental annuities |
21 | commencing 2002 provided for in section 8348.6 shall be as |
22 | provided in section 8348.6(f). The funding for the |
23 | supplemental annuities commencing 2003 provided for in |
24 | section 8348.7 shall be as provided in section 8348.7(f). The |
25 | amount of each annual supplemental annuities contribution |
26 | shall be equal to the amount of such contribution for the |
27 | fiscal year beginning July 1, 2002. [In the event that |
28 | supplemental annuities are increased by legislation enacted |
29 | subsequent to June 30, 2002, the additional liability for the |
30 | increased benefits to be amortized shall be funded in equal |
|
1 | dollar annual installments over a period of ten years.] |
2 | (2) For fiscal years beginning July 1, 2011, |
3 | contributions from the Commonwealth and other employers whose |
4 | employees are members of the system required to provide for |
5 | the payment of supplemental annuities as provided in sections |
6 | 8348, 8348.1, 8348.2, 8348.3, 8348.4, 8348.5, 8348.6 and |
7 | 8348.7 shall be paid as part of the accrued liability |
8 | contribution rate as provided for in subsection (c)(4), and |
9 | there shall not be a separate supplemental annuity |
10 | contribution rate attributable to those supplemental |
11 | annuities. In the event that supplemental annuities are |
12 | increased by legislation enacted subsequent to June 30, 2010, |
13 | the additional liability for the increase in benefits shall |
14 | be funded as a level percentage of compensation over a period |
15 | of ten years from the July 1 second succeeding the date such |
16 | legislation is enacted. |
17 | (e) Experience adjustment factor.-- |
18 | (1) For each year after the establishment of the accrued |
19 | liability contribution rate for the fiscal year beginning |
20 | July 1, [2002] 2011, any increase or decrease in the unfunded |
21 | accrued liability, excluding the gains or losses on the |
22 | assets of the health insurance account, due to actual |
23 | experience differing from assumed experience, changes in |
24 | actuarial assumptions, changes in contributions caused by the |
25 | final contribution rate being different from the actuarially |
26 | required contribution rate or changes in the terms and |
27 | conditions of the benefits provided by the system by |
28 | judicial, administrative or other processes other than |
29 | legislation, including, but not limited to, reinterpretation |
30 | of the provisions of this part, shall be amortized [in equal |
|
1 | dollar annual contributions] as a level percentage of |
2 | compensation over a period of [ten] 30 years beginning with |
3 | the July 1 second succeeding the actuarial valuation |
4 | determining said increases or decreases. |
5 | (2) [Notwithstanding the provisions of paragraph (1), |
6 | for each year after the establishment of the accrued |
7 | liability contribution rate for the fiscal year beginning |
8 | July 1, 2003, any increase or decrease in the unfunded |
9 | accrued liability, excluding the gains or losses on the |
10 | assets of the health insurance account, due to actual |
11 | experience differing from assumed experience, changes in |
12 | actuarial assumptions, changes in the terms and conditions of |
13 | the benefits provided by the system by judicial, |
14 | administrative or other processes other than legislation, |
15 | including, but not limited to, reinterpretation of the |
16 | provisions of this part, shall be amortized in equal dollar |
17 | annual contributions over a period of 30 years beginning with |
18 | the July 1 second succeeding the actuarial valuation |
19 | determining said increases and decreases] (Reserved). |
20 | (f) Premium assistance contribution rate.--For each fiscal |
21 | year beginning with July 1, 1991, the total contribution rate as |
22 | calculated according to this section shall be increased annually |
23 | in the full amount certified by the board as necessary to fund |
24 | the premium assistance program in accordance with section 8509 |
25 | (relating to health insurance premium assistance program), |
26 | notwithstanding any other provisions of this section. |
27 | (g) Temporary application of collared contribution rate.-- |
28 | (1) The collared contribution rate for each year shall |
29 | be determined by comparing the actuarially required |
30 | contribution rate, calculated without regard for the costs |
|
1 | added by legislation, to the prior year's final contribution |
2 | rate. |
3 | (2) If, for any of the fiscal years beginning July 1, |
4 | 2011, July 1, 2012, and on or after July 1, 2013, the |
5 | actuarially required contribution rate, calculated without |
6 | regard for the costs added by legislation, is more than 3%, |
7 | 3.5% and 4.5%, respectively, of the total compensation of all |
8 | active members greater than the prior year's final |
9 | contribution rate, then the collared contribution rate shall |
10 | be applied and be equal to the prior year's final |
11 | contribution rate increased by 3%, 3.5% and 4.5%, |
12 | respectively, of total compensation of all active members. |
13 | Otherwise, and for all other fiscal years, the collared |
14 | contribution rate shall not be applicable. In no case shall |
15 | the collared contribution rate be less than 4% of the total |
16 | compensation of all active members. |
17 | (h) Final contribution rate.-- |
18 | (1) For the fiscal year beginning July 1, 2010, the |
19 | final contribution rate shall be 5% of the total compensation |
20 | of all active members. For each subsequent fiscal year for |
21 | which the collared contribution rate is applicable, the final |
22 | contribution rate shall be the collared contribution rate as |
23 | calculated in subsection (g), plus the costs added by |
24 | legislation. |
25 | (2) For all other fiscal years, the final contribution |
26 | rate shall be the actuarially required contribution rate, |
27 | provided that the final contribution rate shall not be less |
28 | than the normal contribution rate as provided in subsection |
29 | (b). |
30 | (i) Definitions.--As used in this section, the following |
|
1 | words and phrases shall have the meanings given to them in this |
2 | subsection unless the context clearly indicates otherwise: |
3 | "Actuarially required contribution rate." The sum of the |
4 | following: |
5 | (1) the normal contribution rate as calculated in |
6 | subsection (b); |
7 | (2) the accrued liability contribution rate as |
8 | calculated in subsection (c); |
9 | (3) the supplemental annuity contribution rate as |
10 | calculated in subsection (d); |
11 | (4) the experience adjustment factor as calculated in |
12 | subsection (e); and |
13 | (5) any costs added by legislation enacted prior to the |
14 | last actuarial valuation. |
15 | "Costs added by legislation." The sum, if positive, of all |
16 | changes in the actuarially required contribution rate resulting |
17 | from legislation enacted in the year since the last actuarial |
18 | valuation and not included in the determination of the prior |
19 | year's final contribution rate, computed as the rate of total |
20 | compensation of all active members certified by the actuary as |
21 | sufficient to make the employer normal contributions and |
22 | sufficient to amortize legislatively created changes in the |
23 | unfunded actuarial liability as a level percentage of |
24 | compensation over a period of ten years from the July 1 second |
25 | succeeding the date of enactment. |
26 | § 8342. Maximum single life annuity. |
27 | (a) General rule.--Upon termination of service, any full |
28 | coverage member who is eligible to receive an annuity pursuant |
29 | to the provisions of section 8307(a) or (b) (relating to |
30 | eligibility for annuities) and has made an application in |
|
1 | accordance with the provisions of section 8507(f) (relating to |
2 | rights and duties of school employees and members) shall be |
3 | entitled to receive a maximum single life annuity attributable |
4 | to his credited service and equal to the sum of the following |
5 | single life annuities beginning at the effective date of |
6 | retirement and, in case the member on the effective date of |
7 | retirement is under superannuation age, multiplied by a |
8 | reduction factor calculated to provide benefits actuarially |
9 | equivalent to an annuity starting at superannuation age: |
10 | Provided however, That on or after July 1, 1976, in the case of |
11 | any Class T-C, T-D, T-E or T-F member who has attained age 55 |
12 | and has 25 or more eligibility points such sum of single life |
13 | annuities shall be reduced by a percentage determined by |
14 | multiplying the number of months, including a fraction of a |
15 | month as a full month, by which the effective date of retirement |
16 | precedes superannuation age by 1/4%: |
17 | (1) A standard single life annuity multiplied by the |
18 | class of service multiplier and calculated on the basis of |
19 | the number of years of credited school service other than |
20 | concurrent service. |
21 | (2) A standard single life annuity multiplied by the |
22 | class of service multiplier and calculated on the basis of |
23 | the number of years of concurrent service and multiplied by |
24 | the ratio of total compensation received in the school system |
25 | during the period of concurrent service to the total |
26 | compensation received during such period. |
27 | (3) A supplemental annuity such that the total annuity |
28 | prior to any optional modification or any reduction due to |
29 | retirement prior to superannuation age shall be at least $100 |
30 | for each full year of credited service. |
|
1 | * * * |
2 | § 8344. Disability annuities. |
3 | * * * |
4 | (d) Withdrawal of accumulated deductions.--Upon termination |
5 | of disability annuity payments in excess of an annuity |
6 | calculated in accordance with section 8342, a disability |
7 | annuitant who: |
8 | (1) is a Class T-C or Class T-D member; or |
9 | (2) is a Class T-E or Class T-F member with less than |
10 | ten eligibility points |
11 | and who does not return to school service may file an |
12 | application with the board for an amount equal to the |
13 | accumulated deductions standing to his credit at the effective |
14 | date of disability less the total payments received on account |
15 | of his member's annuity. |
16 | * * * |
17 | § 8345. Member's options. |
18 | (a) General rule.--Any Class T-C or Class T-D member who is |
19 | a vestee with five or more eligibility points, any Class T-E or |
20 | Class T-F member who is a vestee with ten or more eligibility |
21 | points, or any other eligible member upon termination of school |
22 | service who has not withdrawn his accumulated deductions as |
23 | provided in section 8341 (relating to return of accumulated |
24 | deductions) may apply for and elect to receive either a maximum |
25 | single life annuity, as calculated in accordance with the |
26 | provisions of section 8342 (relating to maximum single life |
27 | annuity), or a reduced annuity certified by the actuary to be |
28 | actuarially equivalent to the maximum single life annuity and in |
29 | accordance with one of the following options, except that no |
30 | member shall elect an annuity payable to one or more survivor |
|
1 | annuitants other than his spouse or alternate payee of such a |
2 | magnitude that the present value of the annuity payable to him |
3 | for life plus any lump sum payment he may have elected to |
4 | receive is less than 50% of the present value of his maximum |
5 | single life annuity. |
6 | (1) Option 1.--A life annuity to the member with a |
7 | guaranteed total payment equal to the present value of the |
8 | maximum single life annuity on the effective date of |
9 | retirement with the provision that, if, at his death, he has |
10 | received less than such present value, the unpaid balance |
11 | shall be payable to his beneficiary. |
12 | (2) Option 2.--A joint and survivor annuity payable |
13 | during the lifetime of the member with the full amount of |
14 | such annuity payable thereafter to his survivor annuitant, if |
15 | living at his death. |
16 | (3) Option 3.--A joint and fifty percent (50%) survivor |
17 | annuity payable during the lifetime of the member with one- |
18 | half of such annuity payable thereafter to his survivor |
19 | annuitant, if living at his death. |
20 | (4) Option 4.--Some other benefit which shall be |
21 | certified by the actuary to be actuarially equivalent to the |
22 | maximum single life annuity, subject to the following |
23 | restrictions: |
24 | (i) Any annuity shall be payable without reduction |
25 | during the lifetime of the member. |
26 | (ii) The sum of all annuities payable to the |
27 | designated survivor annuitants shall not be greater than |
28 | one and one-half times the annuity payable to the member. |
29 | (iii) A portion of the benefit may be payable as a |
30 | lump sum, except that such lump sum payment shall not |
|
1 | exceed an amount equal to the accumulated deductions |
2 | standing to the credit of the member. The balance of the |
3 | present value of the maximum single life annuity adjusted |
4 | in accordance with section 8342(b) shall be paid in the |
5 | form of an annuity with a guaranteed total payment, a |
6 | single life annuity, or a joint and survivor annuity or |
7 | any combination thereof but subject to the restrictions |
8 | of subparagraphs (i) and (ii) of this paragraph. This |
9 | subparagraph shall not apply to a Class T-E or Class T-F |
10 | member. |
11 | * * * |
12 | § 8348.1. Additional supplemental annuities. |
13 | * * * |
14 | (f) Funding.--The actuary shall annually certify the amount |
15 | of Commonwealth appropriations for the next fiscal year needed |
16 | to fund, over a period of ten years from July 1, 2002, the |
17 | additional monthly supplemental annuity provided for in this |
18 | section[. The board shall submit the actuary's certification to |
19 | the Secretary of the Budget on or before November 1 of each |
20 | year. If, in any year after 1984, the amount certified is |
21 | disapproved under section 610 of the act of April 9, 1929 |
22 | (P.L.177, No.175), known as The Administrative Code of 1929, as |
23 | insufficient to meet the funding requirements of this subsection |
24 | or is not appropriated on or before July 1, the additional |
25 | supplemental annuity provided for in this section shall be |
26 | suspended until such time as an amount certified and approved as |
27 | sufficient is appropriated], which amounts shall be paid during |
28 | the period beginning July 1, 2002, and ending June 30, 2011. For |
29 | fiscal years beginning on or after July 1, 2011, the additional |
30 | liability provided in this section shall be funded as part of |
|
1 | the actuarial accrued liability as provided in section 8328 |
2 | (relating to actuarial cost method). |
3 | * * * |
4 | § 8348.2. Further additional supplemental annuities. |
5 | * * * |
6 | (f) Funding.--The actuary shall annually estimate the amount |
7 | of Commonwealth appropriations for the next fiscal year needed |
8 | to fund, over a period of ten years from July 1, 2002, the |
9 | additional monthly supplemental annuity provided for in this |
10 | section[. The board shall submit the actuary's estimation to the |
11 | Secretary of the Budget on or before November 1 of each year. |
12 | If, in any year after 1988, the amount estimated is disapproved |
13 | under section 610 of the act of April 9, 1929 (P.L.177, No.175), |
14 | known as The Administrative Code of 1929, as insufficient to |
15 | meet the funding requirements of this subsection or is not |
16 | appropriated on or before July 1, the additional supplemental |
17 | annuity provided for in this section shall be suspended until |
