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                                                      PRINTER'S NO. 1599

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1294 Session of 2007


        INTRODUCED BY SURRA, GOODMAN, CAPPELLI, COHEN, CONKLIN,
           CREIGHTON, FABRIZIO, FAIRCHILD, FLECK, GEIST, GERGELY,
           GIBBONS, GRUCELA, HENNESSEY, HUTCHINSON, JAMES, KORTZ, KOTIK,
           MAJOR, MURT, M. O'BRIEN, O'NEILL, PARKER, PAYNE, SCAVELLO,
           SHIMKUS, STABACK, TANGRETTI AND YUDICHAK, MAY 18, 2007

        REFERRED TO COMMITTEE ON FINANCE, MAY 18, 2007

                                     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


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