| SENATE AMENDED |
| PRIOR PRINTER'S NOS. 3730, 3853, 3916, 3928, 4470 | PRINTER'S NO. 4476 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY D. EVANS, BRIGGS, PARKER, WILLIAMS, GALLOWAY, DePASQUALE, KORTZ, W. KELLER, MYERS, SHAPIRO AND SIPTROTH, MAY 11, 2010 |
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| SENATOR CORMAN, APPROPRIATIONS, IN SENATE, RE-REPORTED AS AMENDED, OCTOBER 13, 2010 |
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| AN ACT |
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1 | Amending Titles 24 (Education) and 71 (State Government) of the |
2 | Pennsylvania Consolidated Statutes, in Title 24, further |
3 | providing for definitions, for mandatory and optional | <-- |
4 | membership, for contributions by the Commonwealth, for |
5 | payments by employers, for actuarial cost method, for |
6 | additional supplemental annuities, for further additional |
7 | supplemental annuities, for supplemental annuities commencing |
8 | 1994, for supplemental annuities commencing 1998, for |
9 | supplemental annuities commencing 2002, for supplemental |
10 | annuities commencing 2003, for administrative duties of |
11 | board, for payments to school entities by Commonwealth, for |
12 | eligibility points for retention and reinstatement of service |
13 | credits and for creditable nonschool service; providing for |
14 | election to become a Class T-F member; further providing for |
15 | classes of service, for eligibility for annuities, for |
16 | eligibility for vesting, for regular member contributions, | <-- |
17 | for member contributions for creditable school service, for |
18 | contributions for purchase of credit for creditable nonschool |
19 | service, for maximum single life annuity, for disability |
20 | annuities, for member's options, for duties of board |
21 | regarding applications and elections of members and for |
22 | rights and duties of school employees and members; providing | <-- |
23 | for Independent Fiscal Office study; in Title 71, |
24 | establishing an independent fiscal office and making a | <-- |
25 | related repeal; further providing for definitions; further | <-- |
26 | providing, for credited State service, for retention and | <-- |
27 | reinstatement of service credits, for creditable NONSTATE | <-- |
28 | nonstate service and for classes of service; providing for | <-- |
29 | election to become a Class A-4 member; further providing for |
30 | eligibility for annuities, and for eligibility for vesting,; | <-- |
31 | providing for shared risk member contributions for Class A-3 |
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1 | and Class A-4 service; further providing for waiver of |
2 | regular member contributions and Social Security integration |
3 | member contributions, for member contributions for purchase |
4 | of credit for previous State service or to become a full |
5 | coverage member, for contributions for the purchase of credit |
6 | for creditable nonstate service, for contributions by the |
7 | Commonwealth and other employers, for actuarial cost method, |
8 | for maximum single life annuity, for disability annuities and |
9 | for member's options; providing for payment of accumulated |
10 | deductions resulting from Class A-3 service; further |
11 | providing for additional supplemental annuities, for further |
12 | additional supplemental annuities, for supplemental annuities |
13 | commencing 1994, for supplemental annuities commencing 1998, |
14 | for supplemental annuities commencing 2002, for supplemental |
15 | annuities commencing 2003, for special supplemental |
16 | postretirement adjustment of 2002, for administrative duties |
17 | of the board, for duties of board to advise and report to |
18 | heads of departments and members, for duties of board |
19 | regarding applications and elections of members, for |
20 | installment payments of accumulated deductions, for rights |
21 | and duties of State employees and members, for members' | <-- |
22 | savings account, for State accumulation account, for State |
23 | Police Benefit Account, for Enforcement Officers' Benefit |
24 | Account, for supplemental annuity account and for |
25 | construction of part; and providing for recertification to | <-- |
26 | the Secretary of the Budget, Independent Fiscal Office study, | <-- |
27 | for retirement eligibility of Pennsylvania State Police | <-- |
28 | officers or members, for a prohibition on the issuance of |
29 | pension obligation bonds, for holding certain public |
30 | officials harmless, for construction of calculation or |
31 | actuarial method, for applicability and for certain | <-- |
32 | operational provisions. |
33 | The General Assembly of the Commonwealth of Pennsylvania |
34 | hereby enacts as follows: |
35 | Section 1. The definitions of "basic contribution rate," |
36 | "class of service multiplier," "employer," "member's annuity," | <-- |
37 | "pickup contributions," "standard single life annuity," |
38 | "superannuation or normal retirement age" and "vestee" in |
39 | section 8102 of Title 24 of the Pennsylvania Consolidated |
40 | Statutes are amended and the section is amended by adding | <-- |
41 | definitions to read: |
42 | § 8102. Definitions. |
43 | The following words and phrases when used in this part shall |
44 | have, unless the context clearly indicates otherwise, the |
45 | meanings given to them in this section: |
46 | * * * |
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1 | "Basic contribution rate." For Class T-A, T-B and T-C |
2 | service, the rate of 6 1/4%. For Class T-D service, the rate of |
3 | 7 1/2%. For all active members on the effective date of this |
4 | provision who are currently paying 5 1/4% and elect Class T-D |
5 | service, the rate of 6 1/2%. For Class T-E service, the rate of |
6 | 7 1/2%. For Class T-F service, the rate of 10.30%. |
7 | * * * |
8 | "Class of service multiplier." |
9 | Class of service | Multiplier | 10 | T-A | .714 | 11 | T-B | .625 | 12 | T-C | 1.000 | 13 | T-D | 1.000 | 14 | T-E | 1.000 | 15 | T-F | 1.000 |
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16 | * * * |
17 | "Employer." Any governmental entity directly responsible for |
18 | the employment and payment of the school employee and charged |
19 | with the responsibility of providing public education within |
20 | this Commonwealth, including but not limited to: State-owned |
21 | colleges and universities, the Pennsylvania State University, |
22 | community colleges, area vocational-technical schools, |
23 | intermediate units, the State Board of Education, Scotland |
24 | School for Veterans' Children, Thaddeus Stevens [State School] |
25 | College of Technology, and the [Pennsylvania State Oral] Western |
26 | Pennsylvania School for the Deaf. |
27 | * * * |
28 | "Member's annuity." The single life annuity which is | <-- |
29 | actuarially equivalent on the effective date of retirement to |
30 | the sum of the accumulated deductions and the shared risk member |
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1 | contributions and statutory interest credited on the deductions |
2 | and contributions standing to the member's credit in the |
3 | members' savings account. |
4 | * * * |
5 | "Pickup contributions." Regular or joint coverage member |
6 | contributions and shared risk member contributions which are |
7 | made by the employer for active members for current service on |
8 | and after January 1, 1983. |
9 | * * * |
10 | "Shared risk contribution rate." The additional contribution |
11 | rate that is added to the basic contribution rate for Class T-E |
12 | and T-F members, as provided for in section 8321(b) (relating to |
13 | regular member contributions for current service). |
14 | "Standard single life annuity." For Class T-A, T-B and T-C |
15 | credited service of a member, an annuity equal to 2% of the |
16 | final average salary, multiplied by the total number of years |
17 | and fractional part of a year of credited service of a member. |
18 | For Class T-D credited service of a member, an annuity equal to |
19 | 2.5% of the final average salary, multiplied by the total number |
20 | of years and fractional part of a year of credited service. For |
21 | Class T-E credited service of a member, an annuity equal to 2% |
22 | of the final average salary, multiplied by the total number of |
23 | years and fractional part of a year of credited service of a |
24 | member. For Class T-F credited service of a member, an annuity |
25 | equal to 2.5% of the final average salary, multiplied by the |
26 | total number of years and fractional part of a year of credited |
27 | service of a member. |
28 | * * * |
29 | "Superannuation or normal retirement age." |
30 | Class of service | Age | | 1 2 | T-A | 62 or any age upon accrual of 35 eligibility points | 3 | T-B | 62 | 4 5 6 7 8 | T-C and T-D | 62 or age 60 provided the member has at least 30 eligibility points or any age upon accrual of 35 eligibility points | 9 10 11 12 | T-E and T-F | 65 with accrual of at least three eligibility points or any age upon accrual of 35 eligibility points | <-- | 13 14 15 16 17 18 19 20 | T-E and T-F | 65 with accrual of at least three eligibility points or a combination of age and eligibility points totaling 92, provided the member has accrued at least 35 eligibility points | <-- |
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21 | * * * |
22 | "Total member contribution rate." The sum of the basic | <-- |
23 | contribution rate and the shared risk contribution rate. |
24 | * * * |
25 | "Vestee." A member with five or more eligibility points who |
26 | has terminated school service, has left his accumulated |
27 | deductions in the fund and is deferring filing of an application |
28 | for receipt of an annuity. For Class T-E and Class T-F members, |
29 | a member with ten or more eligibility points who has terminated |
30 | school service, has left his accumulated deductions in the fund |
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1 | and is deferring filing of an application for receipt of an |
2 | annuity. |
3 | Section 2. Sections 8303(c) and 8304(a) of Title 24 are | <-- |
4 | amended to read: |
5 | Section 1.1. Section 8301(a)(2) of Title 24 is amended to | <-- |
6 | read: |
7 | § 8301. Mandatory and optional membership. |
8 | (a) Mandatory membership.--Membership in the system shall be |
9 | mandatory as of the effective date of employment for all school |
10 | employees except the following: |
11 | * * * |
12 | (2) Any school employee who is not a member of the |
13 | system and who is employed on a per diem or hourly basis for |
14 | less than 80 full-day sessions or 500 hours in any fiscal |
15 | year or annuitant who returns to school service under the |
16 | provisions of section 8346(b) (relating to termination of |
17 | annuities). |
18 | * * * |
19 | Section 2. Section 8303(c) of Title 24 is amended and the |
20 | section is amended by adding a subsection to read: |
21 | § 8303. Eligibility points for retention and reinstatement of |
22 | service credits. |
23 | * * * |
24 | (c) Purchase of previous creditable service.--Every active |
25 | member of the system or a multiple service member who is an |
