PRINTER'S NO. 114
No. 117 Session of 2003
INTRODUCED BY MELLOW, WAGNER, MUSTO, STOUT, KASUNIC, KITCHEN,
KUKOVICH, COSTA, LAVALLE, LOGAN, TARTAGLIONE, ORIE AND
SCHWARTZ, FEBRUARY 3, 2003
REFERRED TO FINANCE, FEBRUARY 3, 2003
AN ACT
1 Amending Title 71 (State Government) of the Pennsylvania
2 Consolidated Statutes, further providing for the purchase of
3 creditable nonstate service for periods of furlough.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Section 5102 of Title 71 of the Pennsylvania
7 Consolidated Statutes is amended by adding a definition to read:
8 § 5102. Definitions.
9 The following words and phrases as used in this part, unless
10 a different meaning is plainly required by the context, shall
11 have the following meanings:
12 * * *
13 "Furlough." The removal of an employee from the employee's
14 position due to lack of work or funds or for other operational
15 reasons as deemed necessary by the employer.
16 * * *
17 Section 2. Section 5304(c)(7) and (8) of Title 71 are
18 amended and the subsection is amended by adding a paragraph to
1 read:
2 § 5304. Creditable nonstate service.
3 * * *
4 (c) Limitations on nonstate service.--Creditable nonstate
5 service credit shall be limited to:
6 * * *
7 (7) service prior to July 1, 1971, at a community
8 college established under the act of August 24, 1963
9 (P.L.1132, No.484), known as the Community College Act of
10 1963; [or]
11 (8) service as a justice of the peace prior to January
12 1970[.]; or
13 (9) all periods of furlough, not to exceed a total of
14 three years. In order to elect to purchase the service
15 credit, an active member shall file an application with the
16 board no later than the later of three years after the
17 effective date of this paragraph or three years after
18 subsequent reentry into State service. The board may charge
19 an applicant a fee necessary to cover the administrative
20 costs incurred in verifying the applicant's eligibility for
21 the purchase of service.
22 * * *
23 Section 3. Section 5505 of Title 71 is amended by adding a
24 subsection to read:
25 § 5505. Contributions for the purchase of credit for creditable
26 nonstate service.
27 * * *
28 (i) Creditable service for periods of furlough.--
29 Contributions on account of Class A credit for creditable
30 service for periods of furlough pursuant to section 5304(c)(9)
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1 shall be the present value of the full actuarial cost of the
2 increase in the projected superannuation annuity caused by the
3 additional service credited on account of the purchase of
4 service for periods of furlough. The amount paid for the
5 purchase of credit for service for periods of furlough shall not
6 be payable as a lump sum under section 5705(a)(4)(iii) (relating
7 to member's options). Upon application for service credit for a
8 period of furlough, the amount due shall be certified in the
9 case of each member by the board in accordance with methods
10 approved by the system actuary and payment may be made by:
11 (1) a lump sum payment within 30 days of certification;
12 or
13 (2) in the case of an active member or active multiple
14 service member, salary deductions in amounts agreed upon by
15 the member and the board. The interest rate applied to the
16 unpaid balance of the amount due shall be the annual interest
17 rate adopted for that fiscal year by the board for the
18 calculation of the normal contribution rate pursuant to
19 section 5508(b) (relating to actuarial cost method). The
20 salary deduction amortization plans agreed to by members and
21 the board may include a deferral of payment amounts and
22 interest until the termination of State or school service as
23 the board in its sole discretion decides to allow. The board
24 may limit salary deduction amortization plans to such terms
25 as the board in its sole discretion determines.
26 Section 4. This act shall take effect in 60 days.
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