THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY GROVE, GINGRICH, MOUL AND ROCK, FEBRUARY 24, 2011

REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 24, 2011  

AN ACT

Amending Title 24 (Education) of the Pennsylvania Consolidated

Statutes, in miscellaneous provisions, further providing for

payments to school entities by Commonwealth; and repealing

related provisions of the Taxpayer Relief Act.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 8535 of Title 24 of the Pennsylvania

Consolidated Statutes, amended November 23, 2010 (P.L.    ,

No.120), is amended to read:

§ 8535.  Payments to school entities by Commonwealth.

(a)  General rule.--For each school year beginning with the

1995-1996 school year and ending with the 2010-2011 school year,

each school entity shall be paid by the Commonwealth for

contributions based upon school service of active members of the

system after June 30, 1995, as follows:

(1)  The Commonwealth shall pay each school entity for

contributions made to the Public School Employees' Retirement

Fund based upon school service of all active members,

including members on activated military service leave, whose

effective dates of employment with their school entities are

after June 30, 1994, and who also had not previously been

employed by any school entity within this Commonwealth an

amount equal to the amount certified by the Public School

Employees' Retirement Board as necessary to provide, together

with the members' contributions, reserves on account of

prospective annuities, supplemental annuities and the premium

assistance program as provided in this part in accordance

with section 8328 (relating to actuarial cost method),

multiplied by the market value/income aid ratio of the school

entity. For no school year shall any school entity receive

less than the amount that would result if the market

value/income aid ratio as defined in section 2501(14.1) of

the Public School Code of 1949 was 0.50.

(2)  The Commonwealth shall pay each school entity for

contributions made to the Public School Employees' Retirement

Fund based upon school service of all active members,

including members on activated military service leave, who

are not described in paragraph (1), one-half of the amount

certified by the Public School Employees' Retirement Board as

necessary to provide, together with the members'

contributions, reserves on account of prospective annuities,

supplemental annuities and the premium assistance program as

provided in this part in accordance with section 8328.

(3)  School entities shall have up to five days after

receipt of the Commonwealth's portion of the employer's

liability to make payment to the Public School Employees'

Retirement Fund. School entities are expected to make the

full payment to the Public School Employees' Retirement Fund

in accordance with section 8327 (relating to payments by

employers) in the event the receipt of the Commonwealth's

portion of the employer's liability is delayed because of

delinquent salary reporting or other conduct by the school

entities.

(b)  School years beginning 2011-2012 and thereafter.--For

each school year beginning with the 2011-2012 school year, each

school entity shall be paid by the Commonwealth for

contributions based upon school service of active members of the

system after June 30, 2011, as follows:

(1)  The Commonwealth shall pay each school entity for

contributions made to the Public School Employees' Retirement

Fund based upon school service of all active members,

including members on activated military service leave, an

amount equal to the amount certified by the Public School

Employees' Retirement Board as necessary to provide, together

with the members' contributions, employers' contributions,

reserves on account of prospective annuities, supplemental

annuities and the premium assistance program as provided in

this part in accordance with section 8328, less the amount

specified in paragraph (3).

(2)  School entities shall have up to five days after

receipt of the Commonwealth's portion of the employer's

liability to make payment to the Public School Employees'

Retirement Fund.

(3)  The payment by the Commonwealth under paragraph (1)

shall be reduced by the sum of 4% applied to the total

compensation during the pay periods in the preceding year of

all employees who were active members of the system during

such period, including members on activated military service

leave.

Section 2.  Repeals are as follows:

(1)  The General Assembly declares that the repeal under

paragraph (2) is necessary to effectuate the provisions of

this act.

(2)  Section 333(n) of the act of June 27, 2006 (1st

Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief Act,

is repealed.

Section 3.  This act shall take effect in 60 days.