26 | active member of the State Employees' Retirement System on or |
27 | after the effective date of this part may purchase credit and |
28 | receive eligibility points: |
29 | (1) as a member of Class T-C, Class T-E or Class T-F for |
30 | previous creditable school service or creditable nonschool | <-- |
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1 | service; or |
2 | (2) as a member of Class T-D for previous creditable | <-- |
3 | school service, provided the member elects to become a Class |
4 | T-D member pursuant to section 8305.1 (relating to election |
5 | to become a Class T-D member); |
6 | upon written agreement by the member and the board as to the |
7 | manner of payment of the amount due for credit for such service; |
8 | except, that any purchase for reinstatement of service credit |
9 | shall be for all service previously credited. |
10 | (d) Purchase of previous noncreditable service.--Class T-C | <-- |
11 | and Class T-D members who are active members on the effective |
12 | date of this subsection shall have three years from the |
13 | effective date of this subsection to file a written application |
14 | with the board to purchase any previous noncreditable school |
15 | service. Class T-C and Class T-D members who are not active |
16 | members on the effective date of this subsection but who become |
17 | active members after the effective date of this subsection and |
18 | Class T-E and class T-F members shall have 365 days from entry |
19 | into the system to file a written application with the board to |
20 | purchase any previous noncreditable school service. |
21 | Section 2.1. Section 8304(a) of Title 24 is amended to read: |
22 | § 8304. Creditable nonschool service. |
23 | (a) Eligibility.--An active member or a multiple service |
24 | member who is an active member of the State Employees' |
25 | Retirement System shall be eligible to receive Class T-C, Class |
26 | T-E or Class T-F service credit for creditable nonschool service |
27 | and Class T-D, Class T-E or Class T-F service for intervening |
28 | military service, provided the member becomes a Class T-D member |
29 | pursuant to section 8305.1 (relating to election to become a |
30 | Class T-D member) or Class T-F member pursuant to section 8305.2 |
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1 | (relating to election to become a Class T-F member) or 8305 |
2 | (relating to classes of service), as set forth in subsection (b) |
3 | provided that he is not entitled to receive, eligible to receive |
4 | now or in the future, or is receiving retirement benefits for |
5 | such service under a retirement system administered and wholly |
6 | or partially paid for by any other governmental agency or by any |
7 | private employer, or a retirement program approved by the |
8 | employer in accordance with section 8301(a)(1) (relating to |
9 | mandatory and optional membership), and further provided that |
10 | such service is certified by the previous employer and the |
11 | manner of payment of the amount due is agreed upon by the |
12 | member, the employer, and the board. |
13 | * * * |
14 | Section 3. Section 8305 of Title 24 is amended by adding |
15 | subsections to read: |
16 | § 8305. Classes of service. |
17 | * * * |
18 | (d) Class T-E membership.--Notwithstanding any other |
19 | provision, a person who first becomes a school employee and an |
20 | active member, or a person who first becomes a multiple service |
21 | member who is a State employee and a member of the State |
22 | Employees' Retirement System, on or after the effective date of |
23 | this subsection shall be classified as a Class T-E member upon |
24 | payment of regular member contributions and the shared risk | <-- |
25 | contributions. |
26 | (e) Class T-F membership.--Notwithstanding any other |
27 | provision, a person who first becomes a school employee and an |
28 | active member, or a person who first becomes a multiple service |
29 | member who is a State employee and a member of the State |
30 | Employees' Retirement System, on or after the effective date of |
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1 | this subsection, and who is eligible to become a Class T-E |
2 | member, shall have the right to elect into Class T-F membership, |
3 | provided the person elects to become a Class T-F member pursuant |
4 | to section 8305.2 (relating to election to become a Class T-F |
5 | member), upon written election filed with the board and payment |
6 | of regular member contributions and the shared risk | <-- |
7 | contributions. |
8 | Section 4. Title 24 is amended by adding a section to read: |
9 | § 8305.2. Election to become a Class T-F member. |
10 | (a) General rule.--A person who first becomes a school |
11 | employee and an active member, or a person who first becomes a |
12 | multiple service member who is a State employee and a member of |
13 | the State Employees' Retirement System, on or after the |
14 | effective date of this subsection and who is eligible to become |
15 | a Class T-E member may elect to become a member of Class T-F. |
16 | (b) Time for making election.--A member must elect to become |
17 | a Class T-F member by filing a written election with the board |
18 | within 45 days of notification by the board that such member is |
19 | eligible for such election. |
20 | (c) Effect of election.--An election to become a Class T-F |
21 | member shall be irrevocable and shall commence from the original | <-- |
22 | date of eligibility. A member who elects Class T-F membership |
23 | shall receive Class T-F service credit on any and all future |
24 | service, regardless of whether the member terminates service or |
25 | has a break in service. |
26 | (d) Effect of failure to make election.--If a member fails |
27 | to timely file an election to become a Class T-F member, then |
28 | the member shall be enrolled as a member of Class T-E and the |
29 | member shall never be able to elect Class T-F service, |
30 | regardless of whether the member terminates service or has a |
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1 | break in service. |
2 | Section 5. Sections 8307(b), 8308, 8323(a), (c) and (c.1), | <-- |
3 | 8324(a), (b), (d), (e) and (f), 8326(a), 8327(a) and (c), 8328, |
4 | 8342(a), 8344(d), 8345(a), 8348.1(f), 8348.2(f), 8348.3(f), |
5 | 8348.5(f), 8348.6(f), 8348.7(f) and 8502(k) of Title 24 are |
6 | amended to read: |
7 | Section 5. Sections 8307(b), 8308, 8321, 8323(a), (c) and | <-- |
8 | (c.1), 8324 heading, (a), (b), (d), (e) and (f), 8326(a), |
9 | 8327(a) and (c), 8328, 8342(a), 8344(d), 8345(a), 8348.1(f), |
10 | 8348.2(f), 8348.3(f), 8348.5(f), 8348.6(f), 8348.7(f) and |
11 | 8502(k) of Title 24 are amended to read: |
12 | § 8307. Eligibility for annuities. |
13 | * * * |
14 | (b) Withdrawal annuity.--A vestee in Class T-C or Class T-D |
15 | with five or more eligibility points or an active or inactive |
16 | Class T-C or Class T-D member who terminates school service |
17 | having five or more eligibility points shall, upon filing a |
18 | proper application, be entitled to receive an early annuity. A |
19 | vestee in Class T-E or Class T-F with ten or more eligibility |
20 | points or an active or inactive Class T-E or Class T-F member |
21 | who terminates school service having ten or more eligibility |
22 | points shall, upon filing a proper application, be entitled to |
23 | receive an early annuity. |
24 | * * * |
25 | § 8308. Eligibility for vesting. |
26 | Any Class T-C or Class T-D member who terminates school |
27 | service with five or more eligibility points shall be entitled |
28 | to vest his retirement benefits until attainment of |
29 | superannuation age. Any Class T-E or Class T-F member who |
30 | terminates school service with ten or more eligibility points |
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1 | shall be entitled to vest his retirement benefits until |
2 | attainment of superannuation age. |
3 | § 8321. Regular member contributions for current service. | <-- |
4 | (a) General.--Regular member contributions shall be made to |
5 | the fund on behalf of each active member for current service |
6 | except for any period of current service in which the making of |
7 | such contributions has ceased solely by reason of any provision |
8 | of this part relating to the limitations under IRC § 401(a)(17) |
9 | or 415(b). |
10 | (b) Class T-E and Class T-F shared risk contributions.-- |
11 | Commencing with the annual actuarial valuation performed under |
12 | section 8502(j) (relating to administrative duties of board), |
13 | for the period ending June 30, 2014, and every three years |
14 | thereafter, the board shall compare the actual investment rate |
15 | of return, net of fees, to the annual interest rate adopted by |
16 | the board for the calculation of the normal contribution rate, |
17 | based on the market value of assets, for the prior ten-year |
18 | period. If the actual investment rate of return, net of fees, is |
19 | less than the annual interest rate adopted by the board by an |
20 | amount of 1% or more, the shared risk contribution rate of Class |
21 | T-E and T-F members will increase by .5%. If the actual |
22 | investment rate of return, net of fees, is equal to or exceeds |
23 | the annual interest rate adopted by the board, the shared risk |
24 | contributions rate of Class T-E and T-F members will decrease by |
25 | .5%. Class T-E and T-F members will contribute at the total |
26 | member contribution rate in effect when they are hired. The |
27 | total member contribution rate for Class T-E members shall not |
28 | be less than 7.5%, nor more than 9.5%. The total member |
29 | contribution rate for Class T-F members shall not be less than |
30 | 10.3%, nor more than 12.3%. Notwithstanding this subsection, if |
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1 | the system's actuarial funded status is 100% or more as of the |
2 | date used for the comparison required under this subsection, as |
3 | determined in the current annual actuarial valuation, the shared |
4 | risk contribution rate shall be zero. In the event that the |
5 | annual interest rate adopted by the board for the calculation of |
6 | the normal contribution rate is changed during the period used |
7 | to determine the shared risk contribution rate, the board, with |
8 | the advice of the actuary, shall determine the applicable rate |
9 | during the entire period, expressed as an annual rate. |
10 | (1) Until the system has a ten-year period of investment |
11 | rate of return experience following the effective date of |
12 | this subsection, the look-back period shall begin not earlier |
13 | than the effective date of this subsection. |
14 | (2) For any fiscal year in which the employer |
15 | contribution rate is lower than the final contribution rate |
16 | under section 8328(h) (relating to actuarial cost method), |
17 | the total member contribution rate for Class T-E and T-F |
18 | members shall be prospectively reset to the basic |
19 | contribution rate. |
20 | (3) There shall be no increase in the member |
21 | contribution rate if there has not been an equivalent |
22 | increase to the employer contribution rate over the previous |
