HOUSE AMENDED
PRIOR PRINTER'S NOS. 1899, 2058, 2365 PRINTER'S NO. 2482
No. 1341 Session of 1984
INTRODUCED BY TILGHMAN, APRIL 11, 1984
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
NOVEMBER 27, 1984
AN ACT
1 Making an appropriation from the Public School Employees' <--
2 Retirement Fund to provide for expenses of the Public School
3 Employees' Retirement Board for the fiscal year July 1, 1984
4 to June 30, 1985 and for the payment of bills incurred and
5 remaining unpaid at the close of the fiscal year ending June
6 30, 1984.
7 MAKING AN APPROPRIATION FROM THE PUBLIC SCHOOL EMPLOYEES' <--
8 RETIREMENT FUND TO PROVIDE FOR EXPENSES OF THE PUBLIC SCHOOL
9 EMPLOYEES' RETIREMENT BOARD FOR THE FISCAL YEAR JULY 1, 1984
10 TO JUNE 30, 1985 AND FOR THE PAYMENT OF BILLS INCURRED AND
11 REMAINING UNPAID AT THE CLOSE OF THE FISCAL YEAR ENDING JUNE
12 30, 1984; AND PROVIDING FOR INVESTMENTS IN PENNSYLVANIA
13 INDUSTRIES.
14 AMENDING TITLE 24 (EDUCATION) OF THE PENNSYLVANIA CONSOLIDATED <--
15 STATUTES, PROVIDING THAT EMPLOYERS MAKE PICKUP CONTRIBUTIONS
16 TO THE PUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM ON BEHALF
17 OF SCHOOL EMPLOYEES; AND AUTHORIZING THE BOARD TO ESTABLISH <--
18 THE VALUATION INTERESTS USED IN ACTUARIES' ANNUAL VALUATIONS
19 GRANTING CREDIT TO PUBLIC SCHOOL EMPLOYEES FOR PREVIOUS <--
20 NURSING SERVICE; AND FURTHER PROVIDING FOR CREDITABLE
21 NONSCHOOL SERVICE.
22 The General Assembly of the Commonwealth of Pennsylvania
23 hereby enacts as follows:
24 Section 1. The sum of $8,524,000, or as much thereof as may <--
25 be necessary, is hereby appropriated from the Public School
26 Employees' Retirement Fund to the Public School Employees'
1 Retirement Board for the payment of all salaries, wages and
2 other compensation and travel expenses of the employees and
3 members of the Public School Employees' Retirement Board, for
4 contractual services and other expenses necessary for the proper
5 conduct of the duties, functions and activities of the board for
6 the fiscal year beginning July 1, 1984 and for the payment of
7 bills incurred and remaining unpaid at the close of the fiscal
8 year ending June 30, 1984.
9 Section 2. This act shall take effect July 1, 1984 or, if
10 enacted subsequent to that date, then immediately.
