PRIOR PRINTER'S NO. 103                       PRINTER'S NO. 2987

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 106 Session of 1991


        INTRODUCED BY RUDY, ITKIN, D. R. WRIGHT, PESCI, PRESTON, MELIO,
           TRELLO, LAUGHLIN, LEVDANSKY, JAMES, FREEMAN, JOSEPHS, HARPER,
           TELEK, E. Z. TAYLOR, COHEN, COLAIZZO, ANGSTADT, DALEY,
           STEELMAN, LINTON, PISTELLA, MARKOSEK, CARONE AND FARMER,
           JANUARY 29, 1991

        AS REPORTED FROM COMMITTEE ON STATE GOVERNMENT, HOUSE OF
           REPRESENTATIVES, AS AMENDED, JANUARY 28, 1992

                                     AN ACT

     1  Amending Title 71 (State Government) of the Pennsylvania
     2     Consolidated Statutes, providing for the purchase of
     3     retirement credits by members of the Peace Corps; AND          <--
     4     PROVIDING FOR NONINTERVENING MILITARY SERVICE.

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7     Section 1.  Section 5304(c) SECTIONS 5304(C) AND 5505(B) of    <--
     8  Title 71 of the Pennsylvania Consolidated Statutes is ARE         <--
     9  amended to read:
    10  § 5304.  Creditable nonstate service.
    11     * * *
    12     (c)  Limitations on nonstate service.--Creditable nonstate     <--
    13  service credit shall be limited to:
    14         (1)  intervening military service;
    15         (2)  other military service not exceeding five years;
    16         (3)  service in any public school or public educational
    17     institution in any state other than this Commonwealth or in

     1     any territory or area under the jurisdiction of the United
     2     States; or service as an administrator, teacher, or
     3     instructor in the field of education for any agency or
     4     department of the government of the United States, whether or
     5     not such area was under the jurisdiction of the United
     6     States, the total of such service not exceeding the lesser of
     7     ten years or the number of years of active membership in the
     8     system, as an officer or employee of the Department of
     9     Education or as an administrator, teacher, or instructor
    10     employed in any State-owned educational institution or The
    11     Pennsylvania State University;
    12         (4)  previous service with a governmental agency other
    13     than the Commonwealth which employment with said agency was
    14     terminated because of the transfer by statute of the
    15     administration of such service or of the entire agency to the
    16     Commonwealth;
    17         (5)  service as a temporary Federal employee assigned to
    18     an air quality control complement for the Pennsylvania
    19     Department of Environmental Resources at any time during the
    20     period of 1970 through 1975. This service time may be
    21     purchased only if the member makes an election to purchase
    22     within one year of the effective date of this paragraph, and
    23     the member shall pay an amount which is equal to the full
    24     actuarial cost of the increased benefit obtained by virtue of
    25     the purchase as provided in section 5505(f);
    26         (6)  service in the Cadet Nurse Corps with respect to any
    27     period of training as a student or graduate nurse under a
    28     plan approved under section 2 of the act of June 15, 1943
    29     (Public Law 78-73, 57 Stat. 153), if the total period of
    30     training under such plan was at least two years, the credit
    19910H0106B2987                  - 2 -

