PRINTER'S NO. 461
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
435
Session of
2019
INTRODUCED BY KILLION, HUGHES, SCHWANK, YUDICHAK AND J. WARD,
MARCH 21, 2019
REFERRED TO FINANCE, MARCH 21, 2019
AN ACT
Amending Title 71 (State Government) of the Pennsylvania
Consolidated Statutes, in preliminary provisions relating to
retirement for State employees and officers, further
providing for definitions; and, in State Employees' Defined
Contribution Plan, further providing for participant
contributions.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 5102 of Title 71 of the Pennsylvania
Consolidated Statutes is amended by adding a definition to read:
§ 5102. Definitions.
The following words and phrases as used in this part, unless
a different meaning is plainly required by the context, shall
have the following meanings:
* * *
"Qualified student loan." A loan incurred by a participant
for the payment of expenses to attend an institution of higher
education and that:
(1) is administered by a nationally recognized provider
of student loan services;
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(2) has a monthly payment plan recognized by the United
States Department of Education; and
(3) is not in default, delinquency or forbearance.
* * *
Section 2. Section 5804(a) of Title 71 is amended to read:
§ 5804. Participant contributions.
(a) Mandatory contributions.--A participant who did not make
the election under section 5306.5 (relating to election by
active members to become a Class A-5 member, Class A-6 member or
plan participant) shall make mandatory pickup participant
contributions through payroll deductions to the participant's
individual investment account equal to 3.25% of compensation for
current State service credited as a Class A-5 member or 3.5% of
compensation for current State service credited as a Class A-6
member and 7.5% of compensation for current service performed
solely as a participant. A participant who made the election
under section 5306.5 shall make mandatory pickup participant
contributions as provided under section 5306.5[.], provided that
the participant may elect to reduce the amount of the mandatory
pickup contribution by an amount equal to not more than $100
during any month in which the participant makes a payment of at
least that amount to a qualified student loan during that month.
The participant shall be eligible to make the election or to
make a change to the amount of the mandatory pickup contribution
periodically as determined by regulation of the board. Once
elected, the reduction in the mandatory pickup contribution may
not occur in excess of 120 months. The employer shall cause
those contributions for current service to be made and deducted
from each payroll or on such schedule as established by the
board.
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* * *
Section 3. This act shall take effect in 60 days.
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