18 | such time as an amount certified and approved as sufficient is |
19 | appropriated], which amounts shall be paid during the period |
20 | beginning July 1, 2002, and ending June 30, 2011. For fiscal |
21 | years beginning on or after July 1, 2011, the additional |
22 | liability provided in this section shall be funded as part of |
23 | the actuarial accrued liability as provided in section 8328 |
24 | (relating to actuarial cost method). |
25 | * * * |
26 | § 8348.3. Supplemental annuities commencing 1994. |
27 | * * * |
28 | (f) Funding.--[The] |
29 | (1) For the period beginning July 1, 2002, and ending |
30 | June 30, 2011, the additional liability for the increase in |
|
1 | benefits provided in this section shall be funded in equal |
2 | dollar annual installments over a period of ten years |
3 | beginning July 1, 2002. |
4 | (2) For fiscal years beginning on or after July 1, 2011, |
5 | the additional liability provided in this section shall be |
6 | funded as part of the actuarial accrued liability as provided |
7 | in section 8328 (relating to actuarial cost method). |
8 | * * * |
9 | § 8348.5. Supplemental annuities commencing 1998. |
10 | * * * |
11 | (f) Funding.--[The] |
12 | (1) For the period beginning July 1, 2002, and ending |
13 | June 30, 2011, the additional liability for the increase in |
14 | benefits provided in this section shall be funded in equal |
15 | dollar annual installments over a period of ten years |
16 | beginning July 1, 2002. |
17 | (2) For fiscal years beginning on or after July 1, 2011, |
18 | the additional liability provided in this section shall be |
19 | funded as part of the actuarial accrued liability as provided |
20 | in section 8328 (relating to actuarial cost method). |
21 | (3) Notwithstanding the provisions of section 212 of the |
22 | act of April 22, 1998 (P.L.1341, No.6A), known as the General |
23 | Appropriation Act of 1998, regarding payment for cost-of- |
24 | living increases for annuitants, payments for cost-of-living |
25 | increases for annuitants shall be made under section 8535 |
26 | (relating to payments to school entities by Commonwealth). |
27 | * * * |
28 | § 8348.6. Supplemental annuities commencing 2002. |
29 | * * * |
30 | (f) Funding.--[The] |
|
1 | (1) For the period beginning July 1, 2002, and ending |
2 | June 30, 2011, the additional liability for the increase in |
3 | benefits provided in this section shall be funded in equal |
4 | dollar annual installments over a period of ten years |
5 | beginning July 1, 2003. |
6 | (2) For fiscal years beginning on or after July 1, 2011, |
7 | the additional liability provided in this section shall be |
8 | funded as part of the actuarial accrued liability as provided |
9 | in section 8328 (relating to actuarial cost method). |
10 | * * * |
11 | § 8348.7. Supplemental annuities commencing 2003. |
12 | * * * |
13 | (f) Funding.--[The] |
14 | (1) For the period beginning July 1, 2002, and ending |
15 | June 30, 2011, the additional liability for the increase in |
16 | benefits provided in this section shall be funded in equal |
17 | dollar annual installments over a period of ten years |
18 | beginning July 1, 2004. |
19 | (2) For fiscal years beginning on or after July 1, 2011, |
20 | the additional liability provided in this section shall be |
21 | funded as part of the actuarial accrued liability as provided |
22 | in section 8328 (relating to actuarial cost method). |
23 | * * * |
24 | § 8502. Administrative duties of board. |
25 | * * * |
26 | (k) Certification of employer contributions.--The board |
27 | shall, each year in addition to the itemized budget required |
28 | under section 8330 (relating to appropriations by the |
29 | Commonwealth), certify to the employers and the Commonwealth the |
30 | employer contribution rate expressed as a percentage of members' |
|
1 | payroll necessary for the funding of prospective annuities for |
2 | active members and the annuities of annuitants, and certify the |
3 | rates and amounts of the normal contributions as determined |
4 | pursuant to section 8328(b) (relating to actuarial cost method), |
5 | accrued liability contributions as determined pursuant to |
6 | section 8328(c), supplemental annuities contribution rate as |
7 | determined pursuant to section 8328(d) [and], the experience |
8 | adjustment factor as determined pursuant to section 8328(e) |
9 | [and], premium assistance contributions as determined pursuant |
10 | to section 8328(f), the costs added by legislation as determined |
11 | pursuant to section 8328(i), the actuarial required contribution |
12 | rate as determined pursuant to section 8328(i), the collared |
13 | contribution rate as determined pursuant to section 8328(g) and |
14 | the final contribution rate as determined pursuant to section |
15 | 8328(h), which shall be paid to the fund and credited to the |
16 | appropriate accounts. These certifications shall be regarded as |
17 | final and not subject to modification by the [Budget Secretary] |
18 | Secretary of the Budget. |
19 | * * * |
20 | Section 6. Section 8505 of Title 24 is amended by adding a |
21 | subsection to read: |
22 | § 8505. Duties of board regarding applications and elections of |
23 | members. |
24 | * * * |
25 | (l) Notification of Class T-F membership.--The board shall |
26 | inform any eligible school employee of the right to elect Class |
27 | T-F membership. |
28 | Section 7. Sections 8507(f) and (g) and 8535(3) of Title 24 |
29 | are amended to read: |
30 | § 8507. Rights and duties of school employees and members. |
|
1 | * * * |
2 | (f) Termination of service.--Each member who terminates |
3 | school service and who is not then a disability annuitant shall |
4 | execute on or before the date of termination of service a |
5 | written application, duly attested by the member or his legally |
6 | constituted representative, electing to do one of the following: |
7 | (1) Withdraw his accumulated deductions. |
8 | (2) Vest his retirement rights and if he is a joint |
9 | coverage member, and so desires, elect to become a full |
10 | coverage member and agree to pay within 30 days of the date |
11 | of termination of service the lump sum required. |
12 | (3) Receive an immediate annuity, if eligible, and may, |
13 | if he is a joint coverage member, elect to become a full |
14 | coverage member and agree to pay within 30 days of date of |
15 | termination of service the lump sum required. |
16 | (g) Vesting of retirement rights.--If a member elects to |
17 | vest his retirement rights, he shall nominate a beneficiary by |
18 | written designation filed with the board and he may anytime |
19 | thereafter withdraw the accumulated deductions standing to his |
20 | credit or[, if he has five or more eligibility points,] apply |
21 | for an annuity if eligible as provided in section 8307(a) or (b) |
22 | (relating to eligibility for annuitants). |
23 | * * * |
24 | § 8535. Payments to school entities by Commonwealth. |
25 | For each school year beginning with the 1995-1996 school |
26 | year, each school entity shall be paid by the Commonwealth for |
27 | contributions based upon school service of active members of the |
28 | system after June 30, 1995, as follows: |
29 | * * * |
30 | (3) School entities shall have up to five days after |
|
1 | receipt of the Commonwealth's portion of the employer's |
2 | liability to make payment to the Public School Employees' |
3 | Retirement Fund. School entities are expected to make the |
4 | full payment to the Public School Employees' Retirement Fund |
5 | in accordance with section 8327 (relating to payments by |
6 | employers) in the event the receipt of the Commonwealth's |
7 | portion of the employer's liability is delayed because of |
8 | delinquent salary reporting or other conduct by the school |
9 | entities. |
10 | Section 7.1. The definitions of "class of service |
11 | multiplier," "final average salary," "superannuation age" and |
12 | "vestee" in section 5102 of Title 71 are amended to read: |
13 | § 5102. Definitions. |
14 | The following words and phrases as used in this part, unless |
15 | a different meaning is plainly required by the context, shall |
16 | have the following meanings: |
17 | * * * |
18 | "Class of service multiplier." |
19 | Class of Service | | Multiplier | | 20 | A | | 1 | | 21 22 23 24 25 26 27 28 | AA | for all purposes except calculating regular member contributions on compensation paid prior to January 1, 2002 | 1.25 | | 29 30 | AA | for purposes of calculating | | | | 1 2 3 4 5 | | regular member contributions on compensation paid prior to January 1, 2002 | 1 | | 6 7 8 9 10 11 12 13 14 | A-3 | for all purposes except the calculation of regular member contributions and contributions for creditable nonstate service | 1 | | 15 16 17 18 19 20 21 22 | A-3 | for purposes of calculating regular member contributions and contributions for creditable nonstate service | 1.25 | | 23 24 25 26 27 | A-4 | for all purposes except the calculation of regular member contributions | 1.25 | | 28 29 30 | A-4 | for purposes of calculating regular member | | | | 1 | | contributions | 1.86 | | 2 | B | | .625 | | 3 | C | | 1 | | 4 | D | | 1.25 | | 5 6 | D-1 | prior to January 1, 1973 | 1.875 | | 7 8 9 | D-1 | on and subsequent to January 1, 1973 | 1.731 | | 10 11 | D-2 | prior to January 1, 1973 | 2.5 | | 12 13 14 | D-2 | on and subsequent to January 1, 1973 | 1.731 | | 15 16 | D-3 | prior to January 1, 1973 | 3.75 | | 17 18 19 20 21 22 23 24 25 | D-3 | on and subsequent to January 1, 1973 | 1.731 | except prior to December 1, 1974 as applied to any additional legislative compensation as an officer of the General Assembly | 26 | | | 3.75 | | 27 28 29 30 | D-4 | for all purposes except calculating regular member | | | | 1 2 3 4 | | contributions on compensation paid prior to July 1, 2001 | 1.5 | | 5 6 7 8 9 10 11 | D-4 | for purposes of calculating regular member contributions on compensation paid prior to July 1, 2001 | 1 | | 12 13 14 15 | E, E-1 | prior to January 1, 1973 | 2 | for each of the first ten years of judicial service, and | 16 17 18 19 | | | 1.5 | for each subsequent year of judicial service | 20 21 22 23 | E, E-1 | on and subsequent to January 1, 1973 | 1.50 | for each of the first ten years of judicial service and | 24 25 | E-2 | prior to September 1 1973 | 1.5 | | 26 27 28 29 | E-2 | on and subsequent to September 1, 1973 | 1.125 | | 30 | G | | 0.417 | | | 1 | H | | 0.500 | | 2 | I | | 0.625 | | 3 | J | | 0.714 | | 4 | K | | 0.834 | | 5 | L | | 1.000 | | 6 | M | | 1.100 | | 7 | N | | 1.250 | | 8 9 10 11 | T-C (Public School Employees' Retirement Code) | | 1 | | 12 13 14 15 | T-E (Public School Employees' Retirement Code) | | 1 | | 16 17 18 19 | T-F (Public School Employees' Retirement Code) | | 1 | |
|
20 | * * * |
21 | "Final average salary." The highest average compensation |
22 | received as a member during any three nonoverlapping periods of |
23 | four consecutive calendar quarters during which the member was a |
24 | State employee, with the compensation for part-time service |
25 | being annualized on the basis of the fractional portion of the |
26 | year for which credit is received; except if the employee was |
27 | not a member for three nonoverlapping periods of four |
28 | consecutive calendar quarters, the total compensation received |
29 | as a member, annualized in the case of part-time service, |
30 | divided by the number of nonoverlapping periods of four |
|
1 | consecutive calendar quarters of membership; in the case of a |
2 | member with multiple service, the final average salary shall be |
3 | determined on the basis of the compensation received by him as a |
4 | State employee or as a school employee, or both; in the case of |
5 | a member with Class A-3 or Class A-4 service and service in one |
6 | or more other classes of service, the final average salary shall |
7 | be determined on the basis of the compensation received by him |
8 | in all classes of State service; and, in the case of a member |
9 | who first became a member on or after January 1, 1996, the final |
10 | average salary shall be determined as hereinabove provided but |
11 | subject to the application of the provisions of section |
12 | 5506.1(a) (relating to annual compensation limit under IRC § |
13 | 401(a)(17)). |
14 | * * * |
15 | "Superannuation age." [Any] For classes of service other |
16 | than Class A-3 and Class A-4, any age upon accrual of 35 |
17 | eligibility points or age 60, except for a member of the General |
18 | Assembly, an enforcement officer, a correction officer, a |
19 | psychiatric security aide, a Delaware River Port Authority |
20 | policeman or an officer of the Pennsylvania State Police, age |
21 | 50, and, except for a member with Class G, Class H, Class I, |
22 | Class J, Class K, Class L, Class M or Class N service, age 55 |
23 | upon accrual of 20 eligibility points. For Class A-3 and Class |
24 | A-4 service, any age upon accrual of 35 eligibility points or |
25 | age 65, or for park rangers or capitol police officers, age 55 |
26 | with 20 years of service as a park ranger or capitol police |
27 | officer, except for a member of the General Assembly, an |
28 | enforcement officer, a correction officer, a psychiatric |
29 | security aide, a Delaware River Port Authority policeman or an |
30 | officer of the Pennsylvania State Police, age 55. |
|
1 | * * * |
2 | "Vestee." A member with five or more eligibility points[, |
3 | or] in a class of service other than Class A-3 or Class A-4 or |
4 | Class T-E or Class T-F in the Public School Employees' |
5 | Retirement System, a member with Class G, Class H, Class I, |
6 | Class J, Class K, Class L, Class M or Class N service with five |
7 | or more eligibility points, or a member with Class A-3 or Class |
8 | A-4 service with ten or more eligibility points who has |
9 | terminated State service and has elected to leave his total |
10 | accumulated deductions in the fund and to defer receipt of an |
11 | annuity. |
12 | Section 7.2. Sections 5302(e), 5303(b)(1) and 5304(a) of |
13 | Title 71 are amended to read: |
14 | § 5302. Credited State service. |
15 | * * * |
16 | (e) Cancellation of credited service.--All credited service |
17 | shall be cancelled if a member withdraws his total accumulated |
18 | deductions except that a member with Class A-3 or Class A-4 |
19 | service credit and one or more other classes of service credit |
20 | shall not have his service as a member of any classes of service |
21 | other than as a member of Class A-3 or Class A-4 cancelled when |
22 | the member receives a lump sum payment of accumulated deductions |
23 | resulting from Class A-3 or Class A-4 service pursuant to |
24 | section 5705.1 (relating to payment of accumulated deductions |
25 | resulting from Class A-3 and Class A-4 service). |
26 | § 5303. Retention and reinstatement of service credits. |
27 | * * * |
28 | (b) Eligibility points for prospective credited service.-- |
29 | (1) Every active member of the system or a multiple |
30 | service member who is a school employee and a member of the |
|
1 | Public School Employees' Retirement System on or after the |
2 | effective date of this part shall receive eligibility points |
3 | in accordance with section 5307 for current State service, |
4 | previous State service, or creditable nonstate service upon |
5 | compliance with sections 5501 (relating to regular member |
6 | contributions for current service), 5504 (relating to member |
7 | contributions for the purchase of credit for previous State |
8 | service or to become a full coverage member), 5505 (relating |
9 | to contributions for the purchase of credit for creditable |
10 | nonstate service), 5505.1 (relating to additional member |
11 | contributions) or 5506 (relating to incomplete payments). |
12 | Subject to the limitations in sections 5306.1 (relating to |
