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        PRIOR PRINTER'S NO. 972                       PRINTER'S NO. 1718

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 854 Session of 1989


        INTRODUCED BY KOSINSKI, BELFANTI, MRKONIC, COHEN, MORRIS,
           KUKOVICH, CALTAGIRONE, TRELLO, TIGUE, STABACK, KASUNIC,
           HAYDEN, CAWLEY, PISTELLA, COLAFELLA, JOSEPHS, BATTISTO, VEON,
           HALUSKA, BILLOW, JAMES, BELARDI, RICHARDSON, CORRIGAN,
           J. TAYLOR, JOHNSON, GODSHALL, KENNEY, BUNT, REBER, SERAFINI,
           WOGAN, FOX AND PHILLIPS, APRIL 3, 1989

        AS REPORTED FROM COMMITTEE ON MILITARY AND VETERANS AFFAIRS,
           HOUSE OF REPRESENTATIVES, AS AMENDED, MAY 22, 1989

                                     AN ACT

     1  Amending Title TITLES 24 (EDUCATION) AND 71 (State Government)    <--
     2     of the Pennsylvania Consolidated Statutes, further providing
     3     for creditable NONSCHOOL AND nonstate service.                 <--

     4     The General Assembly of the Commonwealth of Pennsylvania
     5  hereby enacts as follows:
     6     SECTION 1.  SECTION 8304(A) OF TITLE 24 OF THE PENNSYLVANIA    <--
     7  CONSOLIDATED STATUTES IS AMENDED TO READ:
     8  § 8304.  CREDITABLE NONSCHOOL SERVICE.
     9     (A)  ELIGIBILITY.--AN ACTIVE MEMBER, AN ANNUITANT OR A
    10  MULTIPLE SERVICE MEMBER OR ANNUITANT WHO IS AN ACTIVE MEMBER OF
    11  THE STATE EMPLOYEES' RETIREMENT SYSTEM SHALL BE ELIGIBLE TO
    12  RECEIVE CLASS T-C SERVICE CREDIT FOR CREDITABLE NONSCHOOL
    13  SERVICE AS SET FORTH IN SUBSECTION (B) PROVIDED THAT HE IS NOT
    14  ENTITLED TO RECEIVE, ELIGIBLE TO RECEIVE NOW OR IN THE FUTURE,
    15  OR IS RECEIVING RETIREMENT BENEFITS [FOR SUCH SERVICE UNDER A
    16  RETIREMENT SYSTEM ADMINISTERED AND WHOLLY OR PARTIALLY PAID FOR

     1  BY ANY OTHER GOVERNMENTAL AGENCY OR BY ANY PRIVATE EMPLOYER, OR]
     2  FROM A RETIREMENT PROGRAM APPROVED BY THE EMPLOYER IN ACCORDANCE
     3  WITH SECTION 8301(A)(1) (RELATING TO MANDATORY AND OPTIONAL
     4  MEMBERSHIP), AND FURTHER PROVIDED THAT SUCH SERVICE IS CERTIFIED
     5  BY THE PREVIOUS EMPLOYER AND THE MANNER OF PAYMENT OF THE AMOUNT
     6  DUE IS AGREED UPON BY THE MEMBER, THE EMPLOYER, AND THE BOARD.
     7  IF AN ANNUITANT OPTS TO PURCHASE HIS OR HER NONSTATE SERVICE,
     8  HIS OR HER RETIREMENT BENEFITS SHALL BE RECALCULATED TO REFLECT
     9  THE INCREASED BENEFITS DUE AFTER THE NECESSARY CONTRIBUTIONS
    10  WERE MADE IN ACCORDANCE WITH SECTION 8324 (RELATING TO
    11  CONTRIBUTIONS FOR THE PURCHASE OF CREDIT FOR CREDITABLE
    12  NONSCHOOL SERVICE).
    13     * * *
    14     Section 1 2.  Section 5304(a) and (b) of Title 71 of the       <--
    15  Pennsylvania Consolidated Statutes are amended to read:
    16  § 5304.  Creditable nonstate service.
    17     (a)  Eligibility.--An active member, an annuitant or a
    18  multiple service member who is a school employee and an active
    19  member or annuitant of the Public School Employees' Retirement
    20  System shall be eligible for Class A service credit for
    21  creditable nonstate service as set forth in subsections (b) and
    22  (c) except that intervening military service shall be credited
    23  in the class of service for which the member was eligible at the
    24  time of entering into military service and for which he makes
    25  the required contributions.
    26     (b)  Limitations on eligibility.--An active member, an
    27  annuitant or a multiple service member who is a school employee
    28  and an active member or annuitant of the Public School
    29  Employees' Retirement System shall be eligible to receive credit
    30  for nonstate service provided that he does not have credit for
    19890H0854B1718                  - 2 -

     1  such service in the school system [and is not entitled to
     2  receive, eligible to receive now or in the future, or is
     3  receiving retirement benefits for such service under a
     4  retirement system administered and wholly or partially paid for
     5  by any other governmental agency or by any private employer,] or
     6  a retirement program approved by the employer in accordance with
     7  section 5301(a)(12) (relating to mandatory and optional
     8  membership), and further provided, that such service is
     9  certified by the previous employer and contributions are agreed
    10  upon and made in accordance with section 5505 (relating to
    11  contributions for the purchase of credit for creditable nonstate
    12  service). If an annuitant opts to purchase his or her nonstate
    13  service, his or her retirement benefits shall be recalculated to
    14  reflect the increased benefits due after the necessary
    15  contributions were made in accordance with section 5505.
    16     * * *
    17     Section 2 3.  The provisions of this act shall be retroactive  <--
    18  to January 1, 1974.
    19     Section 3 4.  This act shall take effect immediately.          <--








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