23 | three-year period. |
24 | § 8323. Member contributions for creditable school service. |
25 | (a) Previous school service, sabbatical leave and full |
26 | coverage.--The contributions to be paid by an active member or |
27 | an eligible State employee for credit for reinstatement of all |
28 | previously credited school service, school service not |
29 | previously credited, sabbatical leave as if he had been in full- |
30 | time daily attendance, or full-coverage membership shall be |
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1 | sufficient to provide an amount equal to the accumulated |
2 | deductions which would have been standing to the credit of the |
3 | member for such service had regular member contributions been |
4 | made with full coverage at the rate of contribution necessary to |
5 | be credited as Class T-C service [or], Class T-D service if the |
6 | member is a Class T-D member, or Class T-E service if the member |
7 | is a Class T-E member, or Class T-F service if the member is a |
8 | Class T-F member, and had such contributions been credited with |
9 | statutory interest during the period the contributions would |
10 | have been made and during all periods of subsequent school and |
11 | State service up to the date of purchase. |
12 | * * * |
13 | (c) Approved leave of absence other than sabbatical leave |
14 | and activated military service leave.--The contributions to be |
15 | paid by an active member for credit for an approved leave of |
16 | absence, other than sabbatical leave and activated military |
17 | service leave, shall be sufficient to transfer his membership to |
18 | Class T-C or to Class T-D if the member is a Class T-D member or |
19 | to Class T-E if the member is a Class T-E member or to Class T-F |
20 | if the member is a Class T-F member and further to provide an |
21 | annuity as a Class T-C member or Class T-D member if the member |
22 | is a Class T-D member or Class T-E if the member is a Class T-E |
23 | member or to Class T-F if the member is a Class T-F member for |
24 | such additional credited service. Such amount shall be the sum |
25 | of the amount required in accordance with the provisions of |
26 | subsection (b) and an amount determined as the sum of the |
27 | member's basic contribution rate and the normal contribution |
28 | rate as provided in section 8328 (relating to actuarial cost |
29 | method) during such period multiplied by the compensation which |
30 | was received or which would have been received during such |
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1 | period and with statutory interest during all periods of |
2 | subsequent school and State service up to the date of purchase. |
3 | (c.1) Activated military service leave.--The contributions |
4 | to be paid by an active member for credit for all activated |
5 | military service leave as if he had been in regular attendance |
6 | in the duties for which he is employed shall be sufficient to |
7 | provide an amount equal to the accumulated deductions which |
8 | would have been standing to the credit of the member for such |
9 | service had regular member contributions been made with full |
10 | coverage at the rate of contribution necessary to be credited as |
11 | Class T-C service or Class T-D service if the member is a Class |
12 | T-D member or Class T-E service if the member is a Class T-E |
13 | member or Class T-F if the member is a Class T-F member and had |
14 | such contributions been credited with statutory interest during |
15 | the period the contributions would have been made and during all |
16 | periods of subsequent State and school service up to the date of |
17 | purchase. In the case of activated military service leave |
18 | beginning after the date of enactment of this subsection, |
19 | contributions due from the member shall be made as if he is in |
20 | regular attendance in the duties for which he is employed. |
21 | * * * |
22 | § 8324. Contributions for purchase of credit for creditable |
23 | nonschool service and noncreditable school service. | <-- |
24 | (a) Source of contributions.--The total contributions to |
25 | purchase credit as a member of Class T-C, Class T-E or Class T-F |
26 | for creditable nonschool service of an active member or an |
27 | eligible State employee shall be paid either by the member, the |
28 | member's previous employer, the Commonwealth, or a combination |
29 | thereof, as provided by law. |
30 | (b) Nonintervening military service.--The amount due for the |
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1 | purchase of credit for military service other than intervening |
2 | military service shall be determined by applying the member's |
3 | basic contribution rate plus the normal contribution rate as |
4 | provided in section 8328 (relating to actuarial cost method) at |
5 | the time of entry of the member into school service subsequent |
6 | to such military service to one-third of his total compensation |
7 | received during the first three years of such subsequent |
8 | credited school service and multiplying the product by the |
9 | number of years and fractional part of a year of creditable |
10 | nonintervening military service being purchased together with |
11 | statutory interest during all periods of subsequent school and |
12 | State service to date of purchase. Upon certification of the |
13 | amount due, payment may be made in a lump sum within 90 days or |
14 | in the case of an active member or an eligible State employee |
15 | who is an active member of the State Employees' Retirement |
16 | System it may be amortized with statutory interest through |
17 | salary deductions in amounts agreed upon by the member and the |
18 | board. The salary deduction amortization plans agreed to by |
19 | members and the board may include a deferral of payment amounts |
20 | and statutory interest until the termination of school service |
21 | or State service as the board in its sole discretion decides to |
22 | allow. The board may limit salary deduction amortization plans |
23 | to such terms as the board in its sole discretion determines. In |
24 | the case of an eligible State employee who is an active member |
25 | of the State Employees' Retirement System, the agreed upon |
26 | salary deductions shall be remitted to the State Employees' |
27 | Retirement Board, which shall certify and transfer to the board |
28 | the amounts paid. Application may be filed for all such military |
29 | service credit upon completion of three years of subsequent |
30 | credited school service and shall be credited as Class T-C |
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1 | service. In the event that a Class T-E member makes a purchase |
2 | of credit for such military service, then such service shall be |
3 | credited as Class T-E service. In the event that a Class T-F |
4 | member makes a purchase of credit for such military service, |
5 | then such service shall be credited as Class T-F service. |
6 | * * * |
7 | (d) Other creditable nonschool service.--Contributions on | <-- |
8 | (d) Other creditable nonschool service[.--] and | <-- |
9 | noncreditable school service.-- |
10 | (1) Contributions on account of Class T-C, Class T-E or | <-- |
11 | Class T-F credit for creditable nonschool service other than |
12 | military service shall be determined by applying the member's |
13 | basic contribution rate plus the normal contribution rate as |
14 | provided in section 8328 at the time of the member's entry |
15 | into school service subsequent to such creditable nonschool |
16 | service to his total compensation received during the first |
17 | year of subsequent credited school service and multiplying |
18 | the product by the number of years and fractional part of a |
19 | year of creditable nonschool service being purchased together |
20 | with statutory interest during all periods of subsequent |
21 | school or State service to the date of purchase, except that |
22 | in the case of purchase of credit for creditable nonschool |
23 | service as set forth in section 8304(b)(5) (relating to |
24 | creditable nonschool service) the member shall pay only the |
25 | employee's share unless otherwise provided by law. Upon |
26 | certification of the amount due, payment may be made in a |
27 | lump sum within 90 days or in the case of an active member or |
28 | an eligible State employee who is an active member of the |
29 | State Employees' Retirement System it may be amortized with |
30 | statutory interest through salary deductions in amounts |
|
1 | agreed upon by the member and the board. The salary deduction |
2 | amortization plans agreed to by the members and the board may |
3 | include a deferral of payment amounts and statutory interest |
4 | until the termination of school service or State service as |
5 | the board in its sole discretion decides to allow. The board |
6 | may limit salary deduction amortization plans to such terms |
7 | as the board in its sole discretion determines. In the case |
8 | of an eligible State employee who is an active member of the |
9 | State Employees' Retirement System, the agreed upon salary |
10 | deductions shall be remitted to the State Employees' |
11 | Retirement Board, which shall certify and transfer to the |
12 | board the amounts paid. |
13 | (2) Contributions on account of Class T-E or Class T-F | <-- |
14 | credit for creditable nonschool service other than military |
15 | service shall be the present value of the full actuarial cost |
16 | of the increase in the projected superannuation annuity |
17 | caused by the additional service credited on account of the |
18 | purchase. Upon certification of the amount due, payment may |
19 | be made in a lump sum within 90 days or, in the case of an |
20 | active member or an eligible State employee who is an active |
21 | member of the State Employees' Retirement System, it may be |
22 | amortized with statutory interest through salary deductions |
23 | in amounts agreed upon by the member and the board. The |
24 | salary deduction amortization plans agreed to by the members |
25 | and the board may include a deferral of payment amounts and |
26 | statutory interest until the termination of school service or |
27 | State service as the board in its sole discretion decides to |
28 | allow. The board may limit salary deduction amortization |
29 | plans to the terms as the board in its sole discretion |
30 | determines. In the case of an eligible State employee who is |
|
1 | an active member of the State Employees' Retirement System, |
2 | the agreed upon salary deductions shall be remitted to the |
3 | State Employees' Retirement Board, which shall certify and |
4 | transfer to the board the amounts paid. |
5 | (3) Contributions on account of Class T-E or Class T-F |
6 | credit for noncreditable school service other than military |
7 | service shall be the present value of the full actuarial cost |
8 | of the increase in the projected superannuation annuity |
9 | caused by the additional service credited on account of the |
10 | purchase. Upon certification of the amount due, payment may |
11 | be made in a lump sum within 90 days or, in the case of an |
