PSERS - Compliance with Federal Law RE: Military Leaves of Absence - Part II (Public School Code)
On February 13, we circulated the memo below: "PSERS - Compliance with Federal Law RE: Military Leaves of Absence."
During the final drafting process by the LRB, it was necessary to split the legislation into two separate bills: the first bill will amend the Public School Employees' Retirement Code (Title 24) and the Pennsylvania Military and Veterans Code (Title 51), and the second bill will amend the Public School Code (Act 14 of 1949).
All Senators who signed on as cosponsors to the original February 13 cosponsor memo will be added as cosponsors to the first bill, which amends the Public School Employees' Retirement Code and the Military and Veterans Code.
However, it is necessary to circulate this cosponsor memo to add cosponsors to the second bill, which will amend the Public School Code.
Members who signed on as cosponsors to the original February 13 memo include: Senator Brubaker Senator Teplitz Senator Vance Senator Mensch Senator Fontana Senator Rafferty Senator Ferlo Senator Erickson Senator Brewster Senator Yudichak Senator Washington Senator Baker Senator Tartaglione Senator White Senator Solobay
We invite all cosponsors listed above, as well as any other Senator who is interested in cosponsoring this legislation, to sign on to this memo, which will reflect the Public School Code piece.
Senator Patrick Browne and Senator Lawrence Farnese
All Senate members
PSERS - Compliance With Federal Law RE: Military Leaves of Absence
In the near future, we will be introducing legislation to amend Commonwealth statutes to comply with federal law governing military leaves of absence.
PSERS is required to amend the Retirement Code with respect to military leaves of absence to conform to amendments to federal law known as the HEART Act, USERRA and Internal Revenue Code. To maintain its tax qualified status, PSERS must effect these changes for leaves commencing on or after July 1, 2013.
PSERS credit for military leave service is governed by several bodies of law:
Commonwealth Statute -- the Public School Employees’ Retirement Code -- the Pennsylvania Military and Veterans Code -- the Public School Code
Federal law, primarily -- the HEART Act (Heroes Earnings Assistance and Relief Tax Act of 2008) -- IRC (Internal Revenue Code) -- USERRA (Uniformed Services Employment and Reemployment Rights Act of 1994)
These bodies of law have different and sometimes inconsistent terms, conditions, requirements and PSERS benefit consequences pertaining to PSERS credit for military leave service. The goal of this legislation is to bring PSERS into compliance with the HEART Act, to conform Pennsylvania law regarding PSERS pension credit for military leave to the federal requirements under the IRC and USERRA, and to remove the inconsistencies in the law through amendments to the Military Code, the School Code and the Retirement Code.
(Please note that the State Employees’ Retirement System (SERS) has already made these conforming amendments under Act 2012-181, effective for leaves commencing on or after December 31, 2012 because their fiscal year required earlier action.)
Please join us in honoring and securing the retirement benefits of the men and women with military service by co-sponsoring this legislation.