| SENATE AMENDED |
| PRIOR PRINTER'S NOS. 3730, 3853, 3916, 3928 | PRINTER'S NO. 4470 |
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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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| SENATOR BROWNE, FINANCE, IN SENATE, RE-REPORTED AS AMENDED, OCTOBER 12, 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 mandatory and optional | <-- |
4 | membership, for contributions by the Commonwealth, for |
5 | payments by employers, for actuarial cost method, for |
6 | additional supplemental annuities, for further additional |
7 | supplemental annuities, for supplemental annuities commencing |
8 | 1994, for supplemental annuities commencing 1998, for |
9 | supplemental annuities commencing 2002, for supplemental |
10 | annuities commencing 2003, for administrative duties of |
11 | board, for payments to school entities by Commonwealth, for |
12 | eligibility points for retention and reinstatement of service |
13 | credits and for creditable nonschool service; providing for |
14 | election to become a Class T-F member; further providing for |
15 | classes of service, for eligibility for annuities, for |
16 | eligibility for vesting, for regular member contributions, | <-- |
17 | for member contributions for creditable school service, for |
18 | contributions for purchase of credit for creditable nonschool |
19 | service, for maximum single life annuity, for disability |
20 | annuities, for member's options, for duties of board |
21 | regarding applications and elections of members and for |
22 | rights and duties of school employees and members; providing | <-- |
23 | for Independent Fiscal Office study; in Title 71, further | <-- |
24 | providing for definitions; further providing, for credited | <-- |
25 | State service, for retention and reinstatement of service |
26 | credits, for creditable NONSTATE nonstate service and for | <-- |
27 | classes of service; providing for election to become a Class |
28 | A-4 member; further providing for eligibility for annuities, | <-- |
29 | and for eligibility for vesting,; providing for shared risk | <-- |
30 | member contributions for Class A-3 and Class A-4 service; |
31 | further providing for waiver of regular member contributions |
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1 | and Social Security integration member contributions, for |
2 | member contributions for purchase of credit for previous |
3 | State service or to become a full coverage member, for |
4 | contributions for the purchase of credit for creditable |
5 | nonstate service, for contributions by the Commonwealth and |
6 | other employers, for actuarial cost method, for maximum |
7 | single life annuity, for disability annuities and for |
8 | member's options; providing for payment of accumulated |
9 | deductions resulting from Class A-3 service; further |
10 | providing for additional supplemental annuities, for further |
11 | additional supplemental annuities, for supplemental annuities |
12 | commencing 1994, for supplemental annuities commencing 1998, |
13 | for supplemental annuities commencing 2002, for supplemental |
14 | annuities commencing 2003, for special supplemental |
15 | postretirement adjustment of 2002, for administrative duties |
16 | of the board, for duties of board to advise and report to |
17 | heads of departments and members, for duties of board |
18 | regarding applications and elections of members, for |
19 | installment payments of accumulated deductions, for rights |
20 | and duties of State employees and members, for members' | <-- |
21 | savings account, for State accumulation account, for State |
22 | Police Benefit Account, for Enforcement Officers' Benefit |
23 | Account, for supplemental annuity account and for |
24 | construction of part; and providing for recertification to | <-- |
25 | the Secretary of the Budget, Independent Fiscal Office study, | <-- |
26 | for a prohibition on the issuance of pension obligation |
27 | bonds, for holding certain public officials harmless, for |
28 | construction of calculation or actuarial method, for | <-- |
29 | applicability and for certain operational provisions. |
30 | The General Assembly of the Commonwealth of Pennsylvania |
31 | hereby enacts as follows: |
32 | Section 1. The definitions of "basic contribution rate," |
33 | "class of service multiplier," "employer," "member's annuity," | <-- |
34 | "pickup contributions," "standard single life annuity," |
35 | "superannuation or normal retirement age" and "vestee" in |
36 | section 8102 of Title 24 of the Pennsylvania Consolidated |
37 | Statutes are amended and the section is amended by adding | <-- |
38 | definitions to read: |
39 | § 8102. Definitions. |
40 | The following words and phrases when used in this part shall |
41 | have, unless the context clearly indicates otherwise, the |
42 | meanings given to them in this section: |
43 | * * * |
44 | "Basic contribution rate." For Class T-A, T-B and T-C |
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1 | service, the rate of 6 1/4%. For Class T-D service, the rate of |
2 | 7 1/2%. For all active members on the effective date of this |
3 | provision who are currently paying 5 1/4% and elect Class T-D |
4 | service, the rate of 6 1/2%. For Class T-E service, the rate of |
5 | 7 1/2%. For Class T-F service, the rate of 10.30%. |
6 | * * * |
7 | "Class of service multiplier." |
8 | Class of service | Multiplier | 9 | T-A | .714 | 10 | T-B | .625 | 11 | T-C | 1.000 | 12 | T-D | 1.000 | 13 | T-E | 1.000 | 14 | T-F | 1.000 |
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15 | * * * |
16 | "Employer." Any governmental entity directly responsible for |
17 | the employment and payment of the school employee and charged |
18 | with the responsibility of providing public education within |
19 | this Commonwealth, including but not limited to: State-owned |
20 | colleges and universities, the Pennsylvania State University, |
21 | community colleges, area vocational-technical schools, |
22 | intermediate units, the State Board of Education, Scotland |
23 | School for Veterans' Children, Thaddeus Stevens [State School] |
24 | College of Technology, and the [Pennsylvania State Oral] Western |
25 | Pennsylvania School for the Deaf. |
26 | * * * |
27 | "Member's annuity." The single life annuity which is | <-- |
28 | actuarially equivalent on the effective date of retirement to |
29 | the sum of the accumulated deductions and the shared risk member |
30 | contributions and statutory interest credited on the deductions |
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1 | and contributions standing to the member's credit in the |
2 | members' savings account. |
3 | * * * |
4 | "Pickup contributions." Regular or joint coverage member |
5 | contributions and shared risk member contributions which are |
6 | made by the employer for active members for current service on |
7 | and after January 1, 1983. |
8 | * * * |
9 | "Shared risk contribution rate." The additional contribution |
10 | rate that is added to the basic contribution rate for Class T-E |
11 | and T-F members, as provided for in section 8321(b) (relating to |
12 | regular member contributions for current service). |
13 | "Standard single life annuity." For Class T-A, T-B and T-C |
14 | credited service of a member, an annuity equal to 2% of the |
15 | final average salary, multiplied by the total number of years |
16 | and fractional part of a year of credited service of a member. |
17 | For Class T-D credited service of a member, an annuity equal to |
18 | 2.5% of the final average salary, multiplied by the total number |
19 | of years and fractional part of a year of credited service. For |
20 | Class T-E credited service of a member, an annuity equal to 2% |
21 | of the final average salary, multiplied by the total number of |
22 | years and fractional part of a year of credited service of a |
23 | member. For Class T-F credited service of a member, an annuity |
24 | equal to 2.5% of the final average salary, multiplied by the |
25 | total number of years and fractional part of a year of credited |
26 | service of a member. |
27 | * * * |
28 | "Superannuation or normal retirement age." |
29 | Class of service | Age | 30 | T-A | 62 or any age upon accrual of | | 1 | | 35 eligibility points | 2 | T-B | 62 | 3 4 5 6 7 | 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 | 8 9 10 11 | T-E and T-F | 65 with accrual of at least three eligibility points or any age upon accrual of 35 eligibility points | <-- | 12 13 14 15 16 17 18 19 | T-E and T-F | 65 with accrual of at least three eligibility points or a combination of age and eligibility points totaling 92, provided the member has accrued at least 35 eligibility points | <-- |
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20 | * * * |
21 | "Total member contribution rate." The sum of the basic | <-- |
22 | contribution rate and the shared risk contribution rate. |
23 | * * * |
24 | "Vestee." A member with five or more eligibility points who |
25 | has terminated school service, has left his accumulated |
26 | deductions in the fund and is deferring filing of an application |
27 | for receipt of an annuity. For Class T-E and Class T-F members, |
28 | a member with ten or more eligibility points who has terminated |
29 | school service, has left his accumulated deductions in the fund |
30 | and is deferring filing of an application for receipt of an |
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1 | annuity. |
2 | Section 2. Sections 8303(c) and 8304(a) of Title 24 are | <-- |
3 | amended to read: |
4 | Section 1.1. Section 8301(a)(2) of Title 24 is amended to | <-- |
5 | read: |
6 | § 8301. Mandatory and optional membership. |
7 | (a) Mandatory membership.--Membership in the system shall be |
8 | mandatory as of the effective date of employment for all school |
9 | employees except the following: |
10 | * * * |
11 | (2) Any school employee who is not a member of the |
12 | system and who is employed on a per diem or hourly basis for |
13 | less than 80 full-day sessions or 500 hours in any fiscal |
14 | year or annuitant who returns to school service under the |
15 | provisions of section 8346(b) (relating to termination of |
16 | annuities). |
17 | * * * |
18 | Section 2. Section 8303(c) of Title 24 is amended and the |
19 | section is amended by adding a subsection to read: |
20 | § 8303. Eligibility points for retention and reinstatement of |
21 | service credits. |
22 | * * * |
23 | (c) Purchase of previous creditable service.--Every active |
24 | member of the system or a multiple service member who is an |
25 | active member of the State Employees' Retirement System on or |
26 | after the effective date of this part may purchase credit and |
27 | receive eligibility points: |
28 | (1) as a member of Class T-C, Class T-E or Class T-F for |
29 | previous creditable school service or creditable nonschool | <-- |
30 | service; or |
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1 | (2) as a member of Class T-D for previous creditable | <-- |
2 | school service, provided the member elects to become a Class |
3 | T-D member pursuant to section 8305.1 (relating to election |
4 | to become a Class T-D member); |
5 | upon written agreement by the member and the board as to the |
6 | manner of payment of the amount due for credit for such service; |
7 | except, that any purchase for reinstatement of service credit |
8 | shall be for all service previously credited. |
9 | (d) Purchase of previous noncreditable service.--Class T-C | <-- |
10 | and Class T-D members who are active members on the effective |
11 | date of this subsection shall have three years from the |
12 | effective date of this subsection to file a written application |
13 | with the board to purchase any previous noncreditable school |
14 | service. Class T-C and Class T-D members who are not active |
15 | members on the effective date of this subsection but who become |
16 | active members after the effective date of this subsection and |
17 | Class T-E and class T-F members shall have 365 days from entry |
18 | into the system to file a written application with the board to |
19 | purchase any previous noncreditable school service. |
20 | Section 2.1. Section 8304(a) of Title 24 is amended to read: |
21 | § 8304. Creditable nonschool service. |
22 | (a) Eligibility.--An active member or a multiple service |
23 | member who is an active member of the State Employees' |
24 | Retirement System shall be eligible to receive Class T-C, Class |
25 | T-E or Class T-F service credit for creditable nonschool service |
26 | and Class T-D, Class T-E or Class T-F service for intervening |
27 | military service, provided the member becomes a Class T-D member |
28 | pursuant to section 8305.1 (relating to election to become a |
29 | Class T-D member) or Class T-F member pursuant to section 8305.2 |
30 | (relating to election to become a Class T-F member) or 8305 |
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1 | (relating to classes of service), as set forth in subsection (b) |
2 | provided that he is not entitled to receive, eligible to receive |
3 | now or in the future, or is receiving retirement benefits for |
4 | such service under a retirement system administered and wholly |
5 | or partially paid for by any other governmental agency or by any |
6 | private employer, or a retirement program approved by the |
7 | employer in accordance with section 8301(a)(1) (relating to |
8 | mandatory and optional membership), and further provided that |
9 | such service is certified by the previous employer and the |
10 | manner of payment of the amount due is agreed upon by the |
11 | member, the employer, and the board. |
12 | * * * |
13 | Section 3. Section 8305 of Title 24 is amended by adding |
14 | subsections to read: |
15 | § 8305. Classes of service. |
16 | * * * |
17 | (d) Class T-E membership.--Notwithstanding any other |
18 | provision, a person who first becomes a school employee and an |
19 | active member, or a person who first becomes a multiple service |
20 | member who is a State employee and a member of the State |
21 | Employees' Retirement System, on or after the effective date of |
22 | this subsection shall be classified as a Class T-E member upon |
23 | payment of regular member contributions and the shared risk | <-- |
24 | contributions. |
25 | (e) Class T-F membership.--Notwithstanding any other |
26 | provision, a person who first becomes a school employee and an |
27 | active member, or a person who first becomes a multiple service |
28 | member who is a State employee and a member of the State |
29 | Employees' Retirement System, on or after the effective date of |
30 | this subsection, and who is eligible to become a Class T-E |
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1 | member, shall have the right to elect into Class T-F membership, |
2 | provided the person elects to become a Class T-F member pursuant |
3 | to section 8305.2 (relating to election to become a Class T-F |
4 | member), upon written election filed with the board and payment |
5 | of regular member contributions and the shared risk | <-- |
6 | contributions. |
7 | Section 4. Title 24 is amended by adding a section to read: |
8 | § 8305.2. Election to become a Class T-F member. |
9 | (a) General rule.--A person who first becomes a school |
10 | employee and an active member, or a person who first becomes a |
11 | multiple service member who is a State employee and a member of |
12 | the State Employees' Retirement System, on or after the |
13 | effective date of this subsection and who is eligible to become |
14 | a Class T-E member may elect to become a member of Class T-F. |
15 | (b) Time for making election.--A member must elect to become |
16 | a Class T-F member by filing a written election with the board |
17 | within 45 days of notification by the board that such member is |
18 | eligible for such election. |
19 | (c) Effect of election.--An election to become a Class T-F |
20 | member shall be irrevocable and shall commence from the original | <-- |
21 | date of eligibility. A member who elects Class T-F membership |
22 | shall receive Class T-F service credit on any and all future |
23 | service, regardless of whether the member terminates service or |
24 | has a break in service. |
25 | (d) Effect of failure to make election.--If a member fails |
26 | to timely file an election to become a Class T-F member, then |
27 | the member shall be enrolled as a member of Class T-E and the |
28 | member shall never be able to elect Class T-F service, |
29 | regardless of whether the member terminates service or has a |
30 | break in service. |
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1 | Section 5. Sections 8307(b), 8308, 8323(a), (c) and (c.1), | <-- |
2 | 8324(a), (b), (d), (e) and (f), 8326(a), 8327(a) and (c), 8328, |
3 | 8342(a), 8344(d), 8345(a), 8348.1(f), 8348.2(f), 8348.3(f), |
4 | 8348.5(f), 8348.6(f), 8348.7(f) and 8502(k) of Title 24 are |
5 | amended to read: |
6 | Section 5. Sections 8307(b), 8308, 8321, 8323(a), (c) and | <-- |
7 | (c.1), 8324 heading, (a), (b), (d), (e) and (f), 8326(a), |
8 | 8327(a) and (c), 8328, 8342(a), 8344(d), 8345(a), 8348.1(f), |
9 | 8348.2(f), 8348.3(f), 8348.5(f), 8348.6(f), 8348.7(f) and |
10 | 8502(k) of Title 24 are amended to read: |
11 | § 8307. Eligibility for annuities. |
12 | * * * |
13 | (b) Withdrawal annuity.--A vestee in Class T-C or Class T-D |
14 | with five or more eligibility points or an active or inactive |
15 | Class T-C or Class T-D member who terminates school service |
16 | having five or more eligibility points shall, upon filing a |
17 | proper application, be entitled to receive an early annuity. A |
18 | vestee in Class T-E or Class T-F with ten or more eligibility |
19 | points or an active or inactive Class T-E or Class T-F member |
20 | who terminates school service having ten or more eligibility |
21 | points shall, upon filing a proper application, be entitled to |
22 | receive an early annuity. |
23 | * * * |
24 | § 8308. Eligibility for vesting. |
25 | Any Class T-C or Class T-D member who terminates school |
26 | service with five or more eligibility points shall be entitled |
27 | to vest his retirement benefits until attainment of |
28 | superannuation age. Any Class T-E or Class T-F member who |
29 | terminates school service with ten or more eligibility points |
30 | shall be entitled to vest his retirement benefits until |
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1 | attainment of superannuation age. |
2 | § 8321. Regular member contributions for current service. | <-- |
3 | (a) General.--Regular member contributions shall be made to |
4 | the fund on behalf of each active member for current service |
5 | except for any period of current service in which the making of |
6 | such contributions has ceased solely by reason of any provision |
7 | of this part relating to the limitations under IRC § 401(a)(17) |
8 | or 415(b). |
9 | (b) Class T-E and Class T-F shared risk contributions.-- |
10 | Commencing with the annual actuarial valuation performed under |
11 | section 8502(j) (relating to administrative duties of board), |
12 | for the period ending June 30, 2014, and every three years |
13 | thereafter, the board shall compare the actual investment rate |
14 | of return, net of fees, to the annual interest rate adopted by |
15 | the board for the calculation of the normal contribution rate, |
16 | based on the market value of assets, for the prior ten-year |
17 | period. If the actual investment rate of return, net of fees, is |
18 | less than the annual interest rate adopted by the board by an |
19 | amount of 1% or more, the shared risk contribution rate of Class |
20 | T-E and T-F members will increase by .5%. If the actual |
21 | investment rate of return, net of fees, is equal to or exceeds |
22 | the annual interest rate adopted by the board, the shared risk |
23 | contributions rate of Class T-E and T-F members will decrease by |
24 | .5%. Class T-E and T-F members will contribute at the total |
25 | member contribution rate in effect when they are hired. The |
26 | total member contribution rate for Class T-E members shall not |
27 | be less than 7.5%, nor more than 9.5%. The total member |
28 | contribution rate for Class T-F members shall not be less than |
29 | 10.3%, nor more than 12.3%. Notwithstanding this subsection, if |
30 | the system's actuarial funded status is 100% or more as of the |
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1 | date used for the comparison required under this subsection, as |
2 | determined in the current annual actuarial valuation, the shared |
3 | risk contribution rate shall be zero. In the event that the |
4 | annual interest rate adopted by the board for the calculation of |
5 | the normal contribution rate is changed during the period used |
6 | to determine the shared risk contribution rate, the board, with |
7 | the advice of the actuary, shall determine the applicable rate |
8 | during the entire period, expressed as an annual rate. |
9 | (1) Until the system has a ten-year period of investment |
10 | rate of return experience following the effective date of |
11 | this subsection, the look-back period shall begin not earlier |
12 | than the effective date of this subsection. |
13 | (2) For any fiscal year in which the employer |
14 | contribution rate is lower than the final contribution rate |
15 | under section 8328(h) (relating to actuarial cost method), |
16 | the total member contribution rate for Class T-E and T-F |
17 | members shall be prospectively reset to the basic |
18 | contribution rate. |
19 | (3) There shall be no increase in the member |
20 | contribution rate if there has not been an equivalent |
21 | increase to the employer contribution rate over the previous |
22 | three-year period. |
23 | § 8323. Member contributions for creditable school service. |
24 | (a) Previous school service, sabbatical leave and full |
25 | coverage.--The contributions to be paid by an active member or |
26 | an eligible State employee for credit for reinstatement of all |
27 | previously credited school service, school service not |
28 | previously credited, sabbatical leave as if he had been in full- |
29 | time daily attendance, or full-coverage membership shall be |
30 | sufficient to provide an amount equal to the accumulated |
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1 | deductions which would have been standing to the credit of the |
2 | member for such service had regular member contributions been |
3 | made with full coverage at the rate of contribution necessary to |
4 | be credited as Class T-C service [or], Class T-D service if the |
5 | member is a Class T-D member, or Class T-E service if the member |
6 | is a Class T-E member, or Class T-F service if the member is a |
7 | Class T-F member, and had such contributions been credited with |
8 | statutory interest during the period the contributions would |
9 | have been made and during all periods of subsequent school and |
10 | State service up to the date of purchase. |
11 | * * * |
12 | (c) Approved leave of absence other than sabbatical leave |
13 | and activated military service leave.--The contributions to be |
14 | paid by an active member for credit for an approved leave of |
15 | absence, other than sabbatical leave and activated military |
16 | service leave, shall be sufficient to transfer his membership to |
17 | Class T-C or to Class T-D if the member is a Class T-D member or |
18 | to Class T-E if the member is a Class T-E member or to Class T-F |
19 | if the member is a Class T-F member and further to provide an |
20 | annuity as a Class T-C member or Class T-D member if the member |
21 | is a Class T-D member or Class T-E if the member is a Class T-E |
22 | member or to Class T-F if the member is a Class T-F member for |
23 | such additional credited service. Such amount shall be the sum |
24 | of the amount required in accordance with the provisions of |
25 | subsection (b) and an amount determined as the sum of the |
26 | member's basic contribution rate and the normal contribution |
27 | rate as provided in section 8328 (relating to actuarial cost |
28 | method) during such period multiplied by the compensation which |
29 | was received or which would have been received during such |
30 | period and with statutory interest during all periods of |
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1 | subsequent school and State service up to the date of purchase. |
2 | (c.1) Activated military service leave.--The contributions |
3 | to be paid by an active member for credit for all activated |
4 | military service leave as if he had been in regular attendance |
5 | in the duties for which he is employed shall be sufficient to |
