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                                 HOUSE AMENDED
        PRIOR PRINTER'S NOS. 859, 1807, 1819          PRINTER'S NO. 2074

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 803 Session of 1997


        INTRODUCED BY RHOADES, BELL, BRIGHTBILL, WENGER, WOZNIAK,
           SALVATORE, COSTA, SCHWARTZ, MURPHY, KASUNIC, BODACK, ROBBINS,
           STOUT, STAPLETON, PUNT, AFFLERBACH, MADIGAN, MUSTO, LAVALLE,
           MELLOW, KUKOVICH, DELP AND CONTI, APRIL 1, 1997

        AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
           JUNE 8, 1998

                                     AN ACT

     1  Amending Title 24 (Education) TITLES 24 (EDUCATION) AND 71        <--
     2     (STATE GOVERNMENT) of the Pennsylvania Consolidated Statutes,
     3     providing for a new period of eligibility for special early    <--
     4     retirement; and further providing for standards of
     5     compensation for employees of the board. FURTHER PROVIDING     <--
     6     FOR CREDITABLE NONSCHOOL SERVICE, FOR CREDITABLE NONSTATE
     7     SERVICE AND FOR HEALTH INSURANCE.

     8     The General Assembly of the Commonwealth of Pennsylvania
     9  hereby enacts as follows:
    10     Section 1.  Title 24 of the Pennsylvania Consolidated          <--
    11  Statutes is amended by adding a section to read:
    12  § 8313.  Eligibility for limited early retirement.
    13     Notwithstanding any provisions of this title to the contrary,
    14  the following early retirement provisions shall be applicable to
    15  specified eligible members:
    16         (1)  Any member who, during the period of time from the
    17     effective date of this section through July 10, 1998:
    18             (i)  has credit for at least 30 eligibility points;


     1             (ii)  terminates school service; and
     2             (iii)  files an application for retirement with an
     3         effective date of retirement not later than July 11,
     4         1998,
     5     shall be entitled to receive a maximum single life annuity
     6     calculated pursuant to section 8342 (relating to maximum
     7     single life annuity) without any reduction by virtue of an
     8     effective date of retirement which is under the
     9     superannuation age.
    10         (2)  Any member who, during the period of time from April
    11     1, 1999, through June 30, 1999:
    12             (i)  has credit for at least 30 eligibility points;
    13             (ii)  terminates school service; and
    14             (iii)  files an application for retirement with an
    15         effective date of retirement not later than July 1, 1999,
    16     shall be entitled to receive a maximum single life annuity
    17     calculated pursuant to section 8342 without any reduction by
    18     virtue of an effective date of retirement which is under the
    19     superannuation age.
    20     Section 2.  Section 8502(a) of Title 24 is amended to read:
    21  § 8502.  Administrative duties of board.
    22     (a)  Employees.--The secretary, clerical and other employees
    23  of the board and their successors whose positions on the
    24  effective date of this part are under the classified service
    25  provisions of the act of August 5, 1941 (P.L.752, No.286), known
    26  as the Civil Service Act, shall continue under such provisions.
    27  Notwithstanding any other provision of law, the compensation
    28  [and classification shall be established by the board for the
    29  secretary, the assistant secretary, investment professionals and
    30  other professionals as designated by the board who are not
    19970S0803B2074                  - 2 -

     1  covered by a collective bargaining agreement.] of all officers
     2  and employees of the board who are not covered by a collective
     3  bargaining agreement shall be established by the board
     4  consistent with the standards of compensation established by the
     5  Executive Board of the Commonwealth.
     6     * * *
     7     Section 3.  This act shall take effect immediately.
     8     SECTION 1.  SECTION 8304(B)(7) AND (8) OF TITLE 24 OF THE      <--
     9  PENNSYLVANIA CONSOLIDATED STATUTES ARE AMENDED TO READ:
    10  § 8304.  CREDITABLE NONSCHOOL SERVICE.
    11     * * *
    12     (B)  LIMITATIONS ON NONSCHOOL SERVICE.--CREDITABLE NONSCHOOL
    13  SERVICE CREDIT SHALL BE LIMITED TO:
    14         * * *
    15         (7)  SERVICE FOR THE PERIOD OF TIME SPENT ON A MATERNITY
    16     LEAVE OF ABSENCE REQUIRED BY THE EMPLOYER, WHICH CREDITABLE
    17     SERVICE SHALL NOT EXCEED TWO YEARS PER LEAVE AND SHALL BE
    18     APPLICABLE ONLY TO A MATERNITY LEAVE WHICH WAS MANDATORY
    19     PRIOR TO MAY 17, 1975. [THE PURCHASE OF THIS SERVICE SHALL
    20     BEGIN WITHIN ONE YEAR OF THE EMPLOYEE'S ELIGIBILITY TO
    21     PURCHASE THIS CREDITABLE SERVICE.] THE PURCHASE OF THIS
    22     SERVICE SHALL BE MADE ON OR BEFORE DECEMBER 31, 1999.
    23         (8)  SERVICE AS A NURSE FOR THE DEPARTMENT OF VETERANS
    24     AFFAIRS OR THE FORMER VETERANS' ADMINISTRATION OR SERVICE IN
    25     THE CADET NURSE CORPS WITH RESPECT TO ANY PERIOD OF TRAINING
    26     AS A STUDENT OR GRADUATE NURSE UNDER A PLAN APPROVED UNDER
    27     SECTION 2 OF THE ACT OF JUNE 15, 1943 (PUBLIC LAW 78-73, 57
    28     STAT. 153), IF THE TOTAL PERIOD OF TRAINING UNDER THE PLAN
    29     WAS AT LEAST TWO YEARS, THE CREDIT FOR SUCH SERVICE NOT TO
    30     EXCEED THREE YEARS.
    19970S0803B2074                  - 3 -

