HOUSE AMENDED
PRIOR PRINTER'S NOS. 250, 279 PRINTER'S NO. 703
No. 244 Session of 1985
INTRODUCED BY HOWARD, STAUFFER, FISHER, LEWIS, SHAFFER, MELLOW,
REIBMAN, PECORA, CORMAN, HOPPER AND KRATZER, JANUARY 25, 1985
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, MARCH 25, 1985
AN ACT
1 Amending Titles 24 (Education) and 71 (State Government) of the
2 Pennsylvania Consolidated Statutes, clarifying duties of the
3 boards regarding disability applications; clarifying
4 provisions for certain creditable service; providing for
5 certain installment payments; FURTHER PROVIDING FOR <--
6 ADDITIONAL CREDITABLE NONSTATE SERVICE; and modifying
7 eligibility for special early retirement in the State system.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. Sections 8312, 8327(a), 8345(a) and 8505(c) and <--
11 (d) of Title 24 of the Pennsylvania Consolidated Statutes are
12 amended to read:
13 § 8312. Eligibility for special early retirement. <--
14 Notwithstanding any provisions of this title to the contrary,
15 for the period only of July 1, 1985 to June 30, 1986, the
16 following special early retirement provisions shall be
17 applicable to specified eligible members as follows:
18 (1) During the period of July 1, 1985 to June 30, 1986,
19 any active member who has attained the age of at least 53
1 years and has credit for at least 30 eligibility points shall
2 be entitled, upon termination of service and filing of a
3 proper application, to receive a maximum single life annuity
4 calculated pursuant to section 8342 (relating to maximum
5 single life annuity) without any reduction by virtue of an
6 effective date of retirement which is under the
7 superannuation age.
8 (2) During the period of July 1, 1985 to June 30, 1986,
9 any active member who has attained the age of at least 50
10 years but not greater than 53 years and has credit for at
11 least 30 eligibility points shall be entitled, upon
12 termination of service and filing of a proper application, to
13 receive a maximum single life annuity calculated pursuant to
14 section 8342 with a reduction by virtue of an effective date
15 of retirement which is under the superannuation age of a
16 percentage determined by multiplying the number of months,
17 including a fraction of a month as a full month, by which the
18 effective date of retirement precedes the attainment of age
19 53 by 0.25%.
20 (3) The special early retirement provisions shall not
21 apply to benefits payable under section 8347 (relating to
22 death benefits) except to the extent that such benefits enter
23 into the determination of the amounts payable under section
24 8347(c).
25 § 8327. Payments by employers.
26 (a) General rule.--Each employer, including the Commonwealth
27 as employer of employees of the Department of Education, State-
28 owned colleges and universities, Thaddeus Stevens [Trade] State
29 School of Technology, Pennsylvania State Oral School for the
30 Deaf, Scotland School for Veterans' Children, and the
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1 Pennsylvania State University, shall make payments to the fund
2 each quarter in an amount equal to one-half the sum of the
3 percentages, as determined under section 8328 (relating to
4 actuarial cost method), applied to the total compensation during
5 the pay periods in the preceding quarter of all its employees
6 who were members of the system during such period.
7 * * *
8 § 8345. Member's options.
9 (a) General rule.--Any vestee with ten or more eligibility
10 points or any other eligible member upon termination of school
11 service who has not withdrawn his accumulated deductions as
12 provided in section 8341 (relating to return of accumulated
13 deductions) may apply for and elect to receive either a maximum
14 single life annuity, as calculated in accordance with the
15 provisions of section 8342 (relating to maximum single life
16 annuity), or a reduced annuity certified by the actuary to be
17 actuarially equivalent to the maximum single life annuity and in
18 accordance with one of the following options, except that no
19 member shall elect an annuity payable to one or more survivor
20 annuitants other than his spouse of such a magnitude that the
21 present value of the annuity payable to him for life plus any
22 lump sum payment he may have elected to receive is less than 50%
23 of the present value of his maximum single life annuity.
24 (1) Option 1.--A life annuity to the member with a
25 guaranteed total payment equal to the present value of the
26 maximum single life annuity on the effective date of
27 retirement with the provision that, if, at his death, he has
28 received less than such present value, the unpaid balance
29 shall be payable to his beneficiary.
30 (2) Option 2.--A joint and survivor annuity payable
19850S0244B0703 - 3 -
1 during the lifetime of the member with the full amount of
2 such annuity payable thereafter to his survivor annuitant, if
3 living at his death.