6 | provide an amount equal to the accumulated deductions which |
7 | would have been standing to the credit of the member for such |
8 | service had regular member contributions been made with full |
9 | coverage at the rate of contribution necessary to be credited as |
10 | Class T-C service or Class T-D service if the member is a Class |
11 | T-D member or Class T-E service if the member is a Class T-E |
12 | member or Class T-F if the member is a Class T-F member and had |
13 | such contributions been credited with statutory interest during |
14 | the period the contributions would have been made and during all |
15 | periods of subsequent State and school service up to the date of |
16 | purchase. In the case of activated military service leave |
17 | beginning after the date of enactment of this subsection, |
18 | contributions due from the member shall be made as if he is in |
19 | regular attendance in the duties for which he is employed. |
20 | * * * |
21 | § 8324. Contributions for purchase of credit for creditable |
22 | nonschool service and noncreditable school service. | <-- |
23 | (a) Source of contributions.--The total contributions to |
24 | purchase credit as a member of Class T-C, Class T-E or Class T-F |
25 | for creditable nonschool service of an active member or an |
26 | eligible State employee shall be paid either by the member, the |
27 | member's previous employer, the Commonwealth, or a combination |
28 | thereof, as provided by law. |
29 | (b) Nonintervening military service.--The amount due for the |
30 | purchase of credit for military service other than intervening |
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1 | military service shall be determined by applying the member's |
2 | basic contribution rate plus the normal contribution rate as |
3 | provided in section 8328 (relating to actuarial cost method) at |
4 | the time of entry of the member into school service subsequent |
5 | to such military service to one-third of his total compensation |
6 | received during the first three years of such subsequent |
7 | credited school service and multiplying the product by the |
8 | number of years and fractional part of a year of creditable |
9 | nonintervening military service being purchased together with |
10 | statutory interest during all periods of subsequent school and |
11 | State service to date of purchase. Upon certification of the |
12 | amount due, payment may be made in a lump sum within 90 days or |
13 | in the case of an active member or an eligible State employee |
14 | who is an active member of the State Employees' Retirement |
15 | System it may be amortized with statutory interest through |
16 | salary deductions in amounts agreed upon by the member and the |
17 | board. The salary deduction amortization plans agreed to by |
18 | members and the board may include a deferral of payment amounts |
19 | and statutory interest until the termination of school service |
20 | or State service as the board in its sole discretion decides to |
21 | allow. The board may limit salary deduction amortization plans |
22 | to such terms as the board in its sole discretion determines. In |
23 | the case of an eligible State employee who is an active member |
24 | of the State Employees' Retirement System, the agreed upon |
25 | salary deductions shall be remitted to the State Employees' |
26 | Retirement Board, which shall certify and transfer to the board |
27 | the amounts paid. Application may be filed for all such military |
28 | service credit upon completion of three years of subsequent |
29 | credited school service and shall be credited as Class T-C |
30 | service. In the event that a Class T-E member makes a purchase |
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1 | of credit for such military service, then such service shall be |
2 | credited as Class T-E service. In the event that a Class T-F |
3 | member makes a purchase of credit for such military service, |
4 | then such service shall be credited as Class T-F service. |
5 | * * * |
6 | (d) Other creditable nonschool service.--Contributions on | <-- |
7 | (d) Other creditable nonschool service[.--] and | <-- |
8 | noncreditable school service.-- |
9 | (1) Contributions on account of Class T-C, Class T-E or | <-- |
10 | Class T-F credit for creditable nonschool service other than |
11 | military service shall be determined by applying the member's |
12 | basic contribution rate plus the normal contribution rate as |
13 | provided in section 8328 at the time of the member's entry |
14 | into school service subsequent to such creditable nonschool |
15 | service to his total compensation received during the first |
16 | year of subsequent credited school service and multiplying |
17 | the product by the number of years and fractional part of a |
18 | year of creditable nonschool service being purchased together |
19 | with statutory interest during all periods of subsequent |
20 | school or State service to the date of purchase, except that |
21 | in the case of purchase of credit for creditable nonschool |
22 | service as set forth in section 8304(b)(5) (relating to |
23 | creditable nonschool service) the member shall pay only the |
24 | employee's share unless otherwise provided by law. Upon |
25 | certification of the amount due, payment may be made in a |
26 | lump sum within 90 days or in the case of an active member or |
27 | an eligible State employee who is an active member of the |
28 | State Employees' Retirement System it may be amortized with |
29 | statutory interest through salary deductions in amounts |
30 | agreed upon by the member and the board. The salary deduction |
|
1 | amortization plans agreed to by the members and the board may |
2 | include a deferral of payment amounts and statutory interest |
3 | until the termination of school service or State service as |
4 | the board in its sole discretion decides to allow. The board |
5 | may limit salary deduction amortization plans to such terms |
6 | as the board in its sole discretion determines. In the case |
7 | of an eligible State employee who is an active member of the |
8 | State Employees' Retirement System, the agreed upon salary |
9 | deductions shall be remitted to the State Employees' |
10 | Retirement Board, which shall certify and transfer to the |
11 | board the amounts paid. |
12 | (2) Contributions on account of Class T-E or Class T-F | <-- |
13 | credit for creditable nonschool service other than military |
14 | service shall be the present value of the full actuarial cost |
15 | of the increase in the projected superannuation annuity |
16 | caused by the additional service credited on account of the |
17 | purchase. Upon certification of the amount due, payment may |
18 | be made in a lump sum within 90 days or, in the case of an |
19 | active member or an eligible State employee who is an active |
20 | member of the State Employees' Retirement System, it may be |
21 | amortized with statutory interest through salary deductions |
22 | in amounts agreed upon by the member and the board. The |
23 | salary deduction amortization plans agreed to by the members |
24 | and the board may include a deferral of payment amounts and |
25 | statutory interest until the termination of school service or |
26 | State service as the board in its sole discretion decides to |
27 | allow. The board may limit salary deduction amortization |
28 | plans to the terms as the board in its sole discretion |
29 | determines. In the case of an eligible State employee who is |
30 | an active member of the State Employees' Retirement System, |
|
1 | the agreed upon salary deductions shall be remitted to the |
2 | State Employees' Retirement Board, which shall certify and |
3 | transfer to the board the amounts paid. |
4 | (3) Contributions on account of Class T-E or Class T-F |
5 | credit for noncreditable school service other than military |
6 | service shall be the present value of the full actuarial cost |
7 | of the increase in the projected superannuation annuity |
8 | caused by the additional service credited on account of the |
9 | purchase. Upon certification of the amount due, payment may |
10 | be made in a lump sum within 90 days or, in the case of an |
11 | active member or an eligible State employee who is an active |
12 | member of the State Employees' Retirement System, it may be |
13 | amortized with statutory interest through salary deductions |
14 | in amounts agreed upon by the member and the board. The |
15 | salary deduction amortization plans agreed to by the members |
16 | and the board may include a deferral of payment amounts and |
17 | statutory interest until the termination of school service or |
18 | State service as the board in its sole discretion decides to |
19 | allow. The board may limit salary deduction amortization |
20 | plans to the terms as the board in its sole discretion |
21 | determines. In the case of an eligible State employee who is |
22 | an active member of the State Employees' Retirement System, |
23 | the agreed upon salary deductions shall be remitted to the |
24 | State Employees' Retirement Board, which shall certify and |
25 | transfer to the board the amounts paid. |
26 | (e) Creditable work experience.--Contributions on account of |
27 | Class T-C, Class T-E or Class T-F credit for creditable work |
28 | experience pursuant to section 8304(b)(6) shall be the present |
29 | value of the full actuarial cost of the increase in the |
30 | projected superannuation annuity caused by the additional |
|
1 | service credited on account of the purchase of creditable work |
2 | experience. The amount paid for the purchase of credit for |
3 | creditable work experience shall not be payable as a lump sum |
4 | under section 8345(a)(4)(iii) (relating to member's options). |
5 | Any individual eligible to receive an annuity, excluding an |
6 | annuity received under the Federal Social Security Act (42 |
7 | U.S.C. § 301 et seq.), in another pension system, other than a |
8 | military pension system, shall not be eligible to purchase this |
9 | service. |
10 | (f) Creditable maternity leave.--Contributions on account of |
11 | Class T-C, Class T-E or Class T-F credit for creditable |
12 | maternity leave pursuant to section 8304(b)(7) shall be |
13 | determined by applying the member's basic contribution rate plus |
14 | the normal contribution rate as provided in section 8328 at the |
15 | time of the member's return to school service to the total |
16 | compensation received during the first year of subsequent school |
17 | service and multiplying the product by the number of years and |
18 | fractional part of a year of creditable service being purchased, |
19 | together with statutory interest during all periods of |
20 | subsequent school or State service to the date of purchase. The |
21 | amount paid for the purchase of credit for creditable maternity |
22 | leave shall not be eligible for withdrawal as a lump sum under |
23 | section 8345(a)(4)(iii). |
24 | § 8326. Contributions by the Commonwealth. |
25 | (a) Contributions on behalf of active members.--The |
26 | Commonwealth shall make contributions into the fund on behalf of |
27 | all active members, including members on activated military |
28 | service leave, in an amount equal to one-half the amount |
29 | certified by the board as necessary to provide, together with |
30 | the members' contributions, annuity reserves on account of |
|
1 | prospective annuities as provided in this part in accordance |
2 | with section 8328[(a), (b), (c) and (e)] (relating to actuarial |
3 | cost method). In case a school employee has elected membership |
4 | in a retirement program approved by the employer, the |
5 | Commonwealth shall contribute to such program on account of his |
6 | membership an amount no greater than the amount it would have |
7 | contributed had the employee been a member of the Public School |
8 | Employees' Retirement System. |
9 | * * * |
10 | § 8327. Payments by employers. |
11 | (a) General rule.--Each employer, including the Commonwealth |
12 | as employer of employees of the Department of Education, State- |
13 | owned colleges and universities, Thaddeus Stevens [State School] |
14 | College of Technology, [Pennsylvania State Oral] Western |
15 | Pennsylvania School for the Deaf, Scotland School for Veterans' |
16 | Children, and the Pennsylvania State University, shall make |
17 | payments to the fund each quarter in an amount equal to one-half |
18 | the sum of the percentages, as determined under section 8328 |
19 | (relating to actuarial cost method), applied to the total |
20 | compensation during the pay periods in the preceding quarter of |
21 | all its employees who were members of the system during such |
22 | period, including members on activated military service leave. |
23 | In the event a member on activated military service leave does |
24 | not return to service for the necessary time or receives an |
25 | undesirable, bad conduct or dishonorable discharge or does not |
26 | elect to receive credit for activated military service under |
27 | section 8302(b.1)(3) (relating to credited school service), the |
28 | contributions made by the employer on behalf of such member |
29 | shall be returned with valuation interest upon application by |
30 | the employer. |
|
1 | * * * |
2 | (c) Payments by employers after June 30, 1995.--After June |
3 | 30, 1995, each employer, including the Commonwealth as employer |
4 | of employees of the Department of Education, State-owned |
5 | colleges and universities, Thaddeus Stevens [State School] |
6 | College of Technology, [Pennsylvania State Oral] Western |
7 | Pennsylvania School for the Deaf, Scotland School for Veterans' |
8 | Children and The Pennsylvania State University, shall make |
9 | payments to the fund each quarter in an amount computed in the |
10 | following manner: |
11 | (1) For an employer that is a school entity, the amount |
12 | shall be the sum of the percentages as determined under |
13 | section 8328 applied to the total compensation during the pay |
14 | periods in the preceding quarter of all employees who were |
15 | active members of the system during such period, including |
16 | members on activated military service leave. In the event a |
17 | member on activated military service leave does not return to |
18 | service for the necessary time or receives an undesirable, |
19 | bad conduct or dishonorable discharge or does not elect to |
20 | receive credit for activated military service under section |
21 | 8302(b.1)(3), the contribution made by the employer on behalf |
22 | of such member shall be returned with valuation interest upon |
23 | application by the employer. |
24 | (2) For an employer that is not a school entity, the |
25 | amount computed under subsection (a). |
26 | (3) For any employer, whether or not a school entity, in |
27 | computing the amount of payment due each quarter, there shall |
28 | be excluded from the total compensation referred to in this |
29 | subsection and subsection (a) any amount of compensation of a |
30 | noneligible member on the basis of which member contributions |
|
1 | have not been made by reason of the limitation under IRC § |
2 | 401(a)(17). Any amount of contribution to the fund paid by |
3 | the employer on behalf of a noneligible member on the basis |
4 | of compensation which was subject to exclusion from total |
5 | compensation in accordance with the provisions of this |
6 | paragraph shall, upon the board's determination or upon |
7 | application by the employer, be returned to the employer with |
8 | valuation interest. |
9 | § 8328. Actuarial cost method. |
10 | (a) Employer contribution rate [on behalf of active |
11 | members].--The amount of the total employer contributions [on |
12 | behalf of all active members] shall be computed by the actuary |
13 | as a percentage of the total compensation of all active members |
14 | during the period for which the amount is determined and shall |
15 | be so certified by the board. The total employer contribution |
16 | rate shall be the sum of the final contribution rate as computed |
17 | in subsection (h) plus the premium assistance contribution rate |
18 | as computed in subsection (f). The [total] actuarially required |
19 | contribution rate [on behalf of all active members] shall |
20 | consist of the normal contribution rate as defined in subsection |
21 | (b), the accrued liability contribution rate as defined in |
22 | subsection (c) and the supplemental annuity contribution rate as |
23 | defined in subsection (d). Beginning July 1, 2004, the [total] |
24 | actuarially required contribution rate shall be modified by the |
25 | experience adjustment factors as calculated in subsection (e) |
26 | [but in no case shall it be less than 4% plus the premium |
27 | assistance contribution rate]. |
28 | (b) Normal contribution rate.--The normal contribution rate |
29 | shall be determined after each actuarial valuation. [Until all | <-- |
30 | accrued liability contributions have been completed, the] The | <-- |
|
1 | normal contribution rate shall be determined, on the basis of |
2 | the actuarial cost method, an annual interest rate and such | <-- |
3 | mortality and other tables as shall be adopted by the board in |
4 | accordance with generally accepted actuarial principles, as a |
5 | level percentage of the compensation of the average new active |
6 | member, which percentage, if contributed on the basis of his |
7 | prospective compensation through the entire period of active |
8 | school service, would be sufficient to fund the liability for |
9 | any prospective benefit payable to him, in excess of that |
10 | portion funded by his prospective member contributions[, except |
11 | for the supplemental benefits provided in sections 8348 |
12 | (relating to supplemental annuities), 8348.1 (relating to |
13 | additional supplemental annuities), 8348.2 (relating to further |
14 | additional supplemental annuities), 8348.3 (relating to |
15 | supplemental annuities commencing 1994), 8348.4 (relating to |
16 | special supplemental postretirement adjustment), 8348.5 |
17 | (relating to supplemental annuities commencing 1998), 8348.6 |
18 | (relating to supplemental annuities commencing 2002) and 8348.7 |
19 | (relating to supplemental annuities commencing 2003)], excluding | <-- |
20 | the shared risk contributions. |
21 | (c) Accrued liability contribution rate.-- |
22 | (1) For the fiscal [year] years beginning July 1, 2002, |
23 | and ending June 30, 2011, the accrued liability contribution |
24 | rate shall be computed as the rate of total compensation of |
25 | all active members which shall be certified by the actuary as |
26 | sufficient to fund over a period of ten years from July 1, |
27 | 2002, the present value of the liabilities for all |
28 | prospective benefits of active members, except for the |
29 | supplemental benefits provided in sections 8348 (relating to |
30 | supplemental annuities), 8348.1 (relating to additional |
|
1 | supplemental annuities), 8348.2 (relating to further |
2 | additional supplemental annuities), 8348.3 (relating to |
3 | supplemental annuities commencing 1994), 8348.4 (relating to |
4 | special supplemental postretirement adjustment), 8348.5 |
5 | (relating to supplemental annuities commencing 1998), 8348.6 |
6 | (relating to supplemental annuities commencing 2002) and |
7 | 8348.7 (relating to supplemental annuities commencing 2003), |
8 | in excess of the total assets in the fund (calculated by |
9 | recognizing the actuarially expected investment return |
10 | immediately and recognizing the difference between the actual |
11 | investment return and the actuarially expected investment |
12 | return over a five-year period), excluding the balance in the |
13 | annuity reserve account, and of the present value of normal |
14 | contributions and of member contributions payable with |
15 | respect to all active members on July 1, 2002, during the |
16 | remainder of their active service. |
17 | (2) [Thereafter] For the fiscal years beginning July 1, |
18 | 2003, and ending June 30, 2011, the amount of each annual |
19 | accrued liability contribution shall be equal to the amount |
20 | of such contribution for the fiscal year, beginning July 1, |
21 | 2002, except that, if the accrued liability is increased by |
22 | legislation enacted subsequent to June 30, 2002, but before |
23 | July 1, 2003, such additional liability shall be funded over |
24 | a period of ten years from the first day of July, coincident |
25 | with or next following the effective date of the increase. |
26 | The amount of each annual accrued liability contribution for |
27 | such additional legislative liabilities shall be equal to the |
28 | amount of such contribution for the first annual payment. |
29 | (3) Notwithstanding any other provision of law, |
30 | beginning July 1, 2004, and ending June 30, 2011, the |
|
1 | outstanding balance of the increase in accrued liability due |
2 | to the change in benefits enacted in 2001 and the outstanding |
3 | balance of the net actuarial loss incurred in fiscal year |
4 | 2000-2001 shall be amortized in equal dollar annual |
5 | contributions over a period that ends 30 years after July 1, |
6 | 2002, and the outstanding balance of the net actuarial loss |
7 | incurred in fiscal year 2001-2002 shall be amortized in equal |
8 | dollar annual contributions over a period that ends 30 years |
9 | after July 1, 2003. For fiscal years beginning on or after |
10 | July 1, 2004, if the accrued liability is increased by |
11 | legislation enacted subsequent to June 30, 2003, such |
12 | additional liability shall be funded in equal dollar annual |
13 | contributions over a period of ten years from the first day |
14 | of July coincident with or next following the effective date |
15 | of the increase. |
16 | (4) For the fiscal year beginning July 1, 2011, the |
17 | accrued liability contribution rate shall be computed as the |
18 | rate of total compensation of all active members which shall |
19 | be certified by the actuary as sufficient to fund as a level |
20 | percentage of compensation over a period of 30 24 years from | <-- |
21 | July 1, 2011, the present value of the liabilities for all |
22 | prospective benefits calculated as of June 30, 2010, |
23 | including the supplemental benefits as provided in sections |
24 | 8348, 8348.1, 8348.2, 8348.3, 8348.4, 8348.5, 8348.6 and |
25 | 8348.7, in excess of the actuarially calculated assets in the |
26 | fund (calculated recognizing all realized and unrealized |
27 | investment gains and losses each year in level annual |
28 | installments over a ten-year period). In the event that the |
29 | accrued liability is increased by legislation enacted |
30 | subsequent to June 30, 2010, such additional liability shall |
|
1 | be funded as a level percentage of compensation over a period |
2 | of ten years from the July 1 second succeeding the date such |
3 | legislation is enacted. |
4 | (d) Supplemental annuity contribution rate.--[Contributions] |
5 | (1) For the period of July 1, 2002, to June 30, 2011, |
6 | contributions from the Commonwealth and other employers |
7 | required to provide for the payment of the supplemental |
8 | annuities provided for in sections 8348, 8348.1, 8348.2, |
9 | 8348.4 and 8348.5 shall be paid over a period of ten years |
10 | from July 1, 2002. The funding for the supplemental annuities |
11 | commencing 2002 provided for in section 8348.6 shall be as |
12 | provided in section 8348.6(f). The funding for the |
13 | supplemental annuities commencing 2003 provided for in |
14 | section 8348.7 shall be as provided in section 8348.7(f). The |
15 | amount of each annual supplemental annuities contribution |
16 | shall be equal to the amount of such contribution for the |
17 | fiscal year beginning July 1, 2002. [In the event that |
18 | supplemental annuities are increased by legislation enacted |
19 | subsequent to June 30, 2002, the additional liability for the |
20 | increased benefits to be amortized shall be funded in equal |
21 | dollar annual installments over a period of ten years.] |
22 | (2) For fiscal years beginning July 1, 2011, |
23 | contributions from the Commonwealth and other employers whose |
24 | employees are members of the system required to provide for |
25 | the payment of supplemental annuities as provided in sections |
26 | 8348, 8348.1, 8348.2, 8348.3, 8348.4, 8348.5, 8348.6 and |
27 | 8348.7 shall be paid as part of the accrued liability |
28 | contribution rate as provided for in subsection (c)(4), and |
29 | there shall not be a separate supplemental annuity |
30 | contribution rate attributable to those supplemental |
|
1 | annuities. In the event that supplemental annuities are |
2 | increased by legislation enacted subsequent to June 30, 2010, |