13 | election to become a Class AA member) and 5306.2 (relating to |
14 | elections by members of the General Assembly), the class or |
15 | classes of service in which the member may be credited for |
16 | previous State service prior to the effective date of this |
17 | part shall be the class or classes in which he was or could |
18 | have at any time elected to be credited for such service, |
19 | except that a State employee who first becomes a member of |
20 | the system on or after January 1, 2011, or on or after |
21 | December 1, 2010, as a member of the General Assembly and: |
22 | (i) is credited with Class A-3 service for such |
23 | membership, shall be credited only with Class A-3 service |
24 | for previous State service performed before January 1, |
25 | 2011, that was not previously credited in the system; or |
26 | (ii) is credited with Class A-4 service for such |
27 | membership, shall be credited only with Class A-3 service |
28 | for previous State service performed before January 1, |
29 | 2011, that was not previously credited in the system. The |
30 | class of service in which a member shall be credited for |
|
1 | service subsequent to the effective date of this part |
2 | shall be determined in accordance with section 5306 |
3 | (relating to classes of service). |
4 | * * * |
5 | § 5304. Creditable nonstate service. |
6 | (a) Eligibility.-- |
7 | (1) An active member who first becomes an active member |
8 | before January 1, 2011, or before December 1, 2010, as a |
9 | member of the General Assembly, or a multiple service member |
10 | who first becomes an active member before January 1, 2011, or |
11 | before December 1, 2010, as a member of the General Assembly, |
12 | and who is a school employee and an active member of the |
13 | Public School Employees' Retirement System shall be eligible |
14 | for Class A service credit for creditable nonstate service as |
15 | set forth in subsections (b) and (c) except that intervening |
16 | military service shall be credited in the class of service |
17 | for which the member was eligible at the time of entering |
18 | into military service and for which he makes the required |
19 | contributions and except that a multiple service member who |
20 | is a school employee and an active member of the Public |
21 | School Employees' Retirement System shall not be eligible to |
22 | purchase service credit for creditable nonstate service set |
23 | forth in subsection (c)(5). |
24 | (2) An active member who first becomes an active member |
25 | on or after January 1, 2011, or on or after December 1, 2010, |
26 | as a member of the General Assembly, or a multiple service |
27 | member who first becomes an active member on or after January |
28 | 1, 2011, or on or after December 1, 2010, as a member of the |
29 | General Assembly, and who is a school employee and an active |
30 | member of the Public School Employees' Retirement System |
|
1 | shall be eligible for Class A-3 service credit for creditable |
2 | nonstate service as set forth in subsections (b) and (c) |
3 | except that intervening military service shall be credited in |
4 | the class of service for which the member was eligible at the |
5 | time of entering into military service and for which he makes |
6 | the required contributions and except that a multiple service |
7 | member who is a school employee and an active member of the |
8 | Public School Employees' Retirement System shall not be |
9 | eligible to purchase service credit for creditable nonstate |
10 | service set forth in subsection (c)(5). |
11 | * * * |
12 | Section 7.3. Section 5306(a), (a.1)(1), (2), (5) and (6) and |
13 | (a.2) of Title 71 are amended and the section is amended by |
14 | adding a subsection to read: |
15 | § 5306. Classes of service. |
16 | (a) Class A and Class A-3 membership.-- |
17 | (1) A State employee who is a member of Class A on the |
18 | effective date of this part or who first becomes a member of |
19 | the system subsequent to the effective date of this part and |
20 | before January 1, 2011, or before December 1, 2010, as a |
21 | member of the General Assembly, shall be classified as a |
22 | Class A member and receive credit for Class A service upon |
23 | payment of regular and additional member contributions for |
24 | Class A service, provided that the State employee does not |
25 | become a member of Class AA pursuant to subsection (a.1) or a |
26 | member of Class D-4 pursuant to subsection (a.2). |
27 | (2) A State employee who first becomes a member of the |
28 | system on or after January 1, 2011, or on or after December |
29 | 1, 2010, as a member of the General Assembly, shall be |
30 | classified as a Class A-3 member and receive credit for Class |
|
1 | A-3 service upon payment of regular member contributions for |
2 | Class A-3 service provided that the State employee does not |
3 | become a member of Class A-4 pursuant to subsection (a.3), |
4 | except that a member of the judiciary shall be classified as |
5 | a member of such other class of service for which the member |
6 | of the judiciary is eligible, shall elect, and make regular |
7 | member contributions. |
8 | (a.1) Class AA membership.-- |
9 | (1) A person who becomes a State employee and an active |
10 | member of the system after June 30, 2001, and who first |
11 | became an active member before January 1, 2011, or before |
12 | December 1, 2010, as a member of the General Assembly, and |
13 | who is not a State police officer and not employed in a |
14 | position for which a class of service other than Class A is |
15 | credited or could be elected shall be classified as a Class |
16 | AA member and receive credit for Class AA State service upon |
17 | payment of regular member contributions for Class AA service |
18 | and, subject to the limitations contained in paragraph (7), |
19 | if previously a member of Class A or previously employed in a |
20 | position for which Class A service could have been earned, |
21 | shall have all Class A State service (other than State |
22 | service performed as a State police officer or for which a |
23 | class of service other than Class A was earned or could have |
24 | been elected) classified as Class AA service. |
25 | (2) A person who is a State employee on June 30, 2001, |
26 | and July 1, 2001, but is not an active member of the system |
27 | because membership in the system is optional or prohibited |
28 | pursuant to section 5301 (relating to mandatory and optional |
29 | membership) and who first becomes an active member after June |
30 | 30, 2001, and before January 1, 2011, or before December 1, |
|
1 | 2010, as a member of the General Assembly, and who is not a |
2 | State police officer and not employed in a position for which |
3 | a class of service other than Class A is credited or could be |
4 | elected shall be classified as a Class AA member and receive |
5 | credit for Class AA State service upon payment of regular |
6 | member contributions for Class AA service and, subject to the |
7 | limitations contained in paragraph (7), if previously a |
8 | member of Class A or previously employed in a position for |
9 | which Class A service could have been earned, shall have all |
10 | Class A State service (other than State service performed as |
11 | a State Police officer or for which a class of service other |
12 | than Class A was earned or could have been elected) |
13 | classified as Class AA service. |
14 | * * * |
15 | (5) A former State employee who first becomes a member |
16 | before January 1, 2011, or before December 1, 2010, as a |
17 | member of the General Assembly, other than a former State |
18 | employee who was a State police officer on or after July 1, |
19 | 1989, who is a school employee and who on or after July 1, |
20 | 2001, becomes a multiple service member, subject to the |
21 | limitations contained in paragraph (7), shall receive Class |
22 | AA service credit for all Class A State service other than |
23 | State service performed as a State employee in a position in |
24 | which the former State employee could have elected a class of |
25 | service other than Class A. |
26 | (6) A State employee who after June 30, 2001, becomes a |
27 | State police officer or who is employed in a position in |
28 | which the member could elect membership in a class of service |
29 | other than Class AA or Class D-4 shall retain any Class AA |
30 | service credited prior to becoming a State police officer or |
|
1 | being so employed but shall be ineligible to receive Class AA |
2 | credit thereafter and instead shall receive Class A credit |
3 | for service as a member of the judiciary or if he first |
4 | became a member before January 1, 2011, or December 1, 2010, |
5 | as a member of the General Assembly, or Class A-3 credit for |
6 | service other than as a member of the judiciary and he first |
7 | became a member on or after January 1, 2011, or December 1, |
8 | 2010, as a member of the General Assembly, unless a class of |
9 | membership other than Class A is elected. |
10 | * * * |
11 | (a.2) Class of membership for members of the General |
12 | Assembly.-- |
13 | (1) A person who: |
14 | (i) becomes a member of the General Assembly and an |
15 | active member of the system after June 30, 2001, and |
16 | before December 1, 2010; or |
17 | (ii) is a member of the General Assembly on July 1, |
18 | 2001, but is not an active member of the system because |
19 | membership in the system is optional pursuant to section |
20 | 5301 and who becomes an active member after June 30, |
21 | 2001, and before December 1, 2010; |
22 | and who was not a State police officer on or after July 1, |
23 | 1989, shall be classified as a Class D-4 member and receive |
24 | credit as a Class D-4 member for all State service as a |
25 | member of the General Assembly upon payment of regular member |
26 | contributions for Class D-4 service and, subject to the |
27 | limitations contained in subsection (a.1)(7), if previously a |
28 | member of Class A or employed in a position for which Class A |
29 | service could have been earned, shall receive Class AA |
30 | service credit for all Class A State service, other than |
|
1 | State service performed as a State police officer or for |
2 | which a class of service other than Class A or Class D-4 was |
3 | or could have been elected or credited. |
4 | (2) Provided an election to become a Class D-4 member is |
5 | made pursuant to section 5306.2 (relating to elections by |
6 | members of the General Assembly), a State employee who was |
7 | not a State police officer on or after July 1, 1989, who on |
8 | July 1, 2001, is a member of the General Assembly and an |
9 | active member of the system and not a member of Class D-3 |
10 | shall be classified as a Class D-4 member and receive credit |
11 | as a Class D-4 member for all State service performed as a |
12 | member of the General Assembly not credited as another class |
13 | other than Class A upon payment of regular member |
14 | contributions for Class D-4 service and, subject to the |
15 | limitations contained in paragraph (a.1)(7), shall receive |
16 | Class AA service credit for all Class A State service, other |
17 | than State service performed as a State police officer or as |
18 | a State employee in a position in which the member could have |
19 | elected a class of service other than Class A, performed |
20 | before July 1, 2001. |
21 | (3) A member of the General Assembly who after June 30, |
22 | 2001, becomes a State police officer shall retain any Class |
23 | AA service or Class D-4 service credited prior to becoming a |
24 | State police officer or being so employed but shall be |
25 | ineligible to receive Class AA or Class D-4 credit thereafter |
26 | and instead shall receive Class A credit or Class A-3 credit |
27 | if he first becomes a member of the system on or after |
28 | January 1, 2011. |
29 | (4) Notwithstanding the provisions of this subsection, |
30 | no service as a member of the General Assembly performed |
|
1 | before December 1, 2010, that is not credited as Class D-4 |
2 | service on November 30, 2010, shall be credited as Class D-4 |
3 | service, unless such service was previously credited in the |
4 | system as Class D-4 service and the member withdrew his total |
5 | accumulated deductions as provided in section 5311 (relating |
6 | to eligibility for refunds) or 5701 (relating to return of |
7 | total accumulated deductions). No service as a member of the |
8 | General Assembly performed on or after December 1, 2010, |
9 | shall be credited as Class D-4 service unless the member |
10 | previously was credited with Class D-4 service credits. |
11 | (a.3) Class A-3 A-4 membership.--Provided that an election | <-- |
12 | to become a Class A-4 member is made pursuant to section 5306.3 |
13 | (relating to election to become a Class A-4 member), a State |
14 | employee who otherwise would be a member of Class A-3 shall be |
15 | classified as a Class A-4 member and receive credit for all |
16 | creditable State service performed after the effective date of |
17 | membership in the system, except as a member of the judiciary, |
18 | upon payment of regular member contributions for Class A-4 |
19 | service. |
20 | * * * |
21 | Section 7.4. Title 71 is amended by adding a section to |
22 | read: |
23 | § 5306.3. Election to become a class A-4 member. |
24 | (a) General rule.--A person who otherwise is eligible for |
25 | Class A-3 membership who has not previously elected or declined |
26 | to elect Class A-4 membership may elect to become a member of |
27 | Class A-4. |
28 | (b) Time for making election.--The election to become a |
29 | Class A-4 member must be made by the member filing written |
30 | notice with the board in a form and manner determined by the |
|
1 | board no later than 45 days after notice from the board of the |
2 | member's eligibility to elect Class A-4 membership. |
3 | (c) Effect of election.--An election to become a Class A-4 |
4 | member shall be irrevocable and shall become effective on the |
5 | effective date of membership in the system and shall remain in |
6 | effect for all future creditable State service, other than |
7 | service performed as a member of the judiciary. Payment of |
8 | regular member contributions for Class A-4 State service |
9 | performed prior to the election of Class A-4 service shall be |
10 | made in a form, manner and time determined by the board. Upon |
11 | termination and subsequent reemployment, a member who elected |
12 | Class A-4 membership shall be credited as a Class A-4 member for |
13 | creditable State service performed after reemployment, except as |
14 | a member of the judiciary, regardless of termination of |
15 | employment, termination of membership by withdrawal of |
16 | accumulated deductions or status as an annuitant, vestee or |
17 | inactive member after the termination of service. |
18 | (d) Effect of failure to make election.--Failure to elect to |
19 | become a Class A-4 member within the election period set forth |
20 | in subsection (b) shall result in all of the member's State |
21 | service, other than service performed as a member of the |
22 | judiciary, being credited as Class A-3 service and not subject |
23 | to further election or crediting as Class A-4 service. Upon |
24 | termination and subsequent employment, a member who failed to |
25 | elect to become a Class A-4 member shall not be eligible to make |
26 | another election to become a Class A-4 member for either past or |
27 | future State service. |
28 | Section 7.5. Sections 5308(b) and 5309 of Title 71 are |
29 | amended to read: |
30 | § 5308. Eligibility for annuities. |
|
1 | * * * |
2 | (b) Withdrawal annuity.-- |
3 | (1) Any vestee or any active member or inactive member |
4 | on leave without pay who terminates State service having five |