11 SECTION 1. THE SUM OF $8,524,000, OR AS MUCH THEREOF AS MAY <--
12 BE NECESSARY, IS HEREBY SPECIFICALLY APPROPRIATED FROM THE
13 PUBLIC SCHOOL EMPLOYEES' RETIREMENT FUND TO THE PUBLIC SCHOOL
14 EMPLOYEES' RETIREMENT BOARD FOR THE PAYMENT OF ALL SALARIES,
15 WAGES AND OTHER COMPENSATION AND TRAVEL EXPENSES OF THE
16 EMPLOYEES AND MEMBERS OF THE PUBLIC SCHOOL EMPLOYEES' RETIREMENT
17 BOARD, FOR CONTRACTUAL SERVICES AND OTHER EXPENSES NECESSARY FOR
18 THE PROPER CONDUCT OF THE DUTIES, FUNCTIONS AND ACTIVITIES OF
19 THE BOARD FOR THE FISCAL YEAR BEGINNING JULY 1, 1984 AND FOR THE
20 PAYMENT OF BILLS INCURRED AND REMAINING UNPAID AT THE CLOSE OF
21 THE FISCAL YEAR ENDING JUNE 30, 1984.
22 SECTION 2. (A) THE BOARD SHALL, WITHIN SIX MONTHS OF THE
23 EFFECTIVE DATE OF THIS ACT, DETAIL A PROGRAM OF INVESTMENT FOR
24 THE ECONOMIC REDEVELOPMENT AND CAPITALIZATION OF PENNSYLVANIA
25 INDUSTRIES. RECOGNIZING THE INITIAL DUTY OF THE FUND TO PRUDENT
26 INVESTMENTS WHICH PROTECT THE PENSIONS OF RETIREES, THE GENERAL
27 ASSEMBLY REQUIRES THE BOARD TO INVEST AN EQUITY INTEREST IN
28 VENTURE CAPITAL LIMITED PARTNERSHIPS AND PARTICIPATE IN PRIVATE
29 PLACEMENT SEPARATE ACCOUNTS. INVESTMENTS IN VENTURE CAPITAL
30 LIMITED PARTNERSHIPS AND PRIVATE PLACEMENT SEPARATE ACCOUNTS
19840S1341B2482 - 2 -
1 SHALL:
2 (1) ENHANCE THE GENERAL WELFARE OF THE STATE AND ITS
3 CITIZENS THROUGH ECONOMIC DEVELOPMENT.
4 (2) LIMIT THE LIABILITY OF THE RETIREMENT FUND ONLY TO
5 THE EXTENT OF THE INVESTMENT.
6 (3) PROVIDE THAT THE MANAGEMENT OF THE VENTURE CAPITAL
7 LIMITED PARTNERSHIP AND THE PRIVATE PLACEMENT SEPARATE
8 ACCOUNT RESTS SOLELY WITH THE GENERAL PARTNER OR MANAGER WHO
9 SHALL BE A PROFESSIONAL INVESTMENT MANAGER.
10 (B) INVESTMENTS MADE PURSUANT TO THIS SECTION FOR VENTURE
11 CAPITAL LIMITED PARTNERSHIPS SHALL NOT BE LESS THAN 1% NOR MORE
12 THAN 2% OF THE VALUE OF THE FUND. INVESTMENTS FOR PRIVATE
13 PLACEMENT SEPARATE ACCOUNTS SHALL NOT BE LESS THAN 1% OF THE
14 VALUE OF THE FUND. THE VALUE OF THE FUND SHALL BE THE TOTAL BOOK
15 VALUE OF THE FUND ON THE EFFECTIVE DATE OF THIS SECTION.
16 (C) THE INVESTMENTS AUTHORIZED BY THIS SECTION SHALL BE MADE
17 BY THE BOARD OVER A THREE-YEAR PERIOD. THE BOARD SHALL FILE AN
18 ANNUAL REPORT ON THESE INVESTMENTS WITH THE GENERAL ASSEMBLY.
19 INCLUDED IN THE REPORT SHALL BE INFORMATION ON HOW THE BOARD
20 EXERCISED ITS STEWARDSHIP ON BEHALF OF PENNSYLVANIA INDUSTRIES
21 OVER THE PAST THREE YEARS. THIS REPORT SHALL ALSO DETAIL HOW THE
22 BOARD INTENDS TO USE FUND ASSETS FOR THE BENEFIT OF JOBS IN
23 PENNSYLVANIA.
24 SECTION 3. THIS ACT SHALL TAKE EFFECT JULY 1, 1984 OR, IF
25 ENACTED SUBSEQUENT TO THAT DATE, THEN IMMEDIATELY.
26 SECTION 1. SECTION THE DEFINITIONS OF "ACCUMULATED <--
27 DEDUCTIONS," "ACTIVE MEMBER," "COMPENSATION," "DATE OF
28 TERMINATION OF SERVICE," "FULL COVERAGE MEMBER," "INACTIVE
29 MEMBER" AND "PICKUP CONTRIBUTIONS" IN SECTION 8102 OF TITLE 24
30 OF THE PENNSYLVANIA CONSOLIDATED STATUTES IS ARE REENACTED AND <--
19840S1341B2482 - 3 -
1 AMENDED TO READ:
2 § 8102. DEFINITIONS. <--
3 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS PART SHALL
4 HAVE, UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE, THE
5 MEANINGS GIVEN TO THEM IN THIS SECTION:
6 "ACCUMULATED DEDUCTIONS." THE TOTAL OF PICKUP CONTRIBUTIONS
7 AND THE CONTRIBUTIONS PAID INTO THE FUND BY THE MEMBER ON
8 ACCOUNT OF CURRENT SCHOOL SERVICE, PREVIOUS SCHOOL SERVICE, OR
9 CREDITABLE NONSCHOOL SERVICE AND THE STATUTORY INTEREST CREDITED
10 ON ALL SUCH CONTRIBUTIONS.
11 "ACTIVE MEMBER." A SCHOOL EMPLOYEE FOR WHOM PICKUP
12 CONTRIBUTIONS ARE BEING MADE TO THE FUND.
13 "ACTUARIALLY EQUIVALENT." EQUAL PRESENT VALUES, COMPUTED ON <--
14 THE BASIS OF STATUTORY INTEREST AND THE MORTALITY TABLES ADOPTED
15 BY THE BOARD.
16 "ACTUARY." THE CONSULTANT TO THE BOARD WHO SHALL BE:
17 (1) A MEMBER OF THE AMERICAN ACADEMY OF ACTUARIES;
18 (2) AN INDIVIDUAL WHO HAS DEMONSTRATED TO THE
19 SATISFACTION OF THE INSURANCE COMMISSIONER OF PENNSYLVANIA
20 THAT HE HAS THE EDUCATIONAL BACKGROUND NECESSARY FOR THE
21 PRACTICE OF ACTUARIAL SCIENCE AND HAS HAD AT LEAST SEVEN
22 YEARS OF ACTUARIAL EXPERIENCE; OR
23 (3) A FIRM, PARTNERSHIP, OR CORPORATION OF WHICH AT
24 LEAST ONE MEMBER MEETS THE REQUIREMENTS OF PARAGRAPH (1) OR
25 (2).
26 "ANNUITANT." ANY MEMBER ON OR AFTER THE EFFECTIVE DATE OF
27 RETIREMENT UNTIL HIS ANNUITY IS TERMINATED.
28 "APPROVED LEAVE OF ABSENCE." A LEAVE OF ABSENCE WHICH HAS
29 BEEN APPROVED BY THE EMPLOYER FOR SABBATICAL LEAVE, SERVICE AS
30 AN EXCHANGE TEACHER, OR PROFESSIONAL STUDY.
19840S1341B2482 - 4 -
1 "BASIC CONTRIBUTION RATE." THE RATE OF 6 1/4%.
