PRINTER'S NO. 3433
No. 2653 Session of 1994
INTRODUCED BY RUDY, CALTAGIRONE, MARKOSEK, COY, TRICH AND
L. I. COHEN, APRIL 5, 1994
REFERRED TO COMMITTEE ON STATE GOVERNMENT, APRIL 5, 1994
AN ACT
1 Amending Title 71 (State Government) of the Pennsylvania
2 Consolidated Statutes, providing for the purchase of
3 retirement credits by former volunteers in the Peace Corps;
4 and further providing for contributions for the purchase of
5 credit for creditable non-State service.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Sections 5304(c) and 5505(d) of Title 71 of the
9 Pennsylvania Consolidated Statutes are amended to read:
10 § 5304. Creditable nonstate service.
11 * * *
12 (c) Limitations on nonstate service.--Creditable nonstate
13 service credit shall be limited to:
14 (1) intervening military service;
15 (2) military service other than intervening military
16 service and military service purchasable under section
17 5302(d) (relating to credited State service) not exceeding
18 five years, provided that a member with multiple service may
19 not purchase more than a total of five years of military
1 service in both the system and the Public School Employees'
2 Retirement System;
3 (3) in the case of an academic administrator, teacher or
4 instructor employed in the Department of Education, the State
5 System of Higher Education, any State-owned educational
6 institution or The Pennsylvania State University, provided
7 that the total amount of service creditable under this
8 paragraph shall not exceed the lesser of ten years or the
9 number of years of active membership in the system as an
10 academic administrator, teacher or instructor in the
11 Department of Education, State System of Higher Education,
12 any State-owned educational institution or The Pennsylvania
13 State University:
14 (i) nonstudent service as an academic administrator,
15 teacher or instructor in any public school or public
16 educational institution in any state other than this
17 Commonwealth; or
18 (ii) nonstudent service as an academic
19 administrator, teacher or instructor in the field of
20 education for any agency or department of the Federal
21 Government, whether or not such area was under the
22 jurisdiction of the United States;
23 (4) previous service with a governmental agency other
24 than the Commonwealth which employment with said agency was
25 terminated because of the transfer by statute of the
26 administration of such service or of the entire agency to the
27 Commonwealth;
28 (5) service as a temporary Federal employee assigned to
29 an air quality control complement for the Pennsylvania
30 Department of Environmental Resources at any time during the
19940H2653B3433 - 2 -
1 period of 1970 through 1975. This service time may be
2 purchased only if the member makes an election to purchase
3 within one year of the effective date of this paragraph, and
4 the member shall pay an amount which is equal to the full
5 actuarial cost of the increased benefit obtained by virtue of
6 the purchase as provided in section 5505(f);
7 (6) service in the Cadet Nurse Corps with respect to any
8 period of training as a student or graduate nurse under a
9 plan approved under section 2 of the act of June 15, 1943
10 (Public Law 78-73, 57 Stat. 153), if the total period of
11 training under such plan was at least two years, the credit
12 for such service not to exceed three years;
13 (7) service prior to July 1, 1971, at a community
14 college established under the act of August 24, 1963
15 (P.L.1132, No.484), known as the Community College Act of
16 1963; [or]
17 (8) service as a justice of the peace prior to January
18 1970[.]; or
19 (9) service, including training, as a volunteer in the
20 United States Peace Corps, if the following requirements have
21 been met:
22 (i) the total period of service, including training,
23 was at least two years, with the credit for such service
24 not to exceed three years; and
25 (ii) the member makes an election to purchase credit
26 for this service within three years of the effective date
27 of this paragraph or within three years of entry into
28 State service subsequent to such creditable nonstate
29 service, whichever occurs later.
30 * * *
19940H2653B3433 - 3 -
1 § 5505. Contributions for the purchase of credit for creditable
2 nonstate service.
3 * * *
4 (d) Nonmilitary and nonmagisterial service.--Contributions
5 on account of credit for creditable nonstate service other than
6 military and magisterial service shall be determined by applying
7 the member's basic contribution rate, the additional
8 contribution rate plus the Commonwealth normal contribution rate
9 for active members at the time of entry subsequent to such
10 creditable nonstate service of the member into State service to
11 his compensation at the time of entry into State service and
12 multiplying the result by the number of years and fractional
13 part of a year of creditable nonstate service being purchased
14 together with statutory interest during all periods of
15 subsequent State and school service to the date of purchase.
16 Upon application for credit for such service payment shall be
17 made in a lump sum within 30 days or in the case of an active
18 member it may be amortized with statutory interest through
19 salary deductions in amounts agreed upon by the member and the
20 board. The payment representing the Commonwealth's normal
21 contribution together with the statutory interest on it
22 comprising a portion of the total amount paid for the purchase
23 of creditable nonstate service under section 5304(c)(9)
24 (relating to creditable nonstate service) for service as a
25 volunteer in the Peace Corps shall not be payable as a lump sum
26 under section 5705(a)(4)(iii) (relating to member's options).
27 * * *
28 Section 2. This act shall take effect in 60 days.
B2L71SFG/19940H2653B3433 - 4 -