PRINTER'S NO. 2614
No. 1892 Session of 2007
INTRODUCED BY HALUSKA, DeWEESE, BELFANTI, BRENNAN, CALTAGIRONE, CAPPELLI, DALEY, FREEMAN, GRUCELA, HARHART, HARKINS, HENNESSEY, JAMES, JOSEPHS, KOTIK, KULA, MAHONEY, M. O'BRIEN, PETRARCA, READSHAW, SAINATO, SIPTROTH, STABACK, STERN, SURRA, THOMAS, J. WHITE, WOJNAROSKI, YOUNGBLOOD, PETRONE AND COHEN, OCTOBER 15, 2007
REFERRED TO COMMITTEE ON FINANCE, OCTOBER 15, 2007
AN ACT 1 Amending Title 71 (State Government) of the Pennsylvania 2 Consolidated Statutes, further providing for creditable 3 nonstate service and for contributions for the purchase of 4 credit. 5 The General Assembly of the Commonwealth of Pennsylvania 6 hereby enacts as follows: 7 Section 1. Section 5304(c) of Title 71 of the Pennsylvania 8 Consolidated Statutes is amended by adding a paragraph and the 9 section is amended by adding a subsection to read: 10 § 5304. Creditable nonstate service. 11 * * * 12 (b.1) Prohibition.--In no event shall the service be 13 creditable for persons eligible under subsection (c)(9) if the 14 member has received, is entitled to receive, eligible to receive 15 now or in the future or is receiving retirement benefits for 16 such service or has retirement credit or has now or acquires in 17 the future retirement credit under a retirement system
1 administered and wholly or partially paid for by any other 2 governmental agency, private employer or labor organization. In 3 the event that nonstate service credit is granted for the 4 service and the member subsequently receives credit for the 5 service that is prohibited by this paragraph, the nonstate 6 service credited shall be canceled and any member contributions 7 and interest paid by the member under section 5505(i)(2) shall 8 be refunded to the member by the board. 9 (c) Limitations on nonstate service.--Creditable nonstate 10 service credit shall be limited to: 11 * * * 12 (9) Service by mine inspectors, electrical inspectors 13 and emergency response training specialists employed in 14 accordance with the act of July 17, 1961 (P.L.659, No.339), 15 known as the Pennsylvania Bituminous Coal Mine Act, or the 16 act of November 10, 1965 (P.L.721, No.346), known as the 17 Pennsylvania Anthracite Coal Mine Act. This service time may 18 be purchased for the period of previous employment in mining 19 required for employment and certification, if any, under the 20 Pennsylvania Bituminous Coal Mine Act or the Pennsylvania 21 Anthracite Coal Mine Act, as applicable, not exceeding five 22 years, provided that such service is certified by the 23 previous employer and contributions are agreed upon and made 24 in accordance with section 5505 (relating to contributions 25 for the purchase of credit for creditable nonstate service). 26 Persons eligible under this paragraph may purchase service 27 only after earning five eligibility points for service 28 performed as a State employee. 29 * * * 30 Section 2. Section 5505(d) of Title 71 is amended and the 20070H1892B2614 - 2 -
1 section is amended by adding a subsection to read: 2 § 5505. Contributions for the purchase of credit for creditable 3 nonstate service. 4 * * * 5 (d) Nonmilitary and nonmagisterial service.--Contributions 6 made pursuant to subsection (i) notwithstanding, contributions 7 on account of credit for creditable nonstate service other than 8 military and magisterial service, shall be determined by 9 applying the member's basic contribution rate, the additional 10 contribution rate plus the Commonwealth normal contribution rate 11 for active members at the time of entry subsequent to such 12 creditable nonstate service of the member into State service to 13 his compensation at the time of entry into State service and 14 multiplying the result by the number of years and fractional 15 part of a year of creditable nonstate service being purchased 16 together with statutory interest during all periods of 17 subsequent State and school service to the date of purchase. 18 Upon application for credit for such service payment shall be 19 made in a lump sum within 30 days or in the case of an active 20 member or eligible school employee who is an active member of 21 the Public School Employees' Retirement System it may be 22 amortized with statutory interest through salary deductions in 23 amounts agreed upon by the member and the board. The salary 24 deduction amortization plans agreed to by members and the board 25 may include a deferral of payment amounts and statutory interest 26 until the termination of school service or State service as the 27 board in its sole discretion decides to allow. The board may 28 limit salary deduction amortization plans to such terms as the 29 board in its sole discretion determines. In the case of an 30 eligible school employee who is an active member of the Public 20070H1892B2614 - 3 -
1 School Employees' Retirement System, the agreed upon salary 2 deduction shall be remitted to the Public School Employees' 3 Retirement Board, which shall certify and transfer to the board 4 the amounts paid. 5 * * * 6 (i) Purchase of service credit by certain mine workers.-- 7 (1) The amount due for the purchase of credit for mining 8 service as authorized under subsection (a) shall be 9 determined by applying the member's basic contribution rate, 10 the additional contribution rate plus the Commonwealth normal 11 contribution rate for active members at the time of entry, 12 subsequent to such mining service, of the member into State 13 service to his average annual rate of compensation over the 14 first three years of such subsequent State service and 15 multiplying the result by the number of years of creditable 16 mining service being purchased together with statutory 17 interest during all periods of subsequent State service to 18 date of purchase. Applicants purchasing credit pursuant to 19 this subsection shall make only one purchase up to the total 20 amount for which they are eligible. 21 (2) The purchase payment may be made in a lump sum by 22 the member within 30 days of certification by the board of 23 the required purchase amount or may be amortized with 24 statutory interest through salary deductions in amounts 25 agreed upon by the member and the board. The salary deduction 26 amortization plans agreed to by members and the board may 27 include a deferral of payment amounts and statutory interest 28 until the termination of State service as the board in its 29 sole discretion decides to allow. The board may limit salary 30 deduction amortization plans to such terms as the board in 20070H1892B2614 - 4 -
1 its sole discretion determines.
2 Section 3. This act shall take effect in 120 days.
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