5 | or more eligibility points and who does not have Class A-3 or |
6 | Class A-4 service credit or Class T-E or Class T-F service |
7 | credit in the Public School Employees' Retirement System, or |
8 | who has Class G, Class H, Class I, Class J, Class K, Class L, |
9 | Class M or Class N service and terminates State service |
10 | having five or more eligibility points, upon compliance with |
11 | section 5907(f), (g) or (h) shall be entitled to receive an |
12 | annuity. |
13 | (2) Any vestee, active member or inactive member on |
14 | leave without pay who has Class A-3 or Class A-4 service |
15 | credit or Class T-E or Class T-F service credit in the Public |
16 | School Employees' Retirement System who terminates State |
17 | service having ten or more eligibility points, upon |
18 | compliance with section 5907(f), (g) or (h), shall be |
19 | entitled to receive an annuity. |
20 | (3) Any vestee, active member or inactive member on |
21 | leave without pay who has either Class A-3 or Class A-4 |
22 | service credit or Class T-E or Class T-F service credit in |
23 | the Public School Employees' Retirement System and also has |
24 | service credited in the system in one or more other classes |
25 | of service who has five or more, but fewer than ten, |
26 | eligibility points, upon compliance with section 5907(f), (g) |
27 | or (h) shall be eligible to receive an annuity calculated on |
28 | his service credited in classes of service other than Class |
29 | A-3 or Class A-4, provided that the member has five or more |
30 | eligibility points resulting from service in classes other |
|
1 | than Class A-3 or Class A-4 or Class T-E or Class T-F service |
2 | in the Public School Employees' Retirement System. |
3 | * * * |
4 | § 5309. Eligibility for vesting. |
5 | Any member who: |
6 | (1) Does not have Class A-3 or Class A-4 service credit |
7 | or Class T-E or Class T-F service credit in the Public School |
8 | Employees' Retirement System and terminates State service |
9 | with five or more eligibility points, or any member with |
10 | Class G, Class H, Class I, Class J, Class K, Class L, Class M |
11 | or Class N service with five or more eligibility points, |
12 | shall be eligible until attainment of superannuation age to |
13 | vest his retirement benefits. |
14 | (2) Has Class A-3 or Class A-4 service credit or Class |
15 | T-E or Class T-F service credit in the Public School |
16 | Employees' Retirement System and terminates State service |
17 | with ten or more eligibility points shall be eligible until |
18 | attainment of superannuation age to vest his retirement |
19 | benefits. |
20 | (3) Has either Class A-3 or Class A-4 service credit or |
21 | Class T-E or Class T-F service credit in the Public School |
22 | Employees' Retirement System, also has service credited in |
23 | the system in one or more other classes of service and has |
24 | five or more, but fewer than ten, eligibility points shall be |
25 | eligible until the attainment of superannuation age to vest |
26 | his retirement benefits calculated on his service credited in |
27 | classes of service other than Class A-3 or Class A-4 and to |
28 | be credited with statutory interest on total accumulated |
29 | deductions, regardless of whether or not any part of his |
30 | accumulated deductions are a result of Class A-3 or Class A-4 |
|
1 | service credit. |
2 | Section 8. Title 71 is amended by adding a section to read: |
3 | § 5501.1. Definitions. |
4 | The following words and phrases when used in this chapter |
5 | shall have the meanings given to them in this section unless the |
6 | context clearly indicates otherwise: |
7 | "Actuarially required contribution rate." The employer |
8 | contribution rate as calculated pursuant to section 5508(a), |
9 | (b), (c), (e) and (f) (relating to actuarial cost method). |
10 | "Costs added by legislation." The sum, if positive, of all |
11 | changes in the actuarially required contribution rate resulting |
12 | from legislation enacted in the year since the last actuarial |
13 | valuation and not included in the determination of the prior |
14 | year's final contribution rate, computed as the rate of total |
15 | compensation of all active members certified by the actuary as |
16 | sufficient to make the employer normal contributions and |
17 | sufficient to amortize legislatively created changes in the |
18 | unfunded actuarial liability as a level percentage of |
19 | compensation over a period of ten years from the July 1 |
20 | following the valuation date. |
21 | Section 9. Sections 5502.1, 5504(a), 5505(b) and (d), 5507, |
22 | 5508, 5702(a)(4) and (6), 5704(e) and 5705(a) of Title 71 are |
23 | amended to read: |
24 | § 5502.1. Waiver of regular member contributions and Social |
25 | Security integration member contributions. |
26 | (a) General rule.--Notwithstanding the provisions of |
27 | sections 5501 (relating to regular member contributions for |
28 | current service) and 5502 (relating to Social Security |
29 | integration member contributions), no regular member |
30 | contributions or Social Security integration member |
|
1 | contributions shall be made by an active member for the period |
2 | from July 1 to the following June 30 if the maximum single life |
3 | annuity to which the member would have been entitled to receive |
4 | had the member retired with an effective date of retirement on |
5 | the preceding January 1 is greater than 110% of the highest |
6 | calendar year compensation of the member, provided the member |
7 | files a written election as prescribed by the board. |
8 | (b) Applicability.--This section shall not apply to any |
9 | member who has Class A-3 or Class A-4 service credit. |
10 | § 5504. Member contributions for the purchase of credit for |
11 | previous State service or to become a full coverage |
12 | member. |
13 | (a) Amount of contributions for service in other than Class |
14 | G through N.-- |
15 | (1) The contributions to be paid by an active member or |
16 | eligible school employee for credit for total previous State |
17 | service other than service in Class G, Class H, Class I, |
18 | Class J, Class K, Class L, Class M and Class N or to become a |
19 | full coverage member shall be sufficient to provide an amount |
20 | equal to the regular and additional accumulated deductions |
21 | which would have been standing to the credit of the member |
22 | for such service had regular and additional member |
23 | contributions been made with full coverage in the class of |
24 | service and at the rate of contribution applicable during |
25 | such period of previous service and had his regular and |
26 | additional accumulated deductions been credited with |
27 | statutory interest during all periods of subsequent State and |
28 | school service up to the date of purchase. |
29 | (2) Notwithstanding paragraph (1), members with Class |
30 | A-3 State service shall make contributions and receive credit |
|
1 | as if the previous State service was Class A-3 service, and |
2 | members with Class A-4 State service shall make contributions |
3 | and receive credit as if the previous State service was Class |
4 | A-4 service, even if it would have been credited as a |
5 | different class of service had the State employee been a |
6 | member of the system at the time the service was performed |
7 | unless it was mandatory that the State employee be an active |
8 | member of the system and the previous State service is being |
9 | credited as the result of a mandatory active membership |
10 | requirement. |
11 | * * * |
12 | § 5505. Contributions for the purchase of credit for creditable |
13 | nonstate service. |
14 | * * * |
15 | (b) Nonintervening military service.-- |
16 | (1) The amount due for the purchase of credit for |
17 | military service other than intervening military service |
18 | shall be determined by applying the product of the member's |
19 | basic contribution rate and the class of service multiplier |
20 | applicable to contributions for the class of service to which |
21 | the military service will be credited, the additional |
22 | contribution rate plus the Commonwealth normal contribution |
23 | rate for active members at the time of entry, subsequent to |
24 | such military service, of the member into State service to |
25 | his average annual rate of compensation over the first three |
26 | years of such subsequent State service and multiplying the |
27 | result by the number of years and fractional part of a year |
28 | of creditable nonintervening military service being purchased |
29 | together with statutory interest during all periods of |
30 | subsequent State and school service to date of purchase. Upon |
|
1 | application for credit for such service, payment shall be |
2 | made in a lump sum within 30 days or in the case of an active |
3 | member or eligible school employee who is an active member of |
4 | the Public School Employees' Retirement System it may be |
5 | amortized with statutory interest through salary deductions |
6 | in amounts agreed upon by the member and the board. The |
7 | salary deduction amortization plans agreed to by members and |
8 | the board may include a deferral of payment amounts and |
9 | statutory interest until the termination of school service or |
10 | State service as the board in its sole discretion decides to |
11 | allow. The board may limit salary deduction amortization |
12 | plans to such terms as the board in its sole discretion |
13 | determines. In the case of an eligible school employee who is |
14 | an active member of the Public School Employees' Retirement |
15 | System, the agreed upon salary deductions shall be remitted |
16 | to the Public School Employees' Retirement Board, which shall |
17 | certify and transfer to the board the amounts paid. |
18 | Application may be filed for all such military service credit |
19 | upon completion of three years of subsequent State service |
20 | and shall be credited as Class A-3 service for State |
21 | employees who first become members of the system on or after |
22 | January 1, 2011, or on or after December 1, 2010, as a member |
23 | of the General Assembly, and as Class A service for all other |
24 | members. |
25 | (2) Applicants may purchase credit as follows: |
26 | (i) one purchase of the total amount of creditable |
27 | nonintervening military service; or |
28 | (ii) one purchase per 12-month period of a portion |
29 | of creditable nonintervening military service. |
30 | The amount of each purchase shall be not less than one year |
|
1 | of creditable nonintervening military service. |
2 | * * * |
3 | (d) Nonmilitary and nonmagisterial service.--Contributions |
4 | on account of credit for creditable nonstate service other than |
5 | military and magisterial service shall be determined by applying |
6 | the product of the member's basic contribution rate and the |
7 | class of service multiplier applicable to contributions for the |
8 | class of service to which such nonstate service will be |
9 | credited, the additional contribution rate plus the Commonwealth |
10 | normal contribution rate for active members at the time of entry |
11 | subsequent to such creditable nonstate service of the member |
12 | into State service to his compensation at the time of entry into |
13 | State service and multiplying the result by the number of years |
14 | and fractional part of a year of creditable nonstate service |
15 | being purchased together with statutory interest during all |
16 | periods of subsequent State and school service to the date of |
17 | purchase. Upon application for credit for such service payment |
18 | shall be made in a lump sum within 30 days or in the case of an |
19 | active member or eligible school employee who is an active |
20 | member of the Public School Employees' Retirement System it may |
21 | be amortized with statutory interest through salary deductions |
22 | in amounts agreed upon by the member and the board. The salary |
23 | deduction amortization plans agreed to by members and the board |
24 | may include a deferral of payment amounts and statutory interest |
25 | until the termination of school service or State service as the |
26 | board in its sole discretion decides to allow. The board may |
27 | limit salary deduction amortization plans to such terms as the |
28 | board in its sole discretion determines. In the case of an |
29 | eligible school employee who is an active member of the Public |
30 | School Employees' Retirement System, the agreed upon salary |
|
1 | deduction shall be remitted to the Public School Employees' |
2 | Retirement Board, which shall certify and transfer to the board |
3 | the amounts paid. |
4 | * * * |
5 | § 5507. Contributions by the Commonwealth and other employers. |
6 | (a) Contributions on behalf of active members.--The |
7 | Commonwealth and other employers whose employees are members of |
8 | the system shall make contributions to the fund on behalf of all |
9 | active members in such amounts as shall be certified by the |
10 | board as necessary to provide, together with the members' total |
11 | accumulated deductions, annuity reserves on account of |
12 | prospective annuities other than those provided in section 5708 |
13 | (relating to supplemental annuities), 5708.1 (relating to |
14 | additional supplemental annuities), 5708.2 (relating to further |
15 | additional supplemental annuities), 5708.3 (relating to |
16 | supplemental annuities commencing 1994), 5708.4 (relating to |
17 | special supplemental postretirement adjustment), 5708.5 |
18 | (relating to supplemental annuities commencing 1998), 5708.6 |
19 | (relating to supplemental annuities commencing 2002), 5708.7 |
20 | (relating to supplemental annuities commencing 2003) and 5708.8 |
21 | (relating to special supplemental postretirement adjustment of |
22 | 2002), in accordance with the actuarial cost method provided in |
23 | section 5508(a), (b), (c), (d) and (f) (relating to actuarial |
24 | cost method). |
25 | (b) Contributions on behalf of annuitants.--The Commonwealth |
26 | and other employers whose employees are members of the system |
27 | shall make contributions on behalf of annuitants in such amounts |
28 | as shall be certified by the board as necessary to fund the |
29 | liabilities for supplemental annuities in accordance with the |
30 | actuarial cost method provided in section 5508(e) (relating to |
|
1 | actuarial cost method). |
2 | (c) Contributions transferred by county retirement |
3 | systems.-- |
4 | (1) Each county retirement system or pension plan which |
5 | is notified by certification from the board that a former |
6 | contributor who was transferred to State employment pursuant |
7 | to 42 Pa.C.S. § 1905 (relating to county-level court |
8 | administrators) has elected to convert county service to |
9 | State service in accordance with section 5303.1 (relating to |
10 | election to convert county service to State service) shall |
11 | transfer to the board an amount equal to the actuarial |
12 | liability for the additional benefits that result in the |
13 | system as a result of the conversion as certified by the |
14 | board. This amount shall be calculated in such a manner and |
15 | using such actuarial factors and assumptions as the board, |
16 | after obtaining the advice of its actuary, shall determine |
17 | and shall be calculated by determining the present value of |
18 | the future benefits for the former county contributors and |
19 | subtracting from that present value the present value of |
20 | future employee contributions and future employer normal cost |
21 | contributions. |
22 | (2) The transfer shall occur no later than 180 days |
23 | after the certification by the board of the actuarial |
24 | liability for the additional benefits or 30 days following |