2 "BENEFICIARY." THE PERSON OR PERSONS LAST DESIGNATED IN
3 WRITING TO THE BOARD BY A MEMBER TO RECEIVE HIS ACCUMULATED
4 DEDUCTIONS OR A LUMP SUM BENEFIT UPON THE DEATH OF SUCH MEMBER.
5 "BOARD." THE PUBLIC SCHOOL EMPLOYEES' RETIREMENT BOARD OR
6 THE PUBLIC SCHOOL EMPLOYES' RETIREMENT BOARD. MULTIPLIER."
7 CLASS OF SERVICE MULTIPLIER
8 T-A .714
9 T-B .625
10 T-C 1.000
11 * * * <--
12 "COMPENSATION." PICKUP CONTRIBUTIONS PLUS ANY REMUNERATION
13 RECEIVED AS A SCHOOL EMPLOYEE EXCLUDING REFUNDS FOR EXPENSES
14 INCIDENTAL TO EMPLOYMENT AND EXCLUDING ANY SEVERANCE PAYMENTS.
15 "CONCURRENT SERVICE." SIMULTANEOUSLY CREDITED SCHOOL AND <--
16 STATE SERVICE.
17 "CREDITABLE NONSCHOOL SERVICE." SERVICE OTHER THAN SERVICE
18 AS A SCHOOL EMPLOYEE FOR WHICH AN ACTIVE MEMBER MAY OBTAIN
19 CREDIT.
20 "CREDITED SERVICE." SCHOOL OR CREDITABLE NONSCHOOL SERVICE
21 FOR WHICH THE REQUIRED CONTRIBUTIONS HAVE BEEN MADE OR FOR WHICH
22 SALARY DEDUCTIONS OR LUMP SUM PAYMENTS HAVE BEEN AGREED UPON IN
23 WRITING.
24 * * * <--
25 "DATE OF TERMINATION OF SERVICE." THE LAST DATE OF SERVICE
26 FOR WHICH PICKUP CONTRIBUTIONS ARE MADE FOR AN ACTIVE MEMBER OR,
27 IN THE CASE OF AN INACTIVE MEMBER, THE EFFECTIVE DATE OF HIS
28 RESIGNATION OR THE DATE HIS EMPLOYMENT IS FORMALLY DISCONTINUED
29 BY HIS EMPLOYER OR TWO YEARS FOLLOWING THE LAST DAY OF SERVICE
30 FOR WHICH CONTRIBUTIONS WERE MADE, WHICHEVER IS EARLIEST.
19840S1341B2482 - 5 -
1 "EFFECTIVE DATE OF RETIREMENT." THE FIRST DAY FOLLOWING THE <--
2 DATE OF TERMINATION OF SERVICE OF A MEMBER IF HE HAS PROPERLY
3 FILED AN APPLICATION FOR AN ANNUITY WITHIN 90 DAYS OF SUCH DATE
4 OR:
5 (1) IN THE CASE OF A MEMBER WHO APPLIES FOR AN ANNUITY
6 SUBSEQUENT TO 90 DAYS AFTER TERMINATION OF SERVICE, THE DATE
7 OF FILING SUCH APPLICATION OR THE DATE SPECIFIED ON THE
8 APPLICATION, WHICHEVER IS LATER.
9 (2) IN THE CASE OF A VESTEE WHO FILES AN APPLICATION FOR
10 AN ANNUITY WITHIN 90 DAYS OF HIS SUPERANNUATION AGE, THE
11 ATTAINMENT OF SUCH AGE.
12 (3) IN THE CASE OF A FINDING OF DISABILITY, THE DATE
13 CERTIFIED BY THE BOARD AS THE EFFECTIVE DATE OF DISABILITY.
14 "ELIGIBILITY POINTS." POINTS WHICH ARE ACCRUED BY AN ACTIVE
15 MEMBER OR A MULTIPLE SERVICE MEMBER WHO IS AN ACTIVE MEMBER OF
16 THE STATE EMPLOYEES' RETIREMENT SYSTEM FOR CREDITED SERVICE AND
17 ARE USED IN THE DETERMINATION OF ELIGIBILITY FOR BENEFITS AS
18 PROVIDED IN SECTION 8306 (RELATING TO ELIGIBILITY POINTS).
19 "EMPLOYER." ANY GOVERNMENTAL ENTITY DIRECTLY RESPONSIBLE FOR
20 THE EMPLOYMENT AND PAYMENT OF THE SCHOOL EMPLOYEE AND CHARGED
21 WITH THE RESPONSIBILITY OF PROVIDING PUBLIC EDUCATION WITHIN
22 THIS COMMONWEALTH, INCLUDING BUT NOT LIMITED TO: STATE-OWNED
23 COLLEGES AND UNIVERSITIES, THE PENNSYLVANIA STATE UNIVERSITY,
24 COMMUNITY COLLEGES, AREA VOCATIONAL-TECHNICAL SCHOOLS,
25 INTERMEDIATE UNITS, THE STATE BOARD OF EDUCATION, SCOTLAND
26 SCHOOL FOR VETERANS' CHILDREN, THADDEUS STEVENS STATE SCHOOL OF
27 TECHNOLOGY, AND THE PENNSYLVANIA STATE ORAL SCHOOL FOR THE DEAF.
28 "FINAL AVERAGE SALARY." THE HIGHEST AVERAGE COMPENSATION
29 RECEIVED AS AN ACTIVE MEMBER DURING ANY THREE NONOVERLAPPING
30 PERIODS OF 12 CONSECUTIVE MONTHS WITH THE COMPENSATION FOR PART-
19840S1341B2482 - 6 -
1 TIME SERVICE BEING ANNUALIZED ON THE BASIS OF THE FRACTIONAL
2 PORTION OF THE SCHOOL YEAR FOR WHICH CREDIT IS RECEIVED; EXCEPT,
3 IF THE EMPLOYEE WAS NOT A MEMBER FOR THREE SUCH PERIODS, THE
4 TOTAL COMPENSATION RECEIVED AS AN ACTIVE MEMBER ANNUALIZED IN
5 THE CASE OF PART-TIME SERVICE DIVIDED BY THE NUMBER OF SUCH
6 PERIODS OF MEMBERSHIP; AND, IN THE CASE OF A MEMBER WITH
7 MULTIPLE SERVICE CREDIT, THE FINAL AVERAGE SALARY SHALL BE
8 DETERMINED BY REFERENCE TO COMPENSATION RECEIVED BY HIM AS A
9 SCHOOL EMPLOYEE OR A STATE EMPLOYEE OR BOTH.
10 * * * <--
11 "FULL COVERAGE MEMBER." ANY MEMBER FOR WHOM REGULAR MEMBER
12 PICKUP CONTRIBUTIONS ARE BEING PICKED UP OR WHO HAS PAID OR HAS
13 AGREED TO PAY TO THE FUND THE ACTUARIAL EQUIVALENT OF REGULAR
14 MEMBER CONTRIBUTIONS DUE ON ACCOUNT OF SERVICE PRIOR TO JANUARY
15 1, 1983.