12 | active member or an eligible State employee who is an active |
13 | member of the State Employees' Retirement System, it may be |
14 | amortized with statutory interest through salary deductions |
15 | in amounts agreed upon by the member and the board. The |
16 | salary deduction amortization plans agreed to by the members |
17 | and the board may include a deferral of payment amounts and |
18 | statutory interest until the termination of school service or |
19 | State service as the board in its sole discretion decides to |
20 | allow. The board may limit salary deduction amortization |
21 | plans to the terms as the board in its sole discretion |
22 | determines. In the case of an eligible State employee who is |
23 | an active member of the State Employees' Retirement System, |
24 | the agreed upon salary deductions shall be remitted to the |
25 | State Employees' Retirement Board, which shall certify and |
26 | transfer to the board the amounts paid. |
27 | (e) Creditable work experience.--Contributions on account of |
28 | Class T-C, Class T-E or Class T-F credit for creditable work |
29 | experience pursuant to section 8304(b)(6) shall be the present |
30 | value of the full actuarial cost of the increase in the |
|
1 | projected superannuation annuity caused by the additional |
2 | service credited on account of the purchase of creditable work |
3 | experience. The amount paid for the purchase of credit for |
4 | creditable work experience shall not be payable as a lump sum |
5 | under section 8345(a)(4)(iii) (relating to member's options). |
6 | Any individual eligible to receive an annuity, excluding an |
7 | annuity received under the Federal Social Security Act (42 |
8 | U.S.C. § 301 et seq.), in another pension system, other than a |
9 | military pension system, shall not be eligible to purchase this |
10 | service. |
11 | (f) Creditable maternity leave.--Contributions on account of |
12 | Class T-C, Class T-E or Class T-F credit for creditable |
13 | maternity leave pursuant to section 8304(b)(7) shall be |
14 | determined by applying the member's basic contribution rate plus |
15 | the normal contribution rate as provided in section 8328 at the |
16 | time of the member's return to school service to the total |
17 | compensation received during the first year of subsequent school |
18 | service and multiplying the product by the number of years and |
19 | fractional part of a year of creditable service being purchased, |
20 | together with statutory interest during all periods of |
21 | subsequent school or State service to the date of purchase. The |
22 | amount paid for the purchase of credit for creditable maternity |
23 | leave shall not be eligible for withdrawal as a lump sum under |
24 | section 8345(a)(4)(iii). |
25 | § 8326. Contributions by the Commonwealth. |
26 | (a) Contributions on behalf of active members.--The |
27 | Commonwealth shall make contributions into the fund on behalf of |
28 | all active members, including members on activated military |
29 | service leave, in an amount equal to one-half the amount |
30 | certified by the board as necessary to provide, together with |
|
1 | the members' contributions, annuity reserves on account of |
2 | prospective annuities as provided in this part in accordance |
3 | with section 8328[(a), (b), (c) and (e)] (relating to actuarial |
4 | cost method). In case a school employee has elected membership |
5 | in a retirement program approved by the employer, the |
6 | Commonwealth shall contribute to such program on account of his |
7 | membership an amount no greater than the amount it would have |
8 | contributed had the employee been a member of the Public School |
9 | Employees' Retirement System. |
10 | * * * |
11 | § 8327. Payments by employers. |
12 | (a) General rule.--Each employer, including the Commonwealth |
13 | as employer of employees of the Department of Education, State- |
14 | owned colleges and universities, Thaddeus Stevens [State School] |
15 | College of Technology, [Pennsylvania State Oral] Western |
16 | Pennsylvania School for the Deaf, Scotland School for Veterans' |
17 | Children, and the Pennsylvania State University, shall make |
18 | payments to the fund each quarter in an amount equal to one-half |
19 | the sum of the percentages, as determined under section 8328 |
20 | (relating to actuarial cost method), applied to the total |
21 | compensation during the pay periods in the preceding quarter of |
22 | all its employees who were members of the system during such |
23 | period, including members on activated military service leave. |
24 | In the event a member on activated military service leave does |
25 | not return to service for the necessary time or receives an |
26 | undesirable, bad conduct or dishonorable discharge or does not |
27 | elect to receive credit for activated military service under |
28 | section 8302(b.1)(3) (relating to credited school service), the |
29 | contributions made by the employer on behalf of such member |
30 | shall be returned with valuation interest upon application by |
|
1 | the employer. |
2 | * * * |
3 | (c) Payments by employers after June 30, 1995.--After June |
4 | 30, 1995, each employer, including the Commonwealth as employer |
5 | of employees of the Department of Education, State-owned |
6 | colleges and universities, Thaddeus Stevens [State School] |
7 | College of Technology, [Pennsylvania State Oral] Western |
8 | Pennsylvania School for the Deaf, Scotland School for Veterans' |
9 | Children and The Pennsylvania State University, shall make |
10 | payments to the fund each quarter in an amount computed in the |
11 | following manner: |
12 | (1) For an employer that is a school entity, the amount |
13 | shall be the sum of the percentages as determined under |
14 | section 8328 applied to the total compensation during the pay |
15 | periods in the preceding quarter of all employees who were |
16 | active members of the system during such period, including |
17 | members on activated military service leave. In the event a |
18 | member on activated military service leave does not return to |
19 | service for the necessary time or receives an undesirable, |
20 | bad conduct or dishonorable discharge or does not elect to |
21 | receive credit for activated military service under section |
22 | 8302(b.1)(3), the contribution made by the employer on behalf |
23 | of such member shall be returned with valuation interest upon |
24 | application by the employer. |
25 | (2) For an employer that is not a school entity, the |
26 | amount computed under subsection (a). |
27 | (3) For any employer, whether or not a school entity, in |
28 | computing the amount of payment due each quarter, there shall |
29 | be excluded from the total compensation referred to in this |
30 | subsection and subsection (a) any amount of compensation of a |
|
1 | noneligible member on the basis of which member contributions |
2 | have not been made by reason of the limitation under IRC § |
3 | 401(a)(17). Any amount of contribution to the fund paid by |
4 | the employer on behalf of a noneligible member on the basis |
5 | of compensation which was subject to exclusion from total |
6 | compensation in accordance with the provisions of this |
7 | paragraph shall, upon the board's determination or upon |
8 | application by the employer, be returned to the employer with |
9 | valuation interest. |
10 | § 8328. Actuarial cost method. |
11 | (a) Employer contribution rate [on behalf of active |
12 | members].--The amount of the total employer contributions [on |
13 | behalf of all active members] shall be computed by the actuary |
14 | as a percentage of the total compensation of all active members |
15 | during the period for which the amount is determined and shall |
16 | be so certified by the board. The total employer contribution |
17 | rate shall be the sum of the final contribution rate as computed |
18 | in subsection (h) plus the premium assistance contribution rate |
19 | as computed in subsection (f). The [total] actuarially required |
20 | contribution rate [on behalf of all active members] shall |
21 | consist of the normal contribution rate as defined in subsection |
22 | (b), the accrued liability contribution rate as defined in |
23 | subsection (c) and the supplemental annuity contribution rate as |
24 | defined in subsection (d). Beginning July 1, 2004, the [total] |
25 | actuarially required contribution rate shall be modified by the |
26 | experience adjustment factors as calculated in subsection (e) |
27 | [but in no case shall it be less than 4% plus the premium |
28 | assistance contribution rate]. |
29 | (b) Normal contribution rate.--The normal contribution rate |
30 | shall be determined after each actuarial valuation. [Until all | <-- |
|
1 | accrued liability contributions have been completed, the] The | <-- |
2 | normal contribution rate shall be determined, on the basis of |
3 | the actuarial cost method, an annual interest rate and such | <-- |
4 | mortality and other tables as shall be adopted by the board in |
5 | accordance with generally accepted actuarial principles, as a |
6 | level percentage of the compensation of the average new active |
7 | member, which percentage, if contributed on the basis of his |
8 | prospective compensation through the entire period of active |
9 | school service, would be sufficient to fund the liability for |
10 | any prospective benefit payable to him, in excess of that |
11 | portion funded by his prospective member contributions[, except |
12 | for the supplemental benefits provided in sections 8348 |
13 | (relating to supplemental annuities), 8348.1 (relating to |
14 | additional supplemental annuities), 8348.2 (relating to further |
15 | additional supplemental annuities), 8348.3 (relating to |
16 | supplemental annuities commencing 1994), 8348.4 (relating to |
17 | special supplemental postretirement adjustment), 8348.5 |
18 | (relating to supplemental annuities commencing 1998), 8348.6 |
19 | (relating to supplemental annuities commencing 2002) and 8348.7 |
20 | (relating to supplemental annuities commencing 2003)], excluding | <-- |
21 | the shared risk contributions. |
22 | (c) Accrued liability contribution rate.-- |
23 | (1) For the fiscal [year] years beginning July 1, 2002, |
24 | and ending June 30, 2011, the accrued liability contribution |
25 | rate shall be computed as the rate of total compensation of |
26 | all active members which shall be certified by the actuary as |
27 | sufficient to fund over a period of ten years from July 1, |
28 | 2002, the present value of the liabilities for all |
29 | prospective benefits of active members, except for the |
30 | supplemental benefits provided in sections 8348 (relating to |
|
1 | supplemental annuities), 8348.1 (relating to additional |
2 | supplemental annuities), 8348.2 (relating to further |
3 | additional supplemental annuities), 8348.3 (relating to |
4 | supplemental annuities commencing 1994), 8348.4 (relating to |
5 | special supplemental postretirement adjustment), 8348.5 |
6 | (relating to supplemental annuities commencing 1998), 8348.6 |
7 | (relating to supplemental annuities commencing 2002) and |
8 | 8348.7 (relating to supplemental annuities commencing 2003), |