3 | the additional liability for the increase in benefits shall |
4 | be funded as a level percentage of compensation over a period |
5 | of ten years from the July 1 second succeeding the date such |
6 | legislation is enacted. |
7 | (e) Experience adjustment factor.-- |
8 | (1) For each year after the establishment of the accrued |
9 | liability contribution rate for the fiscal year beginning |
10 | July 1, [2002] 2011, any increase or decrease in the unfunded |
11 | accrued liability, excluding the gains or losses on the |
12 | assets of the health insurance account, due to actual |
13 | experience differing from assumed experience, changes in |
14 | actuarial assumptions, changes in contributions caused by the |
15 | final contribution rate being different from the actuarially |
16 | required contribution rate, active members making shared risk | <-- |
17 | contributions or changes in the terms and conditions of the |
18 | benefits provided by the system by judicial, administrative |
19 | or other processes other than legislation, including, but not |
20 | limited to, reinterpretation of the provisions of this part, |
21 | shall be amortized [in equal dollar annual contributions] as |
22 | a level percentage of compensation over a period of [ten] 30 | <-- |
23 | 24 years beginning with the July 1 second succeeding the | <-- |
24 | actuarial valuation determining said increases or decreases. |
25 | (2) [Notwithstanding the provisions of paragraph (1), |
26 | for each year after the establishment of the accrued |
27 | liability contribution rate for the fiscal year beginning |
28 | July 1, 2003, any increase or decrease in the unfunded |
29 | accrued liability, excluding the gains or losses on the |
30 | assets of the health insurance account, due to actual |
|
1 | experience differing from assumed experience, changes in |
2 | actuarial assumptions, changes in the terms and conditions of |
3 | the benefits provided by the system by judicial, |
4 | administrative or other processes other than legislation, |
5 | including, but not limited to, reinterpretation of the |
6 | provisions of this part, shall be amortized in equal dollar |
7 | annual contributions over a period of 30 years beginning with |
8 | the July 1 second succeeding the actuarial valuation |
9 | determining said increases and decreases] (Reserved). |
10 | (f) Premium assistance contribution rate.--For each fiscal |
11 | year beginning with July 1, 1991, the total contribution rate as |
12 | calculated according to this section shall be increased annually |
13 | in the full amount certified by the board as necessary to fund |
14 | the premium assistance program in accordance with section 8509 |
15 | (relating to health insurance premium assistance program), |
16 | notwithstanding any other provisions of this section. |
17 | (g) Temporary application of collared contribution rate.-- |
18 | (1) The collared contribution rate for each year shall |
19 | be determined by comparing the actuarially required |
20 | contribution rate, calculated without regard for the costs |
21 | added by legislation, to the prior year's final contribution |
22 | rate. |
23 | (2) If, for any of the fiscal years beginning July 1, |
24 | 2011, July 1, 2012, and on or after July 1, 2013, the |
25 | actuarially required contribution rate, calculated without |
26 | regard for the costs added by legislation, is more than 3%, |
27 | 3.5% and 4.5%, respectively, of the total compensation of all |
28 | active members greater than the prior year's final |
29 | contribution rate, then the collared contribution rate shall |
30 | be applied and be equal to the prior year's final |
|
1 | contribution rate increased by 3%, 3.5% and 4.5%, |
2 | respectively, of total compensation of all active members. |
3 | Otherwise, and for all other fiscal years, the collared |
4 | contribution rate shall not be applicable. In no case shall |
5 | the collared contribution rate be less than 4% of the total |
6 | compensation of all active members. |
7 | (h) Final contribution rate.-- |
8 | (1) For the fiscal year beginning July 1, 2010, the |
9 | final contribution rate shall be is 5% of the total | <-- |
10 | compensation of all active members. For each subsequent |
11 | fiscal year for which the collared contribution rate is |
12 | applicable, the final contribution rate shall be the collared |
13 | contribution rate as calculated in subsection (g), plus the |
14 | costs added by legislation. |
15 | (2) For all other fiscal years, the final contribution |
16 | rate shall be the actuarially required contribution rate, |
17 | provided that the final contribution rate shall not be less |
18 | than the normal contribution rate as provided in subsection |
19 | (b). |
20 | (i) Definitions.--As used in this section, the following |
21 | words and phrases shall have the meanings given to them in this |
22 | subsection unless the context clearly indicates otherwise: |
23 | "Actuarially required contribution rate." The sum of the |
24 | following: |
25 | (1) the normal contribution rate as calculated in |
26 | subsection (b); |
27 | (2) the accrued liability contribution rate as |
28 | calculated in subsection (c); |
29 | (3) the supplemental annuity contribution rate as |
30 | calculated in subsection (d); |
|
1 | (4) the experience adjustment factor as calculated in |
2 | subsection (e); and |
3 | (5) any costs added by legislation enacted prior to the |
4 | last actuarial valuation. |
5 | "Costs added by legislation." The sum, if positive, of all |
6 | changes in the actuarially required contribution rate resulting |
7 | from legislation enacted in the year since the last actuarial |
8 | valuation and not included in the determination of the prior |
9 | year's final contribution rate, computed as the rate of total |
10 | compensation of all active members certified by the actuary as |
11 | sufficient to make the employer normal contributions and |
12 | sufficient to amortize legislatively created changes in the |
13 | unfunded actuarial liability as a level percentage of |
14 | compensation over a period of ten years from the July 1 second |
15 | succeeding the date of enactment. |
16 | § 8342. Maximum single life annuity. |
17 | (a) General rule.--Upon termination of service, any full |
18 | coverage member who is eligible to receive an annuity pursuant |
19 | to the provisions of section 8307(a) or (b) (relating to |
20 | eligibility for annuities) and has made an application in |
21 | accordance with the provisions of section 8507(f) (relating to |
22 | rights and duties of school employees and members) shall be |
23 | entitled to receive a maximum single life annuity attributable |
24 | to his credited service and equal to the sum of the following |
25 | single life annuities beginning at the effective date of |
26 | retirement and, in case the member on the effective date of |
27 | retirement is under superannuation age, multiplied by a |
28 | reduction factor calculated to provide benefits actuarially |
29 | equivalent to an annuity starting at superannuation age: |
30 | Provided however, That on or after July 1, 1976, in the case of |
|
1 | any Class T-C, T-D, T-E or T-F member who has attained age 55 | <-- |
2 | and has 25 or more eligibility points such sum of single life |
3 | annuities shall be reduced by a percentage determined by |
4 | multiplying the number of months, including a fraction of a |
5 | month as a full month, by which the effective date of retirement |
6 | precedes superannuation age by 1/4%: |
7 | Further provided, In no event shall a Class T-E or Class T-F | <-- |
8 | member receive an annual benefit, calculated as of the effective |
9 | date of retirement, greater than the member's final average |
10 | salary: |
11 | (1) A standard single life annuity multiplied by the |
12 | class of service multiplier and calculated on the basis of |
13 | the number of years of credited school service other than |
14 | concurrent service. |
15 | (2) A standard single life annuity multiplied by the |
16 | class of service multiplier and calculated on the basis of |
17 | the number of years of concurrent service and multiplied by |
18 | the ratio of total compensation received in the school system |
19 | during the period of concurrent service to the total |
20 | compensation received during such period. |
21 | (3) A supplemental annuity such that the total annuity |
22 | prior to any optional modification or any reduction due to |
23 | retirement prior to superannuation age shall be at least $100 |
24 | for each full year of credited service. |
25 | * * * |
26 | § 8344. Disability annuities. |
27 | * * * |
28 | (d) Withdrawal of accumulated deductions.--Upon termination |
29 | of disability annuity payments in excess of an annuity |
30 | calculated in accordance with section 8342, a disability |
|
1 | annuitant who: |
2 | (1) is a Class T-C or Class T-D member; or |
3 | (2) is a Class T-E or Class T-F member with less than |
4 | ten eligibility points |
5 | and who does not return to school service may file an |
6 | application with the board for an amount equal to the |
7 | accumulated deductions, shared risk member contributions and | <-- |
8 | statutory interest standing to his credit at the effective date |
9 | of disability less the total payments received on account of his |
10 | member's annuity. |
11 | * * * |
12 | § 8345. Member's options. |
13 | (a) General rule.--Any Class T-C or Class T-D member who is |
14 | a vestee with five or more eligibility points, any Class T-E or |
15 | Class T-F member who is a vestee with ten or more eligibility |
16 | points, or any other eligible member upon termination of school |
17 | service who has not withdrawn his accumulated deductions as |
18 | provided in section 8341 (relating to return of accumulated |
19 | deductions) may apply for and elect to receive either a maximum |
20 | single life annuity, as calculated in accordance with the |
21 | provisions of section 8342 (relating to maximum single life |
22 | annuity), or a reduced annuity certified by the actuary to be |
23 | actuarially equivalent to the maximum single life annuity and in |
24 | accordance with one of the following options, except that no |
25 | member shall elect an annuity payable to one or more survivor |
26 | annuitants other than his spouse or alternate payee of such a |
27 | magnitude that the present value of the annuity payable to him |
28 | for life plus any lump sum payment he may have elected to |
29 | receive is less than 50% of the present value of his maximum |
30 | single life annuity. In no event shall a Class T-E or Class T-F | <-- |
|
1 | member receive an annual benefit, calculated as of the effective |
2 | date of retirement, greater than the member's final average |
3 | salary. |
4 | (1) Option 1.--A life annuity to the member with a |
5 | guaranteed total payment equal to the present value of the |
6 | maximum single life annuity on the effective date of |
7 | retirement with the provision that, if, at his death, he has |
8 | received less than such present value, the unpaid balance |
9 | shall be payable to his beneficiary. |
10 | (2) Option 2.--A joint and survivor annuity payable |
11 | during the lifetime of the member with the full amount of |
12 | such annuity payable thereafter to his survivor annuitant, if |
13 | living at his death. |
14 | (3) Option 3.--A joint and fifty percent (50%) survivor |
15 | annuity payable during the lifetime of the member with one- |
16 | half of such annuity payable thereafter to his survivor |
17 | annuitant, if living at his death. |
18 | (4) Option 4.--Some other benefit which shall be |
19 | certified by the actuary to be actuarially equivalent to the |
20 | maximum single life annuity, subject to the following |
21 | restrictions: |
22 | (i) Any annuity shall be payable without reduction |
23 | during the lifetime of the member. |
24 | (ii) The sum of all annuities payable to the |
25 | designated survivor annuitants shall not be greater than |
26 | one and one-half times the annuity payable to the member. |
27 | (iii) A portion of the benefit may be payable as a |
28 | lump sum, except that such lump sum payment shall not |
29 | exceed an amount equal to the accumulated deductions |
30 | standing to the credit of the member. The balance of the |
|
1 | present value of the maximum single life annuity adjusted |
2 | in accordance with section 8342(b) shall be paid in the |
3 | form of an annuity with a guaranteed total payment, a |
4 | single life annuity, or a joint and survivor annuity or |
5 | any combination thereof but subject to the restrictions |
6 | of subparagraphs (i) and (ii) of this paragraph. This |
7 | subparagraph shall not apply to a Class T-E or Class T-F |
8 | member. |
9 | * * * |
10 | § 8348.1. Additional supplemental annuities. |
11 | * * * |
12 | (f) Funding.--The actuary shall annually certify 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 certification to |
17 | the Secretary of the Budget on or before November 1 of each |
18 | year. If, in any year after 1984, the amount certified is |
19 | disapproved under section 610 of the act of April 9, 1929 |
20 | (P.L.177, No.175), known as The Administrative Code of 1929, as |
21 | insufficient to meet the funding requirements of this subsection |
22 | or is not appropriated on or before July 1, the additional |
23 | supplemental annuity provided for in this section shall be |
24 | suspended until such time as an amount certified and approved as |
25 | sufficient is appropriated], which amounts shall be paid during |
26 | the period beginning July 1, 2002, and ending June 30, 2011. For |
27 | fiscal years beginning on or after July 1, 2011, the additional |
28 | liability provided in this section shall be funded as part of |
29 | the actuarial accrued liability as provided in section 8328 |
30 | (relating to actuarial cost method). |
|
1 | * * * |
2 | § 8348.2. Further additional supplemental annuities. |
3 | * * * |
4 | (f) Funding.--The actuary shall annually estimate the amount |
5 | of Commonwealth appropriations for the next fiscal year needed |
6 | to fund, over a period of ten years from July 1, 2002, the |
7 | additional monthly supplemental annuity provided for in this |
8 | section[. The board shall submit the actuary's estimation to the |
9 | Secretary of the Budget on or before November 1 of each year. |
10 | If, in any year after 1988, the amount estimated is disapproved |
11 | under section 610 of the act of April 9, 1929 (P.L.177, No.175), |
12 | known as The Administrative Code of 1929, as insufficient to |
13 | meet the funding requirements of this subsection or is not |
14 | appropriated on or before July 1, the additional supplemental |
15 | annuity provided for in this section shall be suspended until |
16 | such time as an amount certified and approved as sufficient is |
17 | appropriated], which amounts shall be paid during the period |
18 | beginning July 1, 2002, and ending June 30, 2011. For fiscal |
19 | years beginning on or after July 1, 2011, the additional |
20 | liability provided in this section shall be funded as part of |
21 | the actuarial accrued liability as provided in section 8328 |
22 | (relating to actuarial cost method). |
23 | * * * |
24 | § 8348.3. Supplemental annuities commencing 1994. |
25 | * * * |
26 | (f) Funding.--[The] |
27 | (1) For the period beginning July 1, 2002, and ending |
28 | June 30, 2011, the additional liability for the increase in |
29 | benefits provided in this section shall be funded in equal |
30 | dollar annual installments over a period of ten years |
|
1 | beginning July 1, 2002. |
2 | (2) For fiscal years beginning on or after July 1, 2011, |
3 | the additional liability provided in this section shall be |
4 | funded as part of the actuarial accrued liability as provided |
5 | in section 8328 (relating to actuarial cost method). |
6 | * * * |
7 | § 8348.5. Supplemental annuities commencing 1998. |
8 | * * * |
9 | (f) Funding.--[The] |
10 | (1) For the period beginning July 1, 2002, and ending |
11 | June 30, 2011, the additional liability for the increase in |
12 | benefits provided in this section shall be funded in equal |
13 | dollar annual installments over a period of ten years |
14 | beginning July 1, 2002. |
15 | (2) For fiscal years beginning on or after July 1, 2011, |
16 | the additional liability provided in this section shall be |
17 | funded as part of the actuarial accrued liability as provided |
18 | in section 8328 (relating to actuarial cost method). |
19 | (3) Notwithstanding the provisions of section 212 of the |
20 | act of April 22, 1998 (P.L.1341, No.6A), known as the General |
21 | Appropriation Act of 1998, regarding payment for cost-of- |
22 | living increases for annuitants, payments for cost-of-living |
23 | increases for annuitants shall be made under section 8535 |
24 | (relating to payments to school entities by Commonwealth). |
25 | * * * |
26 | § 8348.6. Supplemental annuities commencing 2002. |
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, 2003. |
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 | § 8348.7. Supplemental annuities commencing 2003. |
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, 2004. |
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 | * * * |
22 | § 8502. Administrative duties of board. |
23 | * * * |
24 | (k) Certification of employer contributions.--The board |
25 | shall, each year in addition to the itemized budget required |
26 | under section 8330 (relating to appropriations by the |
27 | Commonwealth), certify to the employers and the Commonwealth the |
28 | employer contribution rate expressed as a percentage of members' |
29 | payroll necessary for the funding of prospective annuities for |
30 | active members and the annuities of annuitants, and certify the |
|
1 | rates and amounts of the normal contributions as determined |
2 | pursuant to section 8328(b) (relating to actuarial cost method), |
3 | accrued liability contributions as determined pursuant to |
4 | section 8328(c), supplemental annuities contribution rate as |
5 | determined pursuant to section 8328(d) [and], the experience |
6 | adjustment factor as determined pursuant to section 8328(e) |
7 | [and], premium assistance contributions as determined pursuant |
8 | to section 8328(f), the costs added by legislation as determined |
9 | pursuant to section 8328(i), the actuarial required contribution |
10 | rate as determined pursuant to section 8328(i), the collared |
11 | contribution rate as determined pursuant to section 8328(g) and, | <-- |
12 | the final contribution rate as determined pursuant to section |
13 | 8328(h) and the shared risk contribution rate as determined | <-- |
14 | under section 8321(b) (relating to regular member contributions |
15 | for current service), which shall be paid to the fund and |
16 | credited to the appropriate accounts. These certifications shall |
17 | be regarded as final and not subject to modification by the |
18 | [Budget Secretary] 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 6.1. Sections 8507(f) and (g) and 8535(3) of Title | <-- |
29 | 24 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. Title 24 is amended by adding a section to read: | <-- |
11 | § 8536. Independent Fiscal Office study. |
12 | The Independent Fiscal Office shall study and analyze the |
13 | implementation of shared risk contributions under section |
14 | 8321(b) (relating to regular member contributions for current |
15 | service) and its impact on the system. The study shall be |
16 | completed by December 31, 2015, and shall be transmitted to the |
17 | Appropriations Committee and the Finance Committee of the Senate |
18 | and the Appropriations Committee and the Finance Committee of |
19 | the House of Representatives and to the Governor. |
20 | Section 7.1. The definitions of "class of service |
21 | multiplier," "final average salary," "superannuation age" | <-- |
22 | "member's annuity," "pickup contributions," "superannuation | <-- |
23 | age," "total accumulated deductions" and "vestee" in section |
24 | 5102 of Title 71 are amended and the section is amended by | <-- |
25 | adding definitions to read: |
26 | § 5102. Definitions. |
27 | The following words and phrases as used in this part, unless |
28 | a different meaning is plainly required by the context, shall |
29 | have the following meanings: |
30 | * * * |
|
1 | "Class of service multiplier." |
2 | Class of Service | | Multiplier | | 3 | A | | 1 | | 4 5 6 7 8 9 10 11 | AA | for all purposes except calculating regular member contributions on compensation paid prior to January 1, 2002 | 1.25 | | 12 13 14 15 16 17 18 | AA | for purposes of calculating regular member contributions on compensation paid prior to January 1, 2002 | 1 | | 19 20 21 22 23 24 25 26 27 | A-3 | for all purposes except the calculation of regular member contributions and contributions for creditable nonstate service | 1 | | 28 29 30 | A-3 | for purposes of calculating regular member | | | | 1 2 3 4 5 | | contributions and contributions for creditable nonstate service | 1.25 | | 6 7 8 9 10 | A-4 | for all purposes except the calculation of regular member contributions | 1.25 | | 11 12 13 14 | A-4 | for purposes of calculating regular member contributions | 1.86 | | 15 | B | | .625 | | 16 | C | | 1 | | 17 | D | | 1.25 | | 18 19 | D-1 | prior to January 1, 1973 | 1.875 | | 20 21 22 | D-1 | on and subsequent to January 1, 1973 | 1.731 | | 23 24 | D-2 | prior to January 1, 1973 | 2.5 | | 25 26 27 | D-2 | on and subsequent to January 1, 1973 | 1.731 | | 28 29 | D-3 | prior to January 1, 1973 | 3.75 | | 30 | D-3 | on and | | except prior to | | 1 2 3 4 5 6 7 8 | | subsequent to January 1, 1973 | 1.731 | December 1, 1974 as applied to any additional legislative compensation as an officer of the General Assembly | 9 | | | 3.75 | | 10 11 12 13 14 15 16 17 | D-4 | for all purposes except calculating regular member contributions on compensation paid prior to July 1, 2001 | 1.5 | | 18 19 20 21 22 23 24 | D-4 | for purposes of calculating regular member contributions on compensation paid prior to July 1, 2001 | 1 | | 25 26 27 28 | E, E-1 | prior to January 1, 1973 | 2 | for each of the first ten years of judicial service, and | 29 30 | | | 1.5 | for each subsequent year | | 1 2 | | | | of judicial service | 3 4 5 6 | E, E-1 | on and subsequent to January 1, 1973 | 1.50 | for each of the first ten years of judicial service and | 7 8 | E-2 | prior to September 1 1973 | 1.5 | | 9 10 11 12 | E-2 | on and subsequent to September 1, 1973 | 1.125 | | 13 | G | | 0.417 | | 14 | H | | 0.500 | | 15 | I | | 0.625 | | 16 | J | | 0.714 | | 17 | K | | 0.834 | | 18 | L | | 1.000 | | 19 | M | | 1.100 | | 20 | N | | 1.250 | | 21 22 23 24 | T-C (Public School Employees' Retirement Code) | | 1 | | 25 26 27 28 | T-E (Public School Employees' Retirement Code) | | 1 | | 29 30 | T-F (Public School | | 1 | | | 1 2 | Employees' Retirement Code) | | | |
|
3 | * * * |
4 | "Final average salary." The highest average compensation |
5 | received as a member during any three nonoverlapping periods of |
6 | four consecutive calendar quarters during which the member was a |
7 | State employee, with the compensation for part-time service |
8 | being annualized on the basis of the fractional portion of the |
9 | year for which credit is received; except if the employee was |
10 | not a member for three nonoverlapping periods of four |
11 | consecutive calendar quarters, the total compensation received |
12 | as a member, annualized in the case of part-time service, |
13 | divided by the number of nonoverlapping periods of four |
14 | consecutive calendar quarters of membership; in the case of a |
15 | member with multiple service, the final average salary shall be |
16 | determined on the basis of the compensation received by him as a |
17 | State employee or as a school employee, or both; in the case of |
18 | a member with Class A-3 or Class A-4 service and service in one |
19 | or more other classes of service, the final average salary shall |
20 | be determined on the basis of the compensation received by him |
21 | in all classes of State service; and, in the case of a member |
22 | who first became a member on or after January 1, 1996, the final |
23 | average salary shall be determined as hereinabove provided but |
24 | subject to the application of the provisions of section |
25 | 5506.1(a) (relating to annual compensation limit under IRC § |
26 | 401(a)(17)). |
27 | * * * |
28 | "Member's annuity." The single life annuity which is | <-- |
29 | actuarially equivalent, at the effective date of retirement, to |
30 | the sum of the regular accumulated deductions, shared risk |
|
1 | accumulated deductions, the additional accumulated deductions |
2 | and the social security integration accumulated deductions |