25 | the date of termination of service if the member terminates |
26 | State service after making the election to convert service, |
27 | whichever occurs first. |
28 | (3) If any county retirement system or pension plan |
29 | fails to transfer, within the required time, the money |
30 | certified by the board under this subsection, then the |
|
1 | service of such members for the period of converted service |
2 | shall be credited, and the board shall notify the county |
3 | which employed the employee who is converting the county |
4 | service and the State Treasurer of the amount due. The State |
5 | Treasurer shall withhold out of any grants, subsidies or |
6 | other payments from the State General Fund appropriation or |
7 | appropriations next due such county an amount equal to the |
8 | amount which the county retirement system or pension plan |
9 | failed to pay and shall pay the amount so withheld to the |
10 | board for the payment of the amount due from that county's |
11 | retirement system or pension plan for the converted service. |
12 | (d) Payment of final contribution rate.--Notwithstanding the |
13 | calculation of the actuarially required contribution rate and |
14 | the provisions of subsections (a) and (b), the Commonwealth and |
15 | other employers whose employees are members of the system shall |
16 | make contributions to the fund on behalf of all active members |
17 | and annuitants in such amounts as shall be certified by the |
18 | board in accordance with section 5508(i). |
19 | (e) Benefits completion plan contributions.--In addition to |
20 | all other contributions required under this section and section |
21 | 5508, the Commonwealth and other employers shall make |
22 | contributions as certified by the board pursuant to section 5941 |
23 | (relating to benefits completion plan). |
24 | § 5508. Actuarial cost method. |
25 | (a) Employer contribution rate on behalf of active |
26 | members.--The amount of the Commonwealth and other employer |
27 | contributions on behalf of all active members shall be computed |
28 | by the actuary as a percentage of the total compensation of all |
29 | active members during the period for which the amount is |
30 | determined and shall be so certified by the board. The [total |
|
1 | employer] actuarially required contribution rate on behalf of |
2 | all active members shall consist of the employer normal |
3 | contribution rate, as defined in subsection (b), and the accrued |
4 | liability contribution rate as defined in subsection (c). The |
5 | [total employer] actuarially required contribution rate on |
6 | behalf of all active members shall be modified by the experience |
7 | adjustment factor as calculated in subsection (f) [but in no |
8 | case shall it be less than zero. The total employer contribution |
9 | rate shall be modified by the experience adjustment factor as |
10 | calculated in subsection (f), but in no case shall it be less |
11 | than: |
12 | (1) 2% for the fiscal year beginning July 1, 2004; |
13 | (2) 3% for the fiscal year beginning July 1, 2005; and |
14 | (3) 4% for the fiscal year beginning July 1, 2006, and |
15 | thereafter]. |
16 | (b) Employer normal contribution rate.--The employer normal |
17 | contribution rate shall be determined after each actuarial |
18 | valuation on the basis of an annual interest rate and such |
19 | mortality and other tables as shall be adopted by the board in |
20 | accordance with generally accepted actuarial principles. The |
21 | employer normal contribution rate shall be determined as a level |
22 | percentage of the compensation of the average new active member, |
23 | which percentage, if contributed on the basis of his prospective |
24 | compensation through his entire period of active State service, |
25 | would be sufficient to fund the liability for any prospective |
26 | benefit payable to him[, except for the supplemental benefits |
27 | provided for in sections 5708 (relating to supplemental |
28 | annuities), 5708.1 (relating to additional supplemental |
29 | annuities), 5708.2 (relating to further additional supplemental |
30 | annuities), 5708.3 (relating to supplemental annuities |
|
1 | commencing 1994), 5708.4 (relating to special supplemental |
2 | postretirement adjustment), 5708.5 (relating to supplemental |
3 | annuities commencing 1998), 5708.6 (relating to supplemental |
4 | annuities commencing 2002), 5708.7 (relating to supplemental |
5 | annuities commencing 2003) and 5708.8 (relating to special |
6 | supplemental postretirement adjustment of 2002),] in excess of |
7 | that portion funded by his prospective member contributions. |
8 | (c) Accrued liability contribution rate.-- |
9 | (1) For the fiscal [year] years beginning July 1, 2002, |
10 | and July 1, 2003, the accrued liability contribution rate |
11 | shall be computed as the rate of total compensation of all |
12 | active members which shall be certified by the actuary as |
13 | sufficient to fund over a period of ten years from July 1, |
14 | 2002, the present value of the liabilities for all |
15 | prospective benefits, except for the supplemental benefits as |
16 | provided in sections 5708 (relating to supplemental |
17 | annuities), 5708.1 (relating to additional supplemental |
18 | annuities), 5708.2 (relating to further additional |
19 | supplemental annuities), 5708.3 (relating to supplemental |
20 | annuities commencing 1994), 5708.4 (relating to special |
21 | supplemental postretirement adjustment), 5708.5 (relating to |
22 | supplemental annuities commencing 1998), 5708.6 (relating to |
23 | supplemental annuities commencing 2002), 5708.7 (relating to |
24 | supplemental annuities commencing 2003) and 5708.8 (relating |
25 | to special supplemental postretirement adjustment of 2002), |
26 | in excess of the total assets in the fund (calculated |
27 | recognizing all investment gains and losses over a five-year |
28 | period), excluding the balance in the supplemental annuity |
29 | account, and the present value of employer normal |
30 | contributions and of member contributions payable with |
|
1 | respect to all active members on December 31, 2001, and |
2 | excluding contributions to be transferred by county |
3 | retirement systems or pension plans pursuant to section |
4 | 5507(c) (relating to contributions by the Commonwealth and |
5 | other employers). The amount of each annual accrued liability |
6 | contribution shall be equal to the amount of such |
7 | contribution for the fiscal year beginning July 1, 2002, |
8 | except that, if the accrued liability is increased by |
9 | legislation enacted subsequent to June 30, 2002, but before |
10 | July 1, 2003, such additional liability shall be funded over |
11 | a period of ten years from the first day of July, coincident |
12 | with or next following the effective date of the increase. |
13 | The amount of each annual accrued liability contribution for |
14 | such additional legislative liabilities shall be equal to the |
15 | amount of such contribution for the first annual payment. |
16 | (2) Notwithstanding any other provision of law, |
17 | beginning July 1, 2004, and ending June 30, 2010, the |
18 | outstanding balance of the increase in accrued liability due |
19 | to the change in benefits enacted in 2001 shall be amortized |
20 | in equal dollar annual contributions over a period that ends |
21 | 30 years after July 1, 2002, and the outstanding balance of |
22 | the net actuarial loss incurred in calendar year 2002 shall |
23 | be amortized in equal dollar annual contributions over a |
24 | period that ends 30 years after July 1, 2003. For fiscal |
25 | years beginning on or after July 1, 2004, and ending June 30, |
26 | 2010, if the accrued liability is increased by legislation |
27 | enacted subsequent to June 30, 2003, but before January 1, |
28 | 2009, such additional liability shall be funded in equal |
29 | dollar annual contributions over a period of ten years from |
30 | the first day of July coincident with or next following the |
|
1 | effective date of the increase. |
2 | (3) For the fiscal year beginning July 1, 2010, the |
3 | accrued liability contribution rate shall be computed as the |
4 | rate of total compensation of all active members which shall |
5 | be certified by the actuary as sufficient to fund as a level |
6 | percentage of compensation over a period of 30 years from |
7 | July 1, 2010, the present value of the liabilities for all |
8 | prospective benefits calculated as of the immediately prior |
9 | valuation date, including the supplemental benefits as |
10 | provided in sections 5708, 5708.1, 5708.2, 5708.3, 5708.4, |
11 | 5708.5, 5708.6, 5708.7 and 5708.8, but excluding the benefits |
12 | payable from the retirement benefit plan established pursuant |
13 | to section 5941 (relating to benefits completion plan), in |
14 | excess of the actuarially calculated assets in the fund |
15 | (calculated recognizing all realized and unrealized |
16 | investment gains and losses each year in level annual |
17 | installments over five years), including the balance in the |
18 | supplemental annuity account, and the present value of |
19 | employer normal contributions and of member contributions |
20 | payable with respect to all active members, inactive members |
21 | on leave without pay, vestees and special vestees on December |
22 | 31, 2009. If the accrued liability is changed by legislation |
23 | enacted subsequent to December 31, 2009, such change in |
24 | liability shall be funded as a level percentage of |
25 | compensation over a period of ten years from the first day of |
26 | July following the valuation date coincident with or next |
27 | following the date such legislation is enacted. |
28 | (d) Special provisions on calculating contributions.--In |
29 | calculating the contributions required by subsections (a), (b) |
30 | and (c), the active members of Class C shall be considered to be |
|
1 | members of Class A. In addition, the actuary shall determine the |
2 | Commonwealth or other employer contributions required for active |
3 | members of Class C and officers of the Pennsylvania State Police |
4 | and enforcement officers and investigators of the Pennsylvania |
5 | Liquor Control Board who are members of Class A to finance their |
6 | benefits in excess of those to which other members of Class A |
7 | are entitled. Such additional contributions shall be determined |
8 | separately for officers and employees of the Pennsylvania State |
9 | Police and for enforcement officers and investigators of the |
10 | Pennsylvania Liquor Control Board. Such contributions payable on |
11 | behalf of officers and employees of the Pennsylvania State |
12 | Police shall include the amounts received by the system under |
13 | the provisions of the act of May 12, 1943 (P.L.259, No.120), |
14 | referred to as the Foreign Casualty Insurance Premium Tax |
15 | Allocation Law, and on behalf of enforcement officers or |
16 | investigators of the Pennsylvania Liquor Control Board, the |
17 | amounts received by the system under the provisions of the act |
18 | of April 12, 1951 (P.L.90, No.21), known as the Liquor Code. |
19 | (e) Supplemental annuity contribution rate.--[Contributions] |
20 | (1) For the period July 1, 2002, to June 30, 2010, |
21 | contributions from the Commonwealth and other employers whose |
22 | employees are members of the system required to provide for |
23 | the payment of supplemental annuities as provided in sections |
24 | 5708, 5708.1, 5708.2, 5708.3, 5708.4 and 5708.5 shall be paid |
25 | over a period of ten years from July 1, 2002. The funding for |
26 | the supplemental annuities commencing 2002 provided for in |
27 | section 5708.6 shall be as provided in section 5708.6(f). The |
28 | funding for the supplemental annuities commencing 2003 |
29 | provided for in section 5708.7 shall be as provided in |
30 | section 5708.7(f). The funding for the special supplemental |
|
1 | postretirement adjustment of 2002 under section 5708.8 shall |
2 | be as provided in section 5708.8(g). The amount of each |
3 | annual supplemental annuities contribution shall be equal to |
4 | the amount of such contribution for the fiscal year beginning |
5 | July 1, 2002. [In the event that supplemental annuities are |
6 | increased by legislation enacted subsequent to June 30, 2002, |
7 | the additional liability for the increase in benefits shall |
8 | be funded in equal dollar annual installments over a period |
9 | of ten years from the July first, coincident with or next |
10 | following the effective date of such legislation.] |
11 | (2) For fiscal years beginning on or after July 1, 2010, |
12 | contributions from the Commonwealth and other employers whose |
13 | employees are members of the system required to provide for |
14 | the payment of supplemental annuities as provided in sections |
15 | 5708, 5708.1, 5708.2, 5708.3, 5708.4, 5708.5, 5708.6, 5708.7 |
16 | and 5708.8 shall be paid as part of the accrued liability |
17 | contribution rate as provided for in subsection (c)(3) and |
18 | there shall not be a separate supplemental annuity |
19 | contribution rate attributable to those supplemental |
20 | annuities. In the event that supplemental annuities are |
21 | increased by legislation enacted subsequent to December 31, |
22 | 2009, the additional liability for the increase in benefits |
23 | shall be funded as a level percentage of compensation over a |
24 | period of ten years from the first day of July following the |
25 | valuation date coincident with or next following the date |
26 | such legislation is enacted. |
27 | (f) Experience adjustment factor.-- |
28 | (1) For each year after the establishment of the accrued |
29 | liability contribution rate and the supplemental annuity |
30 | contribution rate for the fiscal year beginning July 1, |
|
1 | [2002] 2010, any increase or decrease in the unfunded accrued |
2 | liability[, including liability] and any increase or decrease |
3 | in the liabilities and funding for supplemental annuities, |
4 | due to actual experience differing from assumed experience[,] |
5 | (recognizing all realized and unrealized investment gains and |
6 | losses over a five-year period), changes in contributions |
7 | caused by the final contribution rate being different from |
8 | the actuarially required contribution rate, changes in |
9 | actuarial assumptions[,] or changes in the terms and |
10 | conditions of the benefits provided by the system by |
11 | judicial, administrative or other processes other than |
12 | legislation, including, but not limited to, reinterpretation |
13 | of the provisions of this part, shall be amortized [in equal |
14 | dollar annual contributions] as a level percentage of |
15 | compensation over a period of [ten] 30 years beginning with |
16 | the July 1 succeeding the actuarial valuation determining |
17 | said increases or decreases. |
18 | (2) [Notwithstanding the provisions of paragraph (1), |
19 | for each year after the establishment of the accrued |
20 | liability contribution rate for the fiscal year beginning |
21 | July 1, 2003, any increase or decrease in the unfunded |
22 | accrued liability due to actual experience differing from |
23 | assumed experience, changes in actuarial assumptions, changes |
24 | in the terms and conditions of the benefits provided by the |
25 | system by judicial, administrative or other processes other |
26 | than legislation, including, but not limited to, |
27 | reinterpretation of the provisions of this part, shall be |
28 | amortized in equal dollar annual contributions over a period |
29 | of 30 years beginning with the July 1 succeeding the |
30 | actuarial valuation determining said increases and decreases] |
|
1 | The actuarially required contribution rate shall be the sum |