4 (3) Option 3.--A joint and fifty percent (50%) survivor
5 annuity payable during the lifetime of the member with one-
6 half of such annuity payable thereafter to his survivor
7 annuitant, if living at his death.
8 (4) Option 4.--Some other benefit which shall be
9 certified by the actuary to be actuarially equivalent to the
10 maximum single life annuity, subject to the following
11 restrictions:
12 (i) Any annuity shall be payable without reduction
13 during the lifetime of the member except as the result of
14 the member's election to receive an annuity reduced upon
15 attainment of age 65, in anticipation of the receipt of a
16 social security benefit.
17 (ii) The sum of all annuities payable to the
18 designated survivor annuitants shall not be greater than
19 one and one-half times the annuity payable to the member.
20 (iii) A portion of the benefit may be payable as a
21 lump sum, except that such lump sum payment [shall be
22 limited to one such payment and it] shall not exceed an
23 amount equal to the accumulated deductions standing to
24 the credit of the member. The balance of the present
25 value of the maximum single life annuity adjusted in
26 accordance with section 8342(b) shall be paid in the form
27 of an annuity with a guaranteed total payment, a single
28 life annuity, or a joint and survivor annuity or any
29 combination thereof but subject to the restrictions of
30 subparagraphs (i) and (ii) of this paragraph.
19850S0244B0703 - 4 -
1 * * *
2 § 8505. Duties of board regarding applications and elections of
3 members.
4 * * *
5 (c) Disability annuities.--In every case where the board has
6 received an application for a disability annuity based upon
7 physical or mental incapacity for the performance of the job for
8 which the member is employed, the board shall:
9 (1) Through the [chief] medical examiner, have the
10 [applicant examined] application and any supporting medical
11 records and other documentation submitted with the
12 application reviewed and, on the basis of said [examination]
13 review and the subsequent recommendation by the [chief]
14 medical examiner regarding the applicant's medical
15 qualification for a disability annuity along with such other
16 recommendations which he may make with respect to the
17 permanency of disability or the need for subsequent
18 [reexaminations] reviews, make a finding of disability or
19 nondisability and, in the case of disability, establish an
20 effective date of disability and the terms and conditions
21 regarding subsequent [reexaminations] reviews.
22 (2) Upon the recommendation of the [chief] medical
23 examiner on the basis of a review of subsequent medical
24 [examinations] reports submitted with an application for
25 continuance of disability, make a finding of disability or
26 nondisability and, in the case of a finding of nondisability,
27 establish the date of termination of disability and at that
28 time discontinue any annuity payments in excess of any
29 annuity to which he may be otherwise entitled under section
30 8342 (relating to maximum single life annuity).
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1 (3) Upon receipt of a written statement from a
2 disability annuitant of his earned income of the previous
3 year, adjust the payments of the disability annuity for the
4 following year in accordance with the provisions for a
5 reduction of disability payments of section 8344 (relating to
6 disability annuities).
7 [(d) Withdrawal of accumulated deductions.--Upon receipt of
8 an application to withdraw his accumulated deductions executed
9 by a member who is terminating school service and the required
10 data from the employer, the board shall pay to such member
11 within 60 days after filing the application or termination of
12 school service, whichever is later, the accumulated deductions
13 standing to his credit.]
14 * * *
15 Section 2. Title 24 is amended by adding a section to read:
16 § 8505.1. Installment payments of accumulated deductions.
17 (a) General rule.--Notwithstanding any other provision of
18 this part, whenever a member elects to withdraw his accumulated
19 deductions pursuant to section 8310 (relating to eligibility for
20 refunds) or 8341 (relating to return of accumulated deductions),
21 or elects to receive a portion of his benefit payable as a lump
22 sum pursuant to section 8345(a)(4)(iii) (relating to member's
23 options), the member may elect to receive the amount in not more
24 than four installments.
25 (b) Payment of first installment.--The payment of the first
26 installment shall be made in the amount and within seven days of
27 the date specified by the member, except as follows:
28 (1) Upon receipt of a member's application to withdraw
29 his accumulated deductions as provided in section 8310 or
30 8341 and upon receipt of all required data from the employer,
19850S0244B0703 - 6 -
1 the board shall not be required to pay the first installment
2 prior to 45 days after the filing of the application and the
3 receipt of the data or the date of termination of service,
4 whichever is later.