16 "FUND." THE PUBLIC SCHOOL EMPLOYEES' RETIREMENT FUND. <--
17 "GOVERNMENTAL ENTITY." BOARD OF SCHOOL DIRECTORS, BOARD OF
18 PUBLIC EDUCATION, INTERMEDIATE UNIT BOARD OF DIRECTORS, AREA
19 VOCATIONAL-TECHNICAL BOARD, ANY GOVERNING BOARD OF ANY AGENCY OR
20 AUTHORITY CREATED BY THEM, AND THE COMMONWEALTH.
21 * * * <--
22 "INACTIVE MEMBER." A MEMBER FOR WHOM NO PICKUP CONTRIBUTIONS
23 ARE BEING MADE, WHO HAS ACCUMULATED DEDUCTIONS STANDING TO HIS
24 CREDIT IN THE FUND AND FOR WHOM CONTRIBUTIONS HAVE BEEN MADE
25 WITHIN THE LAST TWO SCHOOL YEARS OR A MULTIPLE SERVICE MEMBER
26 WHO IS ACTIVE IN THE STATE EMPLOYEES' RETIREMENT SYSTEM.
27 "INTERVENING MILITARY SERVICE." ACTIVE MILITARY SERVICE OF A <--
28 MEMBER WHO WAS A SCHOOL EMPLOYEE IMMEDIATELY PRECEDING HIS
29 INDUCTION INTO THE ARMED SERVICES OR FORCES OF THE UNITED STATES
30 IN ORDER TO MEET A DRAFT OBLIGATION EXCLUDING ANY VOLUNTARY
19840S1341B2482 - 7 -
1 EXTENSION OF SUCH OBLIGATIONAL SERVICE AND WHO BECOMES A SCHOOL
2 EMPLOYEE WITHIN 90 DAYS OF THE EXPIRATION OF SUCH SERVICE.
3 "JOINT COVERAGE MEMBER." ANY MEMBER WHO AGREED PRIOR TO
4 JANUARY 1, 1966 TO MAKE JOINT COVERAGE MEMBER CONTRIBUTIONS TO
5 THE FUND AND HAS NOT ELECTED TO BECOME A FULL COVERAGE MEMBER.
6 "JOINT COVERAGE MEMBER CONTRIBUTIONS." REGULAR MEMBER
7 CONTRIBUTIONS REDUCED FOR A JOINT COVERAGE MEMBER.
8 "MEMBER." ACTIVE MEMBER, INACTIVE MEMBER, ANNUITANT, OR
9 VESTEE.
10 "MEMBER'S ANNUITY." THE SINGLE LIFE ANNUITY WHICH IS
11 ACTUARIALLY EQUIVALENT ON THE EFFECTIVE DATE OF RETIREMENT TO
12 THE ACCUMULATED DEDUCTIONS STANDING TO THE MEMBER'S CREDIT IN
13 THE MEMBERS' SAVINGS ACCOUNT.
14 "MILITARY SERVICE." ALL ACTIVE MILITARY SERVICE FOR WHICH A
15 MEMBER HAS RECEIVED A DISCHARGE OTHER THAN AN UNDESIRABLE, BAD
16 CONDUCT, OR DISHONORABLE DISCHARGE.
17 "MULTIPLE SERVICE." CREDITED SERVICE OF A MEMBER WHO HAS
18 ELECTED TO COMBINE HIS CREDITED SERVICE IN BOTH THE PUBLIC
19 SCHOOL EMPLOYEES' RETIREMENT SYSTEM AND THE STATE EMPLOYEES'
20 RETIREMENT SYSTEM.
21 * * * <--
22 "PICKUP CONTRIBUTIONS." REGULAR OR JOINT COVERAGE MEMBER
23 CONTRIBUTIONS WHICH ARE MADE BY THE EMPLOYER FOR ACTIVE MEMBERS
24 FOR CURRENT SERVICE ON AND AFTER JANUARY 1, 1983.
25 "PREVIOUS SCHOOL SERVICE." SERVICE RENDERED AS A SCHOOL <--
26 EMPLOYEE INCLUDING SERVICE IN ANY SUMMER SCHOOL CONDUCTED BY A
27 SCHOOL DISTRICT OF THE COMMONWEALTH PRIOR TO THE MEMBER'S MOST
28 RECENT ENTRANCE IN THE SYSTEM.
29 "PUBLIC SCHOOL." ANY OR ALL CLASSES OR SCHOOLS WITHIN THIS
30 COMMONWEALTH CONDUCTED UNDER THE ORDER AND SUPERINTENDENCE OF
19840S1341B2482 - 8 -
1 THE DEPARTMENT OF EDUCATION INCLUDING, BUT NOT LIMITED TO: ALL
2 EDUCATIONAL CLASSES OF ANY EMPLOYER CHARGED WITH THE
3 RESPONSIBILITY OF PUBLIC EDUCATION WITHIN THIS COMMONWEALTH AS
4 WELL AS THOSE CLASSES FINANCED WHOLLY OR IN PART BY THE FEDERAL
5 GOVERNMENT, STATE-OWNED COLLEGES AND UNIVERSITIES, THE
6 PENNSYLVANIA STATE UNIVERSITY, COMMUNITY COLLEGES, AREA
7 VOCATIONAL-TECHNICAL SCHOOLS, INTERMEDIATE UNITS, THE STATE
8 BOARD OF EDUCATION, SCOTLAND SCHOOL FOR VETERANS' CHILDREN,
9 THADDEUS STEVENS STATE SCHOOL OF TECHNOLOGY, AND THE
10 PENNSYLVANIA STATE ORAL SCHOOL FOR THE DEAF.
11 "REGULAR MEMBER CONTRIBUTIONS." THE PRODUCT OF THE BASIC
12 CONTRIBUTION RATE AND THE COMPENSATION OF THE MEMBER.
13 "SALARIED EMPLOYEE." A SCHOOL EMPLOYEE WHO IS COMPENSATED ON
14 THE BASIS OF AN ANNUAL SALARY.
15 "SALARY DEDUCTIONS." THE AMOUNTS CERTIFIED BY THE BOARD,
16 DEDUCTED FROM THE COMPENSATION OF AN ACTIVE MEMBER AND PAID INTO
17 THE FUND.
18 "SCHOOL EMPLOYEE." ANY PERSON ENGAGED IN WORK RELATING TO A
19 PUBLIC SCHOOL FOR ANY GOVERNMENTAL ENTITY AND FOR WHICH WORK HE
20 IS RECEIVING REGULAR REMUNERATION AS AN OFFICER, ADMINISTRATOR
21 OR EMPLOYEE EXCLUDING, HOWEVER, ANY INDEPENDENT CONTRACTOR OR A
22 PERSON COMPENSATED ON A FEE BASIS.
23 "SCHOOL SERVICE." SERVICE RENDERED AS A SCHOOL EMPLOYEE.
24 "SCHOOL YEAR." THE 12-MONTH PERIOD WHICH THE GOVERNMENTAL
25 ENTITY USES FOR PURPOSES OF ADMINISTRATION REGARDLESS OF THE
26 ACTUAL TIME DURING WHICH A MEMBER RENDERS SERVICE.
27 "SEVERANCE PAYMENTS." ANY PAYMENTS FOR UNUSED VACATION OR
28 SICK LEAVE AND ANY ADDITIONAL COMPENSATION CONTINGENT UPON
29 RETIREMENT INCLUDING PAYMENTS IN EXCESS OF THE SCHEDULED OR
30 CUSTOMARY SALARIES PROVIDED FOR MEMBERS WITHIN THE SAME
19840S1341B2482 - 9 -
1 GOVERNMENTAL ENTITY WITH THE SAME EDUCATIONAL AND EXPERIENCE
2 QUALIFICATIONS WHO ARE NOT TERMINATING SERVICE.
3 "STANDARD SINGLE LIFE ANNUITY." AN ANNUITY EQUAL TO 2% OF
4 THE FINAL AVERAGE SALARY, MULTIPLIED BY THE TOTAL NUMBER OF
5 YEARS AND FRACTIONAL PART OF A YEAR OF CREDITED SERVICE OF A
6 MEMBER.
7 "STATE EMPLOYEES' RETIREMENT SYSTEM." THE RETIREMENT SYSTEM
8 ESTABLISHED BY THE ACT OF JUNE 27, 1923 (P.L.858, NO.331) AND
9 CODIFIED BY THE ACT OF JUNE 1, 1959 (P.L.392, NO.78) AND BY PART
10 XXV OF TITLE 71 (RELATING TO RETIREMENT FOR STATE EMPLOYEES AND
11 OFFICERS), ADDED MARCH 1, 1974 (P.L.125, NO.31).
12 "STATE SERVICE." SERVICE RENDERED AS A STATE EMPLOYEE AND
13 CREDITED AS SERVICE IN THE STATE EMPLOYEES' RETIREMENT SYSTEM.
14 "STATUTORY INTEREST." INTEREST AT 4% PER ANNUM, COMPOUNDED
15 ANNUALLY.
16 "SUPERANNUATION ANNUITANT." AN ANNUITANT WHOSE ANNUITY
17 BECAME PAYABLE ON OR AFTER THE ATTAINMENT OF SUPERANNUATION AGE.
18 "SUPERANNUATION OR NORMAL RETIREMENT AGE."
