THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY SOLOBAY, COSTA, FONTANA, RAFFERTY AND M. WHITE, SEPTEMBER 6, 2011

REFERRED TO FINANCE, SEPTEMBER 6, 2011  

AN ACT

Amending Title 71 (State Government) of the Pennsylvania

Consolidated Statutes, further providing for creditable

nonstate service and for contributions for the purchase of

credit.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 5304(c) of Title 71 of the Pennsylvania

Consolidated Statutes is amended by adding a paragraph and the

section is amended by adding a subsection to read:

§ 5304.  Creditable nonstate service.

* * *

(b.1)  Prohibition.--In no event shall the service be

creditable for persons eligible under subsection (c)(9) if the

member has received, is entitled to receive, is eligible to

receive now or in the future or is receiving retirement benefits

for such service or has retirement credit or has now or acquires

in the future retirement credit under a retirement system

administered and wholly or partially paid for by any other

governmental agency, private employer or labor organization. In

the event that nonstate service credit is granted for the

service and the member subsequently receives credit for the

service that is prohibited by this paragraph, the nonstate

service credited shall be canceled and any member contributions

and interest paid by the member under section 5505(i)(2) shall

be refunded to the member by the board.

(c)  Limitations on nonstate service.--Creditable nonstate

service credit shall be limited to:

* * *

(9)  Service by mine inspectors, electrical inspectors

and emergency response training specialists employed in

accordance with the act of July 7, 2008 (P.L.654, No.55),

known as the Bituminous Coal Mine Safety Act, or the act of

November 10, 1965 (P.L.721, No.346), known as the

Pennsylvania Anthracite Coal Mine Act. This service time may

be purchased for the period of previous employment in mining

required for employment and certification, if any, under the

Bituminous Coal Mine Safety Act or the Pennsylvania

Anthracite Coal Mine Act, as applicable, not exceeding five

years, provided that such service is certified by the

previous employer and contributions are agreed upon and made

in accordance with section 5505. Persons eligible under this

paragraph may purchase service only after earning ten

eligibility points for service performed as a State employee

and shall purchase service within three years of becoming

eligible. Failing to purchase service within three years of

becoming eligible shall preclude the purchase of service

under this paragraph.

* * *

Section 2.  Section 5505(d) of Title 71 is amended and the

section is amended by adding a subsection to read:

§ 5505.  Contributions for the purchase of credit for creditable

nonstate service.

* * *

(d)  Nonmilitary and nonmagisterial service.--Contributions

made under subsection (j) notwithstanding, contributions on

account of credit for creditable nonstate service other than

military and magisterial service by State employees who first

become members of the system before January 1, 2011, or before

December 1, 2010, as a member of the General Assembly shall be

determined by applying the member's basic contribution rate, the

additional contribution rate plus the Commonwealth normal

contribution rate for active members at the time of entry

subsequent to such creditable nonstate service of the member

into State service to his compensation at the time of entry into

State service and multiplying the result by the number of years

and fractional part of a year of creditable nonstate service

being purchased together with statutory interest during all

periods of subsequent State and school service to the date of

purchase. Upon application for credit for such service payment

shall be made in a lump sum within 30 days or in the case of an

active member or eligible school employee who is an active

member of the Public School Employees' Retirement System it may

be amortized with statutory interest through salary deductions

in amounts agreed upon by the member and the board. The salary

deduction amortization plans agreed to by members and the board

may include a deferral of payment amounts and statutory interest

until the termination of school service or State service as the

board in its sole discretion decides to allow. The board may

limit salary deduction amortization plans to such terms as the

board in its sole discretion determines. In the case of an

eligible school employee who is an active member of the Public

School Employees' Retirement System, the agreed upon salary

deduction shall be remitted to the Public School Employees'

Retirement Board, which shall certify and transfer to the board

the amounts paid.

* * *

(j)  Purchase of service credit by certain mine workers.--

(1)  The amount due for the purchase of credit for mining

service as authorized under subsection (a) shall be

determined by applying the member's basic contribution rate,

the additional contribution rate plus the Commonwealth normal

contribution rate for active members at the time of entry,

subsequent to such mining service, of the member into State

service to his average annual rate of compensation over the

first three years of such subsequent State service and

multiplying the result by the number of years of creditable

mining service being purchased together with statutory

interest during all periods of subsequent State service to

date of purchase. Applicants purchasing credit under this

subsection shall make only one purchase up to the total

amount for which they are eligible.

(2)  The purchase payment may be made in a lump sum by

the member within 30 days of certification by the board of

the required purchase amount or may be amortized with

statutory interest through salary deductions in amounts

agreed upon by the member and the board. The salary deduction

amortization plans agreed to by members and the board may

include a deferral of payment amounts and statutory interest

until the termination of State service as the board in its

sole discretion decides to allow. The board may limit salary

deduction amortization plans to such terms as the board in

its sole discretion determines.

Section 3.  This act shall take effect in 120 days.