9 | in excess of the total assets in the fund (calculated by |
10 | recognizing the actuarially expected investment return |
11 | immediately and recognizing the difference between the actual |
12 | investment return and the actuarially expected investment |
13 | return over a five-year period), excluding the balance in the |
14 | annuity reserve account, and of the present value of normal |
15 | contributions and of member contributions payable with |
16 | respect to all active members on July 1, 2002, during the |
17 | remainder of their active service. |
18 | (2) [Thereafter] For the fiscal years beginning July 1, |
19 | 2003, and ending June 30, 2011, the amount of each annual |
20 | accrued liability contribution shall be equal to the amount |
21 | of such contribution for the fiscal year, beginning July 1, |
22 | 2002, except that, if the accrued liability is increased by |
23 | legislation enacted subsequent to June 30, 2002, but before |
24 | July 1, 2003, such additional liability shall be funded over |
25 | a period of ten years from the first day of July, coincident |
26 | with or next following the effective date of the increase. |
27 | The amount of each annual accrued liability contribution for |
28 | such additional legislative liabilities shall be equal to the |
29 | amount of such contribution for the first annual payment. |
30 | (3) Notwithstanding any other provision of law, |
|
1 | beginning July 1, 2004, and ending June 30, 2011, the |
2 | outstanding balance of the increase in accrued liability due |
3 | to the change in benefits enacted in 2001 and the outstanding |
4 | balance of the net actuarial loss incurred in fiscal year |
5 | 2000-2001 shall be amortized in equal dollar annual |
6 | contributions over a period that ends 30 years after July 1, |
7 | 2002, and the outstanding balance of the net actuarial loss |
8 | incurred in fiscal year 2001-2002 shall be amortized in equal |
9 | dollar annual contributions over a period that ends 30 years |
10 | after July 1, 2003. For fiscal years beginning on or after |
11 | July 1, 2004, if the accrued liability is increased by |
12 | legislation enacted subsequent to June 30, 2003, such |
13 | additional liability shall be funded in equal dollar annual |
14 | contributions over a period of ten years from the first day |
15 | of July coincident with or next following the effective date |
16 | of the increase. |
17 | (4) For the fiscal year beginning July 1, 2011, the |
18 | accrued liability contribution rate shall be computed as the |
19 | rate of total compensation of all active members which shall |
20 | be certified by the actuary as sufficient to fund as a level |
21 | percentage of compensation over a period of 30 24 years from | <-- |
22 | July 1, 2011, the present value of the liabilities for all |
23 | prospective benefits calculated as of June 30, 2010, |
24 | including the supplemental benefits as provided in sections |
25 | 8348, 8348.1, 8348.2, 8348.3, 8348.4, 8348.5, 8348.6 and |
26 | 8348.7, in excess of the actuarially calculated assets in the |
27 | fund (calculated recognizing all realized and unrealized |
28 | investment gains and losses each year in level annual |
29 | installments over a ten-year period). In the event that the |
30 | accrued liability is increased by legislation enacted |
|
1 | subsequent to June 30, 2010, such additional liability shall |
2 | be funded as a level percentage of compensation over a period |
3 | of ten years from the July 1 second succeeding the date such |
4 | legislation is enacted. |
5 | (d) Supplemental annuity contribution rate.--[Contributions] |
6 | (1) For the period of July 1, 2002, to June 30, 2011, |
7 | contributions from the Commonwealth and other employers |
8 | required to provide for the payment of the supplemental |
9 | annuities provided for in sections 8348, 8348.1, 8348.2, |
10 | 8348.4 and 8348.5 shall be paid over a period of ten years |
11 | from July 1, 2002. The funding for the supplemental annuities |
12 | commencing 2002 provided for in section 8348.6 shall be as |
13 | provided in section 8348.6(f). The funding for the |
14 | supplemental annuities commencing 2003 provided for in |
15 | section 8348.7 shall be as provided in section 8348.7(f). The |
16 | amount of each annual supplemental annuities contribution |
17 | shall be equal to the amount of such contribution for the |
18 | fiscal year beginning July 1, 2002. [In the event that |
19 | supplemental annuities are increased by legislation enacted |
20 | subsequent to June 30, 2002, the additional liability for the |
21 | increased benefits to be amortized shall be funded in equal |
22 | dollar annual installments over a period of ten years.] |
23 | (2) For fiscal years beginning July 1, 2011, |
24 | contributions from the Commonwealth and other employers whose |
25 | employees are members of the system required to provide for |
26 | the payment of supplemental annuities as provided in sections |
27 | 8348, 8348.1, 8348.2, 8348.3, 8348.4, 8348.5, 8348.6 and |
28 | 8348.7 shall be paid as part of the accrued liability |
29 | contribution rate as provided for in subsection (c)(4), and |
30 | there shall not be a separate supplemental annuity |
|
1 | contribution rate attributable to those supplemental |
2 | annuities. In the event that supplemental annuities are |
3 | increased by legislation enacted subsequent to June 30, 2010, |
4 | the additional liability for the increase in benefits shall |
5 | be funded as a level percentage of compensation over a period |
6 | of ten years from the July 1 second succeeding the date such |
7 | legislation is enacted. |
8 | (e) Experience adjustment factor.-- |
9 | (1) For each year after the establishment of the accrued |
10 | liability contribution rate for the fiscal year beginning |
11 | July 1, [2002] 2011, any increase or decrease in the unfunded |
12 | accrued liability, excluding the gains or losses on the |
13 | assets of the health insurance account, due to actual |
14 | experience differing from assumed experience, changes in |
15 | actuarial assumptions, changes in contributions caused by the |
16 | final contribution rate being different from the actuarially |
17 | required contribution rate, active members making shared risk | <-- |
18 | contributions or changes in the terms and conditions of the |
19 | benefits provided by the system by judicial, administrative |
20 | or other processes other than legislation, including, but not |
21 | limited to, reinterpretation of the provisions of this part, |
22 | shall be amortized [in equal dollar annual contributions] as |
23 | a level percentage of compensation over a period of [ten] 30 | <-- |
24 | 24 years beginning with the July 1 second succeeding the | <-- |
25 | actuarial valuation determining said increases or decreases. |
26 | (2) [Notwithstanding the provisions of paragraph (1), |
27 | for each year after the establishment of the accrued |
28 | liability contribution rate for the fiscal year beginning |
29 | July 1, 2003, any increase or decrease in the unfunded |
30 | accrued liability, excluding the gains or losses on the |
|
1 | assets of the health insurance account, due to actual |
2 | experience differing from assumed experience, changes in |
3 | actuarial assumptions, changes in the terms and conditions of |
4 | the benefits provided by the system by judicial, |
5 | administrative or other processes other than legislation, |
6 | including, but not limited to, reinterpretation of the |
7 | provisions of this part, shall be amortized in equal dollar |
8 | annual contributions over a period of 30 years beginning with |
9 | the July 1 second succeeding the actuarial valuation |
10 | determining said increases and decreases] (Reserved). |
11 | (f) Premium assistance contribution rate.--For each fiscal |
12 | year beginning with July 1, 1991, the total contribution rate as |
13 | calculated according to this section shall be increased annually |
14 | in the full amount certified by the board as necessary to fund |
15 | the premium assistance program in accordance with section 8509 |
16 | (relating to health insurance premium assistance program), |
17 | notwithstanding any other provisions of this section. |
18 | (g) Temporary application of collared contribution rate.-- |
19 | (1) The collared contribution rate for each year shall |
20 | be determined by comparing the actuarially required |
21 | contribution rate, calculated without regard for the costs |
22 | added by legislation, to the prior year's final contribution |
23 | rate. |
24 | (2) If, for any of the fiscal years beginning July 1, |
25 | 2011, July 1, 2012, and on or after July 1, 2013, the |
26 | actuarially required contribution rate, calculated without |
27 | regard for the costs added by legislation, is more than 3%, |
28 | 3.5% and 4.5%, respectively, of the total compensation of all |
29 | active members greater than the prior year's final |
30 | contribution rate, then the collared contribution rate shall |
|
1 | be applied and be equal to the prior year's final |
2 | contribution rate increased by 3%, 3.5% and 4.5%, |
3 | respectively, of total compensation of all active members. |
4 | Otherwise, and for all other fiscal years, the collared |
5 | contribution rate shall not be applicable. In no case shall |
6 | the collared contribution rate be less than 4% of the total |
7 | compensation of all active members. |
8 | (h) Final contribution rate.-- |
9 | (1) For the fiscal year beginning July 1, 2010, the |
10 | final contribution rate shall be is 5% of the total | <-- |
11 | compensation of all active members. For each subsequent |
12 | fiscal year for which the collared contribution rate is |
13 | applicable, the final contribution rate shall be the collared |
14 | contribution rate as calculated in subsection (g), plus the |
15 | costs added by legislation. |
16 | (2) For all other fiscal years, the final contribution |
17 | rate shall be the actuarially required contribution rate, |
18 | provided that the final contribution rate shall not be less |
19 | than the normal contribution rate as provided in subsection |
20 | (b). |
21 | (i) Definitions.--As used in this section, the following |
22 | words and phrases shall have the meanings given to them in this |
23 | subsection unless the context clearly indicates otherwise: |
24 | "Actuarially required contribution rate." The sum of the |
25 | following: |
26 | (1) the normal contribution rate as calculated in |
27 | subsection (b); |
28 | (2) the accrued liability contribution rate as |
29 | calculated in subsection (c); |
30 | (3) the supplemental annuity contribution rate as |
|
1 | calculated in subsection (d); |
2 | (4) the experience adjustment factor as calculated in |
3 | subsection (e); and |
4 | (5) any costs added by legislation enacted prior to the |
5 | last actuarial valuation. |
6 | "Costs added by legislation." The sum, if positive, of all |
7 | changes in the actuarially required contribution rate resulting |
8 | from legislation enacted in the year since the last actuarial |
9 | valuation and not included in the determination of the prior |
10 | year's final contribution rate, computed as the rate of total |
