PRINTER'S NO. 563
No. 3 Session of 1999
INTRODUCED BY JUBELIRER, MELLOW, LOEPER, BELL, BRIGHTBILL, PICCOLA, KUKOVICH, BODACK, SCHWARTZ, MOWERY, ROBBINS AND LEMMOND, MARCH 10, 1999
REFERRED TO JUDICIARY, MARCH 10, 1999
AN ACT 1 Amending Titles 42 (Judiciary and Judicial Procedure) and 71 2 (State Government) of the Pennsylvania Consolidated Statutes, 3 providing for county-level court administrators and for the 4 transfer of accumulated annual leave and sick leave of 5 certain county administrators transferred to the State 6 judicial personnel system; establishing the Unified Judicial 7 System Transferred County-Level Administrator Leave Fund; 8 requiring certain county payments; requiring periodic 9 reports; providing for the transfer of county-level court 10 administrators to the State Employees' Retirement System; and 11 making a repeal. 12 Pursuant to the Judiciary Article of the Constitution of 13 Pennsylvania and its establishment of the Unified Judicial 14 System and consistent with the authority of the General Assembly 15 regarding expenditure of Commonwealth funds pursuant to Article 16 III, Section 24, and while otherwise expressly reserving its 17 appropriation and other legislative authority as to the funding 18 of the Unified Judicial System, it is the intent of the General 19 Assembly to facilitate the administration of the Unified 20 Judicial System by providing for inclusion of key designated 21 county-level court administrators and their designated deputies, 22 associates and assistant administrators and special courts
1 administrators within the State judicial personnel system and 2 for their compensation by the Commonwealth. 3 The General Assembly of the Commonwealth of Pennsylvania 4 hereby enacts as follows: 5 Section 1. Title 42 of the Pennsylvania Consolidated 6 Statutes is amended by adding a section to read: 7 § 1905. County-level court administrators. 8 (a) Transition.--Effective on a date during the fiscal year 9 beginning July 1, 1998, established by the Supreme Court, the 10 offices of district court administrators, deputy court 11 administrators, special courts administrators, associate and 12 assistant court administrators and similar positions as 13 currently designated by the Administrative Office of 14 Pennsylvania Courts upon the advice of the respective president 15 judges of the courts of common pleas shall be included within 16 the State judicial personnel system and the individuals holding 17 such offices shall be compensated by the Commonwealth through 18 the Administrative Office of Pennsylvania Courts from funds 19 appropriated for such purpose. On the established date, 20 individuals holding such offices shall become State employees; 21 and their status as employees of the respective counties shall 22 cease. 23 (b) Compensation.--The Administrative Office of Pennsylvania 24 Courts shall establish salaries and other compensation for those 25 individuals entering the State judicial personnel system 26 pursuant to subsection (a). 27 (c) Compensation plan.--The Administrative Office of 28 Pennsylvania Courts, with the approval of the Supreme Court, 29 shall, consistent with section 1724 (relating to personnel of 30 the system), establish a plan for use on an ongoing basis for 19990S0003B0563 - 2 -
1 compensation of those individuals entering the State judicial 2 personnel system pursuant to subsection (a) and their 3 successors. 4 (d) Vacancies.-- 5 (1) Unless the Supreme Court shall by rule otherwise 6 provide, if a vacancy occurs in an office included in the 7 State judicial personnel system pursuant to subsection (a), 8 the vacancy shall with the approval of the Court 9 Administrator of Pennsylvania be filled by the president 10 judge or, in districts where there are administrative judges, 11 by the president judge after consultation with the 12 administrative judges. 13 (2) The Court Administrator of Pennsylvania, with the 14 approval of the Supreme Court, shall establish standards and 15 qualifications for individuals appointed to fill vacancies 16 under paragraph (1). 17 (e) Reports to appropriations committees.--Consistent with 18 the requirements of section 3531 (relating to budget 19 implementation data), the Court Administrator of Pennsylvania 20 shall make monthly reports to the Chairman and Minority Chairman 21 of the Appropriations Committee of the Senate and the Chairman 22 and Minority Chairman of the Appropriations Committee of the 23 House of Representatives of expenditures for compensation and 24 related expenditures for individuals who are compensated by the 25 Commonwealth pursuant to this section. 26 Section 2. Chapter 23 of Title 42 is amended by adding a 27 subchapter heading and subchapters to read: 28 SUBCHAPTER A 29 GENERAL PROVISIONS 30 * * * 19990S0003B0563 - 3 -
1 SUBCHAPTERS B THROUGH I (RESERVED) 2 SUBCHAPTER J 3 TRANSFERRED COUNTY-LEVEL COURT ADMINISTRATOR 4 LEAVE AND BENEFITS 5 Sec. 6 2391. Short title of subchapter. 7 2392. Definitions. 8 2393. Holidays. 9 2394. Sick leave and annual leave. 10 2395. Other leave. 11 2396. Leave following transfer. 12 2397. County payments for certain leave. 13 § 2391. Short title of subchapter. 14 This subchapter shall be known and may be cited as the 15 Unified Judicial System Transferred County-Level Administrator 16 Leave Benefit Act. 17 § 2392. Definitions. 18 The following words and phrases when used in this subchapter 19 shall have the meanings given to them in this section unless the 20 context clearly indicates otherwise: 21 "Date of transfer." The date established pursuant to section 22 1905 (relating to county-level court administrators) for 23 transfer of designated administrators from employment by their 24 employing county to employment by the State government of the 25 Commonwealth through the Administrative Office of Pennsylvania 26 Courts. 27 "Employing county." The county by which a designated 28 administrator is employed on the day immediately preceding the 29 designated administrator's date of transfer. 30 "Fund." The Unified Judicial System Transferred County-Level 19990S0003B0563 - 4 -
1 Administrator Leave Fund established under section 2397 2 (relating to county payments for certain leave). 3 "State judicial personnel policies." Those personnel 4 policies and procedures established and amended by or through a 5 process created by the Pennsylvania Supreme Court and applicable 6 to personnel of the unified judicial system. 7 "Transferred administrator." Personnel designated under 8 section 1905 (relating to county-level court administrators). 9 "Unified judicial system." The various courts and offices 10 enumerated in Article V of the Constitution of Pennsylvania. 11 § 2393. Holidays. 12 On and after the date of transfer to the State judicial 13 personnel system, transferred administrators shall be eligible 14 for those paid holidays specified in State judicial personnel 15 policies. 16 § 2394. Sick leave and annual leave. 17 (a) Accrued sick leave and annual leave to be transferred.-- 18 Subject to the provisions of subsection (b), sick leave and 19 annual leave accrued by a transferred administrator prior to the 20 date of transfer shall be transferred based upon the accrued 21 sick leave and annual leave balances credited to the transferred 22 administrator by the employing county as of the day immediately 23 preceding the transferred administrator's date of transfer. 24 (b) Accrued sick leave and annual leave to be credited.-- 25 Credit for the sick leave and annual leave transferred under 26 subsection (a) shall not exceed the maximum amount permitted for 27 sick leave and annual leave carryover leave allowances from 28 calendar year to calendar year by State judicial personnel 29 policies in effect on the date of transfer. Accrued sick leave 30 or annual leave transferred under this section shall be used by 19990S0003B0563 - 5 -
