PRINTER'S NO. 3782
No. 2738 Session of 1998
INTRODUCED BY STEVENSON, NAILOR, PLATTS, FARGO, M. COHEN, DRUCE,
ROONEY, STABACK, FLEAGLE, STERN, BENNINGHOFF, MAITLAND,
HALUSKA, ZUG, GEIST, BELFANTI, BARD, SEYFERT, TRELLO,
YOUNGBLOOD, ORIE, B. SMITH, L. I. COHEN, EGOLF, YEWCIC,
HARHAI, BOSCOLA, ARGALL, CORRIGAN, SCRIMENTI, MAHER, SURRA,
HENNESSEY, THOMAS, GODSHALL, DALLY, MILLER, SANTONI,
McILHATTAN, ITKIN AND VAN HORNE, JUNE 22, 1998
REFERRED TO COMMITTEE ON EDUCATION, JUNE 22, 1998
AN ACT
1 Amending Title 24 (Education) of the Pennsylvania Consolidated
2 Statutes, providing for certain employment by annuitants.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Section 8346(a) of Title 24 of the Pennsylvania
6 Consolidated Statutes is amended and the section is amended by
7 adding a subsection to read:
8 § 8346. Termination of annuities.
9 (a) General rule.--If an annuitant returns to school service
10 or enters State service and elects multiple service membership,
11 any annuity payable to him under this part shall cease and in
12 the case of an annuity other than a disability annuity the
13 present value of such annuity, adjusted for full coverage in the
14 case of a joint coverage member who makes the appropriate back
15 contributions for full coverage, shall be frozen as of the date
1 such annuity ceases. An annuitant who is credited with an
2 additional 10% of membership service as provided in section
3 8302(b.2) (relating to credited school service) and who returns
4 to school service, except as provided in subsection (b) or (e),
5 shall forfeit such credited service and shall have his frozen
6 present value adjusted as if his 10% retirement incentive had
7 not been applied to his account. In the event that the cost-of-
8 living increase enacted December 18, 1979, occurred during the
9 period of such State or school employment, the frozen present
10 value shall be increased, on or after the member attains
11 superannuation age, by the percent applicable had he not
12 returned to service.
13 * * *
14 (e) Exception.--An annuitant may be employed by a school
15 district, intermediate unit or area vocational school as a
16 coach, director or sponsor of a school activity under a separate
17 contract, without being subject to the cessation of annuity
18 provisions and the forfeiture provisions in subsection (a),
19 provided the contract specifies that no credited service will be
20 earned toward the account of the annuitant. No contributions by
21 the annuitant, the employer or the Commonwealth shall be made to
22 the annuitant's savings account for work provided under any such
23 contract.
24 Section 2. This act shall take effect immediately.
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