PRIOR PRINTER'S NO. 886 PRINTER'S NO. 3128
No. 828 Session of 1981
INTRODUCED BY BURNS, GALLAGHER, DAVIES, J. L. WRIGHT AND
E. Z. TAYLOR, MARCH 10, 1981
AS REPORTED FROM COMMITTEE ON EDUCATION, HOUSE OF
REPRESENTATIVES, AS AMENDED, APRIL 13, 1982
AN ACT
1 Amending Title 24 (Education) of the Pennsylvania Consolidated
2 Statutes, providing an additional limitation on creditable
3 nonschool service.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Section 8304(b) (A) of Title 24, act of November <--
7 25, 1970 (P.L.707, No.230), known as the Pennsylvania
8 Consolidated Statutes, is amended AND SUBSECTION (B) IS AMENDED <--
9 by adding a paragraph to read:
10 § 8304. Creditable nonschool service.
11 * * * <--
12 (A) ELIGIBILITY.--AN ACTIVE MEMBER OR A MULTIPLE SERVICE <--
13 MEMBER WHO IS AN ACTIVE MEMBER OF THE STATE EMPLOYEES'
14 RETIREMENT SYSTEM SHALL BE ELIGIBLE TO RECEIVE CLASS T-C SERVICE
15 CREDIT FOR CREDITABLE NONSCHOOL SERVICE AS SET FORTH IN
16 SUBSECTION (B) PROVIDED THAT HE IS NOT ENTITLED TO RECEIVE,
17 ELIGIBLE TO RECEIVE NOW OR IN THE FUTURE, OR IS RECEIVING
1 RETIREMENT BENEFITS FOR SUCH SERVICE UNDER A RETIREMENT SYSTEM
2 ADMINISTERED AND WHOLLY OR PARTIALLY PAID FOR BY ANY OTHER
3 GOVERNMENTAL AGENCY OR BY ANY PRIVATE EMPLOYER, OR A RETIREMENT
4 PROGRAM APPROVED BY THE EMPLOYER IN ACCORDANCE WITH SECTION
5 8301(A)(1) (RELATING TO MANDATORY AND OPTIONAL MEMBERSHIP), AND
6 FURTHER PROVIDED THAT SUCH SERVICE IS CERTIFIED BY THE PREVIOUS
7 EMPLOYER AND THE MANNER OF PAYMENT OF THE AMOUNT DUE IS AGREED
8 UPON BY THE MEMBER, THE EMPLOYER, AND THE BOARD. HOWEVER, AN
9 ACTIVE MEMBER WHO IS NOT ACTUALLY RECEIVING BENEFITS FROM A
10 RETIREMENT SYSTEM OF ANOTHER STATE MAY DIVEST HIMSELF OF HIS
11 ENTITLEMENT OR ELIGIBILITY FOR FUTURE BENEFITS IN THAT SYSTEM IN
12 ORDER TO RECEIVE CREDITABLE NONSCHOOL SERVICE CREDIT UNDER
13 SUBSECTION (B)(3). SUCH DIVESTITURE SHALL BE CERTIFIED TO THE
14 BOARD BY THE OUT-OF-STATE SYSTEM BEFORE THE MEMBER APPLIES FOR
15 THE CREDITABLE NONSCHOOL SERVICE CREDIT.
16 (b) Limitations on nonschool service.--Creditable nonschool
17 service credit shall be limited to:
18 * * *
19 (6) Previous service in an accredited Pennsylvania
20 nonpublic elementary or secondary school or institution of
21 higher education: Provided, That the member was entitled to a
22 provisional or permanent professional certificate to teach in
23 the public schools of this Commonwealth at the time such
24 service was rendered. For every three years or major fraction
25 thereof in previous work experience, an individual can buy
26 one year of creditable service, not to exceed a total of five
27 years. THE PURCHASE OF THIS SERVICE SHALL BEGIN WITHIN THREE <--
28 YEARS OF THE EMPLOYE'S ELIGIBILITY TO PURCHASE THIS
29 CREDITABLE SERVICE. THE DEPARTMENT OF EDUCATION MAY CHARGE AN
30 APPLICANT A FEE NECESSARY TO COVER ADMINISTRATIVE COSTS
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1 INCURRED IN VERIFYING THE APPLICANT'S ELIGIBILITY FOR
2 CERTIFICATION.
3 * * *
4 SECTION 2. SECTION 8324 OF TITLE 24 IS AMENDED BY ADDING A <--
5 SUBSECTION TO READ:
6 § 8324. CONTRIBUTIONS FOR PURCHASE OF CREDIT FOR CREDITABLE
7 NONSCHOOL SERVICE.
8 * * *
9 (E) NONPUBLIC SCHOOL SERVICE.--FOR THE CALCULATION OF THE
10 EMPLOYER'S SHARE OF THE CONTRIBUTION FOR SERVICE LISTED IN
11 SECTION 8304(B)(6) (RELATING TO CREDITABLE NONSCHOOL SERVICE)
12 THE RATE SHALL BE EQUAL TO THE FULL COST OF THE CREDITS
13 CALCULATED ON THE BASIS OF THE ASSUMPTIONS USED FOR PURPOSES OF
14 THE ACTUARIAL VALUATION OF THE SYSTEM'S LIABILITIES. IT SHALL
15 TAKE INTO ACCOUNT THE ADDITIONAL RETIREMENT ALLOWANCE ARISING ON
16 ACCOUNT OF SUCH ADDITIONAL SERVICE CREDIT COMMENCING AT THE
17 EARLIEST AGE AT WHICH SUCH MEMBER COULD RETIRE ON AN UNREDUCED
18 RETIREMENT ALLOWANCE AS DETERMINED BY THE BOARD OF TRUSTEES UPON
19 THE ADVICE OF THE CONSULTING ACTUARY. ANY INDIVIDUAL ELIGIBLE TO
20 RECEIVE AN ANNUITY, EXCLUDING AN ANNUITY RECEIVED UNDER THE
21 FEDERAL SOCIAL SECURITY ACT OF 1936, AS AMENDED, (42 U.S.C. §
22 301, ET. SEQ.), IN ANOTHER PENSION SYSTEM, OTHER THAN A MILITARY
23 PENSION SYSTEM, SHALL NOT BE ELIGIBLE TO PURCHASE THIS SERVICE.
24 Section 2 3. This act shall take effect in 60 days. <--
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