1 the transferred administrator only as a credit toward sick leave 2 or annual leave, as the case may be, to be taken in the future. 3 The sick leave or annual leave credited under this subsection 4 shall not, at the time of transfer, be reimbursed to the 5 transferred administrator in the form of a lump-sum payout or 6 other leave payout or in any other form which may be permitted 7 by the personnel policies of the employing county in effect on 8 the day immediately preceding the date of transfer. In the event 9 a transferred administrator has accrued leave that is eligible 10 for transfer and that under the employing county's personnel 11 policies in effect on the day immediately preceding the date of 12 transfer could be used by the transferred administrator as 13 either sick leave or annual leave, such leave shall be credited 14 to the transferred administrator with one-half of the leave 15 designated as sick leave and one-half of the leave designated as 16 annual leave. 17 (c) Excess leave.--Credit for accrued sick leave or annual 18 leave which exceeds the maximum allowed by subsection (b) shall 19 be subject to leave policies in effect in the employing county 20 on the day immediately preceding the date of transfer. Any lump- 21 sum payments or other sick leave payments or annual leave 22 payments made pursuant to this subsection are and shall remain 23 the financial responsibility of the employing county. 24 § 2395. Other leave. 25 With the exception of leave specified in section 2394 26 (relating to sick leave and annual leave), a transferred 27 administrator may receive a lump-sum payment or other payment 28 for other accrued leave as permitted by the personnel policies 29 of the employing county in effect on the day immediately 30 preceding the date of transfer. Any lump-sum payment or other 19990S0003B0563 - 6 -
1 leave payments made pursuant to this section are and shall 2 remain the financial responsibility of the employing county. For 3 purposes of this section, the term "other accrued leave" shall 4 not include accrued sick leave and accrued annual leave, and 5 shall include accrued disability leave, accrued personal leave, 6 accrued compensatory leave and other types of accrued leave 7 encompassed within the employing county's personnel policies on 8 the day immediately preceding the date of transfer. 9 § 2396. Leave following transfer. 10 (a) Leave accrual following date of transfer.--On and after 11 the date of transfer, leave shall be accrued by transferred 12 administrators as provided by State judicial personnel policies. 13 For purposes of determining the accrual rate for annual leave, 14 the term "service" shall mean State and county service which is 15 creditable for retirement purposes, excluding any nonstate or 16 noncounty service which may be creditable for State or county 17 retirement purposes. 18 (b) Leave carryover following date of transfer.--On and 19 after the date of transfer, a transferred administrator shall be 20 permitted to carry accrued leave from calendar year to calendar 21 year as provided by State judicial personnel policies. 22 (c) Leave eligible for payment.--If a transferred 23 administrator terminates active service with the unified 24 judicial system, such transferred administrator shall be paid 25 for sick leave and annual leave transferred and credited under 26 section 2394 (relating to sick leave and annual leave) and for 27 sick, annual and other leave accrued on and after the date of 28 transfer as permitted by State judicial personnel policies in 29 effect on the transferred administrator's date of termination. 30 § 2397. County payments for certain leave. 19990S0003B0563 - 7 -
1 (a) County payments.--Each employing county shall provide 2 payment to the Commonwealth for the accrued sick leave and 3 annual leave transferred and credited pursuant to section 2394 4 (relating to sick leave and annual leave). Within 30 days of the 5 date specified in section 1905(a) (relating to county-level 6 court administrators), each employing county shall provide, in 7 writing, to the Administrative Office of Pennsylvania Courts, 8 all leave information requested by the Court Administrator of 9 Pennsylvania for those individuals designated in section 10 1905(a). The payment to be made by each employing county shall 11 be determined based upon an actuarial evaluation performed by an 12 actuary appointed by the Court Administrator of Pennsylvania 13 from a list of three actuaries to be submitted by the Secretary 14 of the Budget within 30 days of the effective date of this 15 subchapter. The actuarial evaluation shall be based upon 16 assumptions determined by the actuary to be appropriate under 17 the circumstances to arrive at a fair and reasonable 18 determination of an actuarially equivalent value of the accrued 19 sick leave and annual leave transferred and credited under 20 section 2394. The actuary shall submit the actuarial evaluation 21 to the Administrative Office of Pennsylvania Courts within 60 22 days of the receipt of all information necessary to prepare such 23 evaluation. If any employing county fails to provide the 24 information required by this section, the county shall be 25 subject to a penalty of $100 per day for each transferred 26 employee until the required information is provided. Such 27 penalties shall be paid into the fund. 28 (b) Notice of payment due and payment method.--Following 29 receipt of the actuarial evaluation required by subsection (a), 30 the Administrative Office of Pennsylvania Courts shall notify in 19990S0003B0563 - 8 -
1 writing each employing county of the actuarial value 2 attributable to that county for accrued sick leave and annual 3 leave transferred and credited under section 2394. Each 4 employing county shall be obligated to the Commonwealth for 5 payment of the actuarial value of the accrued sick leave and 6 annual leave transferred and credited under section 2394. 7 Payment shall be made to the Commonwealth by each employing 8 county within 90 days of the date of the written notice from the 9 Administrative Office of Pennsylvania Courts to the employing 10 county, which date is referred to for purposes of this section 11 as the payment due date. Any payment not received from an 12 employing county by the payment due date shall be subject to the 13 imposition of interest from the day following the payment due 14 date at the rate determined by the Secretary of Revenue for 15 interest payments on overdue taxes or the refund of taxes as 16 provided in section 806 and 806.1 of the act of April 9, 1929 17 (P.L.343, No.176), known as The Fiscal Code, and any subsequent 18 amendments to those sections, plus 2% until paid in full. 19 (c) Recoupment of employing county arrearages.--If an 20 employing county fails to submit a payment by the payment due 21 date established under subsection (b), the Administrative Office 22 of Pennsylvania Courts shall withhold and withdraw such payment, 23 plus applicable interest, if any, from moneys next due to be 24 paid to the employing county in the form of grants, subsidies or 25 other payments to counties which are made by the Administrative 26 Office of Pennsylvania Courts. Any moneys withheld or withdrawn 27 under this subsection or received under subsection (b) shall be 28 transferred to and deposited in the fund created under 29 subsection (d) and credited to the employing county's financial 30 obligation under this subchapter. 19990S0003B0563 - 9 -