5 (2) In the case of an election as provided in section
6 8345(a)(4)(iii) by a member terminating service within 60
7 days prior to the end of a calendar year and upon receipt of
8 all required data from the employer, the board shall not be
9 required to pay the first installment prior to 21 days after
10 the later of the filing of the application and the receipt of
11 the data or date of termination of service but, unless
12 otherwise directed by the member, the payment shall be made
13 no later than 45 days after the filing of the application and
14 the receipt of the data or the date of termination of
15 service, whichever is later.
16 (3) In the case of an election as provided in section
17 8345(a)(4)(iii) by a member who is not terminating service
18 within 60 days prior to the end of a calendar year and upon
19 receipt of all required data from the employer, the board
20 shall not be required to pay the first installment prior to
21 45 days after the filing of the application and the receipt
22 of the data or the date of termination of service, whichever
23 is later.
24 (c) Payment of subsequent installments.--The payment of
25 subsequent installments shall be made at the time annuity checks
26 are payable for the month and year specified by the member.
27 (d) Statutory interest.--Any lump sum or installment payable
28 shall include statutory interest credited to the date of
29 payment, except in the case of a member, other than a vestee,
30 who has not filed his application prior to 90 days following his
19850S0244B0703 - 7 -
1 date of termination of service.
2 Section 3. Sections 5303, 5304(c), 5308.1, 5505(c), 5704(e),
3 5705(a), 5707(d) and 5905(c) and (d) of Title 71 are amended to
4 read:
5 § 5303. Retention and reinstatement of service credits.
6 (a) Eligibility points for accrued credited service.--
7 Eligibility points shall be computed in accordance with section
8 5307 (relating to eligibility points) with respect to all
9 credited service accrued as of the effective date of this part.
10 (b) Eligibility points for prospective credited service.--
11 Every active member of the system or a multiple service member
12 who is a school employee and a member of the Public School
13 Employees' Retirement System on or after the effective date of
14 this part shall receive eligibility points in accordance with
15 section 5307 for current State service, previous State service,
16 or creditable nonstate service upon compliance with sections
17 5501 (relating to regular member contributions for current
18 service), 5504 (relating to member contributions for the
19 purchase of credit for previous State service or to become a
20 full coverage member), 5505 (relating to contributions for the
21 purchase of credit for creditable nonstate service), 5505.1
22 (relating to additional member contributions) or 5506 (relating
23 to incomplete payments). The class or classes of service in
24 which the member may be credited for previous State service
25 prior to the effective date of this part shall be the class or
26 classes in which he was or could have at any time elected to be
27 credited for such service. The class of service in which a
28 member shall be credited for service subsequent to the effective
29 date of this part shall be determined in accordance with section
30 5306 (relating to classes of service).
19850S0244B0703 - 8 -
1 (c) Election for purchase of certain creditable service.--
2 Every active member of the system or a multiple service member
3 who is a school employee and a member of the Public School
4 Employees' Retirement System who was employed by the Applied
5 Research Laboratory of The Pennsylvania State University prior
6 to June 3, 1984, and did not receive or is not receiving a
7 retirement or pension benefit as a result of that service may
8 elect to have the period of employment with the Applied Research
9 Laboratory treated as previous State service upon compliance
10 with sections 5504 and 5506 upon waiver in writing of any
11 benefit that he is entitled to under any other pension or
12 retirement plan by virtue of that service. If a member elects to
13 receive this previous State service credit, The Pennsylvania
14 State University shall make employer contributions equal to the
15 amount that would have been contributed had employer
16 contributions been made to the system concurrently with the
17 rendering of the service, plus valuation interest to the day of
18 the crediting of the service. Notwithstanding the provisions of
19 section 5504, the amount due as member contributions and
20 interest for an employee who is employed by the Applied Research
21 Laboratory on June 3, 1984, who elects to purchase this credit
22 with the State Employees' Retirement System shall not exceed the
23 amount of contributions and interest certified as having been
24 made to the pension plan administered by the Applied Research
25 Laboratory during his employment with the Applied Research
26 Laboratory. The Pennsylvania State University shall pay as
27 member contributions the difference between this amount and the
28 amount otherwise due under sections 5504 and 5506. The
29 additional contributions paid by The Pennsylvania State
30 University shall not be considered compensation for purposes of
19850S0244B0703 - 9 -
1 this part.