3 | standing to the member's credit in the members' savings account. |
4 | * * * |
5 | "Pickup contributions." Regular or joint coverage member |
6 | contributions, shared risk member contributions, social security |
7 | integration contributions and additional member contributions |
8 | which are made by the Commonwealth or other employer for active |
9 | members for current service on and after January 1, 1982. |
10 | * * * |
11 | "Shared risk accumulated deductions." The total of the |
12 | shared risk member contributions paid into the fund on account |
13 | of current service or previous State service or creditable |
14 | nonstate service, together with the statutory interest credited |
15 | on the contributions until the date of termination of service. |
16 | In the case of a vestee, statutory interest shall be credited |
17 | until the effective date of retirement. A member's account shall |
18 | not be credited with statutory interest for more than two years |
19 | during a leave without pay. |
20 | "Shared risk member contributions." The product of the |
21 | shared risk contribution rate and the compensation of a member |
22 | for service credited as Class A-3 or Class A-4. |
23 | * * * |
24 | "Superannuation age." [Any] For classes of service other |
25 | than Class A-3 and Class A-4, any age upon accrual of 35 |
26 | eligibility points or age 60, except for a member of the General |
27 | Assembly, an enforcement officer, a correction officer, a |
28 | psychiatric security aide, a Delaware River Port Authority |
29 | policeman or an officer of the Pennsylvania State Police, age |
30 | 50, and, except for a member with Class G, Class H, Class I, |
|
1 | Class J, Class K, Class L, Class M or Class N service, age 55 |
2 | upon accrual of 20 eligibility points. For Class A-3 and Class |
3 | A-4 service, any age upon accrual of 35 eligibility points | <-- |
4 | attainment of a superannuation score of 92, provided the member | <-- |
5 | has accrued 35 eligibility points or age 65, or for park rangers |
6 | or capitol police officers, age 55 with 20 years of service as a |
7 | park ranger or capitol police officer, except for a member of |
8 | the General Assembly, an enforcement officer, a correction |
9 | officer, a psychiatric security aide, a Delaware River Port |
10 | Authority policeman or an officer of the Pennsylvania State |
11 | Police, age 55. A vestee with Class A-3 or Class A-4 service | <-- |
12 | credit attains superannuation age on the birthday the vestee |
13 | attains the age resulting in a superannuation score of 92, |
14 | provided the vestee has at least 35 eligibility points, or |
15 | attains another applicable superannuation age, whichever occurs |
16 | first. |
17 | "Superannuation score." The sum of the member's age in whole |
18 | years on his last birthday and the amount of the member's total |
19 | eligibility points on the member's effective date of retirement, |
20 | expressed in whole years and whole eligibility points and |
21 | disregarding fractions of a year and fractions of total |
22 | eligibility points. |
23 | * * * |
24 | "Total accumulated deductions." The sum of the regular |
25 | accumulated deductions, additional accumulated deductions, the |
26 | social security integration accumulated deductions, shared risk |
27 | member contributions and all other contributions paid into the |
28 | fund for the purchase, transfer or conversion of credit for |
29 | service or other coverage together with all statutory interest |
30 | credited thereon until the date of termination of service. In |
|
1 | the case of a vestee or a special vestee, statutory interest |
2 | shall be credited until the effective date of retirement. A |
3 | member's account shall not be credited with statutory interest |
4 | for more than two years during a leave without pay. |
5 | * * * |
6 | "Vestee." A member with five or more eligibility points[, |
7 | or] in a class of service other than Class A-3 or Class A-4 or |
8 | Class T-E or Class T-F in the Public School Employees' |
9 | Retirement System, a member with Class G, Class H, Class I, |
10 | Class J, Class K, Class L, Class M or Class N service with five |
11 | or more eligibility points, or a member with Class A-3 or Class |
12 | A-4 service with ten or more eligibility points who has |
13 | terminated State service and has elected to leave his total |
14 | accumulated deductions in the fund and to defer receipt of an |
15 | annuity. |
16 | Section 7.2. Sections 5302(e) 5302(b) and (e), 5303(b)(1) | <-- |
17 | and 5304(a) of Title 71 are amended to read: |
18 | § 5302. Credited State service. |
19 | * * * |
20 | (b) Creditable leaves of absence.-- | <-- |
21 | (1) A member on leave without pay who is studying under |
22 | a Federal grant approved by the head of his department or who |
23 | is engaged up to a maximum of two years of temporary service |
24 | with the United States Government, another state or a local |
25 | government under the Intergovernmental Personnel Act of 1970, |
26 | 5 U.S.C. §§ 1304, 3371-3376; 42 U.S.C. §§ 4701-4772, shall be |
27 | eligible for credit for such service: Provided, That |
28 | contributions are made in accordance with sections 5501 |
29 | (relating to regular member contributions for current |
30 | service), 5501.1 (relating to shared risk member |
|
1 | contributions), 5505.1 (relating to additional member |
2 | contributions) and 5507 (relating to contributions by the |
3 | Commonwealth and other employers), the member returns from |
4 | leave without pay to active State service for a period of at |
5 | least one year, and he is not entitled to retirement benefits |
6 | for such service under a retirement system administered by |
7 | any other governmental agency. |
8 | (2) An active member on paid leave granted by an |
9 | employer for purposes of serving as an elected full-time |
10 | officer for a Statewide employee organization which is a |
11 | collective bargaining representative under the act of June |
12 | 24, 1968 (P.L.237, No.111), referred to as the Policemen and |
13 | Firemen Collective Bargaining Act, or the act of July 23, |
14 | 1970 (P.L.563, No.195), known as the Public Employe Relations |
15 | Act, and up to 14 full-time business agents appointed by an |
16 | employee organization that represents correction officers |
17 | employed at State correctional institutions: Provided, That |
18 | for elected full-time officers such leave shall not be for |
19 | more than three consecutive terms of the same office and for |
20 | up to 14 full-time business agents appointed by an employee |
21 | organization that represents correction officers employed at |
22 | State correctional institutions no more than three |
23 | consecutive terms of the same office; that the employer shall |
24 | fully compensate the member, including, but not limited to, |
25 | salary, wages, pension and retirement contributions and |
26 | benefits, other benefits and seniority, as if he were in |
27 | full-time active service; and that the Statewide employee |
28 | organization shall fully reimburse the employer for all |
29 | expenses and costs of such paid leave, including, but not |
30 | limited to, contributions and payment in accordance with |
|
1 | sections 5501, 5501.1, 5505.1 and 5507, if the employee |
2 | organization either directly pays, or reimburses the |
3 | Commonwealth or other employer for, contributions made in |
4 | accordance with section 5507. |
5 | * * * |
6 | (e) Cancellation of credited service.--All credited service |
7 | shall be cancelled if a member withdraws his total accumulated |
8 | deductions except that a member with Class A-3 or Class A-4 |
9 | service credit and one or more other classes of service credit |
10 | shall not have his service credit as a member of any classes of | <-- |
11 | service other than as a member of Class A-3 or Class A-4 |
12 | cancelled when the member receives a lump sum payment of |
13 | accumulated deductions resulting from Class A-3 or Class A-4 |
14 | service pursuant to section 5705.1 (relating to payment of |
15 | accumulated deductions resulting from Class A-3 and Class A-4 |
16 | service). |
17 | § 5303. Retention and reinstatement of service credits. |
18 | * * * |
19 | (b) Eligibility points for prospective credited service.-- |
20 | (1) Every active member of the system or a multiple |
21 | service member who is a school employee and a member of the |
22 | Public School Employees' Retirement System on or after the |
23 | effective date of this part shall receive eligibility points |
24 | in accordance with section 5307 for current State service, |
25 | previous State service, or creditable nonstate service upon |
26 | compliance with sections 5501 (relating to regular member |
27 | contributions for current service), 5501.1 (relating to | <-- |
28 | shared risk contributions), 5504 (relating to member |
29 | contributions for the purchase of credit for previous State |
30 | service or to become a full coverage member), 5505 (relating |
|
1 | to contributions for the purchase of credit for creditable |
2 | nonstate service), 5505.1 (relating to additional member |
3 | contributions) or 5506 (relating to incomplete payments). |
4 | Subject to the limitations in sections 5306.1 (relating to |
5 | election to become a Class AA member) and 5306.2 (relating to |
6 | elections by members of the General Assembly), the class or |
7 | classes of service in which the member may be credited for |
8 | previous State service prior to the effective date of this |
9 | part shall be the class or classes in which he was or could |
10 | have at any time elected to be credited for such service, |
11 | except that a State employee who first becomes a member of |
12 | the system on or after January 1, 2011, or on or after |
13 | December 1, 2010, as a member of the General Assembly and: |
14 | (i) is credited with Class A-3 service for such |
15 | membership, shall be credited only with Class A-3 service |
16 | for previous State service performed before January 1, |
17 | 2011, that was not previously credited in the system; or |
18 | (ii) is credited with Class A-4 service for such |
19 | membership, shall be credited only with Class A-3 A-4 | <-- |
20 | service for previous State service performed before |
21 | January 1, 2011, that was not previously credited in the |
22 | system. The class of service in which a member shall be | <-- |
23 | credited for |
24 | The class of service in which a member shall be credited for | <-- |
25 | service subsequent to the effective date of this part shall |
26 | be determined in accordance with section 5306 (relating to |
27 | classes of service). |
28 | * * * |
29 | § 5304. Creditable nonstate service. |
30 | (a) Eligibility.-- |
|
1 | (1) An active member who first becomes an active member |
2 | before January 1, 2011, or before December 1, 2010, as a |
3 | member of the General Assembly, or a multiple service member |
4 | who first becomes an active member before January 1, 2011, or |
5 | before December 1, 2010, as a member of the General Assembly, |
6 | and who is a school employee and an active member of the |
7 | Public School Employees' Retirement System shall be eligible |
8 | for Class A service credit for creditable nonstate service as |
9 | set forth in subsections (b) and (c) except that intervening |
10 | military service shall be credited in the class of service |
11 | for which the member was eligible at the time of entering |
12 | into military service and for which he makes the required |
13 | contributions and except that a multiple service member who |
14 | is a school employee and an active member of the Public |
15 | School Employees' Retirement System shall not be eligible to |
16 | purchase service credit for creditable nonstate service set |
17 | forth in subsection (c)(5). |
18 | (2) An active member who first becomes an active member |
19 | on or after January 1, 2011, or on or after December 1, 2010, |
20 | as a member of the General Assembly, or a multiple service |
21 | member who first becomes an active member on or after January |
22 | 1, 2011, or on or after December 1, 2010, as a member of the |
23 | General Assembly, and who is a school employee and an active |
24 | member of the Public School Employees' Retirement System |
25 | shall be eligible for Class A-3 service credit for creditable |
26 | nonstate service as set forth in subsections (b) and (c) |
27 | except that intervening military service shall be credited in |
28 | the class of service for which the member was eligible at the |
29 | time of entering into military service and for which he makes |
30 | the required contributions and except that a multiple service |
|
1 | member who is a school employee and an active member of the |
2 | Public School Employees' Retirement System shall not be |
3 | eligible to purchase service credit for creditable nonstate |
4 | service set forth in subsection (c)(5). |
5 | * * * |
6 | Section 7.3. Section 5306(a), (a.1)(1), (2), (5) and (6) and |
7 | (a.2) of Title 71 are amended and the section is amended by |
8 | adding a subsection to read: |
9 | § 5306. Classes of service. |
10 | (a) Class A and Class A-3 membership.-- |
11 | (1) A State employee who is a member of Class A on the |
12 | effective date of this part or who first becomes a member of |
13 | the system subsequent to the effective date of this part and |
14 | before January 1, 2011, or before December 1, 2010, as a |
15 | member of the General Assembly, shall be classified as a |
16 | Class A member and receive credit for Class A service upon |
17 | payment of regular and additional member contributions for |
18 | Class A service, provided that the State employee does not |
19 | become a member of Class AA pursuant to subsection (a.1) or a |
20 | member of Class D-4 pursuant to subsection (a.2). |
21 | (2) A State employee who first becomes a member of the |
22 | system on or after January 1, 2011, or on or after December |
23 | 1, 2010, as a member of the General Assembly, shall be |
24 | classified as a Class A-3 member and receive credit for Class |
25 | A-3 service upon payment of regular member contributions and | <-- |
26 | shared risk member contributions for Class A-3 service |
27 | provided that the State employee does not become a member of |
28 | Class A-4 pursuant to subsection (a.3), except that a member |
29 | of the judiciary shall be classified as a member of such |
30 | other class of service for which the member of the judiciary |
|
1 | is eligible, shall elect, and make regular member |
2 | contributions. |
3 | (a.1) Class AA membership.-- |
4 | (1) A person who becomes a State employee and an active |
5 | member of the system after June 30, 2001, and who first |
6 | became an active member before January 1, 2011, or before |
7 | December 1, 2010, as a member of the General Assembly, and |
8 | who is not a State police officer and not employed in a |
9 | position for which a class of service other than Class A is |
10 | credited or could be elected shall be classified as a Class |
11 | AA member and receive credit for Class AA State service upon |
12 | payment of regular member contributions for Class AA service |
13 | and, subject to the limitations contained in paragraph (7), |
14 | if previously a member of Class A or previously employed in a |
15 | position for which Class A service could have been earned, |
16 | shall have all Class A State service (other than State |
17 | service performed as a State police officer or for which a |
18 | class of service other than Class A was earned or could have |
19 | been elected) classified as Class AA service. |
20 | (2) A person who is a State employee on June 30, 2001, |
21 | and July 1, 2001, but is not an active member of the system |
22 | because membership in the system is optional or prohibited |
23 | pursuant to section 5301 (relating to mandatory and optional |
24 | membership) and who first becomes an active member after June |
25 | 30, 2001, and before January 1, 2011, or before December 1, |
26 | 2010, as a member of the General Assembly, and who is not a |
27 | State police officer and not employed in a position for which |
28 | a class of service other than Class A is credited or could be |
29 | elected shall be classified as a Class AA member and receive |
30 | credit for Class AA State service upon payment of regular |
|
1 | member contributions for Class AA service and, subject to the |
2 | limitations contained in paragraph (7), if previously a |
3 | member of Class A or previously employed in a position for |
4 | which Class A service could have been earned, shall have all |
5 | Class A State service (other than State service performed as |
6 | a State Police officer or for which a class of service other |
7 | than Class A was earned or could have been elected) |
8 | classified as Class AA service. |
9 | * * * |
10 | (5) A former State employee who first becomes a member |
11 | before January 1, 2011, or before December 1, 2010, as a |
12 | member of the General Assembly, other than a former State |
13 | employee who was a State police officer on or after July 1, |
14 | 1989, who is a school employee and who on or after July 1, |
15 | 2001, becomes a multiple service member, subject to the |
16 | limitations contained in paragraph (7), shall receive Class |
17 | AA service credit for all Class A State service other than |
18 | State service performed as a State employee in a position in |
19 | which the former State employee could have elected a class of |
20 | service other than Class A. |
21 | (6) A State employee who after June 30, 2001, becomes a |
22 | State police officer or who is employed in a position in |
23 | which the member could elect membership in a class of service |
24 | other than Class AA or Class D-4 shall retain any Class AA |
25 | service credited prior to becoming a State police officer or |
26 | being so employed but shall be ineligible to receive Class AA |
27 | credit thereafter and instead shall receive Class A credit |
28 | for service as a member of the judiciary or if he first |
29 | became a member before January 1, 2011, or December 1, 2010, |
30 | as a member of the General Assembly, or Class A-3 credit for |
|
1 | service other than as a member of the judiciary and he first |
2 | became a member on or after January 1, 2011, or December 1, |
3 | 2010, as a member of the General Assembly, unless a class of |
4 | membership other than Class A is elected. |
5 | * * * |
6 | (a.2) Class of membership for members of the General |
7 | Assembly.-- |
8 | (1) A person who: |
9 | (i) becomes a member of the General Assembly and an |
10 | active member of the system after June 30, 2001, and |
11 | before December 1, 2010; or |
12 | (ii) is a member of the General Assembly on July 1, |
13 | 2001, but is not an active member of the system because |
14 | membership in the system is optional pursuant to section |
15 | 5301 and who becomes an active member after June 30, |
16 | 2001, and before December 1, 2010; |
17 | and who was not a State police officer on or after July 1, |
18 | 1989, shall be classified as a Class D-4 member and receive |
19 | credit as a Class D-4 member for all State service as a |
20 | member of the General Assembly upon payment of regular member |
21 | contributions for Class D-4 service and, subject to the |
22 | limitations contained in subsection (a.1)(7), if previously a |
23 | member of Class A or employed in a position for which Class A |
24 | service could have been earned, shall receive Class AA |
25 | service credit for all Class A State service, other than |
26 | State service performed as a State police officer or for |
27 | which a class of service other than Class A or Class D-4 was |
28 | or could have been elected or credited. |
29 | (2) Provided an election to become a Class D-4 member is |
30 | made pursuant to section 5306.2 (relating to elections by |
|
1 | members of the General Assembly), a State employee who was |
2 | not a State police officer on or after July 1, 1989, who on |
3 | July 1, 2001, is a member of the General Assembly and an |
4 | active member of the system and not a member of Class D-3 |
5 | shall be classified as a Class D-4 member and receive credit |
6 | as a Class D-4 member for all State service performed as a |
7 | member of the General Assembly not credited as another class |
8 | other than Class A upon payment of regular member |
9 | contributions for Class D-4 service and, subject to the |
10 | limitations contained in paragraph (a.1)(7), shall receive |
11 | Class AA service credit for all Class A State service, other |
12 | than State service performed as a State police officer or as |
13 | a State employee in a position in which the member could have |
14 | elected a class of service other than Class A, performed |
15 | before July 1, 2001. |
16 | (3) A member of the General Assembly who after June 30, |
17 | 2001, becomes a State police officer shall retain any Class |
18 | AA service or Class D-4 service credited prior to becoming a |
19 | State police officer or being so employed but shall be |
20 | ineligible to receive Class AA or Class D-4 credit thereafter |
21 | and instead shall receive Class A credit or Class A-3 credit |
22 | if he first becomes a member of the system on or after |
23 | January 1, 2011. |
24 | (4) Notwithstanding the provisions of this subsection, |
25 | no service as a member of the General Assembly performed |
26 | before December 1, 2010, that is not credited as Class D-4 |
27 | service on November 30, 2010, shall be credited as Class D-4 |
28 | service, unless such service was previously credited in the |
29 | system as Class D-4 service and the member withdrew his total |
30 | accumulated deductions as provided in section 5311 (relating |
|
1 | to eligibility for refunds) or 5701 (relating to return of |
2 | total accumulated deductions). No service as a member of the |
3 | General Assembly performed on or after December 1, 2010, |
4 | shall be credited as Class D-4 service unless the member |
5 | previously was credited with Class D-4 service credits. |
6 | (a.3) Class A-4 membership.--Provided that an election to |
7 | become a Class A-4 member is made pursuant to section 5306.3 |
8 | (relating to election to become a Class A-4 member), a State |
9 | employee who otherwise would be a member of Class A-3 shall be |
10 | classified as a Class A-4 member and receive Class A-4 credit | <-- |
11 | for all creditable State service performed after the effective |
12 | date of membership in the system, except as a member of the |
13 | judiciary, upon payment of regular member contributions and | <-- |
14 | shared risk member contributions for Class A-4 service. |
15 | * * * |
16 | Section 7.4. Title 71 is amended by adding a section to |
17 | read: |
18 | § 5306.3. Election to become a class Class A-4 member. | <-- |
19 | (a) General rule.--A person who otherwise is eligible for |
20 | Class A-3 membership who has not previously elected or declined |
21 | to elect Class A-4 membership may elect to become a member of |
22 | Class A-4. |
23 | (b) Time for making election.--The election to become a |
24 | Class A-4 member must be made by the member filing written |
25 | notice with the board in a form and manner determined by the |
26 | board no later than 45 days after notice from the board of the |
27 | member's eligibility to elect Class A-4 membership. |
28 | (c) Effect of election.--An election to become a Class A-4 |
29 | member shall be irrevocable and shall become effective on the |
30 | effective date of membership in the system and shall remain in |
|
1 | effect for all future creditable State service, other than |
2 | service performed as a member of the judiciary. Payment of |
3 | regular member contributions for Class A-4 State service |
4 | performed prior to the election of Class A-4 service membership | <-- |
5 | shall be made in a form, manner and time determined by the |
6 | board. Upon termination and subsequent reemployment, a member |
7 | who elected Class A-4 membership shall be credited as a Class |
8 | A-4 member for creditable State service performed after |
9 | reemployment, except as a member of the judiciary, regardless of |
10 | termination of employment, termination of membership by |
11 | withdrawal of accumulated deductions or status as an annuitant, |
12 | vestee or inactive member after the termination of service. |
13 | (d) Effect of failure to make election.--Failure to elect to |
14 | become a Class A-4 member within the election period set forth |
15 | in subsection (b) shall result in all of the member's State |
16 | service, other than service performed as a member of the |
17 | judiciary, being credited as Class A-3 service and not subject |
18 | to further election or crediting as Class A-4 service. Upon |