1 (d) Establishment of fund.--There is hereby created a 2 special nonlapsing fund in the State Treasury to be known as the 3 Unified Judicial System Transferred County-Level Administrator 4 Leave Fund. All moneys received from employing counties under 5 this section and all investment income earned on those moneys 6 shall be deposited in the fund. All moneys placed in the fund 7 and the investment income it accrues are hereby appropriated on 8 a continuing basis to the Administrative Office of Pennsylvania 9 Courts, upon requisition by the Court Administrator of 10 Pennsylvania, to be applied solely to the cost of leave payments 11 made under section 2396(c) (relating to leave following 12 transfer). The requisition authority granted with regard to the 13 fund is in addition to the requisition authority contained in 14 section 1501 of The Fiscal Code. 15 (e) Fund deficiency.--If money in the fund is not adequate 16 to provide for full payment of the counties' share of leave 17 payments, the amount necessary to fully fund the counties' share 18 of leave payments shall become an obligation of the unified 19 judicial system. 20 (f) Fund surplus.--When all leave payments for transferred 21 administrators required to be made under this subchapter have 22 been made, any surplus remaining in the fund shall be 23 transferred to and is hereby appropriated to the General Fund. 24 Section 3. The definitions of "class of service multiplier," 25 "creditable nonstate service," "State service," "superannuation 26 age" and "vestee" in section 5102 of Title 71 are amended and 27 the section is amended by adding definitions to read: 28 § 5102. Definitions. 29 The following words and phrases as used in this part, unless 30 a different meaning is plainly required by the context, shall 19990S0003B0563 - 10 -
1 have the following meanings: 2 * * * 3 "Class of service multiplier." 4 Class of Service Multiplier 5 A 1 6 B .625 7 C 1 8 D 1.25 9 D-1 prior to 10 January 1, 1973 1.875 11 D-1 on and 12 subsequent to 13 January 1, 1973 1.731 14 D-2 prior to 15 January 1, 1973 2.5 16 D-2 on and 17 subsequent to 18 January 1, 1973 1.731 19 D-3 prior to 20 January 1, 1973 3.75 21 D-3 on and 22 subsequent to 23 January 1, 1973 1.731 except prior to December 24 1, 1974 as applied to any 25 additional legislative 26 compensation as an officer 27 of the General Assembly 28 3.75 19990S0003B0563 - 11 -
1 E, E-1 prior to 2 January 1, 1973 2 for each of the first ten 3 years of judicial service, 4 and 5 1.5 for each subsequent year 6 of judicial service 7 E, E-1 on and 8 subsequent to 9 January 1, 1973 1.50 for each of the first 10 ten years of judicial 11 service and 12 1.125 for each subsequent year 13 of judicial service 14 E-2 prior to 15 September 1, 1973 1.5 16 E-2 on and 17 subsequent to 18 September 1, 1973 1.125 19 G 0.417 20 H 0.500 21 I 0.625 22 J 0.714 23 K 0.834 24 L 1.000 25 M 1.100 26 N 1.250 27 T-C (Public School 1 28 Employees' 29 Retirement Code) 30 * * * 19990S0003B0563 - 12 -
1 "County service." Service credited in a retirement system or 2 pension plan established or maintained by a county to provide 3 retirement benefits for its employees to the account of county 4 employees who are transferred to State employment and become 5 State employees pursuant to 42 Pa.C.S. § 1905 (relating to 6 county-level court administrators) regardless of whether the 7 service was performed for the county, another employer or 8 allowed to be purchased in the county retirement system or 9 pension plan. 10 "Creditable nonstate service." Service other than service as 11 a State employee or service converted to State service pursuant 12 to section 5303.1 (relating to election to convert county 13 service to State service) for which an active member may obtain 14 credit. 15 * * * 16 "State service." Service converted from county service 17 pursuant to section 5303.1 (relating to election to convert 18 county service to State service) or rendered as a State 19 employee. 20 * * * 21 "Superannuation age." Any age upon accrual of 35 eligibility 22 points or age 60, except for a member of the General Assembly, 23 an enforcement officer, a correction officer, a psychiatric 24 security aide, a Delaware River Port Authority policeman or an 25 officer of the Pennsylvania State Police, age 50, and except for 26 a member with Class G, Class H, Class I, Class J, Class K, Class 27 L, Class M or Class N service, age 55 upon accrual of 20 28 eligibility points. 29 * * * 30 "Vestee." A member with ten or more eligibility points, or a 19990S0003B0563 - 13 -
1 member with Class G, Class H, Class I, Class J, Class K, Class 2 L, Class M or Class N service with eight or more eligibility 3 points, who has terminated State service and has elected to 4 leave his total accumulated deductions in the fund and to defer 5 receipt of an annuity. 6 Section 4. Sections 5301 and 5302 of Title 71 are amended by 7 adding subsections to read: 8 § 5301. Mandatory and optional membership. 9 * * * 10 (e) Election prohibited.--Notwithstanding subsections 11 (a)(13) and (c), county employees who are transferred to State 12 employment and become State employees pursuant to 42 Pa.C.S. § 13 1905 (relating to county-level court administrators) shall not 14 have the election to remain a contributor in the retirement 15 system or pension plan of the county by which they were employed 16 prior to becoming eligible for membership in the State 17 Employees' Retirement System. Such employees shall be mandatory 18 members of the system provided they are otherwise eligible and 19 unless they are eligible for optional membership pursuant to 20 subsections (a)(1) through (11) and (b) or prohibited membership 21 pursuant to subsections (a)(14) and (c). 22 § 5302. Credited State service. 23 * * * 24 (d.1) Effect of converting county service to State 25 service.--A county employee transferred to State employment 26 pursuant to 42 Pa.C.S. § 1905 (relating to county-level court 27 administrators) who elects to convert county service to State 28 service pursuant to section 5303.1 (relating to election to 29 convert county service to State service) shall receive one year 30 or fractional part of a year of State service credit for each 19990S0003B0563 - 14 -