2 § 5304. Creditable nonstate service.
3 * * *
4 (c) Limitations on nonstate service.--Creditable nonstate
5 service credit shall be limited to:
6 (1) intervening military service;
7 (2) other military service not exceeding five years;
8 (3) service in any public school or public educational
9 institution in any state other than this Commonwealth or in
10 any territory or area under the jurisdiction of the United
11 States; or service as an administrator, teacher, or
12 instructor in the field of education for any agency or
13 department of the government of the United States, whether or
14 not such area was under the jurisdiction of the United
15 States, the total of such service not exceeding the lesser of
16 ten years or the number of years of active membership in the
17 system, as an officer or employee of the Department of
18 Education or as an administrator, teacher, or instructor
19 employed in any State-owned educational institution or The
20 Pennsylvania State University; or <--
21 (4) previous service with a governmental agency other
22 than the Commonwealth which employment with said agency was
23 terminated because of the transfer by statute of the
24 administration of such service or of the entire agency to the
25 Commonwealth[; or <--
26 (5) [service by an employee in the Applied Research <--
27 Laboratory of The Pennsylvania State University prior to such
28 employee's election of membership in the system, provided
29 such previous service is certified by the university and
30 contributions are agreed upon and made by the university in
19850S0244B0703 - 10 -
1 accordance with sections 5505 (relating to contributions for
2 the purchase of credit for creditable nonstate service) and
3 5507(a) (relating to contributions by the Commonwealth and
4 other employers)] PREVIOUS SERVICE WITH A COUNTY, CITY, <--
5 BOROUGH, INCORPORATED TOWN OR TOWNSHIP, THE TOTAL OF SUCH
6 SERVICE NOT TO EXCEED FIVE YEARS, SUBJECT TO THE FOLLOWING
7 LIMITATIONS:
8 (I) THAT DURING SUCH SERVICE THE PERSON WAS EITHER
9 (A) A FULL-TIME EMPLOYEE; OR
10 (B) AN ELECTED OR APPOINTED OFFICIAL COVERED BY
11 A LOCAL RETIREMENT SYSTEM;
12 (II) DURING SUCH SERVICE THE EMPLOYEE WAS AN ACTIVE
13 MEMBER OF THE LOCAL RETIREMENT SYSTEM, OR IN THE EVENT
14 THAT NO LOCAL RETIREMENT SYSTEM EXISTED DURING THAT
15 PERSON'S PERIOD OF EMPLOYMENT, THAT PERSON WOULD BE
16 ELIGIBLE TO BE AN ACTIVE MEMBER IN THE PRESENT LOCAL
17 RETIREMENT SYSTEM; AND
18 (III) THAT THE PERIOD OF SUCH SERVICE USED FOR THIS
19 PARAGRAPH SHALL NOT BE INCLUDED IN OR COMPUTED AS PART OF
20 THE TOTAL SERVICE TIME WITH A COUNTY, CITY, BOROUGH,
21 INCORPORATED TOWN OR TOWNSHIP.
22 * * *
23 § 5308.1. Eligibility for special early retirement.
24 Notwithstanding any provisions of this title to the contrary,
25 for the period only of July 1, 1985 to June 30, 1986, the
26 following special early retirement provisions shall be
27 applicable to specified eligible members as follows:
28 (1) During the period of July 1, 1985 to June 30, 1986,
29 any active member who has attained the age of at least 53
30 years and has [credit for] accrued at least 30 [years of
19850S0244B0703 - 11 -
1 credited State or school service] eligibility points shall be
2 entitled, upon termination of State service and compliance
3 with section 5907(f) (relating to rights and duties of State
4 employees and members), to receive a maximum single life
5 annuity calculated pursuant to section 5702 (relating to
6 maximum single life annuity) without any reduction by virtue
7 of an effective date of retirement which is under the
8 superannuation age.
9 (2) During the period of July 1, 1985 to June 30, 1986,
10 any active member who has attained the age of at least 50
11 years but not greater than 53 years and has [credit for]
12 accrued at least 30 [years of credited State or school
13 service] eligibility points shall be entitled, upon
14 termination of State service and compliance with section
15 5907(f), to receive a maximum single life annuity calculated
16 pursuant to section 5702 with a reduction by virtue of an
17 effective date of retirement which is under the
18 superannuation age of a percentage factor which shall be
19 determined by multiplying the number of months, including a
20 fraction of a month as a full month, by which the effective
21 date of retirement precedes the attainment of age 53 by
22 0.25%.