19 | termination and subsequent employment, a member who failed to |
20 | elect to become a Class A-4 member shall not be eligible to make |
21 | another election to become a Class A-4 member for either past or |
22 | future State service. |
23 | Section 7.5. Sections 5308(b) and 5309 of Title 71 are |
24 | amended to read: |
25 | § 5308. Eligibility for annuities. |
26 | * * * |
27 | (b) Withdrawal annuity.-- |
28 | (1) Any vestee or any active member or inactive member |
29 | on leave without pay who terminates State service having five |
30 | or more eligibility points and who does not have Class A-3 or |
|
1 | Class A-4 service credit or Class T-E or Class T-F service |
2 | credit in the Public School Employees' Retirement System, or |
3 | who has Class G, Class H, Class I, Class J, Class K, Class L, |
4 | Class M or Class N service and terminates State service |
5 | having five or more eligibility points, upon compliance with |
6 | section 5907(f), (g) or (h) shall be entitled to receive an |
7 | annuity. |
8 | (2) Any vestee, active member or inactive member on |
9 | leave without pay who has Class A-3 or Class A-4 service |
10 | credit or Class T-E or Class T-F service credit in the Public |
11 | School Employees' Retirement System who terminates State |
12 | service having ten or more eligibility points, upon |
13 | compliance with section 5907(f), (g) or (h), shall be |
14 | entitled to receive an annuity. |
15 | (3) Any vestee, active member or inactive member on |
16 | leave without pay who has either Class A-3 or Class A-4 |
17 | service credit or Class T-E or Class T-F service credit in |
18 | the Public School Employees' Retirement System and also has |
19 | service credited in the system in one or more other classes |
20 | of service who has five or more, but fewer than ten, |
21 | eligibility points, upon compliance with section 5907(f), (g) |
22 | or (h) shall be eligible to receive an annuity calculated on |
23 | his service credited in classes of service other than Class |
24 | A-3 or Class A-4, provided that the member has five or more |
25 | eligibility points resulting from service in classes other |
26 | than Class A-3 or Class A-4 or Class T-E or Class T-F service |
27 | in the Public School Employees' Retirement System. |
28 | * * * |
29 | § 5309. Eligibility for vesting. |
30 | Any member who: |
|
1 | (1) Does not have Class A-3 or Class A-4 service credit |
2 | or Class T-E or Class T-F service credit in the Public School |
3 | Employees' Retirement System and terminates State service |
4 | with five or more eligibility points, or any member with |
5 | Class G, Class H, Class I, Class J, Class K, Class L, Class M |
6 | or Class N service with five or more eligibility points, |
7 | shall be eligible until attainment of superannuation age to |
8 | vest his retirement benefits. |
9 | (2) Has Class A-3 or Class A-4 service credit or Class |
10 | T-E or Class T-F service credit in the Public School |
11 | Employees' Retirement System and terminates State service |
12 | with ten or more eligibility points shall be eligible until |
13 | attainment of superannuation age to vest his retirement |
14 | benefits. |
15 | (3) Has either Class A-3 or Class A-4 service credit or |
16 | Class T-E or Class T-F service credit in the Public School |
17 | Employees' Retirement System, also has service credited in |
18 | the system in one or more other classes of service and has |
19 | five or more, but fewer than ten, eligibility points shall be |
20 | eligible until the attainment of superannuation age to vest |
21 | his retirement benefits calculated on his service credited in |
22 | classes of service other than Class A-3 or Class A-4 and to |
23 | be credited with statutory interest on total accumulated |
24 | deductions, regardless of whether or not any part of his |
25 | accumulated deductions are a result of Class A-3 or Class A-4 |
26 | service credit. |
27 | Section 8. Title 71 is amended by adding a section sections | <-- |
28 | to read: |
29 | § 5501.1. Shared risk member contributions for Class A-3 and | <-- |
30 | Class A-4 service. |
|
1 | (a) General.--Shared risk member contributions shall be made |
2 | to the fund on behalf of each member of Class A-3 or Class A-4 |
3 | for current service credited as Class A-3 or Class A-4 as |
4 | provided under this section, except for any period of current |
5 | service in which the making of the contributions has ceased |
6 | solely by reason of any provision of this part relating to the |
7 | limitations under IRC § 401(a)(17) or 415. Shared risk member |
8 | contributions shall be credited to the members' savings account. |
9 | (b) Determination of shared risk contribution rate.-- |
10 | (1) For the period from the effective date of this |
11 | section until June 30, 2014, the shared risk contribution |
12 | rate shall be zero. |
13 | (2) For the period from July 1, 2014, to June 30, 2017, |
14 | if the annual interest rate adopted by the board for use |
15 | during the period from January 1, 2011, to December 31, 2013, |
16 | for the calculation of the normal contribution rate is more |
17 | than 1% greater than the actual rate of return, net of fees, |
18 | of the investments of the fund based on market value over the |
19 | period, the shared risk contribution rate shall be .5%. In |
20 | all other situations, the shared risk contribution rate shall |
21 | be zero. |
22 | (3) For each subsequent three-year period, the shared |
23 | risk contribution rate shall be increased by .5% if the |
24 | annual interest rate adopted by the board for use during the |
25 | previous ten-year period for the calculation of the normal |
26 | contribution rate is more than 1% greater than the actual |
27 | rate of return, net of fees, of the investments of the fund |
28 | based on market value over the period. The shared risk |
29 | contribution rate shall be decreased by .5% if the annual |
30 | interest rate adopted by the board for use during the |
|
1 | previous ten-year period for the calculation of the normal |
2 | contribution rate is equal to or less than the actual rate of |
3 | return, net of fees, of the investments of the fund based on |
4 | market value over that period. |
5 | (4) Notwithstanding paragraphs (2) and (3), the shared |
6 | risk contribution rate shall not be less than zero and shall |
7 | not be more than the experience adjustment factor resulting |
8 | from investment gains or losses in effect on the first day |
9 | when the new rate would be applied, expressed as a percentage |
10 | of member compensation and shall not be more than 2%. For the |
11 | determination of the shared risk contribution rate to be |
12 | effective July 1, 2017, the determination period shall be |
13 | January 1, 2011, through December 31, 2016. For the |
14 | determination of the shared risk contribution rate to be |
15 | effective July 1, 2020, the determination period shall be |
16 | January 1, 2011, through December 31, 2019. |
17 | (5) The shared risk contribution rate and the factors |
18 | entering into its calculation shall be certified by the |
19 | actuary as part of the annual valuations and the actuarial |
20 | investigation and evaluation of the system conducted every |
21 | five years under section 5902(j) (relating to administrative |
22 | duties of the board). |
23 | (6) In the event that the annual interest rate adopted |
24 | by the board for the calculation is changed during the period |
25 | used to determine the shared risk contribution rate, the |
26 | board with the advice of the actuary shall determine the |
27 | applicable rate during the entire period, expressed as an |
28 | annual rate. |
29 | (7) For any fiscal year in which the actual |
30 | contributions by the Commonwealth or an employer are lower |
|
1 | than those required to be made under section 5507(d) |
2 | (relating to contributions by the Commonwealth and other |
3 | employers), the prospective shared risk contribution rate for |
4 | those employees whose employers are not making the |
5 | contributions required by section 5507(d) shall be zero and |
6 | shall not subsequently be increased except as otherwise |
7 | provided in this section. |
8 | (8) If the actuary certifies that the accrued liability |
9 | contributions calculated in accordance with the actuarial |
10 | cost method provided in section 5508(b) (relating to |
11 | actuarial cost method), as adjusted by the experience |
12 | adjustment factor, are zero or less, then the shared risk |
13 | contribution rate for the next fiscal year shall be zero and |
14 | shall not subsequently be increased except as otherwise |
15 | provided in this section. |
16 | § 5501.1 5501.2. Definitions. | <-- |
17 | The following words and phrases when used in this chapter |
18 | shall have the meanings given to them in this section unless the |
19 | context clearly indicates otherwise: |
20 | "Actuarially required contribution rate." The employer |
21 | contribution rate as calculated pursuant to section 5508(a), |
22 | (b), (c), (e) and (f) (relating to actuarial cost method). |
23 | "Costs added by legislation." The sum, if positive, of all |
24 | changes in the actuarially required contribution rate resulting |
25 | from legislation enacted in the year since the last actuarial |
26 | valuation and not included in the determination of the prior |
27 | year's final contribution rate, computed as the rate of total |
28 | compensation of all active members certified by the actuary as |
29 | sufficient to make the employer normal contributions and |
30 | sufficient to amortize legislatively created changes in the |
|
1 | unfunded actuarial liability as a level percentage of | <-- |
2 | compensation in equal dollar annual installments over a period | <-- |
3 | of ten years from the July 1 following the valuation date. |
4 | Section 9. Sections 5502.1, 5504(a), 5505(b) and (d), 5507, | <-- |
5 | 5508, 5702(a)(4) and (6), 5704(e) and 5705(a) of Title 71 are |
6 | amended to read: |
7 | Section 9. Sections 5502.1, 5503.1(a), 5504(a), 5505, 5507, | <-- |
8 | 5508, 5702(a)(4) and (6), 5704(e) and 5705(a) of Title 71 are |
9 | amended to read: |
10 | § 5502.1. Waiver of regular member contributions and Social |
11 | Security integration member contributions. |
12 | (a) General rule.--Notwithstanding the provisions of |
13 | sections 5501 (relating to regular member contributions for |
14 | current service) and 5502 (relating to Social Security |
15 | integration member contributions), no regular member |
16 | contributions or Social Security integration member |
17 | contributions shall be made by an active member for the period |
18 | from July 1 to the following June 30 if the maximum single life |
19 | annuity to which the member would have been entitled to receive |
20 | had the member retired with an effective date of retirement on |
21 | the preceding January 1 is greater than 110% of the highest |
22 | calendar year compensation of the member, provided the member |
23 | files a written election as prescribed by the board. |
24 | (b) Applicability.--This section shall not apply to any |
25 | member who has Class A-3 or Class A-4 service credit. |
26 | § 5503.1. Pickup contributions. | <-- |
27 | (a) Treatment for purposes of IRC § 414(h).--All |
28 | contributions required to be made under sections 5501 (relating |
29 | to regular member contributions for current service), 5501.1 |
30 | (relating to shared risk member contributions), 5502 (relating |
|
1 | to Social Security integration member contributions), 5503 |
2 | (relating to joint coverage member contributions) and section |
3 | 5505.1 (relating to additional member contributions), with |
4 | respect to current State service rendered by an active member on |
5 | or after January 1, 1982, shall be picked up by the Commonwealth |
6 | or other employer and shall be treated as the employer's |
7 | contribution for purposes of IRC § 414(h). |
8 | * * * |
9 | § 5504. Member contributions for the purchase of credit for |
10 | previous State service or to become a full coverage |
11 | member. |
12 | (a) Amount of contributions for service in other than Class |
13 | G through N.-- |
14 | (1) The contributions to be paid by an active member or |
15 | eligible school employee for credit for total previous State |
16 | service other than service in Class G, Class H, Class I, |
17 | Class J, Class K, Class L, Class M and Class N or to become a |
18 | full coverage member shall be sufficient to provide an amount |
19 | equal to the regular and additional accumulated deductions |
20 | which would have been standing to the credit of the member |
21 | for such service had regular and additional member |
22 | contributions been made with full coverage in the class of |
23 | service and at the rate of contribution applicable during |
24 | such period of previous service and had his regular and |
25 | additional accumulated deductions been credited with |
26 | statutory interest during all periods of subsequent State and |
27 | school service up to the date of purchase. |
28 | (2) Notwithstanding paragraph (1), members with Class |
29 | A-3 State service shall make contributions and receive credit |
30 | as if the previous State service was Class A-3 service, and |
|
1 | members with Class A-4 State service shall make contributions |
2 | and receive credit as if the previous State service was Class |
3 | A-4 service, even if it would have been credited as a |
4 | different class of service had the State employee been a |
5 | member of the system at the time the service was performed |
6 | unless it was mandatory that the State employee be an active |
7 | member of the system and the previous State service is being |
8 | credited as the result of a mandatory active membership |
9 | requirement. |
10 | * * * |
11 | § 5505. Contributions for the purchase of credit for creditable |
12 | nonstate service. |
13 | * * * | <-- |
14 | (a) Source of contributions.--The total contributions to | <-- |
15 | purchase credit for creditable nonstate service of an active |
16 | member or eligible school employee shall be paid either by the |
17 | member, the member's previous employer, or by some agreed upon |
18 | combination of the member, his previous employer, and, if |
19 | specifically provided, the Commonwealth. |
20 | (b) Nonintervening military service.-- |
21 | (1) The amount due for the purchase of credit for |
22 | military service other than intervening military service by | <-- |
23 | State employees who first become members of the system before |
24 | January 1, 2011, or before December 1, 2010, as a member of |
25 | the General Assembly shall be determined by applying the |
26 | product of the member's basic contribution rate and the class | <-- |
27 | of service multiplier applicable to contributions for the |
28 | class of service to which the military service will be |
29 | credited, the additional contribution rate plus the |
30 | Commonwealth normal contribution rate for active members at |
|
1 | the time of entry, subsequent to such military service, of |
2 | the member into State service to his average annual rate of |
3 | compensation over the first three years of such subsequent |
4 | State service and multiplying the result by the number of |
5 | years and fractional part of a year of creditable |
6 | nonintervening military service being purchased together with |
7 | statutory interest during all periods of subsequent State and |
8 | school service to date of purchase. Upon application for |
9 | credit for such service, payment shall be made in a lump sum |
10 | within 30 days or in the case of an active member or eligible |
11 | school employee who is an active member of the Public School |
12 | Employees' Retirement System it may be amortized with |
13 | statutory interest through salary deductions in amounts |
14 | agreed upon by the member and the board. The salary deduction |
15 | amortization plans agreed to by members and the board may |
16 | include a deferral of payment amounts and statutory interest |
17 | until the termination of school service or State service as |
18 | the board in its sole discretion decides to allow. The board |
19 | may limit salary deduction amortization plans to such terms |
20 | as the board in its sole discretion determines. In the case |
21 | of an eligible school employee who is an active member of the |
22 | Public School Employees' Retirement System, the agreed upon |
23 | salary deductions shall be remitted to the Public School |
24 | Employees' Retirement Board, which shall certify and transfer |
25 | to the board the amounts paid. Application may be filed for |
26 | all such military service credit upon completion of three |
27 | years of subsequent State service and shall be credited as | <-- |
28 | Class A-3 service for State employees who first become |
29 | members of the system on or after January 1, 2011, or on or |
30 | after December 1, 2010, as a member of the General Assembly, |
|
1 | and as Class A service for all other members. | <-- |
2 | (2) Applicants may purchase credit as follows: |
3 | (i) one purchase of the total amount of creditable |
4 | nonintervening military service; or |
5 | (ii) one purchase per 12-month period of a portion |
6 | of creditable nonintervening military service. |
7 | The amount of each purchase shall be not less than one year |
8 | of creditable nonintervening military service. |
9 | * * * | <-- |
10 | (c) Intervening military service.--Contributions on account | <-- |
11 | of credit for intervening military service shall be determined |
12 | by the member's regular contribution rate, shared risk |
13 | contribution rate, Social Security integration contribution |
14 | rate, the additional contribution rate which shall be applied |
15 | only to those members who began service on or after the |
16 | effective date of this amendatory act and compensation at the |
17 | time of entry of the member into active military service, |
18 | together with statutory interest during all periods of |
19 | subsequent State and school service to date of purchase. Upon |
20 | application for such credit the amount due shall be certified in |
21 | the case of each member by the board in accordance with methods |
22 | approved by the actuary, and contributions may be made by: |
23 | (1) regular monthly payments during active military |
24 | service; or |
25 | (2) a lump sum payment within 30 days of certification; |
26 | or |
27 | (3) salary deductions in amounts agreed upon by the |
28 | member or eligible school employee who is an active member of |
29 | the Public School Employees' Retirement System and the board. |
30 | The salary deduction amortization plans agreed to by members and |
|
1 | the board may include a deferral of payment amounts and |
2 | statutory interest until the termination of school service or |
3 | State service as the board in its sole discretion decides to |
4 | allow. The board may limit salary deduction amortization plans |
5 | to such terms as the board in its sole discretion determines. In |
6 | the case of an eligible school employee who is an active member |
7 | of the Public School Employees' Retirement System, the agreed |
8 | upon salary deductions shall be remitted to the Public School |
9 | Employees' Retirement Board, which shall certify and transfer to |
10 | the board the amounts paid. |
11 | (d) Nonmilitary and nonmagisterial service.--Contributions |
12 | on account of credit for creditable nonstate service other than |
13 | military and magisterial service by State employees who first | <-- |
14 | become members of the system before January 1, 2011, or before |
15 | December 1, 2010, as a member of the General Assembly shall be |
16 | determined by applying the product of the member's basic | <-- |
17 | contribution rate and the class of service multiplier applicable | <-- |
18 | to contributions for the class of service to which such nonstate |
19 | service will be credited, the additional contribution rate plus |
20 | the Commonwealth normal contribution rate for active members at |
21 | the time of entry subsequent to such creditable nonstate service |
22 | of the member into State service to his compensation at the time |
23 | of entry into State service and multiplying the result by the |
24 | number of years and fractional part of a year of creditable |
25 | nonstate service being purchased together with statutory |
26 | interest during all periods of subsequent State and school |
27 | service to the date of purchase. Upon application for credit for |
28 | such service payment shall be made in a lump sum within 30 days |
29 | or in the case of an active member or eligible school employee |
30 | who is an active member of the Public School Employees' |
|
1 | Retirement System it may be amortized with statutory interest |
2 | through salary deductions in amounts agreed upon by the member |
3 | and the board. The salary deduction amortization plans agreed to |
4 | by members and the board may include a deferral of payment |
5 | amounts and statutory interest until the termination of school |
6 | service or State service as the board in its sole discretion |
7 | decides to allow. The board may limit salary deduction |
8 | amortization plans to such terms as the board in its sole |
9 | discretion determines. In the case of an eligible school |
10 | employee who is an active member of the Public School Employees' |
11 | Retirement System, the agreed upon salary deduction shall be |
12 | remitted to the Public School Employees' Retirement Board, which |
13 | shall certify and transfer to the board the amounts paid. |
14 | * * * | <-- |
15 | (e) Philadelphia magisterial service.--Contributions on | <-- |
16 | account of credit for service as a magistrate of the City of |
17 | Philadelphia shall be determined by the board to be equal to the |
18 | amount he would have paid as employee contributions together |
19 | with statutory interest to date of purchase had he been a State |
20 | employee during his period of service as a magistrate of the |
21 | City of Philadelphia. The amount so determined by the State |
22 | Employees' Retirement Board to be paid into the State Employees' |
23 | Retirement System shall be the obligation of the judge who |
24 | requested credit for previous service as a magistrate of the |
25 | City of Philadelphia; in no event shall such amount be an |
26 | obligation of the City of Philadelphia or the City of |
27 | Philadelphia retirement system. |
28 | (f) Temporary Federal service.--Contributions on account of |
29 | credit for service as a temporary Federal employee assigned to |
30 | an air quality control complement for the Department of |
|
1 | Environmental Resources during the period of 1970 through 1975, |
2 | as authorized in section 5304(c)(5) (relating to creditable |
3 | nonstate service), shall be equal to the full actuarial cost of |
4 | the increased benefit obtained by virtue of the purchase. The |
5 | increased benefit attributable to the purchased service shall be |
6 | the difference between: |
7 | (1) the annual amount of a standard single life annuity, |
8 | beginning at the earliest possible superannuation age, |
9 | calculated assuming no future salary increases, assuming |
10 | credit for the service to be purchased; and |
11 | (2) the annual amount of a standard single life annuity, |
12 | calculated on the same basis, but excluding credit for the |
13 | service to be purchased. |
14 | The earliest possible superannuation age shall be the age at |
15 | which the member becomes first eligible for superannuation |
16 | retirement assuming continued full-time service and credit for |
17 | the amount of service which the member has elected to purchase, |
18 | or the current attained age of the member, whichever is later. |
19 | The full actuarial cost of the increased benefit attributable to |
20 | the purchased service shall be the actuarial present value of a |
21 | deferred annuity equal to the amount of the increased benefit |
22 | determined above, beginning at the earliest possible |
23 | superannuation age and payable for life, calculated using a |
24 | preretirement interest assumption of 1.5%, a postretirement |
25 | interest assumption of 4%, no preretirement mortality assumption |
26 | and standard postretirement mortality assumptions. The purchase |
27 | payment shall be made in lump sum by the member within 30 days |
28 | of certification by the board of the required purchase amount or |
29 | may be amortized through salary deductions in amounts agreed |
30 | upon by the member and the board with interest payable on the |
|
1 | unpaid balance at the rate applicable to the most recently |
2 | issued 30-year bonds of the United States Treasury Department. |
3 | (g) Justice of the peace service.--Contributions on account |
4 | of credit for service as a justice of the peace shall be |
