PRINTER'S NO. 197
No. 190 Session of 2001
INTRODUCED BY RHOADES, TOMLINSON, CONTI, M. WHITE, KUKOVICH,
HOLL, WENGER, SCHWARTZ, COSTA, MELLOW, STOUT, LAVALLE,
MADIGAN, LEMMOND, BELL, GREENLEAF, THOMPSON, TARTAGLIONE,
BODACK AND BOSCOLA, JANUARY 30, 2001
REFERRED TO FINANCE, JANUARY 30, 2001
AN ACT
1 Amending Title 24 (Education) of the Pennsylvania Consolidated
2 Statutes, further providing for creditable nonschool service.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Sections 8304(b) and 8324(e) of Title 24 of the
6 Pennsylvania Consolidated Statutes are amended to read:
7 § 8304. Creditable nonschool service.
8 * * *
9 (b) Limitations on nonschool service.--Creditable nonschool
10 service credit shall be limited to:
11 (1) Intervening military service.
12 (2) Military service other than intervening military
13 service and activated military service not exceeding five
14 years provided that a member with multiple service may not
15 purchase more than a total of five years of military service
16 in both the system and the State Employees' Retirement
17 System.
1 (3) Service in any public school or public educational
2 institution in any state other than this Commonwealth or in
3 any territory or area under the jurisdiction of the United
4 States. This paragraph includes service, prior to July 1,
5 1965, at a community college established under the act of
6 August 24, 1963 (P.L.1132, No.484), known as the Community
7 College Act of 1963.
8 (4) Service as an administrator, teacher, or instructor
9 in the field of public school education for any agency or
10 department of the government of the United States whether or
11 not such area was under the jurisdiction of the United
12 States.
13 (5) Previous service as an employee of a county board of
14 school directors which employment was terminated because of
15 the transfer of the administration of such service or of the
16 entire agency to a governmental entity.
17 (6) Previous service as a county employee as a nurse.
18 For every three years or major fraction thereof in previous
19 work experience, an individual may buy one year of creditable
20 service, not to exceed a total of five years. The purchase of
21 this service shall begin within three years of the employee's
22 eligibility to purchase this creditable service.
23 (7) (i) Service for the period of time spent on a
24 maternity leave of absence required by the employer,
25 which creditable service shall not exceed two years per
26 leave and shall be applicable only to a maternity leave
27 which was mandatory prior to May 17, 1975. The purchase
28 of this service shall begin within one year of the
29 employee's eligibility to purchase the creditable service
30 under this subparagraph as originally enacted by the act
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1 of August 5, 1991 (P.L.183, No.23), entitled "An act
2 amending Titles 24 (Education) and 71 (State Government)
3 of the Pennsylvania Consolidated Statutes, further
4 providing for the Public School Employees' Retirement
5 System and the State Employees' Retirement System; adding
6 and amending certain definitions; further providing for
7 membership in the systems, for creditable nonschool and
8 nonstate service and the purchase of credit, for
9 incentives for special early retirement, for
10 contributions to the retirement funds, for annuities and
11 the rights and duties of annuitants, for health insurance
12 premium assistance, for board membership and for the re-
13 amortization and management of the retirement funds."
14 (ii) Service for the period of time spent on a
15 maternity leave of absence required by the employer,
16 which creditable service shall not exceed two years per
17 leave and shall be applicable only to a maternity leave
18 that was mandatory and began after May 16, 1975, and
19 prior to November 1, 1978. The purchase of this service
20 shall begin within one year of the employee's eligibility
21 to purchase the creditable service under this
22 subparagraph.
23 (8) Service in the Cadet Nurse Corps with respect to any
24 period of training as a student or graduate nurse under a
25 plan approved under section 2 of the act of June 15, 1943
26 (Public Law 78-73, 57 Stat. 153), if the total period of
27 training under the plan was at least two years, the credit
28 for such service not to exceed three years.
29 (9) Previous work experience used by the member to
30 obtain certification as a vocational teacher under a
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1 nonbaccalaureate program. The previous work experience used
2 to obtain certification shall be verified by the Department
3 of Education upon request of the member and shall be
4 transmitted to the system. For every two years of the
5 previous work experience, an individual can buy one year of
6 creditable service, not to exceed a total of three years. A
7 fraction of a year of the previous work experience that is
8 equal to or greater than one-half shall be considered one
9 year for purposes of this paragraph. The previous work
10 experience shall not include time served in an
11 apprenticeship. The purchase of this service shall begin
12 within three years of the employee's eligibility to purchase
13 this creditable service.
14 * * *
15 § 8324. Contributions for purchase of credit for creditable
16 nonschool service.
17 * * *
18 (e) Creditable work experience.--
19 (1) Contributions on account of T-C credit for
20 creditable work experience pursuant to section 8304(b)(6)
21 shall be the present value of the full actuarial cost of the
22 increase in the projected superannuation annuity caused by
23 the additional service credited on account of the purchase of
24 creditable work experience. [The amount paid for the purchase
25 of credit for creditable work experience shall not be payable
26 as a lump sum under section 8345(a)(4)(iii) (relating to
27 member's options).] Any individual eligible to receive an
28 annuity, excluding an annuity received under the Federal
29 Social Security Act (42 U.S.C. § 301 et seq.), in another
30 pension system, other than a military pension system, shall
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1 not be eligible to purchase this service.
2 (2) Contributions on account of T-C credit for
3 creditable work experience pursuant to section 8304(b)(9)
4 shall be the increase in the present value at the time of
5 purchase attributable to the additional service credited on
6 account of the purchase of such creditable work experience,
7 calculated on the basis of the average annual compensation
8 received during the first three years of credited school
9 service subsequent to such creditable work experience.
10 (3) The amount paid for the purchase of service under
11 this subsection shall not be payable as a lump sum under
12 section 8345(a)(4)(iii) (relating to member's options).
13 * * *
14 Section 2. This act shall take effect in 60 days.
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