19 CLASS OF SERVICE AGE
20 T-A 62 OR ANY AGE UPON ACCRUAL
21 OF 35 ELIGIBILITY POINTS
22 T-B 62
23 T-C 62 OR AGE 60 PROVIDED THE
24 MEMBER HAS AT LEAST 30
25 ELIGIBILITY POINTS OR
26 ANY AGE UPON ACCRUAL OF
27 35 ELIGIBILITY POINTS
28 "SURVIVOR ANNUITANT." THE PERSON OR PERSONS LAST DESIGNATED
29 BY A MEMBER UNDER A JOINT AND SURVIVOR ANNUITY OPTION TO RECEIVE
30 AN ANNUITY UPON THE DEATH OF SUCH MEMBER.
19840S1341B2482 - 10 -
1 "SYSTEM." THE PUBLIC SCHOOL EMPLOYES' RETIREMENT SYSTEM OF
2 PENNSYLVANIA AS ESTABLISHED BY THE ACT OF JULY 18, 1917
3 (P.L.1043, NO.343), AND CODIFIED BY THE ACT OF JUNE 1, 1959
4 (P.L.350, NO.77).
5 * * * <--
6 "VALUATION INTEREST." [INTEREST AT 5 1/2% PER ANNUM, <--
7 COMPOUNDED ANNUALLY AND APPLIED TO ALL ACCOUNTS OTHER THAN THE
8 MEMBERS' SAVINGS ACCOUNT.] INTEREST AT SUCH PERCENTAGE RATE TO <--
9 BE COMPOUNDED ANNUALLY AS ADOPTED FROM TIME TO TIME BY THE BOARD
10 UNDER THE ADVICE OF THE ACTUARY TAKING INTO CONSIDERATION THE
11 ACTUAL INTEREST EARNINGS OF THE SYSTEM FOR PRECEDING YEARS AND
12 THE PROBABLE EARNINGS OF THE SYSTEM IN THE FUTURE.
13 "VESTEE." A MEMBER WITH TEN OR MORE ELIGIBILITY POINTS WHO
14 HAS TERMINATED SCHOOL SERVICE, HAS LEFT HIS ACCUMULATED
15 DEDUCTIONS IN THE FUND, AND IS DEFERRING FILING OF AN
16 APPLICATION FOR RECEIPT OF AN ANNUITY.
17 * * * <--
18 SECTION 2. SECTIONS 8302(A), 8321, 8322.1 AND 8323(A) <--
19 SECTION 8302(A) of Title 24 are IS reenacted to read: <--
20 § 8302. CREDITED SCHOOL SERVICE. <--
21 (A) COMPUTATION OF CREDITED SERVICE.--IN COMPUTING CREDITED
22 SCHOOL SERVICE OF A MEMBER FOR THE DETERMINATION OF BENEFITS, A
23 FULL-TIME SALARIED SCHOOL EMPLOYEE SHALL RECEIVE ONE YEAR OF
24 CREDIT FOR EACH SCHOOL YEAR OR THE CORRESPONDING FRACTION
25 THEREOF, IN ACCORDANCE WITH THE PROPORTION OF THE FULL SCHOOL
26 YEAR FOR WHICH THE REQUIRED REGULAR MEMBER CONTRIBUTIONS HAVE
27 BEEN MADE. A PER DIEM OR HOURLY SCHOOL EMPLOYEE SHALL RECEIVE
28 ONE YEAR OF CREDITED SERVICE FOR EACH NONOVERLAPPING PERIOD OF
29 12 CONSECUTIVE MONTHS IN WHICH HE IS EMPLOYED AND FOR WHICH
30 CONTRIBUTIONS ARE MADE FOR AT LEAST 180 FULL-DAY SESSIONS OR
19840S1341B2482 - 11 -
1 1,100 HOURS OF EMPLOYMENT. IF SUCH MEMBER WAS EMPLOYED AND
2 CONTRIBUTIONS WERE MADE FOR LESS THAN 180 FULL-DAY SESSIONS OR
3 1,100 HOURS, HE SHALL BE CREDITED WITH A FRACTIONAL PORTION OF A
4 YEAR DETERMINED BY THE RATIO OF THE NUMBER OF FULL-DAY SESSIONS
5 OR HOURS OF SERVICE ACTUALLY RENDERED TO 180 FULL-DAY SESSIONS
6 OR 1,100 HOURS, AS THE CASE MAY BE. A PART-TIME SALARIED
7 EMPLOYEE SHALL BE CREDITED WITH THE FRACTIONAL PORTION OF THE
8 YEAR WHICH CORRESPONDS TO THE SERVICE ACTUALLY RENDERED IN
9 RELATION TO THE SERVICE REQUIRED AS A COMPARABLE FULL-TIME
10 SALARIED EMPLOYEE. IN NO CASE SHALL A MEMBER RECEIVE MORE THAN
11 ONE YEAR OF CREDITED SERVICE FOR ANY 12 CONSECUTIVE MONTHS OR A
12 MEMBER WHO HAS ELECTED MULTIPLE SERVICE RECEIVE AN AGGREGATE IN
13 THE TWO SYSTEMS OF MORE THAN ONE YEAR OF CREDITED SERVICE FOR
14 ANY 12 CONSECUTIVE MONTHS.
15 * * *
16 SECTION 3. SECTION 8304(B) OF TITLE 24 IS AMENDED TO READ: <--
17 § 8304. CREDITABLE NONSCHOOL SERVICE.
18 * * *
19 (B) LIMITATIONS ON NONSCHOOL SERVICE.--CREDITABLE NONSCHOOL
20 SERVICE CREDIT SHALL BE LIMITED TO:
21 (1) INTERVENING MILITARY SERVICE.
22 (2) OTHER MILITARY SERVICE NOT EXCEEDING FIVE YEARS.
23 (3) SERVICE IN ANY PUBLIC SCHOOL OR PUBLIC EDUCATIONAL
24 INSTITUTION IN ANY STATE OTHER THAN THIS COMMONWEALTH OR IN
25 ANY TERRITORY OR AREA UNDER THE JURISDICTION OF THE UNITED
26 STATES.
27 (4) SERVICE AS AN ADMINISTRATOR, TEACHER, OR INSTRUCTOR
28 IN THE FIELD OF PUBLIC SCHOOL EDUCATION FOR ANY AGENCY OR
29 DEPARTMENT OF THE GOVERNMENT OF THE UNITED STATES WHETHER OR
30 NOT SUCH AREA WAS UNDER THE JURISDICTION OF THE UNITED
19840S1341B2482 - 12 -
1 STATES.
2 (5) PREVIOUS SERVICE AS AN EMPLOYEE OF A COUNTY BOARD OF
3 SCHOOL DIRECTORS WHICH EMPLOYMENT WAS TERMINATED BECAUSE OF
4 THE TRANSFER OF THE ADMINISTRATION OF SUCH SERVICE OR OF THE
5 ENTIRE AGENCY TO A GOVERNMENTAL ENTITY.
6 (6) PREVIOUS SERVICE AS A COUNTY EMPLOYEE AS A NURSE.