1 year or fractional part of a year, as the case may be, of county 2 service credited in the county retirement system or pension 3 plan; provided, however, that no more than one year of State 4 service of all classes will be credited in any one calendar year 5 and that no State service credit shall be received for county 6 service that is already credited in the system or in the Public 7 School Employees' Retirement System. 8 * * * 9 Section 5. Section 5303(b) of Title 71 is amended by adding 10 a paragraph to read: 11 § 5303. Retention and reinstatement of service credits. 12 * * * 13 (b) Eligibility points for prospective credited service.-- 14 * * * 15 (1.1) Every active member of the system who elects to 16 convert county service to State service pursuant to section 17 5303.1 (relating to election to convert county service to 18 State service) shall receive eligibility points in accordance 19 with section 5307 for converted county service upon 20 compliance with section 5303.1(b). The class or classes of 21 service in which the member may be credited for converted 22 county service shall be determined in accordance with section 23 5306(c). 24 * * * 25 Section 6. Title 71 is amended by adding a section to read: 26 § 5303.1. Election to convert county service to State service. 27 (a) General rule.--County employees who are transferred to 28 State employment pursuant to 42 Pa.C.S. § 1905 (relating to 29 county-level court administrators) may elect to convert their 30 county service in the retirement system or pension plan in which 19990S0003B0563 - 15 -
1 they were contributors immediately prior to the transfer to 2 State employment. 3 (b) Time for making election.--The election to convert 4 county service to State service must be made by filing written 5 notice with the board within 90 days after the transfer to State 6 employment. An election to convert service shall be effective 7 when filed with the board, but shall not be effective before the 8 date of transfer to State employment. An election to convert 9 county service to State service shall be irrevocable. 10 (c) Effect of failure to make election.--Failure to elect to 11 convert county service to State service within the election 12 period set forth in subsection (b) shall result in the county 13 service not being converted to State service. Transferred 14 employees who do not elect to convert county service to State 15 service shall not have the opportunity to make a subsequent 16 conversion election should they later obtain different 17 employment in the unified judicial system or other State 18 employment eligible for membership in the system. 19 (d) Effect of election.--An election to convert county 20 service to State service shall convert all county service in the 21 retirement system or pension plan in which the transferred 22 employee was a member immediately before the transfer to State 23 employment, even if not performed as a judicial system employee 24 of the county. The election shall not convert service in other 25 retirement systems or pension plans that is not credited in the 26 county plan from which the member is transferred. Once the 27 conversion occurs, the converted service shall lose all 28 attributes and characteristics as county service and shall be 29 State service as set forth in this part. 30 Section 7. Section 5304(b) of Title 71 is amended to read: 19990S0003B0563 - 16 -
1 § 5304. Creditable nonstate service. 2 * * * 3 (b) Limitations on eligibility.--An active member or a 4 multiple service member who is a school employee and an active 5 member of the Public School Employees' Retirement System shall 6 be eligible to receive credit for nonstate service provided that 7 he does not have credit for such service in the system or in the 8 school system and is not entitled to receive, eligible to 9 receive now or in the future, or is receiving retirement 10 benefits for such service in the system or under a retirement 11 system administered and wholly or partially paid for by any 12 other governmental agency or by any private employer, or a 13 retirement program approved by the employer in accordance with 14 section 5301(a)(12) (relating to mandatory and optional 15 membership), and further provided, that such service is 16 certified by the previous employer and contributions are agreed 17 upon and made in accordance with section 5505 (relating to 18 contributions for the purchase of credit for creditable nonstate 19 service). 20 * * * 21 Section 8. Section 5306 of Title 71 is amended by adding a 22 subsection to read: 23 § 5306. Classes of service. 24 * * * 25 (c) Class membership for county service.--Notwithstanding 26 subsection (a), county service that is converted to State 27 service pursuant to section 5303.1 (relating to election to 28 convert county service to State service) shall be credited as 29 the following class of service: 30 Class of service in a county of the 19990S0003B0563 - 17 -
1 second class A, third class, fourth 2 class, fifth class, sixth class, 3 seventh class or eighth class 4 maintaining a retirement system or 5 pension plan under the 6 act of August 31, 1971 (P.L.398, No.96), 7 known as the County Pension Law System Class of 8 Service 9 Class 1-120 G 10 Class 1-100 H 11 Class 1-80 I 12 Class 1-70 J 13 Class 1-60 K 14 Rate of accrual of benefit for each 15 year of service in a county of the 16 first class or second class or 17 credited in the Pennsylvania 18 Municipal Retirement System 19 System Class of 20 Service 21 .833% G 22 1.00% H 23 1.250% I 24 1.428% J 25 1.667% K 26 2.000% L 27 2.200% M 28 2.500% N 29 Section 9. Sections 5308(b) and 5309 of Title 71 are amended 30 to read: 19990S0003B0563 - 18 -
1 § 5308. Eligibility for annuities. 2 * * * 3 (b) Withdrawal annuity.--Any vestee or any active member or 4 inactive member on leave without pay who terminates State 5 service having ten or more eligibility points, or who has Class 6 G, Class H, Class I, Class J, Class K, Class L, Class M or Class 7 N service and terminates State service having eight or more 8 eligibility points, upon compliance with section 5907(f), (g) or 9 (h) shall be entitled to receive an annuity. 10 * * * 11 § 5309. Eligibility for vesting. 12 Any member who terminates State service with ten or more 13 eligibility points, or any member with Class G, Class H, Class 14 I, Class J, Class K, Class L, Class M or Class N service with 15 eight or more eligibility points, shall be eligible until 16 attainment of superannuation age to vest his retirement 17 benefits. 18 Section 10. Section 5504(a) of Title 71 is amended and the 19 section is amended by adding a subsection to read: 20 § 5504. Member contributions for the purchase of credit for 21 previous State service or to become a full coverage 22 member. 23 (a) Amount of contributions for service in other than Class 24 G through N.--The contributions to be paid by an active member 25 or eligible school employee for credit for total previous State 26 service other than service in Class G, Class H, Class I, Class 27 J, Class K, Class L, Class M and Class N or to become a full 28 coverage member shall be sufficient to provide an amount equal 29 to the regular and additional accumulated deductions which would 30 have been standing to the credit of the member for such service 19990S0003B0563 - 19 -