5 | determined by the board to be equal to the amount he would have |
6 | paid as employee contributions together with statutory interest |
7 | to date of purchase had he been a State employee during his |
8 | period of service as a justice of the peace for the Commonwealth |
9 | plus the amount determined by applying the Commonwealth normal |
10 | contribution rate for active members at the beginning of the |
11 | district justice system as of January 1970 to the starting |
12 | salary of the district justice for the magisterial district in |
13 | which the member was elected dating from the beginning of the |
14 | district justice system as of January 1970 and multiplying the |
15 | result by the number of years and fractional part of a year of |
16 | creditable service being purchased together with statutory |
17 | interest from entry into State service as a district justice to |
18 | the date of purchase. The amount so determined by board to be |
19 | paid into the system shall be the obligation of the justice who |
20 | requested credit for previous service as a justice of the peace |
21 | for the Commonwealth prior to 1970. A justice of the peace |
22 | desiring to purchase his or her service time prior to 1970 shall |
23 | have been elected or appointed a district justice any time |
24 | during or after 1970. The class of service credit a member shall |
25 | receive upon entry into the system shall be determined by the |
26 | time of his entry into the district justice system. It shall be |
27 | incumbent upon the district justice to certify to the board with |
28 | a copy of his commission or commissions the amount of time that |
29 | he served the Commonwealth as a justice of the peace. The salary |
30 | dollar amount that shall be used in the formula for determining |
|
1 | the member's contributions shall be equal to the starting salary |
2 | of the district justice for the magisterial district in which he |
3 | was elected, dating from the beginning of the district justice |
4 | system as of January 1970. In no event shall such an amount be |
5 | the obligation of the Commonwealth or the county in which the |
6 | justice served. |
7 | (h) County service.--For purposes of this section, Class G, |
8 | Class H, Class I, Class J, Class K, Class L, Class M and Class N |
9 | service shall be disregarded in determining when a member enters |
10 | State service or the period of subsequent State service. |
11 | (i) Purchases of nonstate service credit by State employees |
12 | who first became members of the system on or after December 1, |
13 | 2010.-- |
14 | (1) Contributions on account of credit for creditable |
15 | nonstate service other than intervening military service and |
16 | magisterial service by State employees who first become |
17 | members of the system on or after January 1, 2011, or on or |
18 | after December 1, 2010, as a member of the General Assembly |
19 | shall be equal to the full actuarial cost of the increased |
20 | benefit obtained by virtue of such service. |
21 | (2) The full actuarial cost of the increased benefit |
22 | attributable to the purchased nonstate service credit shall |
23 | be the difference between: |
24 | (i) the present value of a standard single life |
25 | annuity, beginning at the earliest possible |
26 | superannuation age assuming Class A-3 service credit for |
27 | the nonstate service to be purchased; and |
28 | (ii) the present value of a standard single life |
29 | annuity, beginning at the earliest possible |
30 | superannuation age, excluding the nonstate service credit |
|
1 | to be purchased. |
2 | (3) The full actuarial cost under paragraph (2) shall be |
3 | calculated using future salary increases, mortality tables, |
4 | interest rates and other actuarial assumptions as adopted by |
5 | the board with the advice of the actuary. The earliest |
6 | possible superannuation age shall be the current attained age |
7 | of the member if the member has attained superannuation age |
8 | for his current class of service or if the member has not |
9 | attained superannuation age, the age upon which the member |
10 | would attain superannuation age as a member in the current |
11 | class of service assuming continued full-time State service |
12 | through the attainment of superannuation age and credit for |
13 | the amount of service which the member has elected to |
14 | purchase. |
15 | (4) The payment for credit purchased under this |
16 | subsection shall be certified in each case by the board in |
17 | accordance with methods approved by the actuary and shall be |
18 | paid in a lump sum within 30 days or in the case of an active |
19 | member or eligible school employee who is an active member of |
20 | the Public School Employees' Retirement System may be |
21 | amortized with statutory interest through salary deductions |
22 | in amounts agreed upon by the member and the board. The |
23 | salary deduction amortization plans agreed to by members and |
24 | the board may include a deferral of payment amounts and |
25 | interest until the termination of school service or State |
26 | service as the board in its sole discretion decides to allow. |
27 | The board may limit the salary deduction amortization plans |
28 | to such terms as the board in its sole discretion determines. |
29 | In the case of an eligible school employee who is an active |
30 | member of the Public School Employees' Retirement System, the |
|
1 | agreed upon salary deductions shall be remitted to the Public |
2 | School Employees' Retirement Board, which shall certify and |
3 | transfer to the board the amounts paid. |
4 | § 5507. Contributions by the Commonwealth and other employers. |
5 | (a) Contributions on behalf of active members.--The |
6 | Commonwealth and other employers whose employees are members of |
7 | the system shall make contributions to the fund on behalf of all |
8 | active members in such amounts as shall be certified by the |
9 | board as necessary to provide, together with the members' total |
10 | accumulated deductions, annuity reserves on account of |
11 | prospective annuities other than those provided in [section] | <-- |
12 | sections 5708 (relating to supplemental annuities), 5708.1 |
13 | (relating to additional supplemental annuities), 5708.2 |
14 | (relating to further additional supplemental annuities), 5708.3 |
15 | (relating to supplemental annuities commencing 1994), 5708.4 |
16 | (relating to special supplemental postretirement adjustment), |
17 | 5708.5 (relating to supplemental annuities commencing 1998), |
18 | 5708.6 (relating to supplemental annuities commencing 2002), |
19 | 5708.7 (relating to supplemental annuities commencing 2003) and |
20 | 5708.8 (relating to special supplemental postretirement |
21 | adjustment of 2002), in accordance with the actuarial cost |
22 | method provided in section 5508(a), (b), (c), (d) and (f) |
23 | (relating to actuarial cost method). |
24 | (b) Contributions on behalf of annuitants.--The Commonwealth |
25 | and other employers whose employees are members of the system |
26 | shall make contributions on behalf of annuitants in such amounts |
27 | as shall be certified by the board as necessary to fund the |
28 | liabilities for supplemental annuities in accordance with the |
29 | actuarial cost method provided in section 5508(e) (relating to |
30 | actuarial cost method). |
|
1 | (c) Contributions transferred by county retirement |
2 | systems.-- |
3 | (1) Each county retirement system or pension plan which |
4 | is notified by certification from the board that a former |
5 | contributor who was transferred to State employment pursuant |
6 | to 42 Pa.C.S. § 1905 (relating to county-level court |
7 | administrators) has elected to convert county service to |
8 | State service in accordance with section 5303.1 (relating to |
9 | election to convert county service to State service) shall |
10 | transfer to the board an amount equal to the actuarial |
11 | liability for the additional benefits that result in the |
12 | system as a result of the conversion as certified by the |
13 | board. This amount shall be calculated in such a manner and |
14 | using such actuarial factors and assumptions as the board, |
15 | after obtaining the advice of its actuary, shall determine |
16 | and shall be calculated by determining the present value of |
17 | the future benefits for the former county contributors and |
18 | subtracting from that present value the present value of |
19 | future employee contributions and future employer normal cost |
20 | contributions. |
21 | (2) The transfer shall occur no later than 180 days |
22 | after the certification by the board of the actuarial |
23 | liability for the additional benefits or 30 days following |
24 | the date of termination of service if the member terminates |
25 | State service after making the election to convert service, |
26 | whichever occurs first. |
27 | (3) If any county retirement system or pension plan |
28 | fails to transfer, within the required time, the money |
29 | certified by the board under this subsection, then the |
30 | service of such members for the period of converted service |
|
1 | shall be credited, and the board shall notify the county |
2 | which employed the employee who is converting the county |
3 | service and the State Treasurer of the amount due. The State |
4 | Treasurer shall withhold out of any grants, subsidies or |
5 | other payments from the State General Fund appropriation or |
6 | appropriations next due such county an amount equal to the |
7 | amount which the county retirement system or pension plan |
8 | failed to pay and shall pay the amount so withheld to the |
9 | board for the payment of the amount due from that county's |
10 | retirement system or pension plan for the converted service. |
11 | (d) Payment of final contribution rate.--Notwithstanding the |
12 | calculation of the actuarially required contribution rate and |
13 | the provisions of subsections (a) and (b), the Commonwealth and |
14 | other employers whose employees are members of the system shall |
15 | make contributions to the fund on behalf of all active members |
16 | and annuitants in such amounts as shall be certified by the |
17 | board in accordance with section 5508(i). |
18 | (e) Benefits completion plan contributions.--In addition to |
19 | all other contributions required under this section and section |
20 | 5508, the Commonwealth and other employers whose employees are | <-- |
21 | members of the system shall make contributions as certified by |
22 | the board pursuant to section 5941 (relating to benefits |
23 | 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 | excluding shared risk member contributions. |
9 | (c) Accrued liability contribution rate.-- |
10 | (1) For the fiscal [year] years beginning July 1, 2002, |
11 | and July 1, 2003, the accrued liability contribution rate |
12 | shall be computed as the rate of total compensation of all |
13 | active members which shall be certified by the actuary as |
14 | sufficient to fund over a period of ten years from July 1, |
15 | 2002, the present value of the liabilities for all |
16 | prospective benefits, except for the supplemental benefits as |
17 | provided in sections 5708 (relating to supplemental |
18 | annuities), 5708.1 (relating to additional supplemental |
19 | annuities), 5708.2 (relating to further additional |
20 | supplemental annuities), 5708.3 (relating to supplemental |
21 | annuities commencing 1994), 5708.4 (relating to special |
22 | supplemental postretirement adjustment), 5708.5 (relating to |
23 | supplemental annuities commencing 1998), 5708.6 (relating to |
24 | supplemental annuities commencing 2002), 5708.7 (relating to |
25 | supplemental annuities commencing 2003) and 5708.8 (relating |
26 | to special supplemental postretirement adjustment of 2002), |
27 | in excess of the total assets in the fund (calculated |
28 | recognizing all investment gains and losses over a five-year |
29 | period), excluding the balance in the supplemental annuity |
30 | account, and the present value of employer normal |
|
1 | contributions and of member contributions payable with |
2 | respect to all active members on December 31, 2001, and |
3 | excluding contributions to be transferred by county |
4 | retirement systems or pension plans pursuant to section |
5 | 5507(c) (relating to contributions by the Commonwealth and |
6 | other employers). The amount of each annual accrued liability |
7 | contribution shall be equal to the amount of such |
8 | contribution for the fiscal year beginning July 1, 2002, |
9 | except that, if the accrued liability is increased by |
10 | legislation enacted subsequent to June 30, 2002, but before |
11 | July 1, 2003, such additional liability shall be funded over |
12 | a period of ten years from the first day of July, coincident |
13 | with or next following the effective date of the increase. |
14 | The amount of each annual accrued liability contribution for |
15 | such additional legislative liabilities shall be equal to the |
16 | amount of such contribution for the first annual payment. |
17 | (2) Notwithstanding any other provision of law, |
18 | beginning July 1, 2004, and ending June 30, 2010, the |
19 | outstanding balance of the increase in accrued liability due |
20 | to the change in benefits enacted in 2001 shall be amortized |
21 | in equal dollar annual contributions over a period that ends |
22 | 30 years after July 1, 2002, and the outstanding balance of |
23 | the net actuarial loss incurred in calendar year 2002 shall |
24 | be amortized in equal dollar annual contributions over a |
25 | period that ends 30 years after July 1, 2003. For fiscal |
26 | years beginning on or after July 1, 2004, and ending June 30, |
27 | 2010, if the accrued liability is increased by legislation |
28 | enacted subsequent to June 30, 2003, but before January 1, |
29 | 2009, such additional liability shall be funded in equal |
30 | dollar annual contributions over a period of ten years from |
|
1 | the first day of July coincident with or next following the |
2 | effective date of the increase. |
3 | (3) For the fiscal year beginning July 1, 2010, the |
4 | accrued liability contribution rate shall be computed as the |
5 | rate of total compensation of all active members which shall |
6 | be certified by the actuary as sufficient to fund as a level | <-- |
7 | percentage of compensation in equal dollar installments over | <-- |
8 | a period of 30 years from July 1, 2010, the present value of |
9 | the liabilities for all prospective benefits calculated as of |
10 | the immediately prior valuation date, including the |
11 | supplemental benefits as provided in sections 5708, 5708.1, |
12 | 5708.2, 5708.3, 5708.4, 5708.5, 5708.6, 5708.7 and 5708.8, |
13 | but excluding the benefits payable from the retirement |
14 | benefit plan established pursuant to section 5941 (relating |
15 | to benefits completion plan), in excess of the actuarially |
16 | calculated assets in the fund (calculated recognizing all |
17 | realized and unrealized investment gains and losses each year |
18 | in level annual installments over five years), including the |
19 | balance in the supplemental annuity account, and the present |
20 | value of employer normal contributions and of member |
21 | contributions payable with respect to all active members, |
22 | inactive members on leave without pay, vestees and special |
23 | vestees on December 31, 2009. If the accrued liability is |
24 | changed by legislation enacted subsequent to December 31, |
25 | 2009, such change in liability shall be funded as a level | <-- |
26 | percentage of compensation in equal dollar installments over | <-- |
27 | a period of ten years from the first day of July following |
28 | the valuation date coincident with or next following the date |
29 | such legislation is enacted. |
30 | (d) Special provisions on calculating contributions.--In |
|
1 | calculating the contributions required by subsections (a), (b) |
2 | and (c), the active members of Class C shall be considered to be |
3 | members of Class A. In addition, the actuary shall determine the |
4 | Commonwealth or other employer contributions required for active |
5 | members of Class C and officers of the Pennsylvania State Police |
6 | and enforcement officers and investigators of the Pennsylvania |
7 | Liquor Control Board who are members of Class A to finance their |
8 | benefits in excess of those to which other members of Class A |
9 | are entitled. Such additional contributions shall be determined |
10 | separately for officers and employees of the Pennsylvania State |
11 | Police and for enforcement officers and investigators of the |
12 | Pennsylvania Liquor Control Board. Such contributions payable on |
13 | behalf of officers and employees of the Pennsylvania State |
14 | Police shall include the amounts received by the system under |
15 | the provisions of the act of May 12, 1943 (P.L.259, No.120), |
16 | referred to as the Foreign Casualty Insurance Premium Tax |
17 | Allocation Law, and on behalf of enforcement officers or |
18 | investigators of the Pennsylvania Liquor Control Board, the |
19 | amounts received by the system under the provisions of the act |
20 | of April 12, 1951 (P.L.90, No.21), known as the Liquor Code. |
21 | (e) Supplemental annuity contribution rate.--[Contributions] |
22 | (1) For the period July 1, 2002, to June 30, 2010, |
23 | contributions from the Commonwealth and other employers whose |
24 | employees are members of the system required to provide for |
25 | the payment of supplemental annuities as provided in sections |
26 | 5708, 5708.1, 5708.2, 5708.3, 5708.4 and 5708.5 shall be paid |
27 | over a period of ten years from July 1, 2002. The funding for |
28 | the supplemental annuities commencing 2002 provided for in |
29 | section 5708.6 shall be as provided in section 5708.6(f). The |
30 | funding for the supplemental annuities commencing 2003 |
|
1 | provided for in section 5708.7 shall be as provided in |
2 | section 5708.7(f). The funding for the special supplemental |
3 | postretirement adjustment of 2002 under section 5708.8 shall |
4 | be as provided in section 5708.8(g). The amount of each |
5 | annual supplemental annuities contribution shall be equal to |
6 | the amount of such contribution for the fiscal year beginning |
7 | July 1, 2002. [In the event that supplemental annuities are |
8 | increased by legislation enacted subsequent to June 30, 2002, |
9 | the additional liability for the increase in benefits shall |
10 | be funded in equal dollar annual installments over a period |
11 | of ten years from the July first, coincident with or next |
12 | following the effective date of such legislation.] |
13 | (2) For fiscal years beginning on or after July 1, 2010, |
14 | contributions from the Commonwealth and other employers whose |
15 | employees are members of the system required to provide for |
16 | the payment of supplemental annuities as provided in sections |
17 | 5708, 5708.1, 5708.2, 5708.3, 5708.4, 5708.5, 5708.6, 5708.7 |
18 | and 5708.8 shall be paid as part of the accrued liability |
19 | contribution rate as provided for in subsection (c)(3) and |
20 | there shall not be a separate supplemental annuity |
21 | contribution rate attributable to those supplemental |
22 | annuities. In the event that supplemental annuities are |
23 | increased by legislation enacted subsequent to December 31, |
24 | 2009, the additional liability for the increase in benefits |
25 | shall be funded as a level percentage of compensation in | <-- |
26 | equal dollar installments over a period of ten years from the |
27 | first day of July following the valuation date coincident |
28 | with or next following the date such legislation is enacted. |
29 | (f) Experience adjustment factor.-- |
30 | (1) For each year after the establishment of the accrued |
|
1 | liability contribution rate and the supplemental annuity |
2 | contribution rate for the fiscal year beginning July 1, |
3 | [2002] 2010, any increase or decrease in the unfunded accrued |
4 | liability[, including liability] and any increase or decrease |
5 | in the liabilities and funding for supplemental annuities, |
6 | due to actual experience differing from assumed experience[,] |
7 | (recognizing all realized and unrealized investment gains and |
8 | losses over a five-year period), changes in contributions |
9 | caused by the final contribution rate being different from |
10 | the actuarially required contribution rate, State employees | <-- |
11 | making shared risk member contributions, changes in actuarial |
12 | assumptions[,] or changes in the terms and conditions of the |
13 | benefits provided by the system by judicial, administrative |
14 | or other processes other than legislation, including, but not |
15 | limited to, reinterpretation of the provisions of this part, |
16 | shall be amortized [in equal dollar annual contributions] as | <-- |
17 | a level percentage of compensation over a period of [ten] 30 |
18 | years beginning with the July 1 succeeding the actuarial |
19 | valuation determining said increases or decreases. |
20 | (2) [Notwithstanding the provisions of paragraph (1), |
21 | for each year after the establishment of the accrued |
22 | liability contribution rate for the fiscal year beginning |
23 | July 1, 2003, any increase or decrease in the unfunded |
24 | accrued liability due to actual experience differing from |
25 | assumed experience, changes in actuarial assumptions, changes |
26 | in the terms and conditions of the benefits provided by the |
27 | system by judicial, administrative or other processes other |
28 | than legislation, including, but not limited to, |
29 | reinterpretation of the provisions of this part, shall be |
30 | amortized in equal dollar annual contributions over a period |
|
1 | of 30 years beginning with the July 1 succeeding the |
2 | actuarial valuation determining said increases and decreases] |
3 | The actuarially required contribution rate shall be the sum |
4 | of the normal contribution rate, the accrued liability |
5 | contribution rate and the supplemental annuity contribution |
6 | rate, modified by the experience adjustment factor as |
7 | calculated in paragraph (1). |
8 | (g) Determination of liability for special vestee.-- |
9 | Notwithstanding any other provision of this part or other law, |
10 | the total additional accrued actuarial liability resulting from |
11 | eligibility of special vestees for benefits upon the attainment |
12 | of superannuation age shall be determined by the actuary as part |
13 | of the first annual valuation made after June 30, 1997. The |
14 | resulting additional accrued actuarial liability shall be paid |
15 | by The Pennsylvania State University to the board in one lump |
16 | sum payment within 90 days of the board's certification of the |
17 | amount to The Pennsylvania State University. |
18 | (h) Temporary application of collared contribution rate.-- |
19 | The collared contribution rate for each year shall be determined |
20 | by comparing the actuarially required contribution rate |
21 | calculated without regard for costs added by legislation to the |
22 | prior year's final contribution rate. If for any of the fiscal |
23 | years beginning July 1, 2011, July 1, 2012 and on or after July |
24 | 1, 2013, the actuarially required contribution rate calculated |
25 | without regard for costs added by legislation is more than 3%, |
26 | 3.5% and 4.5%, respectively, of the total compensation of all |
27 | active members greater than the prior year's final contribution |
28 | rate, then the collared contribution rate shall be applied and |
29 | be equal to the prior year's final contribution rate increased |
30 | by the respective percentage above of total compensation of all |
|
1 | active members. Otherwise, and for all subsequent fiscal years, |
2 | the collared contribution rate shall not be applicable. In no |
3 | case shall the collared contribution rate be less than 4% of |
4 | total compensation of all active members. |
5 | (i) Final contribution rate.--For the fiscal year beginning |
6 | July 1, 2010, the final contribution rate shall be 5% of total |
7 | compensation of all active members. For each subsequent fiscal |
8 | year for which the collared contribution rate is applicable, the |
9 | final contribution rate shall be the collared contribution rate |
10 | plus the costs added by legislation. For all other fiscal years, |
11 | the final contribution rate shall be the actuarially required |
12 | contribution rate, provided that the final contribution rate |
13 | shall not be less than the employer normal contribution rate, as |
14 | defined in subsection (b). |
15 | § 5702. Maximum single life annuity. |
