THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY GREENLEAF, ORIE, FONTANA, LOGAN, WASHINGTON, RAFFERTY, ERICKSON, PICCOLA AND BAKER, FEBRUARY 20, 2009

REFERRED TO FINANCE, FEBRUARY 20, 2009  

AN ACT

Amending Title 24 (Education) of the Pennsylvania Consolidated

Statutes, in retirement for school employees, further

providing for definitions and, in membership, contributions

and benefits, further providing for creditable nonschool

service and for creditable work experience.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 8102 of Title 24 of the Pennsylvania

Consolidated Statutes is amended by adding a definition to read:

§ 8102.  Definitions.

The following words and phrases when used in this part shall

have, unless the context clearly indicates otherwise, the

meanings given to them in this section:

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"Nonpublic school."  Any nonprofit school, other than a

public school of this Commonwealth, in which a resident of this

Commonwealth may legally fulfill the compulsory school

attendance requirements and which meets the requirements of

Title VI of the Civil Rights Act of 1964 (Public Law 88-352, 78

Stat. 241).

* * *

Section 2.  Section 8304(b) of Title 24 is amended by adding

paragraphs to read:

§ 8304.  Creditable nonschool service.

* * *

(b)  Limitations on nonschool service.--Creditable nonschool

service credit shall be limited to:

* * *

(9)  Previous service as a school employee, teacher or

instructor in a nonpublic school, if the member was entitled

to a provisional or professional certificate to teach in the

public schools of this Commonwealth at the time this service

was rendered. For every one year in previous work experience,

an individual may buy one year of creditable service, not to

exceed a total of five years. The purchase of this service

shall begin within three years of the employee's eligibility

to purchase this creditable service. The department may

charge an applicant a fee necessary to cover administrative

costs incurred in verifying the applicant's eligibility for

certification.

(10)  Previous service as a school teacher or instructor

of special education classes in a nonpublic school, if the

member was entitled to a provisional or professional

certificate to teach in the public schools of this

Commonwealth at the time this service was rendered. For every

one year in previous work experience, an individual may buy

one year of creditable service, not to exceed a total of five

years. The purchase of this service shall begin within three

years of the employee's eligibility to purchase this

creditable service. The department may charge an applicant a

fee necessary to cover administrative costs incurred in

verifying the applicant's eligibility for certification.

* * *

Section 3.  Section 8324(e) of Title 24 is amended to read:

§ 8324.  Contributions for purchase of credit for creditable

nonschool service.

* * *

(e)  Creditable work experience.--

(1)  Contributions on account of T-C credit for

creditable work experience pursuant to section 8304(b)(6)

shall be the present value of the full actuarial cost of the

increase in the projected superannuation annuity caused by

the additional service credited on account of the purchase of

creditable work experience. [The amount paid for the purchase

of credit for creditable work experience shall not be payable

as a lump sum under section 8345(a)(4)(iii) (relating to

member's options).] Any individual eligible to receive an

annuity, excluding an annuity received under the Federal

Social Security Act (42 U.S.C. § 301 et seq.), in another

pension system, other than a military pension system, shall

not be eligible to purchase this service.

(2)  Contributions on account of T-C credit for

creditable work experience pursuant to section 8304(b)(9)

shall be the present value of the full actuarial cost of the

increase in the projected superannuation annuity caused by

the additional service credited on account of the purchase of

creditable work experience. The full actuarial cost shall be

determined by utilizing the actuarial methodology and

assumptions utilized by the consulting actuary of the system

in preparing the most recent annual actuarial valuation of

the system. The purchase payment shall be made in lump sum by

the member within 30 days of certification by the board of

the required purchase amount. Any individual eligible to

receive an annuity, excluding an annuity received under the

Social Security Act, in another pension system, other than a

military pension system, shall not be eligible to purchase

this service.

(3)  Contributions on account of T-C credit for

creditable work experience pursuant to section 8304(b)(10)

shall be the present value of the full actuarial cost of the

increase in the projected superannuation annuity caused by

the additional service credited on account of the purchase of

creditable work experience. The full actuarial cost shall be

determined by utilizing the actuarial methodology and

assumptions utilized by the consulting actuary of the system

in preparing the most recent annual actuarial valuation of

the system. The purchase payment shall be made in lump sum by

the member within 30 days of certification by the board of

the required purchase amount. Any individual eligible to

receive an annuity, excluding an annuity received under the

Social Security Act, in another pension system, other than a

military pension system, shall not be eligible to purchase

this service.

(4)  The amount paid for the purchase of service under

paragraphs (1) and (2) shall not be payable as a lump sum

under section 8345(a)(4)(iii) (relating to member's options).

* * *

Section 4.  This act shall take effect in 60 days.