1 had regular and additional member contributions been made with 2 full coverage in the class of service and at the rate of 3 contribution applicable during such period of previous service 4 and had his regular and additional accumulated deductions been 5 credited with statutory interest during all periods of 6 subsequent State and school service up to the date of purchase. 7 (a.1) Converted county service.--No contributions shall be 8 required to restore credit for previously credited State service 9 in Class G, Class H, Class I, Class J, Class K, Class L, Class M 10 and Class N. Such service shall be restored upon the 11 commencement of payment of the contributions required to restore 12 credit for all other previous State service. 13 * * * 14 Section 11. Sections 5505 and 5507 of Title 71 are amended 15 by adding subsections to read: 16 § 5505. Contributions for the purchase of credit for creditable 17 nonstate service. 18 * * * 19 (h) County service.--For purposes of this section, Class G, 20 Class H, Class I, Class J, Class K, Class L, Class M and Class N 21 service shall be disregarded in determining when a member enters 22 State service or the period of subsequent State service. 23 § 5507. Contributions by the Commonwealth and other employers. 24 * * * 25 (c) Contributions transferred by county retirement 26 systems.-- 27 (1) Each county retirement system or pension plan which 28 is notified by certification from the board that a former 29 contributor who was transferred to State employment pursuant 30 to 42 Pa.C.S. § 1905 (relating to county-level court 19990S0003B0563 - 20 -
1 administrators) has elected to convert county service to 2 State service in accordance with section 5303.1 (relating to 3 election to convert county service to State service) shall 4 transfer to the board an amount equal to the actuarial 5 liability for the additional benefits that result in the 6 system as a result of the conversion as certified by the 7 board. This amount shall be calculated in such a manner and 8 using such actuarial factors and assumptions as the board, 9 after obtaining the advice of its actuary, shall determine 10 and shall be calculated by determining the present value of 11 the future benefits for the former county contributors and 12 subtracting from that present value the present value of 13 future employee contributions and future employer normal cost 14 contributions. 15 (2) The transfer shall occur no later than 180 days 16 after the certification by the board of the actuarial 17 liability for the additional benefits, or 30 days following 18 the date of termination of service if the member terminates 19 State service after making the election to convert service, 20 whichever occurs first. 21 (3) If any county retirement system or pension plan 22 fails to transfer, within the required time, the money 23 certified by the board under this subsection, then the 24 service of such members for the period of converted service 25 shall be credited and the board shall notify the county which 26 employed the employee who is converting the county service 27 and the State Treasurer, of the amount due. The State 28 Treasurer shall withhold out of any grants, subsidies, or 29 other payments from the State General Fund appropriation or 30 appropriations next due such county an amount equal to the 19990S0003B0563 - 21 -
1 amount which the county retirement system or pension plan 2 failed to pay and shall pay the amount so withheld to the 3 board for the payment of the amount due from that county's 4 retirement system or pension plan for the converted service. 5 Section 12. Section 5705(a) of Title 71 is amended to read: 6 § 5705. Member's options. 7 (a) General rule.--Any special vestee who has attained 8 superannuation age, any vestee having ten or more eligibility 9 points, any member with Class G, Class H, Class I, Class J, 10 Class K, Class L, Class M or Class N service having eight or 11 more eligibility points or any other eligible member upon 12 termination of State service who has not withdrawn his total 13 accumulated deductions as provided in section 5701 (relating to 14 return of total accumulated deductions) may apply for and elect 15 to receive either a maximum single life annuity, as calculated 16 in accordance with the provisions of section 5702 (relating to 17 maximum single life annuity), or a reduced annuity certified by 18 the actuary to be actuarially equivalent to the maximum single 19 life annuity and in accordance with one of the following 20 options; except that no member shall elect an annuity payable to 21 one or more survivor annuitants other than his spouse or 22 alternate payee of such a magnitude that the present value of 23 the annuity payable to him for life plus any lump sum payment he 24 may have elected to receive is less than 50% of the present 25 value of his maximum single life annuity: 26 (1) Option 1.--A life annuity to the member with a 27 guaranteed total payment equal to the present value of the 28 maximum single life annuity on the effective date of 29 retirement with the provision that, if, at his death, he has 30 received less than such present value, the unpaid balance 19990S0003B0563 - 22 -
1 shall be payable to his beneficiary. 2 (2) Option 2.--A joint and survivor annuity payable 3 during the lifetime of the member with the full amount of 4 such annuity payable thereafter to his survivor annuitant, if 5 living at his death. 6 (3) Option 3.--A joint and fifty percent (50%) survivor 7 annuity payable during the lifetime of the member with one- 8 half of such annuity payable thereafter to his survivor 9 annuitant, if living at his death. 10 (4) Option 4.--Some other benefit which shall be 11 certified by the actuary to be actuarially equivalent to the 12 maximum single life annuity, subject to the following 13 restrictions: 14 (i) any annuity shall be payable without reduction 15 during the lifetime of the member; 16 (ii) the sum of all annuities payable to the 17 designated survivor annuitants shall not be greater than 18 one and one-half times the annuity payable to the member; 19 and 20 (iii) a portion of the benefit may be payable as a 21 lump sum, except that such lump sum payment shall not 22 exceed an amount equal to the total accumulated 23 deductions standing to the credit of the member. The 24 balance of the present value of the maximum single life 25 annuity adjusted in accordance with section 5702(b) shall 26 be paid in the form of an annuity with a guaranteed total 27 payment, a single life annuity, or a joint and survivor 28 annuity or any combination thereof but subject to the 29 restrictions of subparagraphs (i) and (ii) under this 30 option. 19990S0003B0563 - 23 -
1 * * * 2 Section 13. Section 5903 of Title 71 is amended by adding a 3 subsection to read: 4 § 5903. Duties of the board to advise and report to heads of 5 departments and members. 6 * * * 7 (e) Former county employees.--Upon receipt of an election by 8 a county employee transferred to State employment pursuant to 42 9 Pa.C.S. § 1905 (relating to county-level court administrators) 10 to convert county service to State service, the board shall 11 certify to the member the amount of service so converted and the 12 class at which such service is credited. 13 Section 14. Sections 5905(f) and 5905.1(b) of Title 71 are 14 amended to read: 15 § 5905. Duties of the board regarding applications and 16 elections of members. 17 * * * 18 (f) Initial annuity payment and certification.--The board 19 shall make the first monthly payment to a member who is eligible 20 for an annuity within 60 days of the filing of his application 21 for an annuity or, in the case of a vestee or special vestee who 22 has deferred the filing of his application to a date later than 23 90 days following attainment of superannuation age, within 60 24 days of the effective date of retirement, and receipt of the 25 required data from the head of the department, and if the member 26 has Class G, Class H, Class I, Class J, Class K, Class L, Class 27 M or Class N service, any data required from the county 28 retirement system or pension plan to which the member was a 29 contributor before being a State employee. Concurrently the 30 board shall certify to such member: 19990S0003B0563 - 24 -