7 FOR EVERY THREE YEARS OR MAJOR FRACTION THEREOF IN PREVIOUS
8 WORK EXPERIENCE, AN INDIVIDUAL MAY BUY ONE YEAR OF CREDITABLE
9 SERVICE, NOT TO EXCEED A TOTAL OF FIVE YEARS. THE PURCHASE OF
10 THIS SERVICE SHALL BEGIN WITHIN THREE YEARS OF THE EMPLOYEE'S
11 ELIGIBILITY TO PURCHASE THIS CREDITABLE SERVICE.
12 * * *
13 SECTION 4. SECTIONS 8321, 8322.1 AND 8323(A) OF TITLE 24 ARE
14 REENACTED TO READ:
15 § 8321. REGULAR MEMBER CONTRIBUTIONS FOR CURRENT SERVICE.
16 REGULAR MEMBER CONTRIBUTIONS SHALL BE MADE TO THE FUND ON
17 BEHALF OF EACH ACTIVE MEMBER FOR CURRENT SERVICE.
18 § 8322.1. PICKUP CONTRIBUTIONS.
19 ALL CONTRIBUTIONS REQUIRED TO BE MADE UNDER SECTIONS 8321
20 (RELATING TO REGULAR MEMBER CONTRIBUTIONS FOR CURRENT SERVICE)
21 AND 8322 (RELATING TO JOINT COVERAGE MEMBER CONTRIBUTIONS), WITH
22 RESPECT TO CURRENT SCHOOL SERVICE RENDERED BY AN ACTIVE MEMBER
23 ON OR AFTER JANUARY 1, 1983, SHALL BE PICKED UP BY THE EMPLOYER
24 AND SHALL BE TREATED AS THE EMPLOYER'S CONTRIBUTION IN
25 DETERMINING TAX TREATMENT UNDER THE UNITED STATES INTERNAL
26 REVENUE CODE FOR FEDERAL TAX PURPOSES. FOR ALL OTHER PURPOSES,
27 UNDER THIS PART AND OTHERWISE, THE PICKUP CONTRIBUTIONS SHALL BE
28 TREATED AS CONTRIBUTIONS MADE BY A MEMBER IN THE SAME MANNER AND
29 TO THE SAME EXTENT AS CONTRIBUTIONS MADE BY A MEMBER PRIOR TO
30 JANUARY 1, 1983.
19840S1341B2482 - 13 -
1 § 8323. MEMBER CONTRIBUTIONS FOR CREDITABLE SCHOOL SERVICE.
2 (A) PREVIOUS SCHOOL SERVICE, SABBATICAL LEAVE AND FULL
3 COVERAGE.--THE CONTRIBUTIONS TO BE PAID BY AN ACTIVE MEMBER OR
4 AN ELIGIBLE STATE EMPLOYEE FOR CREDIT FOR REINSTATEMENT OF ALL
5 PREVIOUSLY CREDITED SCHOOL SERVICE, SCHOOL SERVICE NOT
6 PREVIOUSLY CREDITED, SABBATICAL LEAVE AS IF HE HAD BEEN IN FULL-
7 TIME DAILY ATTENDANCE, OR FULL-COVERAGE MEMBERSHIP SHALL BE
8 SUFFICIENT TO PROVIDE AN AMOUNT EQUAL TO THE ACCUMULATED
9 DEDUCTIONS WHICH WOULD HAVE BEEN STANDING TO THE CREDIT OF THE
10 MEMBER FOR SUCH SERVICE HAD REGULAR MEMBER CONTRIBUTIONS BEEN
11 MADE WITH FULL COVERAGE AT THE RATE OF CONTRIBUTION NECESSARY TO
12 BE CREDITED AS CLASS T-C SERVICE AND HAD SUCH CONTRIBUTIONS BEEN
13 CREDITED WITH STATUTORY INTEREST DURING THE PERIOD THE
14 CONTRIBUTIONS WOULD HAVE BEEN MADE AND DURING ALL PERIODS OF
15 SUBSEQUENT SCHOOL AND STATE SERVICE UP TO THE DATE OF PURCHASE.
16 * * *
17 SECTION 5. SECTION 8324 OF TITLE 24 IS AMENDED BY ADDING A <--
18 SUBSECTION TO READ:
19 § 8324. CONTRIBUTIONS FOR PURCHASE OF CREDIT FOR CREDITABLE
20 NONSCHOOL SERVICE.
21 * * *
22 (E) CREDITABLE WORK EXPERIENCE.--CONTRIBUTIONS ON ACCOUNT OF
23 T-C CREDIT FOR CREDITABLE WORK EXPERIENCE PURSUANT TO SECTION
24 8304(B)(6) SHALL BE THE PRESENT VALUE OF THE FULL ACTUARIAL COST
25 OF THE INCREASE IN THE PROJECTED SUPERANNUATION ANNUITY CAUSED
26 BY THE ADDITIONAL SERVICE CREDITED ON ACCOUNT OF THE PURCHASE OF
27 CREDITABLE WORK EXPERIENCE. THE AMOUNT PAID FOR THE PURCHASE OF
28 CREDIT FOR CREDITABLE WORK EXPERIENCE SHALL NOT BE PAYABLE AS A
29 LUMP SUM UNDER SECTION 8345(A)(4)(III) (RELATING TO MEMBER'S
30 OPTIONS). ANY INDIVIDUAL ELIGIBLE TO RECEIVE AN ANNUITY,
19840S1341B2482 - 14 -
1 EXCLUDING AN ANNUITY RECEIVED UNDER THE FEDERAL SOCIAL SECURITY
2 ACT (42 U.S.C. § 301 ET SEQ.), IN ANOTHER PENSION SYSTEM, OTHER
3 THAN A MILITARY PENSION SYSTEM, SHALL NOT BE ELIGIBLE TO
4 PURCHASE THIS SERVICE.
5 SECTION 3. SECTION 8328(B) OF TITLE 24 IS AMENDED TO READ: <--
6 § 8328. ACTUARIAL COST METHOD.