11 | compensation of all active members certified by the actuary as |
12 | sufficient to make the employer normal contributions and |
13 | sufficient to amortize legislatively created changes in the |
14 | unfunded actuarial liability as a level percentage of |
15 | compensation over a period of ten years from the July 1 second |
16 | succeeding the date of enactment. |
17 | § 8342. Maximum single life annuity. |
18 | (a) General rule.--Upon termination of service, any full |
19 | coverage member who is eligible to receive an annuity pursuant |
20 | to the provisions of section 8307(a) or (b) (relating to |
21 | eligibility for annuities) and has made an application in |
22 | accordance with the provisions of section 8507(f) (relating to |
23 | rights and duties of school employees and members) shall be |
24 | entitled to receive a maximum single life annuity attributable |
25 | to his credited service and equal to the sum of the following |
26 | single life annuities beginning at the effective date of |
27 | retirement and, in case the member on the effective date of |
28 | retirement is under superannuation age, multiplied by a |
29 | reduction factor calculated to provide benefits actuarially |
30 | equivalent to an annuity starting at superannuation age: |
|
1 | Provided however, That on or after July 1, 1976, in the case of |
2 | any Class T-C, T-D, T-E or T-F member who has attained age 55 | <-- |
3 | and has 25 or more eligibility points such sum of single life |
4 | annuities shall be reduced by a percentage determined by |
5 | multiplying the number of months, including a fraction of a |
6 | month as a full month, by which the effective date of retirement |
7 | precedes superannuation age by 1/4%: Further provided, In no | <-- |
8 | event shall a Class T-E or Class T-F member receive an annual |
9 | benefit, calculated as of the effective date of retirement, |
10 | greater than the member's final average salary: |
11 | (1) A standard single life annuity multiplied by the |
12 | class of service multiplier and calculated on the basis of |
13 | the number of years of credited school service other than |
14 | concurrent service. |
15 | (2) A standard single life annuity multiplied by the |
16 | class of service multiplier and calculated on the basis of |
17 | the number of years of concurrent service and multiplied by |
18 | the ratio of total compensation received in the school system |
19 | during the period of concurrent service to the total |
20 | compensation received during such period. |
21 | (3) A supplemental annuity such that the total annuity |
22 | prior to any optional modification or any reduction due to |
23 | retirement prior to superannuation age shall be at least $100 |
24 | for each full year of credited service. |
25 | * * * |
26 | § 8344. Disability annuities. |
27 | * * * |
28 | (d) Withdrawal of accumulated deductions.--Upon termination |
29 | of disability annuity payments in excess of an annuity |
30 | calculated in accordance with section 8342, a disability |
|
1 | annuitant who: |
2 | (1) is a Class T-C or Class T-D member; or |
3 | (2) is a Class T-E or Class T-F member with less than |
4 | ten eligibility points |
5 | and who does not return to school service may file an |
6 | application with the board for an amount equal to the |
7 | accumulated deductions, shared risk member contributions and | <-- |
8 | statutory interest standing to his credit at the effective date |
9 | of disability less the total payments received on account of his |
10 | member's annuity. |
11 | * * * |
12 | § 8345. Member's options. |
13 | (a) General rule.--Any Class T-C or Class T-D member who is |
14 | a vestee with five or more eligibility points, any Class T-E or |
15 | Class T-F member who is a vestee with ten or more eligibility |
16 | points, or any other eligible member upon termination of school |
17 | service who has not withdrawn his accumulated deductions as |
18 | provided in section 8341 (relating to return of accumulated |
19 | deductions) may apply for and elect to receive either a maximum |
20 | single life annuity, as calculated in accordance with the |
21 | provisions of section 8342 (relating to maximum single life |
22 | annuity), or a reduced annuity certified by the actuary to be |
23 | actuarially equivalent to the maximum single life annuity and in |
24 | accordance with one of the following options, except that no |
25 | member shall elect an annuity payable to one or more survivor |
26 | annuitants other than his spouse or alternate payee of such a |
27 | magnitude that the present value of the annuity payable to him |
28 | for life plus any lump sum payment he may have elected to |
29 | receive is less than 50% of the present value of his maximum |
30 | single life annuity. In no event shall a Class T-E or Class T-F | <-- |
|
1 | member receive an annual benefit, calculated as of the effective |
2 | date of retirement, greater than the member's final average |
3 | salary. |
4 | (1) Option 1.--A life annuity to the member with a |
5 | guaranteed total payment equal to the present value of the |
6 | maximum single life annuity on the effective date of |
7 | retirement with the provision that, if, at his death, he has |
8 | received less than such present value, the unpaid balance |
9 | shall be payable to his beneficiary. |
10 | (2) Option 2.--A joint and survivor annuity payable |
11 | during the lifetime of the member with the full amount of |
12 | such annuity payable thereafter to his survivor annuitant, if |
13 | living at his death. |
14 | (3) Option 3.--A joint and fifty percent (50%) survivor |
15 | annuity payable during the lifetime of the member with one- |
16 | half of such annuity payable thereafter to his survivor |
17 | annuitant, if living at his death. |
18 | (4) Option 4.--Some other benefit which shall be |
19 | certified by the actuary to be actuarially equivalent to the |
20 | maximum single life annuity, subject to the following |
21 | restrictions: |
22 | (i) Any annuity shall be payable without reduction |
23 | during the lifetime of the member. |
24 | (ii) The sum of all annuities payable to the |
25 | designated survivor annuitants shall not be greater than |
26 | one and one-half times the annuity payable to the member. |
27 | (iii) A portion of the benefit may be payable as a |
28 | lump sum, except that such lump sum payment shall not |
29 | exceed an amount equal to the accumulated deductions |
30 | standing to the credit of the member. The balance of the |
|
1 | present value of the maximum single life annuity adjusted |
2 | in accordance with section 8342(b) shall be paid in the |
3 | form of an annuity with a guaranteed total payment, a |
4 | single life annuity, or a joint and survivor annuity or |
5 | any combination thereof but subject to the restrictions |
6 | of subparagraphs (i) and (ii) of this paragraph. This |
7 | subparagraph shall not apply to a Class T-E or Class T-F |
8 | member. |
9 | * * * |
10 | § 8348.1. Additional supplemental annuities. |
11 | * * * |
12 | (f) Funding.--The actuary shall annually certify the amount |
13 | of Commonwealth appropriations for the next fiscal year needed |
14 | to fund, over a period of ten years from July 1, 2002, the |
15 | additional monthly supplemental annuity provided for in this |
16 | section[. The board shall submit the actuary's certification to |
17 | the Secretary of the Budget on or before November 1 of each |
18 | year. If, in any year after 1984, the amount certified is |
19 | disapproved under section 610 of the act of April 9, 1929 |
20 | (P.L.177, No.175), known as The Administrative Code of 1929, as |
21 | insufficient to meet the funding requirements of this subsection |
22 | or is not appropriated on or before July 1, the additional |
23 | supplemental annuity provided for in this section shall be |
24 | suspended until such time as an amount certified and approved as |
25 | sufficient is appropriated], which amounts shall be paid during |
26 | the period beginning July 1, 2002, and ending June 30, 2011. For |
27 | fiscal years beginning on or after July 1, 2011, the additional |
28 | liability provided in this section shall be funded as part of |
29 | the actuarial accrued liability as provided in section 8328 |
30 | (relating to actuarial cost method). |
|
1 | * * * |
2 | § 8348.2. Further additional supplemental annuities. |
3 | * * * |
4 | (f) Funding.--The actuary shall annually estimate the amount |
5 | of Commonwealth appropriations for the next fiscal year needed |
6 | to fund, over a period of ten years from July 1, 2002, the |
7 | additional monthly supplemental annuity provided for in this |
8 | section[. The board shall submit the actuary's estimation to the |
9 | Secretary of the Budget on or before November 1 of each year. |
10 | If, in any year after 1988, the amount estimated is disapproved |
11 | under section 610 of the act of April 9, 1929 (P.L.177, No.175), |
12 | known as The Administrative Code of 1929, as insufficient to |
13 | meet the funding requirements of this subsection or is not |
14 | appropriated on or before July 1, the additional supplemental |
15 | annuity provided for in this section shall be suspended until |
16 | such time as an amount certified and approved as sufficient is |
17 | appropriated], which amounts shall be paid during the period |
18 | beginning July 1, 2002, and ending June 30, 2011. For fiscal |
19 | years beginning on or after July 1, 2011, the additional |
20 | liability provided in this section shall be funded as part of |
21 | the actuarial accrued liability as provided in section 8328 |
22 | (relating to actuarial cost method). |
23 | * * * |
24 | § 8348.3. Supplemental annuities commencing 1994. |
25 | * * * |
26 | (f) Funding.--[The] |
27 | (1) For the period beginning July 1, 2002, and ending |
28 | June 30, 2011, the additional liability for the increase in |
29 | benefits provided in this section shall be funded in equal |
30 | dollar annual installments over a period of ten years |
|
1 | beginning July 1, 2002. |
2 | (2) For fiscal years beginning on or after July 1, 2011, |
3 | the additional liability provided in this section shall be |
4 | funded as part of the actuarial accrued liability as provided |
5 | in section 8328 (relating to actuarial cost method). |
6 | * * * |
7 | § 8348.5. Supplemental annuities commencing 1998. |
8 | * * * |
9 | (f) Funding.--[The] |
10 | (1) For the period beginning July 1, 2002, and ending |
11 | June 30, 2011, the additional liability for the increase in |
12 | benefits provided in this section shall be funded in equal |
13 | dollar annual installments over a period of ten years |
14 | beginning July 1, 2002. |
15 | (2) For fiscal years beginning on or after July 1, 2011, |
16 | the additional liability provided in this section shall be |
17 | funded as part of the actuarial accrued liability as provided |
18 | in section 8328 (relating to actuarial cost method). |
19 | (3) Notwithstanding the provisions of section 212 of the |
20 | act of April 22, 1998 (P.L.1341, No.6A), known as the General |
21 | Appropriation Act of 1998, regarding payment for cost-of- |
22 | living increases for annuitants, payments for cost-of-living |
23 | increases for annuitants shall be made under section 8535 |