1 (1) the total accumulated deductions standing to his 2 credit showing separately the amount contributed by the 3 member, the pickup contribution and the interest credited to 4 the date of termination of service; 5 (2) the number of years and fractional part of a year 6 credited in each class of service; 7 (3) the final average salary on which his annuity is 8 based as well as any applicable reduction factors due to age 9 and/or election of an option; and 10 (4) the total annuity payable under the option elected 11 and the amount and effective date of any future reduction 12 under section 5703 (relating to reduction of annuities on 13 account of social security old-age insurance benefits). 14 * * * 15 § 5905.1. Installment payments of accumulated deductions. 16 * * * 17 (b) Payment of first installment.--The payment of the first 18 installment shall be made in the amount and within seven days of 19 the date specified by the member, except as follows: 20 (1) Upon receipt of a member's application to withdraw 21 his total accumulated deductions as provided in section 22 5311(a) or 5701 and upon receipt of all required data from 23 the head of the department, and if the member has Class G, 24 Class H, Class I, Class J, Class K, Class L, Class M or Class 25 N service, any data required from the county retirement 26 system or pension plan to which the member was a contributor 27 before being transferred to State employment, the board shall 28 not be required to pay the first installment prior to 45 days 29 after the filing of the application and the receipt of the 30 data or the date of termination of service, whichever is 19990S0003B0563 - 25 -
1 later. 2 (2) In the case of an election as provided in section 3 5705(a)(4)(iii) by a member terminating service within 60 4 days prior to the end of a calendar year and upon receipt of 5 all required data from the head of the department, and if the 6 member has Class G, Class H, Class I, Class J, Class K, Class 7 L, Class M or Class N service, any data required from the 8 county retirement system or pension plan to which the member 9 was a contributor before being transferred to State 10 employment, the board shall not be required to pay the first 11 installment prior to 21 days after the later of the filing of 12 the application and the receipt of the data or the date of 13 termination of service, but, unless otherwise directed by the 14 member, the payment shall be made no later than 45 days after 15 the filing of the application and the receipt of the data or 16 the date of termination of service, whichever is later. 17 (3) In the case of an election as provided in section 18 5705(a)(4)(iii) by a member who is not terminating service 19 within 60 days prior to the end of a calendar year and upon 20 receipt of all required data from the head of the department, 21 and if the member has Class G, Class H, Class I, Class J, 22 Class K, Class L, Class M or Class N service, any data 23 required from the county retirement system or pension plan to 24 which the member was a contributor before being transferred 25 to State employment, the board shall not be required to pay 26 the first installment prior to 45 days after the filing of 27 the application and the receipt of the data or the date of 28 termination of service, whichever is later. 29 * * * 30 Section 15. Section 5906(j) of Title 71 is amended and the 19990S0003B0563 - 26 -
1 section is amended by adding a subsection to read: 2 § 5906. Duties of heads of departments. 3 * * * 4 (e.1) Former county-level judicial employees transferred to 5 State employment.--In addition to the duties set forth in 6 subsections (d) and (e), the Court Administrator of 7 Pennsylvania, upon the transfer of county employees to State 8 employment pursuant to 42 Pa.C.S, § 1905 (relating to county- 9 level court administrators), shall advise such transferred 10 county employees of their opportunity to elect to convert county 11 service to State service in accordance with section 5303.1 12 (relating to election to convert county service to State 13 service) and if such employee so elects, the Court Administrator 14 of Pennsylvania shall cause an election to be made and filed 15 with the board within 90 days after the transfer to State 16 employment. 17 * * * 18 (j) Termination of service.--The head of department shall, 19 in the case of any member terminating State service who is 20 ineligible for an annuity before attainment of superannuation 21 age, advise such member in writing of any benefits to which he 22 may be entitled under the provisions of this part and shall have 23 the member prepare, on or before the date of termination of 24 State service, an application for the return of total 25 accumulated [deduction] deductions or, on or before September 26 30, 1997, an application to be vested as a special vestee, if 27 eligible. 28 * * * 29 Section 16. Sections 5907(b) and 5934 of Title 71 are 30 amended to read: 19990S0003B0563 - 27 -
1 § 5907. Rights and duties of State employees and members. 2 * * * 3 (b) Application for membership.-- 4 (1) In the case of a new employee who is not currently a 5 member of the system, and whose membership is mandatory or in 6 the case of a new employee whose membership in the system is 7 not mandatory but who desires to become a member of the 8 system, the new employee shall execute an application for 9 membership and a nomination of beneficiary. 10 (2) In the case of a new employee who is a county 11 employee transferred to State employment pursuant to 42 12 Pa.C.S. § 1905 (relating to county-level court 13 administrators) and who desires to elect to convert county 14 service to State service, the member shall also execute an 15 election to convert service and file it with the board in 16 accordance with section 5303.1 (relating to election to 17 convert county service to State service). 18 * * * 19 § 5934. State accumulation account. 20 The State accumulation account shall be the ledger account to 21 which shall be credited all contributions of the Commonwealth or 22 other employers whose employees are members of the system and 23 made in accordance with the provisions of section 5507(a) 24 (relating to contributions by the Commonwealth and other 25 employers) except that the amounts received under the provisions 26 of the act of May 12, 1943 (P.L.259, No.120), and the amounts 27 received under the provisions of the Liquor Code, act of April 28 12, 1951 (P.L.90, No.21), shall be credited to the State Police 29 benefit account or the enforcement officers' benefit account as 30 the case may be. All amounts transferred to the fund by county 19990S0003B0563 - 28 -
