SENATE AMENDED
PRIOR PRINTER'S NOS. 3372, 3721 PRINTER'S NO. 4625
No. 2402 Session of 2002
INTRODUCED BY T. STEVENSON, ALLEN, M. BAKER, BELARDI,
BENNINGHOFF, BROWNE, CAPPELLI, L. I. COHEN, M. COHEN,
CORRIGAN, CREIGHTON, CURRY, DeWEESE, DiGIROLAMO, J. EVANS,
FAIRCHILD, FEESE, GEIST, GEORGE, GORDNER, HENNESSEY, HERSHEY,
HESS, HUTCHINSON, KIRKLAND, KREBS, LAUGHLIN, LESCOVITZ, MANN,
MARKOSEK, MARSICO, McCALL, McGILL, S. MILLER, NAILOR, PIPPY,
PISTELLA, PRESTON, ROBERTS, ROHRER, RUBLEY, RUFFING, SANTONI,
SATHER, SCHULER, STABACK, STERN, R. STEVENSON, SURRA,
E. Z. TAYLOR, THOMAS, TIGUE, TRICH, TURZAI, VANCE, WATSON,
WOJNAROSKI, G. WRIGHT, ZUG, SCRIMENTI, WILT, MICHLOVIC, R.
MILLER, SHANER,WANSACZ, GRUCELA, DALLY, ROSS, YOUNGBLOOD,
HARHAI, STEELMAN, EGOLF, COSTA, MAITLAND, SAINATO, COLAFELLA
AND PALLONE, MARCH 11, 2002
SENATOR EARLL, FINANCE, IN SENATE, AS AMENDED, NOVEMBER 19, 2002
AN ACT
1 Amending Title 24 (Education) of the Pennsylvania Consolidated
2 Statutes, providing for certain employment by annuitants. <--
3 STATUTES, PROVIDING FOR RETURN TO SCHOOL SERVICE IN AN <--
4 EXTRACURRICULAR POSITION.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Section 8346(a) 8346 of Title 24 of the <--
8 Pennsylvania Consolidated Statutes is amended and the section is <--
9 amended by adding a subsection to read:
10 § 8346. Termination of annuities.
11 (a) General rule.--If an annuitant returns to school service <--
12 or enters State service and elects multiple service membership,
1 any annuity payable to him under this part shall cease and in
2 the case of an annuity other than a disability annuity the
3 present value of such annuity, adjusted for full coverage in the
4 case of a joint coverage member who makes the appropriate back
5 contributions for full coverage, shall be frozen as of the date
6 such annuity ceases. An annuitant who is credited with an
7 additional 10% of membership service as provided in section
8 8302(b.2) (relating to credited school service) and who returns
9 to school service, except as provided in subsection (b) or (e),
10 shall forfeit such credited service and shall have his frozen
11 present value adjusted as if his 10% retirement incentive had
12 not been applied to his account. In the event that the cost-of-
13 living increase enacted December 18, 1979, occurred during the
14 period of such State or school employment, the frozen present
15 value shall be increased, on or after the member attains
16 superannuation age, by the percent applicable had he not
17 returned to service.
18 * * *
19 (e) Exception.--An annuitant may be employed by a school
20 entity or charter school as a coach, director or sponsor of a
21 school activity under a separate contract, without being subject
22 to the cessation of annuity provisions and the forfeiture
23 provisions in subsection (a), provided the contract specifies
24 that no credited service will be earned toward the account of
25 the annuitant. No contributions by the annuitant, the employer
26 or the Commonwealth shall be made to the annuitant's savings
27 account for work provided under any such contract.
28 Section 2. This act shall take effect immediately.
29 * * * <--
30 (B.1) RETURN TO SCHOOL SERVICE IN AN EXTRACURRICULAR
20020H2402B4625 - 2 -
1 POSITION.--AN ANNUITANT MAY BE EMPLOYED UNDER SEPARATE CONTRACT
2 BY A SCHOOL ENTITY OR CHARTER SCHOOL IN AN EXTRACURRICULAR
3 POSITION OUTSIDE REGULAR INSTRUCTIONAL HOURS AND NOT PART OF
4 MANDATED CURRICULUM WITHOUT LOSS OF ANNUITY. NEITHER THE
5 ANNUITANT NOR THE EMPLOYER SHALL MAKE CONTRIBUTIONS TO THE
6 MEMBER'S SAVINGS ACCOUNT OR STATE ACCUMULATION ACCOUNT
7 RESPECTIVELY FOR SUCH SERVICE. FURTHER, SUCH CONTRACT SHALL
8 CONTAIN A WAIVER WHEREBY THE ANNUITANT WAIVES ANY POTENTIAL
9 RETIREMENT BENEFITS THAT COULD ARISE FROM THE CONTRACT AND
10 RELEASES THE EMPLOYER AND THE BOARD FROM ANY LIABILITY FOR SUCH
11 BENEFITS.
12 * * *
13 SECTION 2. THE ADDITION OF 24 PA.C.S. § 8346(B.1) SHALL BE
14 RETROACTIVE TO JULY 1, 2001.
15 SECTION 3. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
D17L24JS/20020H2402B4625 - 3 -