23 (3) The special early retirement provisions shall not
24 apply to benefits payable under section 5707 (relating to
25 death benefits) except to the extent that such benefits enter
26 into the determination of the amounts payable under section
27 5707(c).
28 § 5505. Contributions for the purchase of credit for creditable
29 nonstate service.
30 * * *
19850S0244B0703 - 12 -
1 (c) Intervening military service.--Contributions on account
2 of credit for intervening military service shall be determined
3 by the member's contribution rate, the additional contribution
4 rate and compensation at the time of entry of the member into
5 active military service, together with statutory interest during
6 all periods of subsequent State and school service to date of
7 purchase. Upon application for such credit the amount due shall
8 be certified in the case of each member by the board in
9 accordance with methods approved by the actuary, and
10 contributions may be made by:
11 (1) regular monthly payments during active military
12 service; or
13 (2) a lump sum payment within 30 days of certification;
14 or
15 (3) salary deductions in amounts agreed upon by the
16 member and the board.
17 * * *
18 § 5704. Disability annuities.
19 * * *
20 (e) Termination of State service.--Upon termination of
21 disability annuity payments in excess of an annuity calculated
22 in accordance with section 5702, a disability annuitant who does
23 not return to State service may file an application with the
24 board for an amount equal to the excess, if any, of the [total]
25 sum of the regular and additional accumulated deductions
26 standing to his credit at the effective date of disability over
27 one-third of the total disability annuity payments received. If
28 the annuitant on the date of termination of service was eligible
29 for an annuity as provided in section 5308(b) (relating to
30 eligibility for annuities), he may file an application with the
19850S0244B0703 - 13 -
1 board for an election of an optional modification of his
2 annuity.
3 * * *
4 § 5705. Member's options.
5 (a) General rule.--Any vestee having ten or more eligibility
6 points or any other eligible member upon termination of State
7 service who has not withdrawn his total accumulated deductions
8 as provided in section 5701 (relating to return of total
9 accumulated deductions) may apply for and elect to receive
10 either a maximum single life annuity, as calculated in
11 accordance with the provisions of section 5702 (relating to
12 maximum single life annuity), or a reduced annuity certified by
13 the actuary to be actuarially equivalent to the maximum single
14 life annuity and in accordance with one of the following
15 options; except that no member shall elect an annuity payable to
16 one or more survivor annuitants other than his spouse of such a
17 magnitude that the present value of the annuity payable to him
18 for life plus any lump sum payment he may have elected to
19 receive is less than 50% of the present value of his maximum
20 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.
19850S0244B0703 - 14 -
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 except as the result of
11 the member's election to receive an annuity reduced upon
12 attainment of age 65, in anticipation of the receipt of a
13 social security benefit;
14 (ii) the sum of all annuities payable to the
15 designated survivor annuitants shall not be greater than
16 one and one-half times the annuity payable to the member;
17 and
18 (iii) a portion of the benefit may be payable as a
19 lump sum, except that such lump sum payment [shall be
20 limited to one such payment and it] shall not exceed an
21 amount equal to the total accumulated deductions standing
22 to the credit of the member. The balance of the present
23 value of the maximum single life annuity adjusted in
24 accordance with section 5702(b) shall be paid in the form
25 of an annuity with a guaranteed total payment, a single
26 life annuity, or a joint and survivor annuity or any
27 combination thereof but subject to the restrictions of
28 subparagraphs (i) and (ii) under this option.
29 * * *
30 § 5707. Death benefits.
19850S0244B0703 - 15 -
1 * * *
2 (d) Disability annuitants ineligible for withdrawal
3 annuity.--In the event of the death of a disability annuitant
4 who was not entitled to receive benefits under subsection (a),
5 his beneficiary shall be paid the excess of the [total] sum of
6 the regular and additional accumulated deductions standing to
7 his credit on the effective date of disability over one-third of
8 the total disability payments received.
9 * * *
10 § 5905. Duties of the board regarding applications and
11 elections of members.