24 | (relating to payments to school entities by Commonwealth). |
25 | * * * |
26 | § 8348.6. Supplemental annuities commencing 2002. |
27 | * * * |
28 | (f) Funding.--[The] |
29 | (1) For the period beginning July 1, 2002, and ending |
30 | June 30, 2011, the additional liability for the increase in |
|
1 | benefits provided in this section shall be funded in equal |
2 | dollar annual installments over a period of ten years |
3 | beginning July 1, 2003. |
4 | (2) For fiscal years beginning on or after July 1, 2011, |
5 | the additional liability provided in this section shall be |
6 | funded as part of the actuarial accrued liability as provided |
7 | in section 8328 (relating to actuarial cost method). |
8 | * * * |
9 | § 8348.7. Supplemental annuities commencing 2003. |
10 | * * * |
11 | (f) Funding.--[The] |
12 | (1) For the period beginning July 1, 2002, and ending |
13 | June 30, 2011, the additional liability for the increase in |
14 | benefits provided in this section shall be funded in equal |
15 | dollar annual installments over a period of ten years |
16 | beginning July 1, 2004. |
17 | (2) For fiscal years beginning on or after July 1, 2011, |
18 | the additional liability provided in this section shall be |
19 | funded as part of the actuarial accrued liability as provided |
20 | in section 8328 (relating to actuarial cost method). |
21 | * * * |
22 | § 8502. Administrative duties of board. |
23 | * * * |
24 | (k) Certification of employer contributions.--The board |
25 | shall, each year in addition to the itemized budget required |
26 | under section 8330 (relating to appropriations by the |
27 | Commonwealth), certify to the employers and the Commonwealth the |
28 | employer contribution rate expressed as a percentage of members' |
29 | payroll necessary for the funding of prospective annuities for |
30 | active members and the annuities of annuitants, and certify the |
|
1 | rates and amounts of the normal contributions as determined |
2 | pursuant to section 8328(b) (relating to actuarial cost method), |
3 | accrued liability contributions as determined pursuant to |
4 | section 8328(c), supplemental annuities contribution rate as |
5 | determined pursuant to section 8328(d) [and], the experience |
6 | adjustment factor as determined pursuant to section 8328(e) |
7 | [and], premium assistance contributions as determined pursuant |
8 | to section 8328(f), the costs added by legislation as determined |
9 | pursuant to section 8328(i), the actuarial required contribution |
10 | rate as determined pursuant to section 8328(i), the collared |
11 | contribution rate as determined pursuant to section 8328(g) and, | <-- |
12 | the final contribution rate as determined pursuant to section |
13 | 8328(h) and the shared risk contribution rate as determined | <-- |
14 | under section 8321(b) (relating to regular member contributions |
15 | for current service), which shall be paid to the fund and |
16 | credited to the appropriate accounts. These certifications shall |
17 | be regarded as final and not subject to modification by the |
18 | [Budget Secretary] Secretary of the Budget. |
19 | * * * |
20 | Section 6. Section 8505 of Title 24 is amended by adding a |
21 | subsection to read: |
22 | § 8505. Duties of board regarding applications and elections of |
23 | members. |
24 | * * * |
25 | (l) Notification of Class T-F membership.--The board shall |
26 | inform any eligible school employee of the right to elect Class |
27 | T-F membership. |
28 | Section 7 6.1. Sections 8507(f) and (g) and 8535(3) of Title | <-- |
29 | 24 are amended to read: |
30 | § 8507. Rights and duties of school employees and members. |
|
1 | * * * |
2 | (f) Termination of service.--Each member who terminates |
3 | school service and who is not then a disability annuitant shall |
4 | execute on or before the date of termination of service a |
5 | written application, duly attested by the member or his legally |
6 | constituted representative, electing to do one of the following: |
7 | (1) Withdraw his accumulated deductions. |
8 | (2) Vest his retirement rights and if he is a joint |
9 | coverage member, and so desires, elect to become a full |
10 | coverage member and agree to pay within 30 days of the date |
11 | of termination of service the lump sum required. |
12 | (3) Receive an immediate annuity, if eligible, and may, |
13 | if he is a joint coverage member, elect to become a full |
14 | coverage member and agree to pay within 30 days of date of |
15 | termination of service the lump sum required. |
16 | (g) Vesting of retirement rights.--If a member elects to |
17 | vest his retirement rights, he shall nominate a beneficiary by |
18 | written designation filed with the board and he may anytime |
19 | thereafter withdraw the accumulated deductions standing to his |
20 | credit or[, if he has five or more eligibility points,] apply |
21 | for an annuity if eligible as provided in section 8307(a) or (b) |
22 | (relating to eligibility for annuitants). |
23 | * * * |
24 | § 8535. Payments to school entities by Commonwealth. |
25 | For each school year beginning with the 1995-1996 school |
26 | year, each school entity shall be paid by the Commonwealth for |
27 | contributions based upon school service of active members of the |
28 | system after June 30, 1995, as follows: |
29 | * * * |
30 | (3) School entities shall have up to five days after |
|
1 | receipt of the Commonwealth's portion of the employer's |
2 | liability to make payment to the Public School Employees' |
3 | Retirement Fund. School entities are expected to make the |
4 | full payment to the Public School Employees' Retirement Fund |
5 | in accordance with section 8327 (relating to payments by |
6 | employers) in the event the receipt of the Commonwealth's |
7 | portion of the employer's liability is delayed because of |
8 | delinquent salary reporting or other conduct by the school |
9 | entities. |
10 | Section 7 6.2. Title 24 is amended by adding a section to | <-- |
11 | read: |
12 | § 8536. Independent Fiscal Office study. |
13 | The Independent Fiscal Office shall study and analyze the |
14 | implementation of shared risk contributions under section |
15 | 8321(b) (relating to regular member contributions for current |
16 | service) and its impact on the system. The study shall be |
17 | completed by December 31, 2015, and shall be transmitted to the |
18 | Appropriations Committee and the Finance Committee of the Senate |
19 | and the Appropriations Committee and the Finance Committee of |
20 | the House of Representatives and to the Governor. |
21 | Section 7. Title 71 is amended by adding a part to read: | <-- |
22 | PART V |
23 | BOARDS AND OFFICES |
24 | Chapter |
25 | 41. Independent Fiscal Office |
26 | CHAPTER 41 |
27 | INDEPENDENT FISCAL OFFICE |
28 | 4101. Scope. |
29 | 4102. Definitions. |
30 | 4103. Office established. |
|
1 | 4104. Duties of office. |
2 | 4105. Revenue estimates. |
3 | 4106. Budget information. |
4 | 4107. Expenditures. |
5 | 4108. Revenue conference. |
6 | 4109. Access to information. |
7 | 4110. Selection and organization committee. |
8 | 4111. Appointment. |
9 | 4112. Powers and duties of director. |
10 | 4113. Records. |
11 | 4114. Repeal. |
12 | § 4101. Scope. |
13 | This chapter relates to independent fiscal estimates. |
14 | § 4102. Definitions. |
15 | The following words and phrases when used in this chapter |
16 | shall have the meanings given to them in this section unless the |
17 | context clearly indicates otherwise: |
18 | "Committee." The Independent Fiscal Office Selection and |
19 | Organization Committee. |
20 | "Commonwealth agency." Any office, department, authority, |
21 | board, multistate agency or commission of the executive branch. |
22 | The term includes: |
23 | (1) The Office of the Governor. |
24 | (2) The Office of Attorney General, the Department of |
25 | the Auditor General and the Treasury Department. |
26 | (3) An independent agency as defined in 62 Pa.C.S. § 103 |
27 | (relating to definitions). |
28 | (4) A State-affiliated entity as defined in 62 Pa.C.S. § |
29 | 103 (relating to definitions). |
30 | (5) The General Assembly. |
|
1 | (6) The Judiciary. |
2 | "Director." The Director of the Independent Fiscal Office. |
3 | "Office." The Independent Fiscal Office established in |
4 | section 4103 (relating to office established). |
5 | § 4103. Office established. |
6 | There is established a nonpartisan Independent Fiscal Office |
7 | as an independent agency. |
8 | § 4104. Duties of office. |
9 | (a) Mandatory.--The office shall: |
10 | (1) Prepare revenue estimates to include Federal funds, |
11 | State revenues and funds from other resources, including any |
12 | projected revenue surplus or deficit for a given fiscal year, |
13 | as provided under section 4105 (relating to revenue |
14 | estimates). |
15 | (2) By November 15 of each year, provide an assessment |
16 | of the State's current fiscal condition and a projection of |
17 | what the fiscal condition will be during the next five years. |
18 | The assessment shall take into account the state of the |
19 | economy, demographics, revenues and expenditures. |
20 | (3) Develop performance measures for executive level |
21 | programs and departments and evaluate performance measures |
22 | and results as promulgated and reported by executive level |
23 | departments. Performance measurements shall be outcome-based |
24 | and include, but not be limited to, activity cost analysis, |
25 | measures of status improvement of recipient populations, |
26 | economic outcomes and performance benchmarks against similar |
27 | State programs. |
28 | (4) Provide an analysis, including economic impact, of |
29 | all tax and revenue proposals submitted by the Governor or |
30 | the Office of the Budget. |
|
1 | (5) Study and analyze the existing sales and use tax law |
2 | and propose recommendations to the Governor and the General |
3 | Assembly for amending the tax to: |
4 | (i) eliminate obsolete and unnecessary provisions; |
5 | (ii) expand the tax base as necessary; |
6 | (iii) ensure a competitive economic market in this |
7 | Commonwealth; and |
8 | (iv) protect the stability of the Commonwealth's |
9 | budget. |
10 | (6) Establish an Internet website. |
11 | (7) Study and analyze the impact of shared risk |
12 | contributions under 24 Pa.C.S. § 8321(b) (relating to regular |
13 | member contributions for current service) and section 5501.1 |
14 | (relating to shared risk member contributions for Class A-3 |
15 | and Class A-4 service). |
16 | (b) Discretionary.--The office may: |
17 | (1) Develop and use econometric models to annually |
18 | forecast State revenues and update the models. The office |
19 | shall make the equations of a model and any historic |
20 | databases related thereto available to the chairman and |
21 | minority chairman of the Appropriations Committee of the |
22 | Senate, the chairman and minority chairman of the |
23 | Appropriations Committee of the House of Representatives, the |
24 | Majority Leader and Minority Leader of the Senate and the |
25 | Majority Leader and Minority Leader of the House of |
26 | Representatives. |
27 | (2) Provide an analysis of the executive budget, |