7 * * *
8 (B) NORMAL CONTRIBUTION RATE.--THE NORMAL CONTRIBUTION RATE
9 SHALL BE DETERMINED AFTER EACH ACTUARIAL VALUATION. UNTIL ALL
10 ACCRUED LIABILITY CONTRIBUTIONS HAVE BEEN COMPLETED, THE NORMAL
11 CONTRIBUTION RATE SHALL BE DETERMINED, ON THE BASIS OF [AN
12 ANNUAL 5 1/2%] THE VALUATION INTEREST RATE AND SUCH MORTALITY
13 AND OTHER TABLES AS SHALL BE ADOPTED BY THE BOARD, AS A LEVEL
14 PERCENTAGE OF THE COMPENSATION OF THE AVERAGE NEW ACTIVE MEMBER,
15 WHICH PERCENTAGE, IF CONTRIBUTED ON THE BASIS OF HIS PROSPECTIVE
16 COMPENSATION THROUGH THE ENTIRE PERIOD OF ACTIVE SCHOOL SERVICE,
17 WOULD BE SUFFICIENT TO FUND THE LIABILITY FOR ANY PROSPECTIVE
18 BENEFIT PAYABLE TO HIM, IN EXCESS OF THAT PORTION FUNDED BY HIS
19 PROSPECTIVE MEMBER CONTRIBUTIONS. AFTER ALL ACCRUED LIABILITY
20 CONTRIBUTIONS HAVE BEEN COMPLETED, THE NORMAL CONTRIBUTION RATE
21 SHALL BE DETERMINED BY DEDUCTING FROM THE PRESENT VALUE OF THE
22 LIABILITIES FOR ALL PROSPECTIVE BENEFITS OF ACTIVE MEMBERS, THE
23 SUM OF THE TOTAL ASSETS IN THE FUND ON THE VALUATION DATE,
24 EXCLUDING THE BALANCE IN THE ANNUITY RESERVE ACCOUNT, AND THE
25 PRESENT VALUE OF PROSPECTIVE MEMBER CONTRIBUTIONS, AND DIVIDING
26 THE REMAINDER BY THE PRESENT VALUE OF THE FUTURE COMPENSATION OF
27 ALL ACTIVE MEMBERS.
28 * * *
29 SECTION 4 6. SECTIONS 8502(M), 8505(G), 8506(C), (D) AND (E) <--
30 AND 8507(B) OF TITLE 24 ARE REENACTED TO READ:
19840S1341B2482 - 15 -
1 § 8502. ADMINISTRATIVE DUTIES OF BOARD.
2 * * *
3 (M) MEMBER CONTRIBUTIONS AND INTEREST.--THE BOARD SHALL
4 CAUSE EACH MEMBER'S CONTRIBUTIONS, INCLUDING PAYROLL DEDUCTIONS,
5 PICKUP CONTRIBUTIONS AND ALL OTHER PAYMENTS, TO BE CREDITED TO
6 THE ACCOUNT OF SUCH MEMBER AND SHALL PAY ALL SUCH AMOUNTS INTO
7 THE FUND. SUCH CONTRIBUTIONS SHALL BE CREDITED WITH STATUTORY
8 INTEREST UNTIL DATE OF TERMINATION OF SERVICE, EXCEPT IN THE
9 CASE OF A VESTEE, WHO SHALL HAVE SUCH INTEREST CREDITED UNTIL
10 THE EFFECTIVE DATE OF RETIREMENT OR UNTIL THE RETURN OF HIS
11 ACCUMULATED DEDUCTIONS, IF HE SO ELECTS; AND IN THE CASE OF A
12 MULTIPLE SERVICE MEMBER WHO SHALL HAVE SUCH INTEREST CREDITED
13 UNTIL TERMINATION OF SERVICE IN BOTH THE SCHOOL AND THE STATE
14 SYSTEMS.
15 * * *
16 § 8505. DUTIES OF BOARD REGARDING APPLICATIONS AND
17 ELECTIONS OF MEMBERS.
18 * * *
19 (G) INITIAL ANNUITY PAYMENT AND CERTIFICATION.--THE BOARD
20 SHALL MAKE THE FIRST MONTHLY PAYMENT TO A MEMBER WHO IS ELIGIBLE
21 FOR AN ANNUITY WITHIN 60 DAYS OF THE FILING OF HIS APPLICATION
22 FOR AN ANNUITY AND RECEIPT OF THE REQUIRED DATA FROM THE
23 EMPLOYER OF THE MEMBER. CONCURRENTLY THE BOARD SHALL CERTIFY TO
24 SUCH MEMBER:
25 (1) THE ACCUMULATED DEDUCTIONS STANDING TO HIS CREDIT
26 SHOWING SEPARATELY THE AMOUNT CONTRIBUTED BY THE MEMBER, THE
27 PICKUP CONTRIBUTION AND THE INTEREST CREDITED TO THE DATE OF
28 TERMINATION OF SERVICE.
29 (2) THE NUMBER OF YEARS AND FRACTIONAL PART OF A YEAR
30 CREDITED IN EACH CLASS OF SERVICE.
19840S1341B2482 - 16 -
1 (3) THE FINAL AVERAGE SALARY ON WHICH HIS ANNUITY IS
2 BASED AS WELL AS ANY APPLICABLE REDUCTION FACTORS DUE TO AGE
3 OR ELECTION OF AN OPTION OR BOTH.
4 (4) THE TOTAL ANNUITY PAYABLE UNDER THE OPTION ELECTED
5 AND THE AMOUNT AND EFFECTIVE DATE OF ANY FUTURE REDUCTION ON
6 ACCOUNT OF SOCIAL SECURITY OLD-AGE INSURANCE BENEFITS.
7 * * *
8 § 8506. DUTIES OF EMPLOYERS.
9 * * *
10 (C) MEMBER AND EMPLOYER CONTRIBUTIONS.--THE EMPLOYER SHALL
11 CERTIFY TO ITS TREASURER THE REQUIRED MEMBER CONTRIBUTIONS
12 PICKED UP AND ANY OTHER CONTRIBUTIONS DEDUCTED FROM EACH
13 PAYROLL. THE TREASURER SHALL REMIT TO THE SECRETARY OF THE BOARD
14 EACH MONTH THE TOTAL OF THE MEMBER CONTRIBUTIONS AND THE AMOUNT
15 DUE FROM THE EMPLOYER DETERMINED IN ACCORDANCE WITH SECTION 8327
16 (RELATING TO PAYMENTS BY EMPLOYERS).