2 | of the normal contribution rate, the accrued liability |
3 | contribution rate and the supplemental annuity contribution |
4 | rate, modified by the experience adjustment factor as |
5 | calculated in paragraph (1). |
6 | (g) Determination of liability for special vestee.-- |
7 | Notwithstanding any other provision of this part or other law, |
8 | the total additional accrued actuarial liability resulting from |
9 | eligibility of special vestees for benefits upon the attainment |
10 | of superannuation age shall be determined by the actuary as part |
11 | of the first annual valuation made after June 30, 1997. The |
12 | resulting additional accrued actuarial liability shall be paid |
13 | by The Pennsylvania State University to the board in one lump |
14 | sum payment within 90 days of the board's certification of the |
15 | amount to The Pennsylvania State University. |
16 | (h) Temporary application of collared contribution rate.-- |
17 | The collared contribution rate for each year shall be determined |
18 | by comparing the actuarially required contribution rate |
19 | calculated without regard for costs added by legislation to the |
20 | prior year's final contribution rate. If for any of the fiscal |
21 | years beginning July 1, 2011, July 1, 2012 and on or after July |
22 | 1, 2013, the actuarially required contribution rate calculated |
23 | without regard for costs added by legislation is more than 3%, |
24 | 3.5% and 4.5%, respectively, of the total compensation of all |
25 | active members greater than the prior year's final contribution |
26 | rate, then the collared contribution rate shall be applied and |
27 | be equal to the prior year's final contribution rate increased |
28 | by the respective percentage above of total compensation of all |
29 | active members. Otherwise, and for all subsequent fiscal years, |
30 | the collared contribution rate shall not be applicable. In no |
|
1 | case shall the collared contribution rate be less than 4% of |
2 | total compensation of all active members. |
3 | (i) Final contribution rate.--For the fiscal year beginning |
4 | July 1, 2010, the final contribution rate shall be 5% of total |
5 | compensation of all active members. For each subsequent fiscal |
6 | year for which the collared contribution rate is applicable, the |
7 | final contribution rate shall be the collared contribution rate |
8 | plus the costs added by legislation. For all other fiscal years, |
9 | the final contribution rate shall be the actuarially required |
10 | contribution rate, provided that the final contribution rate |
11 | shall not be less than the employer normal contribution rate, as |
12 | defined in subsection (b). |
13 | § 5702. Maximum single life annuity. |
14 | (a) General rule.--Any full coverage member who is eligible |
15 | to receive an annuity pursuant to the provisions of section |
16 | 5308(a) or (b) (relating to eligibility for annuities) who |
17 | terminates State service, or if a multiple service member who is |
18 | a school employee who is an active member of the Public School |
19 | Employees' Retirement System who terminates school service, |
20 | before attaining age 70 shall be entitled to receive a maximum |
21 | single life annuity attributable to his credited service and |
22 | equal to the sum of the following single life annuities |
23 | beginning at the effective date of retirement: |
24 | * * * |
25 | (4) If eligible, a single life annuity which is |
26 | actuarially equivalent to the amount by which his regular and |
27 | additional accumulated deductions attributable to any |
28 | credited service other than as a member of Class C are |
29 | greater than one-half of the actuarially equivalent value on |
30 | the effective date of retirement of the annuity as provided |
|
1 | in paragraph (1) attributable to service other than Class C |
2 | for which regular or joint coverage member contributions were |
3 | made. This paragraph shall not apply to any member with State |
4 | service credited as Class A-3 or Class A-4. |
5 | * * * |
6 | (6) If eligible, a single life annuity sufficient |
7 | together with the annuity provided for in paragraph (1) as a |
8 | Class A [and], Class AA, Class A-3 and Class A-4 member and |
9 | the highest annuity provided for in paragraph (2) to which he |
10 | is entitled, or at his option could have been entitled, to |
11 | produce that percentage of a standard single life annuity |
12 | adjusted by the application of the class of service |
13 | multiplier for Class A, Class AA, Class A-3 or Class A-4 as |
14 | set forth in paragraph (1) in the case where any service is |
15 | credited as a member of Class A, Class AA, Class A-3 or Class |
16 | A-4 on the effective date of retirement as determined by his |
17 | total years of credited service as a member of Class A [and], |
18 | Class AA, Class A-3 and Class A-4 and by the following table: |
19 20 21 22 23 24 25 26 | Total Years of Credited Service as a Member of Class A [and], Class AA, Class A-3 and Class A-4 | Percentage of Standard Single Life Annuity Adjusted for Class A, Class AA, Class A-3 and Class A-4 Class of Service Multipliers | 27 | 35-40 | 100% | 28 | 41 | 102% | 29 | 42 | 104% | 30 | 43 | 106% | | 1 | 44 | 108% | 2 | 45 or more | 110% |
|
3 | * * * |
4 | § 5704. Disability annuities. |
5 | * * * |
6 | (e) Termination of State service.--Upon termination of |
7 | disability annuity payments in excess of an annuity calculated |
8 | in accordance with section 5702, a disability annuitant who: |
9 | (1) does not have Class A-3 or Class A-4 service credit; |
10 | or |
11 | (2) has Class A-3 or Class A-4 service credit and fewer |
12 | than ten eligibility points; |
13 | and who does not return to State service may file an application |
14 | with the board for an amount equal to the excess, if any, of the |
15 | sum of the regular and additional accumulated deductions |
16 | standing to his credit at the effective date of disability over |
17 | one-third of the total disability annuity payments received. If |
18 | the annuitant on the date of termination of service was eligible |
19 | for an annuity as provided in section [5308(b)] 5308(a) or (b) |
20 | (relating to eligibility for annuities), he may file an |
21 | application with the board for an election of an optional |
22 | modification of his annuity. |
23 | * * * |
24 | § 5705. Member's options. |
25 | (a) General rule.--Any special vestee who has attained |
26 | superannuation age, any vestee who does not have Class A-3 or |
27 | Class A-4 service credit having five or more eligibility points |
28 | for service other than Class T-E or Class T-F service in the |
29 | Public School Employees' Retirement System, or vestee who has |
30 | Class A-3 or Class A-4 service credit having ten or more |
|
1 | eligibility points, any member with Class G, Class H, Class I, |
2 | Class J, Class K, Class L, Class M or Class N service having |
3 | five or more eligibility points or any other eligible member |
4 | upon termination of State service who has not withdrawn his |
5 | total accumulated deductions as provided in section 5701 |
6 | (relating to return of total accumulated deductions) may apply |
7 | for and elect to receive either a maximum single life annuity, |
8 | as calculated in accordance with the provisions of section 5702 |
9 | (relating to maximum single life annuity), or a reduced annuity |
10 | certified by the actuary to be actuarially equivalent to the |
11 | maximum single life annuity and in accordance with one of the |
12 | following options; except that no member shall elect an annuity |
13 | payable to one or more survivor annuitants other than his spouse |
14 | or alternate payee of such a magnitude that the present value of |
15 | the annuity payable to him for life plus any lump sum payment he |
16 | may have elected to receive is less than 50% of the present |
17 | value of his maximum single life annuity: |
18 | (1) Option 1.--A life annuity to the member with a |
19 | guaranteed total payment equal to the present value of the |
20 | maximum single life annuity on the effective date of |
21 | retirement with the provision that, if, at his death, he has |
22 | received less than such present value, the unpaid balance |
23 | shall be payable to his beneficiary. |
24 | (2) Option 2.--A joint and survivor annuity payable |
25 | during the lifetime of the member with the full amount of |
26 | such annuity payable thereafter to his survivor annuitant, if |
27 | living at his death. |
28 | (3) Option 3.--A joint and fifty percent (50%) survivor |
29 | annuity payable during the lifetime of the member with one- |
30 | half of such annuity payable thereafter to his survivor |
|
1 | annuitant, if living at his death. |
2 | (4) Option 4.--Some other benefit which shall be |
3 | certified by the actuary to be actuarially equivalent to the |
4 | maximum single life annuity, subject to the following |
5 | restrictions: |
6 | (i) any annuity shall be payable without reduction |
7 | during the lifetime of the member; |
8 | (ii) the sum of all annuities payable to the |
9 | designated survivor annuitants shall not be greater than |
10 | one and one-half times the annuity payable to the member; |
11 | and |
12 | (iii) a portion of the benefit may be payable as a |
13 | lump sum, except that such lump sum payment shall not |
14 | exceed an amount equal to the total accumulated |
15 | deductions standing to the credit of the member that are |
16 | not the result of contributions and statutory interest |
17 | made or credited as a result of Class A-3 or Class A-4 |
18 | service. The balance of the present value of the maximum |
19 | single life annuity adjusted in accordance with section |
20 | 5702(b) shall be paid in the form of an annuity with a |
21 | guaranteed total payment, a single life annuity, or a |
22 | joint and survivor annuity or any combination thereof but |
23 | subject to the restrictions of subparagraphs (i) and (ii) |
24 | under this option. |
25 | * * * |
26 | Section 10. Title 71 is amended by adding a section to read: |
27 | § 5705.1. Payment of accumulated deductions resulting from |
28 | Class A-3 and Class A-4 service. |
29 | Any superannuation or withdrawal annuitant who: |
30 | (1) has Class A-3 or Class A-4 service credit; |
|
1 | (2) has service credited in one or more classes of |
2 | service; and |
3 | (3) because he has five or more, but fewer than ten, |
4 | eligibility points is not eligible to receive an annuity on |
5 | his Class A-3 or Class A-4 service |
6 | shall receive in a lump sum at the time of his retirement, in |
7 | addition to any other annuity or lump sum payment which he may |
8 | elect, his accumulated deductions resulting from his Class A-3 |
9 | or Class A-4 service credit. Payment of these accumulated |
10 | deductions resulting from Class A-3 or Class A-4 service credit |
11 | shall not be eligible for installment payments pursuant to |
12 | section 5905.1 (relating to installment payments of accumulated |
13 | deductions) but shall be considered a lump sum payment for |
14 | purposes of section 5905.1(d). |
15 | Section 11. Sections 5708.1(f), 5708.2(f), 5708.3(f), |
16 | 5708.5(f), 5708.6(f), 5708.7(f), 5708.8(g), 5902(k), 5903(c), |
17 | 5905(a), 5905.1(d), 5907(c), 5934, 5936(b), 5937(b), 5938 and |
18 | 5955 of Title 71 are amended to read: |
19 | § 5708.1. Additional supplemental annuities. |
20 | * * * |
21 | (f) Funding.--The actuary shall annually certify the amount |
22 | of appropriations for the next fiscal year needed to fund, over |
23 | a period of ten years from July 1, 2002, the additional monthly |
24 | supplemental annuity provided for in this section[. The board |
25 | shall submit the actuary's certification to the Secretary of the |
26 | Budget on or before November 1 of each year. If, in any year |
27 | after 1984, the amount certified is disapproved under section |
28 | 610 of the act of April 9, 1929 (P.L.177, No.175), known as The |
29 | Administrative Code of 1929, as insufficient to meet the funding |
30 | requirements of this subsection or is not appropriated on or |
|
1 | before July 1, the additional supplemental annuity provided for |
2 | in this section shall be suspended until such time as an amount |
3 | certified and approved as sufficient is appropriated], which |
4 | amounts shall be paid during the period beginning July 1, 2002, |
5 | and ending June 30, 2010. For fiscal years beginning on or after |
6 | July 1, 2010, the additional liability provided in this section |
7 | shall be funded as part of the actuarial accrued liability as |
8 | provided in section 5508 (relating to actuarial cost method). |
9 | * * * |
10 | § 5708.2. Further additional supplemental annuities. |
11 | * * * |
12 | (f) Funding.--The actuary shall annually estimate the amount |
13 | of Commonwealth appropriations for the next fiscal year needed |
14 | to fund, over a period of ten years from July 1, 2002, the |
15 | additional monthly supplemental annuity provided for in this |
16 | section[. The board shall submit the actuary's estimation to the |
17 | Secretary of the Budget on or before November 1 of each year. |
18 | If, in any year after 1988, the amount estimated is disapproved |
19 | under section 610 of the act of April 9, 1929 (P.L.177, No.175), |
20 | known as The Administrative Code of 1929, as insufficient to |
21 | meet the funding requirements of this subsection or is not |
22 | appropriated on or before July 1, the additional supplemental |
23 | annuity provided for in this section shall be suspended until |
24 | such time as an amount certified and approved as sufficient is |
25 | appropriated], which amounts shall be paid during the period |
26 | beginning July 1, 2002, and ending June 30, 2010. For fiscal |
27 | years beginning on or after July 1, 2010, the additional |
28 | liability provided in this section shall be funded as part of |
29 | the actuarial accrued liability as provided in section 5508 |
30 | (relating to actuarial cost method). |
|
1 | * * * |
2 | § 5708.3. Supplemental annuities commencing 1994. |
3 | * * * |
4 | (f) Funding.--[The] For the period beginning July 1, 2002, |
5 | and ending June 30, 2010, the additional liability for the |
6 | increase in benefits provided in this section shall be funded in |
7 | equal dollar annual installments over a period of ten years |
8 | beginning July 1, 2002. For fiscal years beginning on or after |
9 | July 1, 2010, the additional liability for the increase in |
10 | benefits provided in this section shall be funded as part of the |
11 | actuarial accrued liability as provided in section 5508 |
12 | (relating to actuarial cost method). |
13 | * * * |
14 | § 5708.5. Supplemental annuities commencing 1998. |
15 | * * * |
16 | (f) Funding.--[The] For the period beginning July 1, 2002, |
17 | and ending June 30, 2010, the additional liability for the |
18 | increase in benefits provided in this section shall be funded in |
19 | equal dollar annual installments over a period of ten years |
20 | beginning July 1, 2002. For fiscal years beginning on or after |
21 | July 1, 2010, the additional liability for the increase in |
22 | benefits provided in this section shall be funded as part of the |
23 | actuarial accrued liability as provided in section 5508 |
24 | (relating to actuarial cost method). |
25 | * * * |
26 | § 5708.6. Supplemental annuities commencing 2002. |
27 | * * * |
28 | (f) Funding.--[The] For the period beginning July 1, 2003, |
29 | and ending June 30, 2010, the additional liability for the |
30 | increase in benefits provided in this section shall be funded in |
|
1 | equal dollar annual installments over a period of ten years |
2 | beginning July 1, 2003. For fiscal years beginning on or after |
3 | July 1, 2010, the additional liability for the increase in |
4 | benefits provided in this section shall be funded as part of the |
