PRINTER'S NO. 1026
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
905
Session of
2017
INTRODUCED BY MURT, DRISCOLL AND PASHINSKI, MARCH 20, 2017
REFERRED TO COMMITTEE ON STATE GOVERNMENT, MARCH 20, 2017
AN ACT
Amending Title 71 (State Government) of the Pennsylvania
Consolidated Statutes, in retirement for State employees and
officers, further providing for creditable nonstate service
and for contributions for the purchase of credit for
creditable nonstate service.
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:
ยง 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
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
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 subsection, 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
20170HB0905PN1026 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
section is amended by adding a subsection to read:
ยง 5505. Contributions for the purchase of credit for creditable
nonstate service.
* * *
(d) Nonmilitary and nonmagisterial service.--Contributions
made under subsection (k) 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
20170HB0905PN1026 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
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.
* * *
(k) 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
20170HB0905PN1026 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
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.
20170HB0905PN1026 - 5 -
1
2
3
4