12 * * *
13 (c) Disability annuities.--In every case where the board has
14 received an application for a disability annuity based upon
15 physical or mental incapacity for the performance of the job for
16 which the member is employed, taking into account relevant
17 decisions by The Pennsylvania Workmen's Compensation Board, the
18 board shall:
19 (1) through the [chief] medical examiner, have the
20 [applicant examined] application and any supporting medical
21 records and other documentation submitted with the
22 application reviewed and on the basis of said [examination]
23 review, and the subsequent recommendation by the [chief]
24 medical examiner regarding the applicant's medical
25 qualification for a disability annuity along with such other
26 recommendations which he may make with respect to the
27 permanency of disability or the need for subsequent
28 [reexaminations] reviews, make a finding of disability and
29 whether or not the disability is service connected or
30 nondisability and in the case of disability establish an
19850S0244B0703 - 16 -
1 effective date of disability and the terms and conditions
2 regarding subsequent [reexaminations] reviews;
3 (2) upon the recommendation of the [chief] medical
4 examiner on the basis of a review of subsequent medical
5 [examinations] reports submitted with an application for
6 continuance of disability, make a finding of continued
7 disability and whether or not the disability continues to be
8 service connected, or a finding of nondisability; and in the
9 case of a finding that the disability is no longer service
10 connected, discontinue any supplemental payments on account
11 of such service connected disability as of the date of the
12 finding; and in the case of a finding of nondisability
13 establish the date of termination of disability and at that
14 time discontinue any annuity payments in excess of an annuity
15 calculated in accordance with section 5702 (relating to
16 maximum single life annuity); and
17 (3) upon receipt of a written statement from a
18 disability annuitant of his earned income of the previous
19 quarter, adjust the payments of the disability annuity for
20 the following quarter in accordance with the provisions of
21 section 5704(c) (relating to disability annuities).
22 [(d) Withdrawal of accumulated deductions.--Upon receipt of a
23 member's application to withdraw his total accumulated
24 deductions and any data required from the head of the
25 department, the board shall pay to such member within 60 days
26 after filing the application or termination of State service
27 whichever is later the total accumulated deductions standing to
28 his credit.]
29 * * *
30 Section 4. Title 71 is amended by adding a section to read:
19850S0244B0703 - 17 -
1 § 5905.1. Installment payments of accumulated deductions.
2 (a) General rule.--Notwithstanding any other provision of
3 this part, whenever a member elects to withdraw his total
4 accumulated deductions pursuant to section 5311(a) (relating to
5 eligibility for refunds) or 5701 (relating to return of total
6 accumulated deductions), or elects to receive a portion of his
7 benefit payable as a lump sum pursuant to section
8 5705(a)(4)(iii) (relating to member's options), the member may
9 elect to receive the amount in not more than four installments.
10 (b) Payment of first installment.--The payment of the first
11 installment shall be made in the amount and within seven days of
12 the date specified by the member, except as follows:
13 (1) Upon receipt of a member's application to withdraw
14 his total accumulated deductions as provided in section
15 5311(a) or 5701 and upon receipt of all required data from
16 the head of the department, the board shall not be required
17 to pay the first installment prior to 45 days after the
18 filing of the application and the receipt of the data or the
19 date of termination of service, whichever is later.
20 (2) In the case of an election as provided in section
21 5705(a)(4)(iii) by a member terminating service within 60
22 days prior to the end of a calendar year and upon receipt of
23 all required data from the head of the department, the board
24 shall not be required to pay the first installment prior to
25 21 days after the later of the filing of the application and
26 the receipt of the data or the date of termination of service
27 but, unless otherwise directed by the member, the payment
28 shall be made no later than 45 days after the filing of the
29 application and the receipt of the data or the date of
30 termination of service, whichever is later.
19850S0244B0703 - 18 -
1 (3) In the case of an election as provided in section
2 5705(a)(4)(iii) by a member who is not terminating service
3 within 60 days prior to the end of a calendar year and upon
4 receipt of all required data from the head of the department,
5 the board shall not be required to pay the first installment
6 prior to 45 days after the filing of the application and the
7 receipt of the data or the date of termination of service,
8 whichever is later.
9 (c) Payment of subsequent installments.--The payment of
10 subsequent installments shall be made at the time annuity checks
11 are payable for the month and year specified by the member.
12 (d) Statutory interest.--Any lump sum or installment payable
13 shall include statutory interest credited to the date of
14 payment, except in the case of a member, other than a vestee,
15 who has not filed his application prior to 90 days following his
16 termination of service.
17 Section 5. This act shall take effect immediately.
A18L24RLC/19850S0244B0703 - 19 -