5 | actuarial accrued liability as provided in section 5508 |
6 | (relating to actuarial cost method). |
7 | * * * |
8 | § 5708.7. Supplemental annuities commencing 2003. |
9 | * * * |
10 | (f) Funding.--[The] For the period beginning July 1, 2004, |
11 | and ending June 30, 2010, the additional liability for the |
12 | increase in benefits provided in this section shall be funded in |
13 | equal dollar annual installments over a period of ten years |
14 | beginning July 1, 2004. For fiscal years beginning on or after |
15 | July 1, 2010, the additional liability for the increase in |
16 | benefits provided in this section shall be funded as part of the |
17 | actuarial accrued liability as provided in section 5508 |
18 | (relating to actuarial cost method). |
19 | * * * |
20 | § 5708.8. Special supplemental postretirement adjustment of |
21 | 2002. |
22 | * * * |
23 | (g) Funding.--[The] For the period beginning July 1, 2003, |
24 | and ending June 30, 2010, the additional liability for the |
25 | increase in benefits provided in this section shall be funded in |
26 | equal dollar annual installments over a period of ten years |
27 | beginning July 1, 2003. For fiscal years beginning on or after |
28 | July 1, 2010, the additional liability for the increase in |
29 | benefits provided in this section shall be funded as part of the |
30 | actuarial accrued liability as provided in section 5508 |
|
1 | (relating to actuarial cost method). |
2 | * * * |
3 | § 5902. Administrative duties of the board. |
4 | * * * |
5 | (k) Certification of employer contributions.--The board |
6 | shall, each year in addition to the itemized budget required |
7 | under section 5509 (relating to appropriations and assessments |
8 | by the Commonwealth), certify, as a percentage of the members' |
9 | payroll, the employers' contributions as determined pursuant to |
10 | section 5508 (relating to actuarial cost method) necessary for |
11 | the funding of prospective annuities for active members and the |
12 | annuities of annuitants and certify the rates and amounts of the |
13 | employers' normal contributions as determined pursuant to |
14 | section 5508(b), accrued liability contributions as determined |
15 | pursuant to section 5508(c), supplemental annuities contribution |
16 | rate as determined pursuant to section 5508(e) [and], the |
17 | experience adjustment factor as determined pursuant to section |
18 | 5508(f), the collared contribution rate pursuant to section |
19 | 5508(h) and the final contribution rate pursuant to section |
20 | 5508(i), which shall be paid to the fund and credited to the |
21 | appropriate accounts. The board may allocate the final |
22 | contribution rate and certify various employer contribution |
23 | rates based upon the different benefit eligibility, class of |
24 | service multiplier, superannuation age and other benefit |
25 | differences resulting from State service credited for individual |
26 | members even though such allocated employer contribution rate on |
27 | behalf of any given member may be more or less than 5% of the |
28 | member's compensation for the period from July 1, 2010, to June |
29 | 30, 2011, or may differ from the prior year's contribution for |
30 | that member by more or less than the percentages used to |
|
1 | calculate the collared contribution rate for that year and may |
2 | be below any minimum contribution rate established for the |
3 | collared contribution rate or final contribution rate. These |
4 | certifications shall be regarded as final and not subject to |
5 | modification by the [Budget Secretary] Secretary of the Budget. |
6 | * * * |
7 | § 5903. Duties of the board to advise and report to heads of |
8 | departments and members. |
9 | * * * |
10 | (c) Purchase of credit and full coverage membership |
11 | certifications.--Upon receipt of an application from an active |
12 | member or eligible school employee to purchase credit for |
13 | previous State or creditable nonstate service, an election for |
14 | membership in a specific class of service, or an election to |
15 | become a full coverage member, the board shall determine and |
16 | certify to the member the amount required to be paid by the |
17 | member. When necessary, the board shall certify to the previous |
18 | employer the amount due in accordance with sections 5504 |
19 | (relating to member contributions for the purchase of credit for |
20 | previous State service or to become a full coverage member) and |
21 | 5505 (relating to contributions for the purchase of credit for |
22 | creditable nonstate service). |
23 | * * * |
24 | § 5905. Duties of the board regarding applications and |
25 | elections of members. |
26 | (a) Statement to new members.--As soon as practicable after |
27 | each member shall have become an active member in the system, |
28 | the board shall issue to the member notice of any election of |
29 | class of service membership he may be eligible to make, a |
30 | statement certifying his class of service, his member |
|
1 | contribution rate, and the aggregate length of total previous |
2 | State service and creditable nonstate service for which he may |
3 | receive credit. |
4 | * * * |
5 | § 5905.1. Installment payments of accumulated deductions. |
6 | * * * |
7 | (d) Statutory interest.--Any lump sum, including a lump sum |
8 | payable pursuant to section 5705.1 (relating to payment of |
9 | accumulated deductions resulting from Class A-3 and Class A-4 |
10 | service), or installment payable shall include statutory |
11 | interest credited to the date of payment, except in the case of |
12 | a member, other than a vestee or special vestee, who has not |
13 | filed his application prior to 90 days following his termination |
14 | of service. |
15 | § 5907. Rights and duties of State employees and members. |
16 | * * * |
17 | (c) Multiple service membership.--Any active member who was |
18 | formerly an active member in the Public School Employees' |
19 | Retirement System may elect to become a multiple service member. |
20 | Such election shall occur no later than [30] 365 days after |
21 | becoming an active member in this system. |
22 | * * * |
23 | § 5934. State accumulation account. |
24 | The State accumulation account shall be the ledger account to |
25 | which shall be credited all contributions of the Commonwealth or |
26 | other employers whose employees are members of the system and |
27 | made in accordance with the provisions of section 5507(a) or (d) |
28 | (relating to contributions by the Commonwealth and other |
29 | employers) except that the amounts received under the provisions |
30 | of the act of May 12, 1943 (P.L.259, No.120), and the amounts |
|
1 | received under the provisions of the Liquor Code, act of April |
2 | 12, 1951 (P.L.90, No.21), shall be credited to the State Police |
3 | benefit account or the enforcement officers' benefit account as |
4 | the case may be. All amounts transferred to the fund by county |
5 | retirement systems or pension plans in accordance with the |
6 | provisions of section 5507(c) also shall be credited to the |
7 | State accumulation account. All amounts transferred to the fund |
8 | by the Public School Employees' Retirement System in accordance |
9 | with section 5303.2(e) (relating to election to convert school |
10 | service to State service), except amounts credited to the |
11 | members' savings account, and all amounts paid by the Department |
12 | of Corrections in accordance with section 5303.2(f) also shall |
13 | be credited to the State accumulation account. The State |
14 | accumulation account shall be credited with valuation interest. |
15 | The reserves necessary for the payment of annuities and death |
16 | benefits as approved by the board and as provided in Chapter 57 |
17 | (relating to benefits) shall be transferred from the State |
18 | accumulation account to the annuity reserve account provided for |
19 | in section 5935 (relating to annuity reserve account), except |
20 | that the reserves necessary on account of a member who is an |
21 | officer of the Pennsylvania State Police or an enforcement |
22 | officer shall be transferred from the State accumulation account |
23 | to the State Police benefit account provided for in section 5936 |
24 | (relating to State Police benefit account) or to the enforcement |
25 | officers' benefit account as provided for in section 5937 |
26 | (relating to enforcement officers' benefit account) as the case |
27 | may be. The reserves necessary for the payment of supplemental |
28 | annuities in excess of those reserves credited to the |
29 | supplemental annuity account on June 30, 2010, shall be |
30 | transferred from the State accumulation account to the |
|
1 | supplemental annuity account. In the event that supplemental |
2 | annuities are increased by legislation enacted subsequent to |
3 | December 31, 2009, the necessary reserves shall be transferred |
4 | from the State accumulation account to the supplemental annuity |
5 | account. |
6 | § 5936. State Police benefit account. |
7 | * * * |
8 | (b) Transfers from account.--Should the said annuitant be |
9 | subsequently restored to active service, the present value of |
10 | the member's annuity at the time of reentry into State service |
11 | shall be transferred from the State Police benefit account and |
12 | placed to his individual credit in the members' savings account. |
13 | In addition, the actuarial reserve for his annuity calculated as |
14 | if he had been a member of Class A if he has Class A or Class C |
15 | service credited; as if he had been a member of Class A-3 if the |
16 | annuitant has Class A-3 State service credited; or as if he had |
17 | been a member of Class A-4 if the annuitant has Class A-4 |
18 | service credited, less the amount transferred to the members' |
19 | savings account shall be transferred from the State Police |
20 | benefit account to the State accumulation account. Upon |
21 | subsequent retirement other than as an officer of the |
22 | Pennsylvania State Police the actuarial reserve remaining in the |
23 | State Police benefit account shall be transferred to the |
24 | appropriate reserve account. |
25 | § 5937. Enforcement officers' benefit account. |
26 | * * * |
27 | (b) Transfers from account.--Should the said annuitant be |
28 | subsequently restored to active service, the present value of |
29 | the member's annuity at the time of reentry into State service |
30 | shall be transferred from the enforcement officers' benefit |
|
1 | account and placed to his individual credit in the members' |
2 | savings account. In addition, the actuarial reserve for his |
3 | annuity calculated as if he had been a member of Class A if the |
4 | annuitant does not have any Class AA, Class A-3 or Class A-4 |
5 | service credited [and calculated]; as if he had been a member of |
6 | Class AA if the annuitant does have Class AA service credited; |
7 | as if he had been a member of Class A-3 if the annuitant has |
8 | Class A-3 State service credited; or as if he had been a member |
9 | of Class A-4 if the annuitant has Class A-4 service credited, |
10 | less the amount transferred to the members' savings account |
11 | shall be transferred from the enforcement officers' benefit |
12 | account to the State accumulation account. Upon subsequent |
13 | retirement other than as an enforcement officer the actuarial |
14 | reserve remaining in the enforcement officers' benefit account |
15 | shall be transferred to the appropriate reserve account. |
16 | § 5938. Supplemental annuity account. |
17 | The supplemental annuity account shall be the ledger account |
18 | to which shall be credited all contributions from the |
19 | Commonwealth and other employers in accordance with section |
20 | 5507(b) (relating to contributions by the Commonwealth and other |
21 | employers) for the payment of the supplemental annuities |
22 | provided in sections 5708 (relating to supplemental annuities), |
23 | 5708.1 (relating to additional supplemental annuities), 5708.2 |
24 | (relating to further additional supplemental annuities), 5708.3 |
25 | (relating to supplemental annuities commencing 1994), 5708.4 |
26 | (relating to special supplemental postretirement adjustment), |
27 | 5708.5 (relating to supplemental annuities commencing 1998), |
28 | 5708.6 (relating to supplemental annuities commencing 2002), |
29 | 5708.7 (relating to supplemental annuities commencing 2003) and |
30 | 5708.8 (relating to special supplemental postretirement |
|
1 | adjustment of 2002) made before July 1, 2010, the amount |
2 | transferred from the State accumulation account to provide all |
3 | additional reserves necessary as of June 30, 2010, to pay such |
4 | supplemental annuities and adjustments, and the amounts |
5 | transferred from the State accumulation account to provide all |
6 | additional reserves necessary as a result of supplemental |
7 | annuities enacted after December 31, 2009. The supplemental |
8 | annuity account shall be credited with valuation interest. The |
9 | reserves necessary for the payment of such supplemental |
10 | annuities shall be transferred from the supplemental annuity |
11 | account to the annuity reserve account as provided in section |
12 | 5935 (relating to annuity reserve account). |
13 | § 5955. Construction of part. |
14 | Regardless of any other provision of law, pension rights of |
15 | State employees shall be determined solely by this part or any |
16 | amendment thereto, and no collective bargaining agreement nor |
17 | any arbitration award between the Commonwealth and its employees |
18 | or their collective bargaining representatives shall be |
19 | construed to change any of the provisions herein, to require the |
20 | board to administer pension or retirement benefits not set forth |
21 | in this part, or otherwise require action by any other |
22 | government body pertaining to pension or retirement benefits or |
23 | rights of State employees. Notwithstanding the foregoing, any |
24 | pension or retirement benefits or rights previously so |
25 | established by or as a result of an arbitration award shall |
26 | remain in effect after the expiration of the current collective |
27 | bargaining agreement between the State employees so affected and |
28 | the Commonwealth until the expiration of each of the collective |
29 | bargaining agreements in effect on January 1, 2011, at which |
30 | time the classes of membership and resulting member contribution |
|
1 | rates, eligibility for vesting, withdrawal and superannuation |
2 | annuities, optional modification of annuities and other terms |
3 | and conditions related to class of membership shall be as |
4 | determined by this part for employees covered by those and |
5 | successor collective bargaining agreements. For purposes of |
6 | administering this part, for those State employees who are |
7 | members of each such collective bargaining unit, the date |
8 | January 1, 2011, contained in this part, except in this section, |
9 | shall be replaced with the date of the day immediately following |
10 | the expiration of each such collective bargaining agreement. The |
11 | provisions of this part insofar as they are the same as those of |
12 | existing law are intended as a continuation of such laws and not |
13 | as new enactments. The provisions of this part shall not affect |
14 | any act done, liability incurred, right accrued or vested, or |
15 | any suit or prosecution pending or to be instituted to enforce |
16 | any right or penalty or to punish any offense under the |
17 | authority of any repealed laws. |
18 | Section 12. Contribution rates shall remain in effect until |
19 | June 30, 2010, as follows: |
20 | (1) Notwithstanding the provisions of this act, the |
21 | employer contribution rates certified by the Public School |