     1     for such service not to exceed three years; [or]
     2         (7)  service prior to July 1, 1971, at a community
     3     college established under the act of August 24, 1963
     4     (P.L.1132, No.484), known as the Community College Act of
     5     1963[.]; or
     6     (C)  LIMITATIONS ON NONSTATE SERVICE.--CREDITABLE NONSTATE     <--
     7  SERVICE CREDIT SHALL BE LIMITED TO:
     8         (1)  INTERVENING MILITARY SERVICE;
     9         (2)  MILITARY SERVICE OTHER THAN INTERVENING MILITARY
    10     SERVICE AND MILITARY SERVICE PURCHASABLE UNDER SECTION
    11     5302(D) (RELATING TO CREDITED STATE SERVICE) NOT EXCEEDING
    12     FIVE YEARS, PROVIDED THAT A MEMBER WITH MULTIPLE SERVICE MAY
    13     NOT PURCHASE MORE THAN A TOTAL OF FIVE YEARS OF MILITARY
    14     SERVICE IN BOTH THE SYSTEM AND THE PUBLIC SCHOOL EMPLOYEES'
    15     RETIREMENT SYSTEM;
    16         (3)  IN THE CASE OF AN ACADEMIC ADMINISTRATOR, TEACHER OR
    17     INSTRUCTOR EMPLOYED IN THE DEPARTMENT OF EDUCATION, THE STATE
    18     SYSTEM OF HIGHER EDUCATION, ANY STATE-OWNED EDUCATIONAL
    19     INSTITUTION OR THE PENNSYLVANIA STATE UNIVERSITY, PROVIDED
    20     THAT THE TOTAL AMOUNT OF SERVICE CREDITABLE UNDER THIS
    21     PARAGRAPH SHALL NOT EXCEED THE LESSER OF TEN YEARS OR THE
    22     NUMBER OF YEARS OF ACTIVE MEMBERSHIP IN THE SYSTEM AS AN
    23     ACADEMIC ADMINISTRATOR, TEACHER OR INSTRUCTOR IN THE
    24     DEPARTMENT OF EDUCATION, STATE SYSTEM OF HIGHER EDUCATION,
    25     ANY STATE-OWNED EDUCATIONAL INSTITUTION OR THE PENNSYLVANIA
    26     STATE UNIVERSITY:
    27             (I)  NONSTUDENT SERVICE AS AN ACADEMIC ADMINISTRATOR,
    28         TEACHER OR INSTRUCTOR IN ANY PUBLIC SCHOOL OR PUBLIC
    29         EDUCATIONAL INSTITUTION IN ANY STATE OTHER THAN THIS
    30         COMMONWEALTH; OR
    19910H0106B2987                  - 3 -

     1             (II)  NONSTUDENT SERVICE AS AN ACADEMIC
     2         ADMINISTRATOR, TEACHER OR INSTRUCTOR IN THE FIELD OF
     3         EDUCATION FOR ANY AGENCY OR DEPARTMENT OF THE FEDERAL
     4         GOVERNMENT, WHETHER OR NOT SUCH AREA WAS UNDER THE
     5         JURISDICTION OF THE UNITED STATES;
     6         (4)  PREVIOUS SERVICE WITH A GOVERNMENTAL AGENCY OTHER
     7     THAN THE COMMONWEALTH WHICH EMPLOYMENT WITH SAID AGENCY WAS
     8     TERMINATED BECAUSE OF THE TRANSFER BY STATUTE OF THE
     9     ADMINISTRATION OF SUCH SERVICE OR OF THE ENTIRE AGENCY TO THE
    10     COMMONWEALTH;
    11         (5)  SERVICE AS A TEMPORARY FEDERAL EMPLOYEE ASSIGNED TO
    12     AN AIR QUALITY CONTROL COMPLEMENT FOR THE PENNSYLVANIA
    13     DEPARTMENT OF ENVIRONMENTAL RESOURCES AT ANY TIME DURING THE
    14     PERIOD OF 1970 THROUGH 1975. THIS SERVICE TIME MAY BE
    15     PURCHASED ONLY IF THE MEMBER MAKES AN ELECTION TO PURCHASE
    16     WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS PARAGRAPH, AND
    17     THE MEMBER SHALL PAY AN AMOUNT WHICH IS EQUAL TO THE FULL
    18     ACTUARIAL COST OF THE INCREASED BENEFIT OBTAINED BY VIRTUE OF
    19     THE PURCHASE AS PROVIDED IN SECTION 5505(F);
    20         (6)  SERVICE IN THE CADET NURSE CORPS WITH RESPECT TO ANY
    21     PERIOD OF TRAINING AS A STUDENT OR GRADUATE NURSE UNDER A
    22     PLAN APPROVED UNDER SECTION 2 OF THE ACT OF JUNE 15, 1943
    23     (PUBLIC LAW 78-73, 57 STAT. 153), IF THE TOTAL PERIOD OF
    24     TRAINING UNDER SUCH PLAN WAS AT LEAST TWO YEARS, THE CREDIT
    25     FOR SUCH SERVICE NOT TO EXCEED THREE YEARS;
    26         (7)  SERVICE PRIOR TO JULY 1, 1971, AT A COMMUNITY
    27     COLLEGE ESTABLISHED UNDER THE ACT OF AUGUST 24, 1963
    28     (P.L.1132, NO.484), KNOWN AS THE COMMUNITY COLLEGE ACT OF
    29     1963; [OR]
    30         (8)  SERVICE AS A JUSTICE OF THE PEACE PRIOR TO JANUARY
    19910H0106B2987                  - 4 -

