HOUSE AMENDED
        PRIOR PRINTER'S NOS. 1029, 1113               PRINTER'S NO. 1368

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 852 Session of 1987


        INTRODUCED BY ARMSTRONG, ZEMPRELLI, MADIGAN, CORMAN, HESS,
           WENGER, REGOLI, RHOADES, FISHER, REIBMAN, KELLEY, AFFLERBACH
           AND LOEPER, MAY 27, 1987

        AS REPORTED FOR COMMITTEE ON APPROPRIATIONS, HOUSE OF
           REPRESENTATIVES, AS AMENDED, SEPTEMBER 29, 1987

                                     AN ACT

     1  Amending Title 71 (State Government) of the Pennsylvania
     2     Consolidated Statutes, providing an employer contribution
     3     rate for members of an independent retirement system.

     4     The General Assembly of the Commonwealth of Pennsylvania
     5  hereby enacts as follows:
     6     Section 1.  Section 5301(a)(12) of Title 71 of the
     7  Pennsylvania Consolidated Statutes, amended December 15, 1986
     8  (P.L.1597, No.176), is amended to read:
     9  § 5301.  Mandatory and optional membership.
    10     (a)  Mandatory membership.--Membership in the system shall be
    11  mandatory as of the effective date of employment for all State
    12  employees except the following:
    13     * * *
    14         (12)  School employees who have elected membership in an
    15     independent retirement program approved by the employer,
    16     provided that in no case, except [for the fiscal year 1986-
    17     1987] as hereinafter provided, shall the employer contribute

     1     on account of such elected membership at a rate greater than
     2     the employer normal contribution rate as determined in
     3     section 5508(b) (relating to actuarial cost method). For the
     4     fiscal year 1986-1987 an employer may contribute on account
     5     of such elected membership at a rate which is the greater of
     6     7% or the employer normal contribution rate as determined in
     7     section 5508(b) and for all years after that at a rate of
     8     8.95%.
     9         * * *
    10     Section 2.  The Public Employee Retirement Study Commission
    11  shall study the rate established in 71 Pa.C.S. § 5301(a)(12)
    12  four years after it was last set and shall recommend to the
    13  Governor and the General Assembly not later than March 31 a rate
    14  for the next five years. The rate established in 71 Pa.C.S. §
    15  5301(a)(12) shall continue in effect until it is changed. The
    16  recommendation of the Public Employee Retirement Study
    17  Commission on the rate of employer contribution shall be
    18  designed to produce parity of benefits CONTRIBUTIONS between the  <--
    19  alternate retirement program and the State Employes' Retirement
    20  System program.
    21     Section 3.  This act shall take effect June 30, 1987, or if
    22  enacted thereafter, immediately, and shall be retroactive to
    23  June 30, 1987.





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