     1     * * *
     2     SECTION 2.  TITLE 24 IS AMENDED BY ADDING A SECTION TO READ:
     3  § 8502.1.  HEALTH INSURANCE.
     4     (A)  AUTHORITY.--THE BOARD SHALL SPONSOR A GROUP HEALTH
     5  INSURANCE PROGRAM FOR ANNUITANTS, SPOUSES OF ANNUITANTS,
     6  SURVIVOR ANNUITANTS AND THEIR DEPENDENTS. FIFTY PERCENT OF THE
     7  COST OF THE PROGRAM SHALL BE BORNE BY THE COMMONWEALTH AND 50%
     8  BY THE PARTICIPANTS. THE BOARD MAY PROMULGATE REGULATIONS
     9  REGARDING THE PRUDENT AND EFFICIENT OPERATION OF THE PROGRAM,
    10  INCLUDING, BUT NOT LIMITED TO:
    11         (1)  ESTABLISHMENT OF AN ANNUAL BUDGET AND DISBURSEMENTS
    12     IN ACCORDANCE WITH THE BUDGET.
    13         (2)  DETERMINATION OF THE BENEFITS STRUCTURE.
    14         (3)  DETERMINATION OF ENROLLMENT PROCEDURES.
    15         (4)  ESTABLISHMENT OF PREMIUM RATES SUFFICIENT TO FULLY
    16     FUND THE PROGRAM, INCLUDING ADMINISTRATIVE EXPENSES.
    17         (5)  CONTRACTING FOR GOODS, EQUIPMENT, SERVICES,
    18     CONSULTANTS AND OTHER PROFESSIONAL PERSONNEL AS NEEDED TO
    19     OPERATE THE PROGRAM.
    20     (B)  SEPARATE ACCOUNT.--ALL FUNDS RELATED TO THE HEALTH
    21  INSURANCE PROGRAM SHALL BE MAINTAINED AND ACCOUNTED FOR
    22  SEPARATELY FROM THE PUBLIC SCHOOL EMPLOYEES' RETIREMENT FUND.
    23     (C)  OPERATION.--THE BOARD MAY ESTABLISH AND OPERATE THE
    24  PROGRAM THROUGH A LAWFULLY AUTHORIZED ENTITY.
    25     (D)  ADDITIONAL REQUIREMENTS.--THE ASSETS OF THE FUND SHALL
    26  NOT BE LIABLE OR UTILIZED FOR PAYMENT OF ANY EXPENSES OR CLAIMS
    27  INCURRED BY THE HEALTH INSURANCE PROGRAM. THE PROGRAM SHALL BE
    28  AN APPROVED HEALTH INSURANCE PROGRAM FOR PURPOSES OF SECTION
    29  8505(I)(RELATING TO DUTIES OF BOARD REGARDING APPLICATIONS AND
    30  ELECTIONS OF MEMBERS) AND AN APPROVED INSURANCE CARRIER FOR
    19970S0803B2074                  - 4 -

     1  PURPOSES OF SECTION 8509 (RELATING TO HEALTH INSURANCE PREMIUM
     2  ASSISTANCE PROGRAM). THE PROGRAM SHALL NOT BE SUBJECT TO THE
     3  PROVISIONS OF SECTION 8531 (RELATING TO STATE GUARANTEE).
     4     SECTION 3.  SECTION 5304(C)(6) OF TITLE 71 IS AMENDED TO
     5  READ:
     6  § 5304.  CREDITABLE NONSTATE SERVICE.
     7     * * *
     8     (C)  LIMITATIONS ON NONSTATE SERVICE.--CREDITABLE NONSTATE
     9  SERVICE CREDIT SHALL BE LIMITED TO:
    10         * * *
    11         (6)  SERVICE AS A NURSE FOR THE DEPARTMENT OF VETERANS
    12     AFFAIRS OR THE FORMER VETERANS' ADMINISTRATION OR SERVICE IN
    13     THE CADET NURSE CORPS WITH RESPECT TO ANY PERIOD OF TRAINING
    14     AS A STUDENT OR GRADUATE NURSE UNDER A PLAN APPROVED UNDER
    15     SECTION 2 OF THE ACT OF JUNE 15, 1943 (PUBLIC LAW 78-73, 57
    16     STAT. 153), IF THE TOTAL PERIOD OF TRAINING UNDER SUCH PLAN
    17     WAS AT LEAST TWO YEARS, THE CREDIT FOR SUCH SERVICE NOT TO
    18     EXCEED THREE YEARS;
    19         * * *
    20     SECTION 4.  THIS ACT SHALL TAKE EFFECT IMMEDIATELY.







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