1 retirement systems or pension plans in accordance with the 2 provisions of section 5507(c) (relating to contributions by the 3 Commonwealth and other employers) also shall be credited to the 4 State accumulation account. The State accumulation account shall 5 be credited with valuation interest. The reserves necessary for 6 the payment of annuities and death benefits as approved by the 7 board and as provided in Chapter 57 (relating to benefits) shall 8 be transferred from the State accumulation account to the 9 annuity reserve account provided for in section 5935 (relating 10 to annuity reserve account), except that the reserves necessary 11 on account of a member who is an officer of the Pennsylvania 12 State Police or an enforcement officer shall be transferred from 13 the State accumulation account to the State Police benefit 14 account provided for in section 5936 (relating to State Police 15 benefit account) or to the enforcement officers' benefit account 16 as provided for in section 5937 (relating to enforcement 17 officers' benefit account) as the case may be. 18 Section 17. Title 71 is amended by adding a section to read: 19 § 5953.5. Transfer of domestic relations orders against county 20 pension plans. 21 (a) General rule.--If, at the time a county employee becomes 22 a State employee pursuant to 42 Pa.C.S. § 1905 (relating to 23 county-level court administrators), there is a domestic 24 relations order entered against the transferred employee or the 25 county retirement system or pension plan in which the county 26 employee was a contributor immediately prior to the transfer to 27 State employment and if the domestic relations order affects the 28 rights of the transferred employee or any county alternate payee 29 to receive money or benefits from the county retirement system 30 or pension plan, the domestic relations order shall be affected 19990S0003B0563 - 29 -
1 as follows: 2 (1) If the county employee elects to convert county 3 service to State service in accordance with section 5303.1 4 (relating to election to convert county service to State 5 service), the domestic relations order will remain in effect; 6 but the obligations of the county retirement system or 7 pension plan shall be assumed by the board or system if the 8 domestic relations order is certified as an approved domestic 9 relations order by the secretary of the board or a designated 10 representative pursuant to section 5953.1 (relating to 11 approval of domestic relations orders). If the domestic 12 relations order is not certified as an approved domestic 13 relations order, the order shall not be effective against the 14 board or system and shall not require the board or system to 15 attach, assign, or otherwise pay benefits or money to any 16 person except as otherwise provided for in this part. 17 (2) If the county employee does not elect to convert 18 county service to State service, the domestic relations order 19 shall remain in effect against the county retirement system 20 or pension plan; and the order shall not be effective against 21 the board or the system and shall not require the board or 22 system to attach, assign, or otherwise pay benefits or money 23 to any person except as otherwise provided for in this part. 24 (b) Construction.-- 25 (1) Nothing in this section shall be construed to 26 prevent a domestic relations order from being amended to 27 satisfy the provisions of this part or to alter any 28 distribution scheme to reflect the transfer of employment 29 from a county to the State or the conversion of benefits from 30 a county retirement system or pension plan to benefits from 19990S0003B0563 - 30 -
1 the system. 2 (2) Nothing in this section shall be construed to 3 prevent a domestic relations order from being amended to 4 provide that all or part of the obligations attaching against 5 the county retirement system or pension plan prior to the 6 transfer of employment to the State shall not be transferred 7 to the board or the system. 8 (c) Definitions.--As used in this section, the following 9 words and phrases shall have the meanings given to them in this 10 subsection: 11 "County alternate payee." Any spouse, former spouse, child 12 or dependent of a county employee who is recognized by a 13 domestic relations order as having a right to receive all or a 14 portion of the moneys payable to that county employee under the 15 county retirement system or pension plan in which the county 16 employee was a contributor immediately prior to transfer to 17 State employment. 18 "Domestic relations order." As defined in section 5102 19 (relating to definitions), regardless of whether the order was 20 entered before or after June 28, 1994. 21 Section 18. This act shall apply to the county employees who 22 become State employees pursuant to 42 Pa.C.S. § 1905. 23 Section 19. County employees transferred to State employment 24 pursuant to 42 Pa.S.C. § 1905 who are annuitants of the State 25 Employees' Retirement System shall be required to be active 26 members of the State Employees' Retirement System and shall have 27 their annuities stopped pursuant to 71 Pa.C.S. §§ 5301(d) and 28 5706, governing annuitants of the State Employees' Retirement 29 System who return to State service. Upon subsequent termination 30 and application for annuity, the transferred State Employees' 19990S0003B0563 - 31 -
1 Retirement System annuitants shall have their benefits 2 calculated according to the provisions of 71 Pa.C.S. Pt. XXV, 3 regarding annuities after subsequent termination. For purposes 4 of calculating eligibility points for the application of 71 5 Pa.C.S. § 5706(c)(1), only eligibility points earned after the 6 date of transfer may be included, unless the member has 7 converted county service to State service pursuant to 71 Pa.C.S. 8 § 5303.1. If a former annuitant has converted county service to 9 State service, the eligibility points subsequent to the most 10 recent receipt of an annuity that is not returned to the State 11 Employees' Retirement System as a result of the converted 12 service shall also be included in calculating the eligibility 13 points under 71 Pa.C.S. § 5706(c)(1). 14 Section 20. Except as otherwise set forth in this act, 15 county employees who are transferred to State employment 16 pursuant to 42 Pa.C.S. § 1905 shall be subject to the terms and 17 conditions of 71 Pa.C.S. Pt. XXV in the same manner and extent 18 as any other individual commencing State employment who is 19 eligible for the benefits and obligations of Class A membership 20 with a superannuation age of 60 years. 21 Section 21. Upon the filing by a county employee transferred 22 to State employment pursuant to 42 Pa.C.S. § 1905 of an election 23 to convert county service to State service, the State Employees' 24 Retirement Board shall notify the appropriate county retirement 25 system or pension plan administrator. Within 30 days of 26 notification the county retirement system or pension plan 27 administrator shall certify to the State Employees' Retirement 28 Board the total amount of service credited to the electing 29 member's account, and such information on how it was earned or 30 acquired, in the county retirement system or pension plan, 19990S0003B0563 - 32 -