22 | Employees' Retirement Board for fiscal year 2009-2010 shall |
23 | remain in effect until June 30, 2010. |
24 | (2) Notwithstanding the provisions of this act, the |
25 | employer contribution rates certified by the State Employees' |
26 | Retirement Board for fiscal year 2009-2010 shall remain in |
27 | effect until June 30, 2010. |
28 | Section 13. Recertification to the Secretary of the Budget |
29 | shall be as follows: |
30 | (1) Within 15 days of the later of: |
|
1 | (i) the effective date of this section; or |
2 | (ii) the date of the passage of this Commonwealth's |
3 | budget for fiscal year 2010-2011, the Secretary of the |
4 | Budget shall certify to the Public School Employees' |
5 | Retirement Board the amount of money appropriated for |
6 | public school employees' retirement. |
7 | Notwithstanding any other provisions of law to the contrary, |
8 | the Public School Employees' Retirement Board shall, |
9 | effective for the fiscal year beginning July 1, 2010, |
10 | recertify to the Secretary of the Budget, within 15 days of |
11 | the effective date of the Secretary of the Budget's |
12 | certification to the Public School Employees' Retirement |
13 | Board of the amount of money appropriated for public school |
14 | employees' retirement, the employer contributions, rates, |
15 | factors and amounts set forth in 24 Pa.C.S. § 8502(k), as |
16 | amended by this act. The recertification rate shall be not |
17 | less than 5% nor more than 7.58%, plus the premium assistance |
18 | contribution rate. The recertification shall supersede the |
19 | prior certification for all purposes. This recertified rate |
20 | shall not affect the application of the collared contribution |
21 | rate as set forth in 24 Pa.C.S. § 8328(g). |
22 | (2) Notwithstanding any other provision of law to the |
23 | contrary, the State Employees' Retirement Board shall, |
24 | effective for the fiscal year beginning July 1, 2010, |
25 | recertify to the Secretary of the Budget and heads of |
26 | departments, within 15 days of the effective date of this |
27 | section, the contributions, rates, factors and amounts set |
28 | forth in 71 Pa.C.S. § 5902(k), as amended by this act. The |
29 | recertification shall supersede the prior certification for |
30 | all purposes. |
|
1 | Section 14. Certain public officials shall be held harmless, |
2 | as follows: |
3 | (1) Notwithstanding any other provision of law, |
4 | fiduciary requirement, actuarial standard of practice or |
5 | other requirement to the contrary, the members of the Public |
6 | School Employees' Retirement Board, the actuary and other |
7 | employees and officials of the Public School Employees' |
8 | Retirement System shall not be held liable or in breach or |
9 | violation of any law or standard either as individuals or in |
10 | their official capacity or as a governmental or corporate |
11 | entity for any action or calculation related to calculating |
12 | and certifying a final contribution rate as provided for in |
13 | this act that is different from the actuarially required |
14 | contribution rate as otherwise appropriately calculated under |
15 | the provisions of the Public School Employees' Retirement |
16 | Code. |
17 | (2) Notwithstanding any other provision of law, |
18 | fiduciary requirement, actuarial standard of practice or |
19 | other requirement to the contrary, the members of the State |
20 | Employees' Retirement Board, the actuary and other employees |
21 | and officials of the State Employees' Retirement System shall |
22 | not be held liable or in breach or violation of any law or |
23 | standard either as individuals or in their official capacity |
24 | or as a governmental or corporate entity for any action or |
25 | calculation related to calculating and certifying a final |
26 | contribution rate as provided for in this act that is |
27 | different from the actuarially required contribution rate as |
28 | otherwise appropriately calculated under the provisions of |
29 | the State Employees' Retirement Code. |
30 | Section 15. Construction of a calculation or actuarial |
|
1 | method shall be as follows: |
2 | (1) Nothing in this act shall be construed or deemed to |
3 | imply that any calculation or actuarial method used by the |
4 | Public School Employees' Retirement Board, its actuaries or |
5 | the Public School Employees' Retirement System was not in |
6 | accordance with the provisions of the Public School |
7 | Employees' Retirement Code or other applicable law prior to |
8 | the effective date of this section. |
9 | (2) Nothing in this act shall be construed or deemed to |
10 | imply that any calculation or actuarial method used by the |
11 | State Employees' Retirement Board, its actuaries or the State |
12 | Employees' Retirement System was not in accordance with the |
13 | provisions of the State Employees' Retirement Code or other |
14 | applicable law prior to the effective date of this section. |
15 | Section 16. Nothing in this act shall be deemed to permit |
16 | the restoration of service credit or retirement benefits which |
17 | were the subject of an order of forfeiture pursuant to the act |
18 | of July 8, 1978 (P.L.752, No.140), known as the Public Employee |
19 | Pension Forfeiture Act, or subject to section 16 of Article V of |
20 | the Constitution of Pennsylvania or 42 Pa.C.S. § 3352. |
21 | Section 17. Nothing in this act shall be construed or deemed |
22 | to imply that any interpretation or application of the |
23 | provisions of 24 Pa.C.S. Pt. IV or benefits available to members |
24 | of the Public School Employees' Retirement System was not in |
25 | accordance with the provisions of 24 Pa.C.S. Pt. IV or other |
26 | applicable law prior to the effective date of this section. |
27 | Nothing It is the express intent of the General Assembly that | <-- |
28 | nothing in this act shall be construed to grant to or be deemed | <-- |
29 | to imply that any current or former school employees on the | <-- |
30 | effective date of this section possessed this act expands, | <-- |
|
1 | contracts or otherwise affects any contractual rights, either |
2 | expressed or implied, or any other constitutionally protected |
3 | rights, in the terms and conditions of the Public School |
4 | Employees' Retirement System or other pension or retirement |
5 | benefits as a school employee, including, but not limited to, |
6 | benefits, option options, rights or privileges established by 24 | <-- |
7 | Pa.C.S. Pt. IV for any current or former school employees. | <-- |
8 | Section 18. This act shall be construed and administered in |
9 | such a manner that the Public School Employees' Retirement |
10 | System will satisfy the requirements necessary to qualify as a |
11 | qualified pension plan under section 401(a) and other applicable |
12 | provisions of the Internal Revenue Code of 1986 (Public Law |
13 | 99-514, 26 U.S.C. § 1 et seq.). The rules, regulations and |
14 | procedures adopted and promulgated by the Public School |
15 | Employees' Retirement Board under 24 Pa.C.S. § 8502(h) may |
16 | include those necessary to accomplish the purpose of this |
17 | section. |
18 | Section 19. (a) Nothing in this act which amends or |
19 | supplements provisions of 24 Pa.C.S. Pt. IV shall create in any |
20 | member of the system or in any other person claiming an interest |
21 | in the account of any such member a contractual right, either |
22 | express or implied, in relation to requirements for |
23 | qualification of the Public School Employees' Retirement System |
24 | as a qualified pension plan under the Internal Revenue Code of |
25 | 1986 (Public Law 99-514, 26 U.S.C. § 401(a)) nor any |
26 | construction of 24 Pa.C.S. Pt. IV, as so amended or |
27 | supplemented, or any rules or regulations adopted under 24 |
28 | Pa.C.S. Pt. IV. The provisions of 24 Pa.C.S. Pt. IV shall remain |
29 | subject to the Internal Revenue Code of 1986, and the General |
30 | Assembly reserves to itself such further exercise of its |
|
1 | legislative power to amend or supplement such provisions as may |
2 | from time to time be required in order to maintain the |
3 | qualification of such system as a qualified pension plan under |
4 | section 401(a) and other applicable provisions of the Internal |
5 | Revenue Code of 1986. |
6 | (b) References in this act to the Internal Revenue Code of |
7 | 1986, including for this purpose administrative regulations |
8 | promulgated thereunder, are intended to include such laws and |
9 | regulations in effect on the effective date of this section and |
10 | as they may hereafter be amended or supplemented or supplanted |
11 | by successor provisions. |
12 | Section 20. No school employee otherwise a member of, |
13 | eligible to be a member of, or having school or nonschool |
14 | service credited in a class of service other than Class T-E or |
15 | Class T-F may cancel, decline or waive membership in such other |
16 | class of service in order to obtain Class T-E or Class T-F |
17 | service credit, become a member of Class T-E or Class T-F or |
18 | elect Class T-E or Class T-F membership. |
19 | Section 21. Notwithstanding any other provision of law, any |
20 | change in accrued liability of the Public School Employees' |
21 | Retirement System created by this act shall be funded as a level |
22 | percentage of compensation over a period of 30 years beginning |
23 | July 1, 2012, subject to any limits imposed on employer |
24 | contributions to the Public School Employees' Retirement System. |
25 | For purposes of 24 Pa.C.S. §§ 8321, 8326 and 8328, such changes |
26 | shall not be considered to be costs added by legislation. |
27 | Section 22. Notwithstanding any regulation promulgated by |
28 | the Public School Employees' Retirement Board, application or |
29 | interpretation of 24 Pa.C.S. Pt. IV, or administrative practice |
30 | to the contrary, a member's eligibility deriving from Class T-E |
|
1 | or Class T-F service credit for a superannuation annuity or |
2 | other rights and benefits based upon attaining superannuation |
3 | age shall require the actual accrual of 35 eligibility points. |
4 | Section 23. Nothing in this act shall be construed or deemed |
5 | to imply that any interpretation or application of the |
6 | provisions of 71 Pa.C.S. Pt. XXV or benefits available to |
7 | members of the State Employees' Retirement System was not in |
8 | accordance with the provisions of 71 Pa.C.S. Pt. XXV or other |
9 | applicable law prior to the effective date of this section. |
10 | Nothing It is the express intent of the General Assembly that | <-- |
11 | nothing in this act shall be construed to grant to or be deemed | <-- |
12 | to imply that any current or former State employees on the | <-- |
13 | effective date of this section possessed this act expands, | <-- |
14 | contracts or otherwise affects any contractual rights, either |
15 | expressed or implied, or any other constitutionally protected |
16 | rights, in the terms and conditions of the State Employees' |
17 | Retirement System or other pension or retirement benefits as a |
18 | State employee, including, but not limited to, benefits, |
19 | options, rights or privileges established by 71 Pa.C.S. Pt. XXV |
20 | for any current or former State employees. | <-- |
21 | Section 24. This act shall be construed and administered in |
22 | such a manner that the State Employees' Retirement System will |
23 | satisfy the requirements necessary to qualify as a qualified |
24 | pension plan under section 401(a) and other applicable |
25 | provisions of the Internal Revenue Code of 1986 (Public Law |
26 | 99-514, 26 U.S.C. § 1 et seq.). The rules, regulations and |
27 | procedures adopted and promulgated by the State Employees' |
28 | Retirement Board under 71 Pa.C.S. § 5902(h) may include those |
29 | necessary to accomplish the purpose of this section. |
30 | Section 25. (a) Nothing in this act which amends or |
|
1 | supplements provisions of 71 Pa.C.S. Pt. XXV shall create in any |
2 | member of the system or in any other person claiming an interest |
3 | in the account of any such member a contractual right, either |
4 | express or implied, in relation to requirements for |
5 | qualification of the State Employees' Retirement System as a |
6 | qualified pension plan under the Internal Revenue Code of 1986 |
7 | (Public Law 99-514, 26 U.S.C. § 401(a)) nor any construction of |
8 | 71 Pa.C.S. Pt. XXV, as so amended or supplemented, or any rules |
9 | or regulations adopted under 71 Pa.C.S. Pt. XXV. The provisions |
10 | of 71 Pa.C.S. Pt. XXV shall remain subject to the Internal |
11 | Revenue Code of 1986, and the General Assembly reserves to |
12 | itself such further exercise of its legislative power to amend |
13 | or supplement such provisions as may from time to time be |
14 | required in order to maintain the qualification of such system |
15 | as a qualified pension plan under section 401(a) and other |
16 | applicable provisions of the Internal Revenue Code of 1986. |
17 | (b) References in this act to the Internal Revenue Code of |
18 | 1986, including for this purpose administrative regulations |
19 | promulgated thereunder, are intended to include such laws and |
20 | regulations in effect on the effective date of this section and |
21 | as they may hereafter be amended or supplemented or supplanted |
22 | by successor provisions. |
23 | Section 26. No State employee otherwise a member of, |
24 | eligible to be a member of, or having State or nonstate service |
25 | credited in, a class of service other than Class A-3 may cancel, |
26 | decline or waive membership in such other class of service in |
27 | order to obtain Class A-3 or Class A-4 service credit, become a |
28 | member of Class A-3 or Class A-4 or elect Class A-3 or Class A-4 |
29 | membership. |
30 | Section 27. Notwithstanding any other provision of law, any |
|
1 | change in accrued liability of the State Employees' Retirement |
2 | System created by this act as a result of changes in benefits |
3 | shall be funded as a level percentage of compensation over a |
4 | period of 30 years beginning July 1, 2012 2011, subject to any | <-- |
5 | limits imposed on employer contributions to the State Employees' |
6 | Retirement System. For purposes of 71 Pa.C.S. §§ 5501.1, 5507 |
7 | and 5508, any such changes shall not be considered to be costs |
8 | added by legislation. |
9 | Section 28. Notwithstanding any regulation promulgated by |
10 | the State Employees' Retirement Board, application or |
11 | interpretation of 71 Pa.C.S. Pt. XXV, or administrative practice |
12 | to the contrary, a member's eligibility deriving from Class A-3 |
13 | or Class A-4 service credit for a superannuation annuity or |
14 | other rights and benefits based upon attaining superannuation |
15 | age shall require the actual accrual of 35 eligibility points. |
16 | Section 29. This act shall take effect as follows: |
17 | (1) The amendment or addition of the following |
18 | provisions of 24 Pa.C.S. shall take effect July 1, 2011: |
19 | section 8102; |
20 | section 8303(c); |
21 | section 8304(a); |
22 | section 8305(d) and (e); |
23 | section 8305.2; |
24 | section 8307(b); |
25 | section 8308; |
26 | section 8323(a), (c) and (c.1); |
27 | section 8324(a), (d), (e) and (f); |
28 | section 8326(a); |
29 | section 8327(a) and (c); |
30 | section 8328 |
|
1 | section 8342(a); |
2 | section 8344(d); |
3 | section 8345(a); |
4 | section 8348.1(f); |
5 | section 8348.2(f); |
6 | section 8348.3(f); |
7 | section 8348.5(f); |
8 | section 8348.6(f); |
9 | section 8348.7(f); |
10 | section 8502(k) |
11 | section 8505(l); and |
12 | section 8535(3). |
13 | (2) Sections 17, 18, 19, 20, 21 and 22 of this act shall |
14 | take effect July 1, 2011. |
15 | (3) The remainder of this act shall take effect |
16 | immediately. |
|