16 | (a) General rule.--Any full coverage member who is eligible |
17 | to receive an annuity pursuant to the provisions of section |
18 | 5308(a) or (b) (relating to eligibility for annuities) who |
19 | terminates State service, or if a multiple service member who is |
20 | a school employee who is an active member of the Public School |
21 | Employees' Retirement System who terminates school service, |
22 | before attaining age 70 shall be entitled to receive a maximum |
23 | single life annuity attributable to his credited service and |
24 | equal to the sum of the following single life annuities |
25 | beginning at the effective date of retirement: |
26 | * * * |
27 | (4) If eligible, a single life annuity which is |
28 | actuarially equivalent to the amount by which his regular and |
29 | additional accumulated deductions attributable to any |
30 | credited service other than as a member of Class C are |
|
1 | greater than one-half of the actuarially equivalent value on |
2 | the effective date of retirement of the annuity as provided |
3 | in paragraph (1) attributable to service other than Class C |
4 | for which regular or joint coverage member contributions were |
5 | made. This paragraph shall not apply to any member with State |
6 | service credited as Class A-3 or Class A-4. |
7 | * * * |
8 | (6) If eligible, a single life annuity sufficient |
9 | together with the annuity provided for in paragraph (1) as a |
10 | Class A [and], Class AA, Class A-3 and Class A-4 member and |
11 | the highest annuity provided for in paragraph (2) to which he |
12 | is entitled, or at his option could have been entitled, to |
13 | produce that percentage of a standard single life annuity |
14 | adjusted by the application of the class of service |
15 | multiplier for Class A, Class AA, Class A-3 or Class A-4 as |
16 | set forth in paragraph (1) in the case where any service is |
17 | credited as a member of Class A, Class AA, Class A-3 or Class |
18 | A-4 on the effective date of retirement as determined by his |
19 | total years of credited service as a member of Class A [and], |
20 | Class AA, Class A-3 and Class A-4 and by the following table: |
21 22 23 24 25 26 27 28 | 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 | 29 | 35-40 | 100% | 30 | 41 | 102% | | 1 | 42 | 104% | 2 | 43 | 106% | 3 | 44 | 108% | 4 | 45 or more | 110% |
|
5 | * * * |
6 | § 5704. Disability annuities. |
7 | * * * |
8 | (e) Termination of State service.--Upon termination of |
9 | disability annuity payments in excess of an annuity calculated |
10 | in accordance with section 5702, a disability annuitant who: |
11 | (1) does not have Class A-3 or Class A-4 service credit; |
12 | or |
13 | (2) has Class A-3 or Class A-4 service credit and fewer |
14 | than ten eligibility points; |
15 | and who does not return to State service may file an application |
16 | with the board for an amount equal to the excess, if any, of the |
17 | sum of the shared risk accumulated deductions plus the regular | <-- |
18 | and additional accumulated deductions standing to his credit at |
19 | the effective date of disability over one-third of the total |
20 | disability annuity payments received. If the annuitant on the |
21 | date of termination of service was eligible for an annuity as |
22 | provided in section [5308(b)] 5308(a) or (b) (relating to |
23 | eligibility for annuities), he may file an application with the |
24 | board for an election of an optional modification of his |
25 | annuity. |
26 | * * * |
27 | § 5705. Member's options. |
28 | (a) General rule.--Any special vestee who has attained |
29 | superannuation age, any vestee who does not have Class A-3 or |
30 | Class A-4 service credit having five or more eligibility points |
|
1 | for service other than Class T-E or Class T-F service in the |
2 | Public School Employees' Retirement System, or vestee who has |
3 | Class A-3 or Class A-4 service credit having ten or more |
4 | eligibility points, any member with Class G, Class H, Class I, |
5 | Class J, Class K, Class L, Class M or Class N service having |
6 | five or more eligibility points or any other eligible member |
7 | upon termination of State service who has not withdrawn his |
8 | total accumulated deductions as provided in section 5701 |
9 | (relating to return of total accumulated deductions) may apply |
10 | for and elect to receive either a maximum single life annuity, |
11 | as calculated in accordance with the provisions of section 5702 |
12 | (relating to maximum single life annuity), or a reduced annuity |
13 | certified by the actuary to be actuarially equivalent to the |
14 | maximum single life annuity and in accordance with one of the |
15 | following options; except that no member shall elect an annuity |
16 | payable to one or more survivor annuitants other than his spouse |
17 | or alternate payee of such a magnitude that the present value of |
18 | the annuity payable to him for life plus any lump sum payment he |
19 | may have elected to receive is less than 50% of the present |
20 | value of his maximum single life annuity: |
21 | (1) Option 1.--A life annuity to the member with a |
22 | guaranteed total payment equal to the present value of the |
23 | maximum single life annuity on the effective date of |
24 | retirement with the provision that, if, at his death, he has |
25 | received less than such present value, the unpaid balance |
26 | shall be payable to his beneficiary. |
27 | (2) Option 2.--A joint and survivor annuity payable |
28 | during the lifetime of the member with the full amount of |
29 | such annuity payable thereafter to his survivor annuitant, if |
30 | living at his death. |
|
1 | (3) Option 3.--A joint and fifty percent (50%) survivor |
2 | annuity payable during the lifetime of the member with one- |
3 | half of such annuity payable thereafter to his survivor |
4 | annuitant, if living at his death. |
5 | (4) Option 4.--Some other benefit which shall be |
6 | certified by the actuary to be actuarially equivalent to the |
7 | maximum single life annuity, subject to the following |
8 | restrictions: |
9 | (i) any annuity shall be payable without reduction |
10 | during the lifetime of the member; |
11 | (ii) the sum of all annuities payable to the |
12 | designated survivor annuitants shall not be greater than |
13 | one and one-half times the annuity payable to the member; |
14 | and |
15 | (iii) a portion of the benefit may be payable as a |
16 | lump sum, except that such lump sum payment shall not |
17 | exceed an amount equal to the total accumulated |
18 | deductions standing to the credit of the member that are |
19 | not the result of contributions and statutory interest |
20 | made or credited as a result of Class A-3 or Class A-4 |
21 | service. The balance of the present value of the maximum |
22 | single life annuity adjusted in accordance with section |
23 | 5702(b) shall be paid in the form of an annuity with a |
24 | guaranteed total payment, a single life annuity, or a |
25 | joint and survivor annuity or any combination thereof but |
26 | subject to the restrictions of subparagraphs (i) and (ii) |
27 | under this option. |
28 | * * * |
29 | Section 10. Title 71 is amended by adding a section to read: |
30 | § 5705.1. Payment of accumulated deductions resulting from |
|
1 | Class A-3 and Class A-4 service. |
2 | Any superannuation or withdrawal annuitant who: |
3 | (1) has Class A-3 or Class A-4 service credit; |
4 | (2) has service credited in one or more classes of |
5 | service; and |
6 | (3) because he has five or more, but fewer than ten, |
7 | eligibility points is not eligible to receive an annuity on |
8 | his Class A-3 or Class A-4 service |
9 | shall receive in a lump sum at the time of his retirement, in |
10 | addition to any other annuity or lump sum payment which he may |
11 | elect, his accumulated deductions resulting from his Class A-3 |
12 | or Class A-4 service credit. Payment of these accumulated |
13 | deductions resulting from Class A-3 or Class A-4 service credit |
14 | shall not be eligible for installment payments pursuant to |
15 | section 5905.1 (relating to installment payments of accumulated |
16 | deductions) but shall be considered a lump sum payment for |
17 | purposes of section 5905.1(d). |
18 | Section 11. Sections 5708.1(f), 5708.2(f), 5708.3(f), |
19 | 5708.5(f), 5708.6(f), 5708.7(f), 5708.8(g), 5902(k), 5903(c), |
20 | 5905(a), 5905.1(d), 5907(c), 5933(a), 5934, 5936(b), 5937(b), | <-- |
21 | 5938 and 5955 of Title 71 are amended to read: |
22 | § 5708.1. Additional supplemental annuities. |
23 | * * * |
24 | (f) Funding.--The actuary shall annually certify the amount |
25 | of appropriations for the next fiscal year needed to fund, over |
26 | a period of ten years from July 1, 2002, the additional monthly |
27 | supplemental annuity provided for in this section[. The board |
28 | shall submit the actuary's certification to the Secretary of the |
29 | Budget on or before November 1 of each year. If, in any year |
30 | after 1984, the amount certified is disapproved under section |
|
1 | 610 of the act of April 9, 1929 (P.L.177, No.175), known as The |
2 | Administrative Code of 1929, as insufficient to meet the funding |
3 | requirements of this subsection or is not appropriated on or |
4 | before July 1, the additional supplemental annuity provided for |
5 | in this section shall be suspended until such time as an amount |
6 | certified and approved as sufficient is appropriated], which |
7 | amounts shall be paid during the period beginning July 1, 2002, |
8 | and ending June 30, 2010. For fiscal years beginning on or after |
9 | July 1, 2010, the additional liability provided in this section |
10 | shall be funded as part of the actuarial accrued liability as |
11 | provided in section 5508 (relating to actuarial cost method). |
12 | * * * |
13 | § 5708.2. Further additional supplemental annuities. |
14 | * * * |
15 | (f) Funding.--The actuary shall annually estimate the amount |
16 | of Commonwealth appropriations for the next fiscal year needed |
17 | to fund, over a period of ten years from July 1, 2002, the |
18 | additional monthly supplemental annuity provided for in this |
19 | section[. The board shall submit the actuary's estimation to the |
20 | Secretary of the Budget on or before November 1 of each year. |
21 | If, in any year after 1988, the amount estimated is disapproved |
22 | under section 610 of the act of April 9, 1929 (P.L.177, No.175), |
23 | known as The Administrative Code of 1929, as insufficient to |
24 | meet the funding requirements of this subsection or is not |
25 | appropriated on or before July 1, the additional supplemental |
26 | annuity provided for in this section shall be suspended until |
27 | such time as an amount certified and approved as sufficient is |
28 | appropriated], which amounts shall be paid during the period |
29 | beginning July 1, 2002, and ending June 30, 2010. For fiscal |
30 | years beginning on or after July 1, 2010, the additional |
|
1 | liability provided in this section shall be funded as part of |
2 | the actuarial accrued liability as provided in section 5508 |
3 | (relating to actuarial cost method). |
4 | * * * |
5 | § 5708.3. Supplemental annuities commencing 1994. |
6 | * * * |
7 | (f) Funding.--[The] For the period beginning July 1, 2002, |
8 | and ending June 30, 2010, the additional liability for the |
9 | increase in benefits provided in this section shall be funded in |
10 | equal dollar annual installments over a period of ten years |
11 | beginning July 1, 2002. For fiscal years beginning on or after |
12 | July 1, 2010, the additional liability for the increase in |
13 | benefits provided in this section shall be funded as part of the |
14 | actuarial accrued liability as provided in section 5508 |
15 | (relating to actuarial cost method). |
16 | * * * |
17 | § 5708.5. Supplemental annuities commencing 1998. |
18 | * * * |
19 | (f) Funding.--[The] For the period beginning July 1, 2002, |
20 | and ending June 30, 2010, the additional liability for the |
21 | increase in benefits provided in this section shall be funded in |
22 | equal dollar annual installments over a period of ten years |
23 | beginning July 1, 2002. For fiscal years beginning on or after |
24 | July 1, 2010, the additional liability for the increase in |
25 | benefits provided in this section shall be funded as part of the |
26 | actuarial accrued liability as provided in section 5508 |
27 | (relating to actuarial cost method). |
28 | * * * |
29 | § 5708.6. Supplemental annuities commencing 2002. |
30 | * * * |
|
1 | (f) Funding.--[The] For the period beginning July 1, 2003, |
2 | and ending June 30, 2010, the additional liability for the |
3 | increase in benefits provided in this section shall be funded in |
4 | equal dollar annual installments over a period of ten years |
5 | beginning July 1, 2003. For fiscal years beginning on or after |
6 | July 1, 2010, the additional liability for the increase in |
7 | benefits provided in this section shall be funded as part of the |
8 | actuarial accrued liability as provided in section 5508 |
9 | (relating to actuarial cost method). |
10 | * * * |
11 | § 5708.7. Supplemental annuities commencing 2003. |
12 | * * * |
13 | (f) Funding.--[The] For the period beginning July 1, 2004, |
14 | and ending June 30, 2010, the additional liability for the |
15 | increase in benefits provided in this section shall be funded in |
16 | equal dollar annual installments over a period of ten years |
17 | beginning July 1, 2004. For fiscal years beginning on or after |
18 | July 1, 2010, the additional liability for the increase in |
19 | benefits provided in this section shall be funded as part of the |
20 | actuarial accrued liability as provided in section 5508 |
21 | (relating to actuarial cost method). |
22 | * * * |
23 | § 5708.8. Special supplemental postretirement adjustment of |
24 | 2002. |
25 | * * * |
26 | (g) Funding.--[The] For the period beginning July 1, 2003, |
27 | and ending June 30, 2010, the additional liability for the |
28 | increase in benefits provided in this section shall be funded in |
29 | equal dollar annual installments over a period of ten years |
30 | beginning July 1, 2003. For fiscal years beginning on or after |
|
1 | July 1, 2010, the additional liability for the increase in |
2 | benefits provided in this section shall be funded as part of the |
3 | actuarial accrued liability as provided in section 5508 |
4 | (relating to actuarial cost method). |
5 | * * * |
6 | § 5902. Administrative duties of the board. |
7 | * * * |
8 | (k) Certification of employer contributions.--The board |
9 | shall, each year in addition to the itemized budget required |
10 | under section 5509 (relating to appropriations and assessments |
11 | by the Commonwealth), certify, as a percentage of the members' |
12 | payroll, the shared risk contribution rate, the employers' | <-- |
13 | contributions as determined pursuant to section 5508 (relating |
14 | to actuarial cost method) necessary for the funding of |
15 | prospective annuities for active members and the annuities of |
16 | annuitants and certify the rates and amounts of the employers' |
17 | normal contributions as determined pursuant to section 5508(b), |
18 | accrued liability contributions as determined pursuant to |
19 | section 5508(c), supplemental annuities contribution rate as |
20 | determined pursuant to section 5508(e) [and], the experience |
21 | adjustment factor as determined pursuant to section 5508(f), the |
22 | collared contribution rate pursuant to section 5508(h) and the |
23 | final contribution rate pursuant to section 5508(i), which shall |
24 | be paid to the fund and credited to the appropriate accounts. |
25 | The board may allocate the final contribution rate and certify |
26 | various employer contribution rates based upon the different |
27 | benefit eligibility, class of service multiplier, superannuation |
28 | age and other benefit differences resulting from State service |
29 | credited for individual members even though such allocated |
30 | employer contribution rate on behalf of any given member may be |
|
1 | more or less than 5% of the member's compensation for the period |
2 | from July 1, 2010, to June 30, 2011, or may differ from the |
3 | prior year's contribution for that member by more or less than |
4 | the percentages used to calculate the collared contribution rate |
5 | for that year and may be below any minimum contribution rate |
6 | established for the collared contribution rate or final |
7 | contribution rate. These certifications shall be regarded as |
8 | final and not subject to modification by the [Budget Secretary] |
9 | Secretary of the Budget. |
10 | * * * |
11 | § 5903. Duties of the board to advise and report to heads of |
12 | departments and members. |
13 | * * * |
14 | (c) Purchase of credit and full coverage membership |
15 | certifications.--Upon receipt of an application from an active |
16 | member or eligible school employee to purchase credit for |
17 | previous State or creditable nonstate service, an election for |
18 | membership in a specific class of service, or an election to |
19 | become a full coverage member, the board shall determine and |
20 | certify to the member the amount required to be paid by the |
21 | member. When necessary, the board shall certify to the previous |
22 | employer the amount due in accordance with sections 5504 |
23 | (relating to member contributions for the purchase of credit for |
24 | previous State service or to become a full coverage member) and |
25 | 5505 (relating to contributions for the purchase of credit for |
26 | creditable nonstate service). |
27 | * * * |
28 | § 5905. Duties of the board regarding applications and |
29 | elections of members. |
30 | (a) Statement to new members.--As soon as practicable after |
|
1 | each member shall have become an active member in the system, |
2 | the board shall issue to the member notice of any election of |
3 | class of service membership he may be eligible to make, a |
4 | statement certifying his class of service, his member |
5 | contribution rate, and the aggregate length of total previous |
6 | State service and creditable nonstate service for which he may |
7 | receive credit. |
8 | * * * |
9 | § 5905.1. Installment payments of accumulated deductions. |
10 | * * * |
11 | (d) Statutory interest.--Any lump sum, including a lump sum |
12 | payable pursuant to section 5705.1 (relating to payment of |
13 | accumulated deductions resulting from Class A-3 and Class A-4 |
14 | service), or installment payable shall include statutory |
15 | interest credited to the date of payment, except in the case of |
16 | a member, other than a vestee or special vestee, who has not |
17 | filed his application prior to 90 days following his termination |
18 | of service. |
19 | § 5907. Rights and duties of State employees and members. |
20 | * * * |
21 | (c) Multiple service membership.--Any active member who was |
22 | formerly an active member in the Public School Employees' |
23 | Retirement System may elect to become a multiple service member. |
24 | Such election shall occur no later than [30] 365 days after |
25 | becoming an active member in this system. |
26 | * * * |
27 | § 5933. Members' savings account. | <-- |
28 | (a) Credits to account.--The members' savings account shall |
29 | be the ledger account to which shall be credited the amounts of |
30 | the pickup contributions made by the Commonwealth or other |
|
1 | employer and contributions or lump sum payments made by active |
2 | members in accordance with the provisions of sections 5501 |
3 | (relating to regular member contributions for current service), |
4 | 5501.1 (relating to shared risk member contributions), 5502 |
5 | (relating to social security integration member contributions), |
6 | 5503 (relating to joint coverage member contributions), 5504 |
7 | (relating to member contributions for the purchase of credit for |
8 | previous State service or to become a full coverage member), |
9 | 5505.1 (relating to additional member contributions) and 5505 |
10 | (relating to contributions for the purchase of credit for |
11 | creditable nonstate service) and transferred from the members' |
12 | savings account of the Public School Employees' Retirement |
13 | System in accordance with the provisions of section 5303.2 |
14 | (relating to election to convert school service to State |
15 | service). |
16 | * * * |
17 | § 5934. State accumulation account. |
18 | The State accumulation account shall be the ledger account to |
19 | which shall be credited all contributions of the Commonwealth or |
20 | other employers whose employees are members of the system and |
21 | made in accordance with the provisions of section 5507(a) or (d) |
22 | (relating to contributions by the Commonwealth and other |
23 | employers) except that the amounts received under the provisions |
24 | of the act of May 12, 1943 (P.L.259, No.120), and the amounts |
25 | received under the provisions of the Liquor Code, act of April |
26 | 12, 1951 (P.L.90, No.21), shall be credited to the State Police |
27 | benefit account or the enforcement officers' benefit account as |
28 | the case may be. All amounts transferred to the fund by county |
29 | retirement systems or pension plans in accordance with the |
30 | provisions of section 5507(c) also shall be credited to the |
|
1 | State accumulation account. All amounts transferred to the fund |
2 | by the Public School Employees' Retirement System in accordance |
3 | with section 5303.2(e) (relating to election to convert school |
4 | service to State service), except amounts credited to the |
5 | members' savings account, and all amounts paid by the Department |
6 | of Corrections in accordance with section 5303.2(f) also shall |
7 | be credited to the State accumulation account. The State |
8 | accumulation account shall be credited with valuation interest. |
9 | The reserves necessary for the payment of annuities and death |
10 | benefits as approved by the board and as provided in Chapter 57 |
11 | (relating to benefits) shall be transferred from the State |
12 | accumulation account to the annuity reserve account provided for |
13 | in section 5935 (relating to annuity reserve account), except |
14 | that the reserves necessary on account of a member who is an |
15 | officer of the Pennsylvania State Police or an enforcement |
16 | officer shall be transferred from the State accumulation account |
17 | to the State Police benefit account provided for in section 5936 |
18 | (relating to State Police benefit account) or to the enforcement |
19 | officers' benefit account as provided for in section 5937 |
20 | (relating to enforcement officers' benefit account) as the case |
21 | may be. The reserves necessary for the payment of supplemental |
22 | annuities in excess of those reserves credited to the |
23 | supplemental annuity account on June 30, 2010, shall be |
24 | transferred from the State accumulation account to the |
25 | supplemental annuity account. In the event that supplemental |
26 | annuities are increased by legislation enacted subsequent to | <-- |
27 | after December 31, 2009, the necessary reserves shall be | <-- |
28 | transferred from the State accumulation account to the |
29 | supplemental annuity account. |
30 | § 5936. State Police benefit account. |
|
1 | * * * |
2 | (b) Transfers from account.--Should the said annuitant be |
3 | subsequently restored to active service, the present value of |
4 | the member's annuity at the time of reentry into State service |
5 | shall be transferred from the State Police benefit account and |
6 | placed to his individual credit in the members' savings account. |
7 | In addition, the actuarial reserve for his annuity calculated as |
8 | if he had been a member of Class A if he has Class A or Class C |
9 | service credited; as if he had been a member of Class A-3 if the |
10 | annuitant has Class A-3 State service credited; or as if he had |
11 | been a member of Class A-4 if the annuitant has Class A-4 |
12 | service credited, less the amount transferred to the members' |
13 | savings account shall be transferred from the State Police |
14 | benefit account to the State accumulation account. Upon |
15 | subsequent retirement other than as an officer of the |
16 | Pennsylvania State Police the actuarial reserve remaining in the |
17 | State Police benefit account shall be transferred to the |
18 | appropriate reserve account. |
19 | § 5937. Enforcement officers' benefit account. |
20 | * * * |
21 | (b) Transfers from account.--Should the said annuitant be |
22 | subsequently restored to active service, the present value of |
23 | the member's annuity at the time of reentry into State service |
24 | shall be transferred from the enforcement officers' benefit |