1 including, but not limited to, the nature of the underlying 2 service or legal authority on which the credit was based and the 3 dates covered by the credit as requested by the State Employees' 4 Retirement Board. The administrators, employees, trustees and 5 fiduciaries of all retirement systems or pension plans operated 6 for the transferred employees shall provide whatever information 7 and records are requested by the State Employees' Retirement 8 System within 30 days of the request for the transferred 9 employees. If a county retirement system or pension plan fails 10 to provide the information required by this section, the county 11 shall be subject to a penalty of $100 per day for each of the 12 transferred employees until the information is provided. 13 Section 22. (a) County employees who are transferred to 14 State employment pursuant to 42 Pa.C.S. § 1905 shall have their 15 county employment by virtue of judicial system employment 16 terminated effective the day before the transfer. No further 17 rights in any county retirement system by virtue of employment 18 with the State shall accrue, but such transferred member shall 19 have the rights, privileges and obligations in the retirement 20 system of the county enjoyed by any other involuntarily 21 terminated employee who is a member of that plan of the same 22 gender and with the same age, years of service, compensation, 23 contributions and other factors that enter into the calculation 24 of benefits. 25 (b) Notwithstanding subsection (a) or any other provision of 26 this act, including, but not limited to, the addition of 71 27 Pa.C.S. §§ 5301(e) and 5303.1(d), and section 23 of this act and 28 notwithstanding any other provision of law, ordinance, 29 collective bargaining agreement, arbitration award, contract or 30 term or condition of any retirement system or pension plan, any 19990S0003B0563 - 33 -
1 transferred member who elects to convert county service to State 2 service may elect to leave in the county retirement system or 3 pension plan any contributions of whatever nature made by the 4 employee, including, but not limited to, pickup contributions, 5 and any interest paid on those contributions. Upon making such 6 an election, the retirement system or pension plan shall treat 7 the contributions and interest as if the member had remained in 8 full-time active service as an employee of the county for the 9 period the transferred employee is a State employee, including 10 the crediting of interest if and as otherwise provided for by 11 the retirement system or pension plan. Upon termination of State 12 service, the transferred employee may make application to the 13 county pension plan or retirement system as if the transferred 14 employee was terminating county service and shall be granted 15 whatever rights and benefits, including an immediate lump sum 16 distribution or an annuity from the county pension plan or 17 retirement system equal to the contributions and interest in the 18 member's account with the county, provided to a terminating 19 member with the age and service the member would have possessed 20 had the member remained a full-time employee of the county. Such 21 election must be in writing filed with the administrator of the 22 county pension plan or retirement system from which the county 23 service is being converted and must be made within 30 days after 24 the election to convert county service to State service. 25 Section 23. County service that is converted to State 26 service pursuant to 71 Pa.C.S. § 5303.1 shall be canceled in all 27 retirement systems in which it was previously credited and shall 28 lose all characteristics of county service. 29 Section 24. For purposes of this act, any county employee 30 who is transferred to State employment pursuant to 42 Pa.C.S. § 19990S0003B0563 - 34 -
1 1905, who is on leave at the time of the transfer or who is not 2 an active participant or contributor to the county retirement 3 system or pension plan but is still an employee of the county 4 judicial system at the time of the transfer shall be deemed an 5 active member for purposes of the implementation of this act and 6 the elections required herein. 7 Section 25. Notwithstanding the definition of "final average 8 salary" contained in 71 Pa.C.S. § 5102, if a member who elects 9 to convert county service to State service pursuant to 71 Pa.C.S 10 § 5303.1 terminates State service before having been a member of 11 the State Employees' Retirement System for three nonoverlapping 12 periods of four consecutive calendar quarters, the final average 13 salary shall be determined on the basis of the compensation 14 received as a State employee and as a county employee before the 15 transfer to State employment and shall be calculated over any 16 three nonoverlapping periods of four consecutive calendar 17 quarters during which the member was a State employee or a 18 county employee, with the compensation for part-time service 19 being annualized on the basis of the fractional portion of the 20 year for which credit is received. 21 Section 26. Contributions and other money transferred from 22 the county retirement systems and pension plans to the State 23 Employees' Retirement System shall retain the same attributes 24 for Federal, State and local tax laws to the extent allowed by 25 law. 26 Section 27. Notwithstanding any regulation promulgated by 27 the State Employees' Retirement Board, eligibility for 28 superannuation benefits at 55 years of age shall require the 29 actual accrual of 20 eligibility points. Consistent with 71 30 Pa.C.S. Pt. XXV, known as the State Employees' Retirement Code, 19990S0003B0563 - 35 -
1 and its application by the board, members who have Class G, 2 Class H, Class I, Class J, Class K, Class L, Class M or Class N 3 service have a superannuation age upon the attainment of age 55 4 with 20 or more eligibility points only for service in those 5 classes of service. 6 Section 28. The General Assembly declares that the 7 provisions of this act are expressly nonseverable and that in 8 the event a court of competent jurisdiction rules finally that 9 any provision mandated in this act is legally or 10 constitutionally impermissible, this entire act shall be void. 11 Section 29. The calculation of the contributions to be 12 transferred by county retirement systems or pension plans 13 pursuant to 71 Pa.C.S. § 5507(c) shall include interest at the 14 annual rate adopted for that fiscal year by the board for the 15 calculation of the normal contribution rate pursuant to 71 16 Pa.C.S. § 5508(b) from the effective date of the transfer of the 17 former county employees to State employment to the date of the 18 transfer of the funds to the State Employees' Retirement System. 19 Section 30. This act constitutes the legislation referred to 20 in section 281 of the act of April 22, 1998 (P.L. , No.6A), 21 known as the General Appropriations Act of 1998, which provides 22 as to the appropriation for county court administrators for the 23 unified judicial system in part: "No funds from this 24 appropriation shall be expended until legislation is approved by 25 the General Assembly and enacted into law by the Governor which 26 provides for: (i) the payment by the Commonwealth of 27 compensation of county court administrators, and (ii) the 28 Administrative Office of Pennsylvania Courts to submit 29 semiannual reports to the Appropriations Committee of the Senate 30 and the House of Representatives setting forth expenditure and 19990S0003B0563 - 36 -
1 complement plans and showing the status of personnel actions and 2 expenditures" and such provision of section 281 is hereby 3 repealed. 4 Section 31. This act shall take effect immediately. B9L42DMS/19990S0003B0563 - 37 -