17 (D) NEW EMPLOYEES SUBJECT TO MANDATORY MEMBERSHIP.--UPON THE
18 ASSUMPTION OF DUTIES OF EACH NEW SCHOOL EMPLOYEE WHOSE
19 MEMBERSHIP IN THE SYSTEM IS MANDATORY, THE EMPLOYER SHALL NO
20 LATER THAN 30 DAYS THEREAFTER CAUSE AN APPLICATION FOR
21 MEMBERSHIP, WHICH APPLICATION SHALL INCLUDE THE EMPLOYEE'S HOME
22 ADDRESS, BIRTHDATE CERTIFIED BY THE EMPLOYER, PREVIOUS SCHOOL OR
23 STATE SERVICE AND ANY OTHER INFORMATION REQUESTED BY THE BOARD,
24 AND A NOMINATION OF BENEFICIARY TO BE MADE BY SUCH EMPLOYEE AND
25 FILED WITH THE BOARD AND SHALL MAKE PICKUP CONTRIBUTIONS FROM
26 THE EFFECTIVE DATE OF SCHOOL EMPLOYMENT.
27 (E) NEW EMPLOYEES SUBJECT TO OPTIONAL MEMBERSHIP.--THE
28 EMPLOYER SHALL INFORM ANY ELIGIBLE SCHOOL EMPLOYEE WHOSE
29 MEMBERSHIP IN THE SYSTEM IS NOT MANDATORY OF HIS OPPORTUNITY TO
30 BECOME A MEMBER OF THE SYSTEM PROVIDED THAT HE ELECTS TO
19840S1341B2482 - 17 -
1 PURCHASE CREDIT FOR ALL SUCH CONTINUOUS CREDITABLE SERVICE. IF
2 SUCH EMPLOYEE SO ELECTS, THE EMPLOYER SHALL NO LATER THAN 30
3 DAYS THEREAFTER CAUSE AN APPLICATION FOR MEMBERSHIP WHICH
4 APPLICATION SHALL INCLUDE THE EMPLOYEE'S HOME ADDRESS, BIRTHDATE
5 CERTIFIED BY THE EMPLOYER, PREVIOUS SCHOOL OR STATE SERVICE AND
6 ANY OTHER INFORMATION REQUESTED BY THE BOARD, AND A NOMINATION
7 OF BENEFICIARY TO BE MADE BY HIM AND FILED WITH THE BOARD AND
8 SHALL CAUSE PROPER CONTRIBUTIONS TO BE MADE FROM THE DATE OF
9 ELECTION OF MEMBERSHIP.
10 * * *
11 § 8507. RIGHTS AND DUTIES OF SCHOOL EMPLOYEES AND MEMBERS.
12 * * *
13 (B) APPLICATION FOR MEMBERSHIP.--A NEW EMPLOYEE WHO IS NOT
14 CURRENTLY A MEMBER OF THE SYSTEM AND WHOSE MEMBERSHIP IS
15 MANDATORY OR A NEW EMPLOYEE WHOSE MEMBERSHIP IN THE SYSTEM IS
16 NOT MANDATORY BUT WHO DESIRES TO BECOME A MEMBER OF THE SYSTEM
17 SHALL EXECUTE AN APPLICATION FOR MEMBERSHIP AND A NOMINATION OF
18 BENEFICIARY.
19 * * *
20 SECTION 5. SECTION 8521(B) OF TITLE 24 IS AMENDED TO READ: <--
21 § 8521. MANAGEMENT OF FUND AND ACCOUNTS.
22 * * *
23 (B) CREDITING OF INTEREST.--THE BOARD ANNUALLY SHALL ALLOW
24 STATUTORY INTEREST TO THE CREDIT OF THE MEMBERS' SAVINGS ACCOUNT
25 ON THE MEAN AMOUNT OF THE ACCUMULATED DEDUCTIONS OF ALL MEMBERS
26 FOR WHOM INTEREST IS PAYABLE FOR THE PRECEDING YEAR AND
27 VALUATION INTEREST ON THE MEAN AMOUNT OF THE ANNUITY RESERVE
28 ACCOUNT FOR THE PRECEDING YEAR TO THE CREDIT OF THAT ACCOUNT.
29 THE BOARD ANNUALLY SHALL ALLOW VALUATION INTEREST CALCULATED ON
30 THE MEAN AMOUNT FOR THE PRECEDING YEAR OF THE BALANCE IN THE
19840S1341B2482 - 18 -
1 STATE ACCUMULATION ACCOUNT EXCLUDING ANY EARNINGS OF THE FUND
2 CREDITED TO THE ACCOUNT DURING THAT YEAR. IN THE EVENT THE TOTAL
3 EARNINGS FOR THE YEAR DO NOT EXCEED [5 1/2%] THAT PERCENTAGE OF
4 THE MEAN AMOUNT FOR THE PRECEDING YEAR OF THE TOTAL ASSETS OF
5 THE FUND LESS EARNINGS CREDITED TO THE FUND DURING THAT YEAR
6 PLUS THE ADMINISTRATIVE EXPENSES OF THE BOARD REPRESENTED BY
7 INTEREST AT THE VALUATION RATE, THE DIFFERENCE REQUIRED TO BE
8 APPROPRIATED FROM THE GENERAL FUND SHALL BE CREDITED TO THE
9 STATE ACCUMULATION ACCOUNT.
10 * * *
11 SECTION 6 7. SECTION 8523(A) OF TITLE 24 IS REENACTED TO <--
12 READ:
13 § 8523. MEMBERS' SAVINGS ACCOUNT.
14 (A) CREDITS TO ACCOUNT.--THE MEMBERS' SAVINGS ACCOUNT SHALL
15 BE THE LEDGER ACCOUNT TO WHICH SHALL BE CREDITED THE AMOUNTS OF
16 THE PICKUP CONTRIBUTIONS MADE BY THE EMPLOYER AND CONTRIBUTIONS
17 OR LUMP SUM PAYMENTS MADE BY ACTIVE MEMBERS IN ACCORDANCE WITH
18 THE PROVISIONS OF CHAPTER 83 (RELATING TO MEMBERSHIP,
19 CONTRIBUTIONS AND BENEFITS).
20 * * *
21 SECTION 7 8. THE PROVISIONS OF SECTION 7 OF THE ACT OF JULY <--
22 9, 1981 (P.L.208, NO.66), KNOWN AS THE PUBLIC EMPLOYEE
23 RETIREMENT STUDY COMMISSION ACT, ARE SUSPENDED FOR THE PURPOSE
24 OF CONSIDERING THIS BILL AND ALL AMENDMENTS TO IT.
25 SECTION 8 9. THE RULES AND REGULATIONS FORMERLY ADOPTED AND <--
26 PROMULGATED BY THE BOARD PURSUANT TO THE PICKUP CONTRIBUTION
27 PROVISIONS OF 24 PA.C.S. PART IV (RELATING TO RETIREMENT FOR
28 SCHOOL EMPLOYEES), TO THE EXTENT APPLICABLE, SHALL REMAIN IN
29 FULL FORCE AND EFFECT FOR PURPOSES OF IMPLEMENTING THIS ACT.
30 PURSUANT TO THE RULES AND REGULATIONS, THE EMPLOYER SHALL PICK
19840S1341B2482 - 19 -
1 UP THE REQUIRED CONTRIBUTIONS BY A REDUCTION IN THE COMPENSATION
2 OF THE EMPLOYEE.
3 SECTION 9 10. THE PROVISIONS OF SECTION 1 (SECTION 8102 <--
4 INSOFAR AS IT RELATES TO PICKUP CONTRIBUTIONS) AND SECTIONS 2, 4 <--
5 AND 5 3, 4, 7 AND 8 OF THIS ACT SHALL BE RETROACTIVE TO JANUARY
6 1, 1983.
7 SECTION 10. THIS ACT SHALL TAKE EFFECT IMMEDIATELY. <--
8 SECTION 11. (A) SECTIONS 3 AND 5 OF THIS ACT SHALL TAKE
9 EFFECT IN 60 DAYS.
10 (B) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
C2L84RZ/19840S1341B2482 - 20 -