25 | account and placed to his individual credit in the members' |
26 | savings account. In addition, the actuarial reserve for his |
27 | annuity calculated as if he had been a member of Class A if the |
28 | annuitant does not have any Class AA, Class A-3 or Class A-4 |
29 | service credited [and calculated]; as if he had been a member of |
30 | Class AA if the annuitant does have Class AA service credited; |
|
1 | as if he had been a member of Class A-3 if the annuitant has |
2 | Class A-3 State service credited; or as if he had been a member |
3 | of Class A-4 if the annuitant has Class A-4 service credited, |
4 | less the amount transferred to the members' savings account |
5 | shall be transferred from the enforcement officers' benefit |
6 | account to the State accumulation account. Upon subsequent |
7 | retirement other than as an enforcement officer the actuarial |
8 | reserve remaining in the enforcement officers' benefit account |
9 | shall be transferred to the appropriate reserve account. |
10 | § 5938. Supplemental annuity account. |
11 | The supplemental annuity account shall be the ledger account |
12 | to which shall be credited all contributions from the |
13 | Commonwealth and other employers in accordance with section |
14 | 5507(b) (relating to contributions by the Commonwealth and other |
15 | employers) for the payment of the supplemental annuities |
16 | provided in sections 5708 (relating to supplemental annuities), |
17 | 5708.1 (relating to additional supplemental annuities), 5708.2 |
18 | (relating to further additional supplemental annuities), 5708.3 |
19 | (relating to supplemental annuities commencing 1994), 5708.4 |
20 | (relating to special supplemental postretirement adjustment), |
21 | 5708.5 (relating to supplemental annuities commencing 1998), |
22 | 5708.6 (relating to supplemental annuities commencing 2002), |
23 | 5708.7 (relating to supplemental annuities commencing 2003) and |
24 | 5708.8 (relating to special supplemental postretirement |
25 | adjustment of 2002) made before July 1, 2010, the amount |
26 | transferred from the State accumulation account to provide all |
27 | additional reserves necessary as of June 30, 2010, to pay such |
28 | supplemental annuities and adjustments, and the amounts |
29 | transferred from the State accumulation account to provide all |
30 | additional reserves necessary as a result of supplemental |
|
1 | annuities enacted after December 31, 2009. The supplemental |
2 | annuity account shall be credited with valuation interest. The |
3 | reserves necessary for the payment of such supplemental |
4 | annuities shall be transferred from the supplemental annuity |
5 | account to the annuity reserve account as provided in section |
6 | 5935 (relating to annuity reserve account). |
7 | § 5955. Construction of part. |
8 | Regardless of any other provision of law, pension rights of |
9 | State employees shall be determined solely by this part or any |
10 | amendment thereto, and no collective bargaining agreement nor |
11 | any arbitration award between the Commonwealth and its employees |
12 | or their collective bargaining representatives shall be |
13 | construed to change any of the provisions herein, to require the |
14 | board to administer pension or retirement benefits not set forth |
15 | in this part, or otherwise require action by any other |
16 | government body pertaining to pension or retirement benefits or |
17 | rights of State employees. Notwithstanding the foregoing, any |
18 | pension or retirement benefits or rights previously so |
19 | established by or as a result of an arbitration award shall |
20 | remain in effect after the expiration of the current collective |
21 | bargaining agreement between the State employees so affected and |
22 | the Commonwealth until the expiration of each of the collective |
23 | bargaining agreements in effect on January 1, 2011, at which |
24 | time the classes of membership and resulting member contribution |
25 | rates and contributions for creditable nonstate service, | <-- |
26 | eligibility for vesting, withdrawal and superannuation |
27 | annuities, optional modification of annuities and other terms |
28 | and conditions related to class of membership shall be as |
29 | determined by this part for employees covered by those and |
30 | successor collective bargaining agreements. For purposes of |
|
1 | administering this part, for those State employees who are |
2 | members of each such collective bargaining unit, the date |
3 | January 1, 2011, contained in this part, except in this section, |
4 | shall be replaced with the date of the day immediately following |
5 | the expiration of each such collective bargaining agreement. The |
6 | provisions of this part insofar as they are the same as those of |
7 | existing law are intended as a continuation of such laws and not |
8 | as new enactments. The provisions of this part shall not affect |
9 | any act done, liability incurred, right accrued or vested, or |
10 | any suit or prosecution pending or to be instituted to enforce |
11 | any right or penalty or to punish any offense under the |
12 | authority of any repealed laws. |
13 | Section 11.1. Title 71 is amended by adding a section to | <-- |
14 | read: |
15 | § 5957. Independent Fiscal Office study. |
16 | The Independent Fiscal Office shall study and analyze the |
17 | implementation of shared risk contributions under section 5501.1 |
18 | (relating to shared risk member contributions for Class A-3 and |
19 | Class A-4 service) and its impact on the system. The study shall |
20 | be completed by December 31, 2015, and shall be transmitted to |
21 | the Appropriations Committee and the Finance Committee of the |
22 | Senate, the Appropriations Committee and the Finance Committee |
23 | of the House of Representatives and to the Governor. |
24 | Section 12. Contribution rates shall remain in effect until |
25 | June 30, 2010, as follows: |
26 | (1) Notwithstanding the provisions of this act, the |
27 | employer contribution rates certified by the Public School |
28 | Employees' Retirement Board for fiscal year 2009-2010 shall |
29 | remain in effect until June 30, 2010. |
30 | (2) Notwithstanding the provisions of this act, the |
|
1 | employer contribution rates certified by the State Employees' |
2 | Retirement Board for fiscal year 2009-2010 shall remain in |
3 | effect until June 30, 2010. |
4 | Section 13. Recertification to the Secretary of the Budget | <-- |
5 | shall be as follows: |
6 | (1) Within 15 days of the later of: |
7 | (i) the effective date of this section; or |
8 | (ii) the date of the passage of this Commonwealth's |
9 | budget for fiscal year 2010-2011, the Secretary of the |
10 | Budget shall certify to the Public School Employees' |
11 | Retirement Board the amount of money appropriated for |
12 | public school employees' retirement. |
13 | Notwithstanding any other provisions of law to the contrary, |
14 | the Public School Employees' Retirement Board shall, |
15 | effective for the fiscal year beginning July 1, 2010, |
16 | recertify to the Secretary of the Budget, within 15 days of |
17 | the effective date of the Secretary of the Budget's |
18 | certification to the Public School Employees' Retirement |
19 | Board of the amount of money appropriated for public school |
20 | employees' retirement, the employer contributions, rates, |
21 | factors and amounts set forth in 24 Pa.C.S. § 8502(k), as |
22 | amended by this act. The recertification rate shall be not |
23 | less than 5% nor more than 7.58%, plus the premium assistance |
24 | contribution rate. The recertification shall supersede the |
25 | prior certification for all purposes. This recertified rate |
26 | shall not affect the application of the collared contribution |
27 | rate as set forth in 24 Pa.C.S. § 8328(g). |
28 | (2) Notwithstanding any other provision of law to the |
29 | contrary, the State Employees' Retirement Board shall, |
30 | effective for the fiscal year beginning July 1, 2010, |
|
1 | recertify to the Secretary of the Budget and heads of |
2 | departments, within 15 days of the effective date of this |
3 | section, the contributions, rates, factors and amounts set |
4 | forth in 71 Pa.C.S. § 5902(k), as amended by this act. The |
5 | recertification shall supersede the prior certification for |
6 | all purposes. |
7 | Section 13. The following apply to pension obligation bonds: | <-- |
8 | (1) No executive agency or independent agency may issue |
9 | a pension obligation bond for the benefit of: |
10 | (i) the Public School Employees' Retirement System |
11 | of Pennsylvania; or |
12 | (ii) the State Employees' Retirement System of |
13 | Pennsylvania. |
14 | (2) As used in this section, the following words and |
15 | phrases shall have the meanings given to them in this |
16 | paragraph unless the context clearly indicates otherwise: |
17 | "Executive agency." As defined in 62 Pa.C.S. § 103 |
18 | (relating to definitions). |
19 | "Independent agency." As defined in 62 Pa.C.S. § |
20 | 103. |
21 | Section 14. Certain public officials shall be held harmless, |
22 | as follows: |
23 | (1) Notwithstanding any other provision of law, |
24 | fiduciary requirement, actuarial standard of practice or |
25 | other requirement to the contrary, the members of the Public |
26 | School Employees' Retirement Board, the actuary and other |
27 | employees and officials of the Public School Employees' |
28 | Retirement System shall not be held liable or in breach or |
29 | violation of any law or standard either as individuals or in |
30 | their official capacity or as a governmental or corporate |
|
1 | entity for any action or calculation related to calculating |
2 | and certifying a final contribution rate as provided for in |
3 | this act that is different from the actuarially required |
4 | contribution rate as otherwise appropriately calculated under |
5 | the provisions of the Public School Employees' Retirement |
6 | Code. |
7 | (2) Notwithstanding any other provision of law, |
8 | fiduciary requirement, actuarial standard of practice or |
9 | other requirement to the contrary, the members of the State |
10 | Employees' Retirement Board, the actuary and other employees |
11 | and officials of the State Employees' Retirement System shall |
12 | not be held liable or in breach or violation of any law or |
13 | standard either as individuals or in their official capacity |
14 | or as a governmental or corporate entity for any action or |
15 | calculation related to calculating and certifying a final |
16 | contribution rate as provided for in this act that is |
17 | different from the actuarially required contribution rate as |
18 | otherwise appropriately calculated under the provisions of |
19 | the State Employees' Retirement Code. |
20 | Section 15. Construction of a calculation or actuarial |
21 | method shall be as follows: |
22 | (1) Nothing in this act shall be construed or deemed to |
23 | imply that any calculation or actuarial method used by the |
24 | Public School Employees' Retirement Board, its actuaries or |
25 | the Public School Employees' Retirement System was not in |
26 | accordance with the provisions of the Public School |
27 | Employees' Retirement Code or other applicable law prior to |
28 | the effective date of this section. |
29 | (2) Nothing in this act shall be construed or deemed to |
30 | imply that any calculation or actuarial method used by the |
|
1 | State Employees' Retirement Board, its actuaries or the State |
2 | Employees' Retirement System was not in accordance with the |
3 | provisions of the State Employees' Retirement Code or other |
4 | applicable law prior to the effective date of this section. |
5 | Section 16. Nothing in this act shall be deemed to permit |
6 | the restoration of service credit or retirement benefits which |
7 | were the subject of an order of forfeiture pursuant to the act |
8 | of July 8, 1978 (P.L.752, No.140), known as the Public Employee |
9 | Pension Forfeiture Act, or subject to section 16 of Article V of |
10 | the Constitution of Pennsylvania or 42 Pa.C.S. § 3352. |
11 | Section 17. Nothing Except for 24 Pa.C.S. § 8303(d), nothing | <-- |
12 | in this act shall be construed or deemed to imply that any |
13 | interpretation or application of the provisions of 24 Pa.C.S. |
14 | Pt. IV or benefits available to members of the Public School |
15 | Employees' Retirement System was not in accordance with the |
16 | provisions of 24 Pa.C.S. Pt. IV or other applicable law prior to |
17 | the effective date of this section. It is the express intent of |
18 | the General Assembly that nothing in this act shall be construed |
19 | to grant to or be deemed to imply that this act expands, |
20 | contracts or otherwise affects any contractual rights, either |
21 | expressed or implied, or any other constitutionally protected |
22 | rights, in the terms and conditions of the Public School |
23 | Employees' Retirement System or other pension or retirement |
24 | benefits as a school employee, including, but not limited to, |
25 | benefits, options, rights or privileges established by 24 |
26 | Pa.C.S. Pt. IV for any current or former school employees. |
27 | Section 18. This act shall be construed and administered in |
28 | such a manner that the Public School Employees' Retirement |
29 | System will satisfy the requirements necessary to qualify as a |
30 | qualified pension plan under section 401(a) and other applicable |
|
1 | provisions of the Internal Revenue Code of 1986 (Public Law |
2 | 99-514, 26 U.S.C. § 1 et seq.). The rules, regulations and |
3 | procedures adopted and promulgated by the Public School |
4 | Employees' Retirement Board under 24 Pa.C.S. § 8502(h) may |
5 | include those necessary to accomplish the purpose of this |
6 | section. |
7 | Section 19. (a) Nothing in this act which amends or |
8 | supplements provisions of 24 Pa.C.S. Pt. IV shall create in any |
9 | member of the system or in any other person claiming an interest |
10 | in the account of any such member a contractual right, either |
11 | express or implied, in relation to requirements for |
12 | qualification of the Public School Employees' Retirement System |
13 | as a qualified pension plan under the Internal Revenue Code of |
14 | 1986 (Public Law 99-514, 26 U.S.C. § 401(a)) nor any |
15 | construction of 24 Pa.C.S. Pt. IV, as so amended or |
16 | supplemented, or any rules or regulations adopted under 24 |
17 | Pa.C.S. Pt. IV. The provisions of 24 Pa.C.S. Pt. IV shall remain |
18 | subject to the Internal Revenue Code of 1986, and the General |
19 | Assembly reserves to itself such further exercise of its |
20 | legislative power to amend or supplement such provisions as may |
21 | from time to time be required in order to maintain the |
22 | qualification of such system as a qualified pension plan under |
23 | section 401(a) and other applicable provisions of the Internal |
24 | Revenue Code of 1986. |
25 | (b) References in this act to the Internal Revenue Code of |
26 | 1986, including for this purpose administrative regulations |
27 | promulgated thereunder, are intended to include such laws and |
28 | regulations in effect on the effective date of this section and |
29 | as they may hereafter be amended or supplemented or supplanted |
30 | by successor provisions. |
|
1 | Section 20. No school employee otherwise a member of, |
2 | eligible to be a member of, or having school or nonschool |
3 | service credited in a class of service other than Class T-E or |
4 | Class T-F may cancel, decline or waive membership in such other |
5 | class of service in order to obtain Class T-E or Class T-F |
6 | service credit, become a member of Class T-E or Class T-F or |
7 | elect Class T-E or Class T-F membership. |
8 | Section 21. Notwithstanding any other provision of law, any |
9 | change in accrued liability of the Public School Employees' |
10 | Retirement System created by this act shall be funded as a level |
11 | percentage of compensation over a period of 30 24 years | <-- |
12 | beginning July 1, 2012 2011, subject to any limits imposed on | <-- |
13 | employer contributions to the Public School Employees' |
14 | Retirement System. For purposes of 24 Pa.C.S. §§ 8321, 8326 and |
15 | 8328, such changes shall not be considered to be costs added by |
16 | legislation. |
17 | Section 22. Notwithstanding any regulation promulgated by |
18 | the Public School Employees' Retirement Board, application or |
19 | interpretation of 24 Pa.C.S. Pt. IV, or administrative practice |
20 | to the contrary, a member's eligibility deriving from Class T-E |
21 | or Class T-F service credit for a superannuation annuity or |
22 | other rights and benefits based upon attaining superannuation |
23 | age shall require the actual accrual of 35 eligibility points be | <-- |
24 | determined by including only those eligibility points actually |
25 | accrued. |
26 | Section 23. Nothing in this act shall be construed or deemed |
27 | to imply that any interpretation or application of the |
28 | provisions of 71 Pa.C.S. Pt. XXV or benefits available to |
29 | members of the State Employees' Retirement System was not in |
30 | accordance with the provisions of 71 Pa.C.S. Pt. XXV or other |
|
1 | applicable law prior to the effective date of this section. It |
2 | is the express intent of the General Assembly that nothing in |
3 | this act shall be construed to grant to or be deemed to imply |
4 | that this act expands, contracts or otherwise affects any |
5 | contractual rights, either expressed or implied, or any other |
6 | constitutionally protected rights, in the terms and conditions |
7 | of the State Employees' Retirement System or other pension or |
8 | retirement benefits as a State employee, including, but not |
9 | limited to, benefits, options, rights or privileges established |
10 | by 71 Pa.C.S. Pt. XXV for any current or former State employees. |
11 | Section 24. This act shall be construed and administered in |
12 | such a manner that the State Employees' Retirement System will |
13 | satisfy the requirements necessary to qualify as a qualified |
14 | pension plan under section 401(a) and other applicable |
15 | provisions of the Internal Revenue Code of 1986 (Public Law |
16 | 99-514, 26 U.S.C. § 1 et seq.). The rules, regulations and |
17 | procedures adopted and promulgated by the State Employees' |
18 | Retirement Board under 71 Pa.C.S. § 5902(h) may include those |
19 | necessary to accomplish the purpose of this section. |
20 | Section 25. (a) Nothing in this act which amends or |
21 | supplements provisions of 71 Pa.C.S. Pt. XXV shall create in any |
22 | member of the system or in any other person claiming an interest |
23 | in the account of any such member a contractual right, either |
24 | express or implied, in relation to requirements for |
25 | qualification of the State Employees' Retirement System as a |
26 | qualified pension plan under the Internal Revenue Code of 1986 |
27 | (Public Law 99-514, 26 U.S.C. § 401(a)) nor any construction of |
28 | 71 Pa.C.S. Pt. XXV, as so amended or supplemented, or any rules |
29 | or regulations adopted under 71 Pa.C.S. Pt. XXV. The provisions |
30 | of 71 Pa.C.S. Pt. XXV shall remain subject to the Internal |
|
1 | Revenue Code of 1986, and the General Assembly reserves to |
2 | itself such further exercise of its legislative power to amend |
3 | or supplement such provisions as may from time to time be |
4 | required in order to maintain the qualification of such system |
5 | as a qualified pension plan under section 401(a) and other |
6 | applicable provisions of the Internal Revenue Code of 1986. |
7 | (b) References in this act to the Internal Revenue Code of |
8 | 1986, including for this purpose administrative regulations |
9 | promulgated thereunder, are intended to include such laws and |
10 | regulations in effect on the effective date of this section and |
11 | as they may hereafter be amended or supplemented or supplanted |
12 | by successor provisions. |
13 | Section 26. No State employee otherwise a member of, |
14 | eligible to be a member of, or having State or nonstate service |
15 | credited in, a class of service other than Class A-3 or Class | <-- |
16 | A-4 may cancel, decline or waive membership in such other class |
17 | of service in order to obtain Class A-3 or Class A-4 service |
18 | credit, become a member of Class A-3 or Class A-4 or elect Class |
19 | A-3 or Class A-4 membership. |
20 | Section 27. Notwithstanding any other provision of law, any |
21 | change in accrued liability of the State Employees' Retirement |
22 | System created by this act as a result of changes in benefits |
23 | shall be funded as a level percentage of compensation in equal | <-- |
24 | dollar installments over a period of 30 years beginning July 1, |
25 | 2011, subject to any limits imposed by this act on employer | <-- |
26 | contributions to the State Employees' Retirement System. For |
27 | purposes of 71 Pa.C.S. §§ 5501.1 5501.2, 5507 and 5508, any such | <-- |
28 | changes shall not be considered to be costs added by |
29 | legislation. |
30 | Section 28. Notwithstanding any regulation promulgated by |
|
1 | the State Employees' Retirement Board, application or |
2 | interpretation of 71 Pa.C.S. Pt. XXV, or administrative practice |
3 | to the contrary, a member's eligibility deriving from Class A-3 |
4 | or Class A-4 service credit for a superannuation annuity or |
5 | other rights and benefits based upon attaining a superannuation | <-- |
6 | age shall require the actual accrual of 35 eligibility points | <-- |
7 | score of 92 or the accrual of 35 eligibility points shall be | <-- |
8 | determined by including only those eligibility points actually |
9 | accrued. |
10 | Section 28.1. (1) Nothing in this act shall be construed or | <-- |
11 | deemed to imply that, but for the expressed applications of the |
12 | limitations on benefits or other requirements under section |
13 | 401(a) or 415 of the Internal Revenue Code of 1986 (Public Law |
14 | 99-514, 26 U.S.C. § 401 or 415), those limitations would not |
15 | otherwise apply to members of the State Employees' Retirement |
16 | System and the benefits payable under 71 Pa.C.S. Pt. XXV. |
17 | (2) Nothing in this act shall be construed or deemed to |
18 | imply that any member of Class A-3 or Class A-4 shall be |
19 | required to make contributions to the State Employees' |
20 | Retirement System for the purchase of nonstate service credit in |
21 | excess of the limits established by Section 415(n)(3)(A)(iii) of |
22 | the Internal Revenue Code of 1986. Any contributions made by a |
23 | member of Class A-3 or Class A-4 for the purchase of nonstate |
24 | service credit which are determined to be in excess of the |
25 | limits shall be refunded to the member in a lump sum subject to |
26 | withholding for all applicable taxes and penalties as soon as |
27 | administratively possible after such determination is made. Any |
28 | refund of excess contributions made under this section shall not |
29 | affect the benefit payable to the member and shall not be |
30 | treated as or deemed to be a withdrawal of the member's |
|
1 | accumulated deductions. |
2 | Section 29. This act shall take effect as follows: |
3 | (1) The amendment or addition of the following |
4 | provisions of 24 Pa.C.S. shall take effect July 1, 2011: |
5 | (i) section 8102; | <-- |
6 | (ii) section 8303(c) and (d); | <-- |
7 | (iii) section 8304(a); | <-- |
8 | (iv) section 8305(d) and (e); | <-- |
9 | (v) section 8305.2; | <-- |
10 | (vi) section 8307(b); | <-- |
11 | (vii) section 8308; | <-- |
12 | (viii) section 8321(b); | <-- |
13 | (ix) section 8323(a), (c) and (c.1); | <-- |
14 | (x) section 8324(a), (d), (e) and (f); | <-- |
15 | (xi) section 8326(a); | <-- |
16 | (xii) section 8327(a) and (c); | <-- |
17 | (xiii) section 8328; | <-- |
18 | (xiv) section 8342(a); | <-- |
19 | (xv) section 8344(d); | <-- |
20 | (xvi) section 8345(a); | <-- |
21 | (xvii) section 8348.1(f); | <-- |
22 | (xviii) section 8348.2(f); | <-- |
23 | (xix) section 8348.3(f); | <-- |
24 | (xx) section 8348.5(f); | <-- |
25 | (xxi) section 8348.6(f); | <-- |
26 | (xxii) section 8348.7(f); | <-- |
27 | (xxiii) section 8348.8; | <-- |
28 | (xxiv) section 8502(k); | <-- |
29 | (xxv) section 8505(l); and | <-- |
30 | (xxvi) section 8535(3). | <-- |
|
1 | (2) Sections 17, 18, 19, 20, 21 and 22 of this act shall |
2 | take effect July 1, 2011. |
3 | (3) The remainder of this act shall take effect | <-- |
4 | immediately. |
5 | (3) Except as set forth in paragraph (4), this act shall | <-- |
6 | take effect upon the enactment of legislation establishing an |
7 | independent fiscal office charged with providing independent |
8 | revenue estimates and other functions. |
9 | (4) Paragraph (3) and this paragraph shall take effect |
10 | immediately. |
|