     1     1970[.]; OR
     2         (8)  (9)  service, including training, as a member of the  <--
     3     United States Peace Corps, if the total period of service,
     4     including training, was at least two years, with the credit
     5     for such service not to exceed three years.
     6     * * *
     7  § 5505.  CONTRIBUTIONS FOR THE PURCHASE OF CREDIT FOR CREDITABLE  <--
     8             NONSTATE SERVICE.
     9     * * *
    10     (B)  NONINTERVENING MILITARY SERVICE.--
    11         (1)  THE AMOUNT DUE FOR THE PURCHASE OF CREDIT FOR
    12     MILITARY SERVICE OTHER THAN INTERVENING MILITARY SERVICE
    13     SHALL BE DETERMINED BY APPLYING THE MEMBER'S BASIC
    14     CONTRIBUTION RATE, THE ADDITIONAL CONTRIBUTION RATE PLUS THE
    15     COMMONWEALTH NORMAL CONTRIBUTION RATE FOR ACTIVE MEMBERS AT
    16     THE TIME OF ENTRY, SUBSEQUENT TO SUCH MILITARY SERVICE, OF
    17     THE MEMBER INTO STATE SERVICE TO HIS AVERAGE ANNUAL RATE OF
    18     COMPENSATION OVER THE FIRST THREE YEARS OF SUCH SUBSEQUENT
    19     STATE SERVICE AND MULTIPLYING THE RESULT BY THE NUMBER OF
    20     YEARS AND FRACTIONAL PART OF A YEAR OF CREDITABLE
    21     NONINTERVENING MILITARY SERVICE BEING PURCHASED TOGETHER WITH
    22     STATUTORY INTEREST DURING ALL PERIODS OF SUBSEQUENT STATE AND
    23     SCHOOL SERVICE TO DATE OF PURCHASE. UPON APPLICATION FOR
    24     CREDIT FOR SUCH SERVICE, PAYMENT SHALL BE MADE IN A LUMP SUM
    25     WITHIN 30 DAYS OR IN THE CASE OF AN ACTIVE MEMBER IT MAY BE
    26     AMORTIZED WITH STATUTORY INTEREST THROUGH SALARY DEDUCTIONS
    27     IN AMOUNTS AGREED UPON BY THE MEMBER AND THE BOARD.
    28     APPLICATION MAY BE FILED FOR ALL SUCH MILITARY SERVICE CREDIT
    29     UPON COMPLETION OF THREE YEARS OF SUBSEQUENT STATE SERVICE
    30     AND SHALL BE CREDITED AS CLASS A SERVICE.
    19910H0106B2987                  - 5 -

     1         (2)  APPLICANTS MAY PURCHASE CREDIT AS FOLLOWS:
     2             (I)  ONE PURCHASE OF THE TOTAL AMOUNT OF CREDITABLE
     3         NONINTERVENING MILITARY SERVICE; OR
     4             (II)  ONE PURCHASE PER 12-MONTH PERIOD OF A PORTION
     5         OF CREDITABLE NONINTERVENING MILITARY SERVICE.
     6     THE AMOUNT OF EACH PURCHASE SHALL BE NOT LESS THAN ONE YEAR
     7     OF CREDITABLE NONINTERVENING MILITARY SERVICE.
     8     * * *
     9     Section 2.  This act shall take effect in 60 days.














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