SENATE AMENDED
PRIOR PRINTER'S NO. 1217 PRINTER'S NO. 2914
No. 1069 Session of 1989
INTRODUCED BY PIEVSKY, MAIALE, STEIGHNER, NOYE, BILLOW,
J. L. WRIGHT, RYBAK, E. Z. TAYLOR, COLAIZZO, PISTELLA, VROON,
HECKLER, GIGLIOTTI, MELIO, MOWERY, DAVIES, OLASZ, TRELLO,
BISHOP, CIVERA AND RICHARDSON, APRIL 10, 1989
SENATOR TILGHMAN, APPROPRIATIONS, IN SENATE, RE-REPORTED AS
AMENDED, DECEMBER 12, 1989
AN ACT
1 Amending Titles 24 (Education) and 71 (State Government) of the
2 Pennsylvania Consolidated Statutes, further providing for the
3 compensation and classification of persons appointed by the
4 Public School Employees' Retirement Board and the State
5 Employees' Retirement Board.
6 The General Assembly finds and declares that:
7 (1) The Public School Employees' Retirement System and
8 the State Employees' Retirement System are two of the largest
9 pension systems in the country.
10 (2) The boards of the two systems have consistently
11 demonstrated their fiduciary responsibility as evidenced in
12 the growing rate of returns on investments for the two funds.
13 (3) The level of responsibility and accountability of
14 the executive level management of the two retirement systems
15 has gone unrecognized by the Commonwealth as evidenced by the
16 fact that salaries of the executive directors and investment
17 officers fall substantially below those of other comparable
1 public pension systems.
2 (4) As the accountability and investment of public
3 pension funds continues to become more complex, the retention
4 and recruitment of qualified professionals will become more
5 and more critical to the sound financial management of the
6 Commonwealth's pension funds.
7 (5) It is essential to the continued sound growth of the
8 funds that the members of the boards of directors of the two
9 systems have the capability to hire qualified personnel at
10 salaries competitive with other pension systems.
11 (6) It is the purpose of this act to give the authority
12 to the Board of Directors of the State Employees' Retirement
13 System and the Board of Directors of the Public School
14 Employees' Retirement System to set the salaries of those
15 persons appointed by each of the boards.
16 The General Assembly of the Commonwealth of Pennsylvania
17 hereby enacts as follows:
18 Section 1. Section 8502(a) of Title 24 of the Pennsylvania
19 Consolidated Statutes is amended to read:
20 § 8502. Administrative duties of board.
21 (a) Employees.--The secretary, clerical and other employees
22 of the board and their successors whose positions on the
23 effective date of this part are under the classified service
24 provisions of the act of August 5, 1941 (P.L.752, No.286), known
25 as the ["]Civil Service Act,["] shall NOT continue under such <--
26 provisions. [The] Notwithstanding any other provision of law,
27 the compensation and classification of all [other] persons
28 appointed shall be determined by the board [and shall be
29 consistent with the standards established by the Executive Board
30 of the Commonwealth].
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1 * * *
2 Section 2. Section 5902(a) of Title 71 is amended to read:
3 § 5902. Administrative duties of the board.
4 (a) Employees.--The secretary, clerical, and other employees
5 of the board and their successors whose positions on the
6 effective date of this part are under the classified service
7 provisions of the act of August 5, 1941 (P.L.752, No.286), known
8 as the ["]Civil Service Act["], shall NOT continue under such <--
9 provisions. [The] Notwithstanding any other provision of law,
10 the compensation of all [other] persons appointed shall be
11 determined by the board [and shall be consistent with the
12 standards established by the Executive Board of this
13 Commonwealth]. The secretary shall act as chief administrative
14 officer for the board. In addition to other powers and duties
15 conferred upon and delegated to the secretary by the board, the
16 secretary shall:
17 (1) Serve as the administrative agent of the board.
18 (2) Serve as liaison between the board and applicable
19 legislative committees, the Treasury Department, the
20 Department of the Auditor General, and between the board and
21 the investment counsel and the mortgage supervisor in
22 arranging for investments to secure maximum returns to the
23 fund.
24 (3) Review and analyze proposed legislation and
25 legislative developments affecting the system and present
26 findings to the board, legislative committees, and other
27 interested groups or individuals.
28 (4) Direct the maintenance of files and records and
29 preparation of periodic reports required for actuarial
30 evaluation studies.
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1 (5) Receive inquiries and requests for information
2 concerning the system from the press, Commonwealth officials,
3 State employees, the general public, research organizations,
4 and officials and organizations from other states, and
5 provide information as authorized by the board.
6 (6) Supervise a staff of administrative, technical, and
7 clerical employees engaged in record-keeping and clerical
8 processing activities in maintaining files of members,
9 accounting for contributions, processing payments to
10 annuitants, and preparing required reports.
11 * * *
12 Section 3. This act shall take effect July 1, 1989, or
13 immediately, whichever is later.
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