28 | including budgetary projections, economic outlook and |
29 | economic impact. The budget analysis may include performance |
30 | recommendations to secure greater efficiency and economy. |
|
1 | (3) Provide an assessment of the Pennsylvania economy |
2 | and the national economy and the impact of the existing or |
3 | emerging State or national economic trends on revenue |
4 | performance for the current year and the forecasted or |
5 | projected revenue collections for the budget year and the |
6 | succeeding year. |
7 | § 4105. Revenue estimates. |
8 | (a) Initial revenue estimate.--By May 1, the office shall |
9 | submit to the General Assembly an initial revenue estimate for |
10 | the next fiscal year. |
11 | (b) Official revenue estimate.-- |
12 | (1) By June 15 of each year the office shall submit an |
13 | official revenue estimate for the next fiscal year. |
14 | (2) A revenue estimate submitted under this section |
15 | shall be considered by the Governor and the General Assembly |
16 | as the amount of revenue which may be considered for the |
17 | General Appropriation Act for the ensuing fiscal year unless |
18 | the General Assembly or the Governor determines that revenues |
19 | are greater than or less than the estimate provided under |
20 | this section. The office may amend the revenue estimate under |
21 | this section if changes in law affecting revenues and |
22 | receipts are enacted or proposed to be enacted with the |
23 | annual State budget or unless significant changes in economic |
24 | assumptions occur prior to June 30. The office shall submit |
25 | the amended revenue estimate to the General Assembly within |
26 | ten days of the change. |
27 | (3) The office shall publish the methodology used to |
28 | develop revenue estimates. |
29 | (c) Information.--The office shall provide the chairman and |
30 | minority chairman of the Appropriations Committee of the Senate, |
|
1 | the chairman and minority chairman of the Appropriations |
2 | Committee of the House of Representatives and the Secretary of |
3 | the Budget all data, assumptions or econometric models used to |
4 | develop projections and revenue estimates. |
5 | (d) Required information.-- |
6 | (1) A revenue estimate submitted by the office under |
7 | subsection (b) shall include: |
8 | (i) Projected revenue collections by specific tax or |
9 | revenue source, including Federal funds, the General |
10 | Fund, the Lottery Fund and the Motor License Fund. |
11 | (ii) All data, assumptions and econometric models |
12 | used to develop a revenue estimate. |
13 | (iii) Any projected revenue surplus or deficit for |
14 | the current fiscal year. |
15 | (2) A revenue estimate shall be based on existing law |
16 | and tax policy and existing or emerging State or national |
17 | economic trends. |
18 | (e) Proposed change in law.--The office shall prepare a |
19 | revenue estimate of any change in law affecting revenues and |
20 | receipts, including increases in regulatory fees, proposed or |
21 | considered as part of the annual State budget. If the proposed |
22 | change in law will have a fiscal impact in excess of $10,000,000 |
23 | in any fiscal year, the estimate shall be prepared on the basis |
24 | of assumptions that estimate the probable behavioral responses |
25 | of taxpayers, businesses and other persons to the proposed |
26 | changes and shall include a statement identifying those |
27 | assumptions. The information may be used to revise the revenue |
28 | estimate under subsection (a). |
29 | (f) Department of Revenue.--The Department of Revenue in |
30 | conjunction with the Secretary of the Budget shall make revenue |
|
1 | estimates for the use of the Governor in preparing the budget. |
2 | (g) Governor.--The Governor shall certify that any |
3 | appropriation bill does not cause total appropriations to exceed |
4 | revenues plus any unappropriated surplus as provided in section |
5 | 618 of the act of April 9, 1929 (P.L.177, No.175), known as The |
6 | Administrative Code of 1929. |
7 | § 4106. Budget information. |
8 | The office shall be notified and shall attend any briefings |
9 | provided by the Governor or the Secretary of the Budget under |
10 | section 619 of the act of April 9, 1929 (P.L.177, No.175), known |
11 | as The Administrative Code of 1929. |
12 | § 4107. Expenditures. |
13 | (a) Expenditure reports.--Commonwealth agencies shall make |
14 | monthly expenditure data available to the office. The data shall |
15 | be provided within seven days after the end of each month. The |
16 | monthly data shall include a summary of the last monthly |
17 | submission. The data shall be provided in finished reports or |
18 | electronically, as provided in the act of April 9, 1929 |
19 | (P.L.177, No.175), known as The Administrative Code of 1929. The |
20 | data shall be provided by fund, by appropriation, by department |
21 | and by organization within each department and shall include: |
22 | (1) Number of filled personnel positions and their cost. |
23 | (2) Itemized personnel vacancies and their cost. |
24 | (3) New positions created and their cost. |
25 | (4) Wage and overtime costs. |
26 | (5) Allotments and expenditures for itemized personnel |
27 | expenses. |
28 | (6) Allotments and expenditures for itemized operating |
29 | expenses. |
30 | (7) Allotment and expenditures for itemized fixed |
|
1 | assets. |
2 | (8) The rate of expenditures in appropriations for major |
3 | subsidy and grant programs during the month. |
4 | (b) Revenue reports.--The Governor shall direct that monthly |
5 | revenue reports be submitted to the office. The revenue reports |
6 | shall show the actual collection of revenue itemized by source |
7 | and a comparison of the actual collections with estimated |
8 | collections for each month. The comparison shall include an |
9 | analysis of any change in collection patterns which will cause a |
10 | shortfall or overrun on annual estimates of more than 1%. |
11 | (c) Other revenue data.--Commonwealth agencies shall cause |
12 | to be prepared any other revenue data as may be requested from |
13 | time to time by the office. |
14 | (d) Electronic access.--Except for information that is |
15 | confidential pursuant to statute, the office shall have access |
16 | to all information available under this section on inquiry-only |
17 | screens through an integrated central computer system. |
18 | § 4108. Revenue conference. |
19 | By January 31 of each year, the office shall convene a |
20 | meeting with the Secretary of the Budget, the Secretary of |
21 | Revenue and the chairman and minority chairman of the |
22 | Appropriations Committee of the Senate and the chairman and |
23 | minority chairman of the Appropriations Committee of the House |
24 | of Representatives to discuss the following: |
25 | (1) The Pennsylvania economy and the national economy |
26 | and the impact of the economic trends on revenue performance |
27 | for the budget year and the succeeding year. |
28 | (2) Current year-to-date revenue collections by specific |
29 | tax or revenue source, including Federal funds, the General |
30 | Fund, the Lottery Fund and the Motor License Fund and |
|
1 | variations that may be occurring in the revenue estimate |
2 | submitted under section 4105(a) (relating to revenue |
3 | estimates). |
4 | (3) Any statutory or tax policy changes that may be |
5 | recommended by the Governor or the General Assembly for the |
6 | next succeeding fiscal year. |
7 | § 4109. Access to information. |
8 | (a) Agencies.--The director is authorized to secure |
9 | information, data, expense information, estimates and statistics |
10 | directly from a Commonwealth agency or a political subdivision. |
11 | All Commonwealth agencies and political subdivisions shall |
12 | furnish the director with all reports of expenditure for each |
13 | agency and any other available material or data which the |
14 | director determines to be necessary in the performance of the |
15 | duties of the office, other than material the disclosure of |
16 | which would be a violation of law. The director is also |
17 | authorized, upon agreement with the head of any Commonwealth |
18 | agency or political subdivision, to utilize the services, |
19 | facilities and personnel of the agency with or without |
20 | reimbursement. |
21 | (b) Office of the Budget.--In carrying out the duties and |
22 | functions of the office, the director is authorized to obtain |
23 | information, data, estimates and statistics developed by the |
24 | Office of the Budget and all Commonwealth agencies. The Office |
25 | of the Budget shall submit to the office copies of final agency |
26 | budget requests at the same time they are submitted to the |
27 | General Assembly under the act of April 9, 1929 (P.L.177, |
28 | No.175), known as The Administrative Code of 1929. |
29 | (c) Computer database.--In order to carry out its duties |
30 | under this chapter, the office shall have access to any |
|
1 | computerized database of a State agency that is required to aid |
2 | the office in the performance of its duties, except that any |
3 | statutory requirements regarding privacy of individuals' records |
4 | shall be observed in providing access. |
5 | (d) Daily revenue data.-- |
6 | (1) The Secretary of Revenue and the Secretary of the |
7 | Budget shall post revenue collection data for each deposit |
8 | day and make the information available to the office and the |
9 | chairman and minority chairman of the Appropriations |
10 | Committee of the Senate and the chairman and minority |
11 | chairman of the Appropriations Committee of the House of |
12 | Representatives. |
13 | (2) The Governor, the Attorney General, the Auditor |
14 | General and the State Treasurer shall cause to be prepared |
15 | any other revenue data as may be requested by the office. |
16 | (e) Tax information.--For the purposes of carrying out its |
17 | official duties under section 4105 (relating to revenue |
18 | estimates) and notwithstanding any other law of this |
19 | Commonwealth, the office shall be authorized to access any |
20 | information in the possession of the Department of Revenue that |
21 | is obtained from tax payments, returns or reports, including |
22 | adjustments or corrections made by the department. The |
23 | information accessed under this section shall be confidential |
24 | except for official purposes and any person divulging the |
25 | information shall be subject to section 731 of the act of April |
26 | 9, 1929 (P.L.343, No.176), known as The Fiscal Code. |
27 | (f) Civil action.--If information is not made available by a |
28 | Commonwealth agency or political subdivision within a reasonable |
29 | time, the director may make a written request to the agency |
30 | head, stating the authority to receive the information. The |
|
1 | agency head shall have 15 days to respond. If the information is |
2 | not provided within 15 days of the receipt of the director's |
3 | request, the director may bring a civil action to require the |
4 | agency head to provide the information. |
5 | § 4110. Selection and organization committee. |
6 | (a) Selection and organization committee.--The Independent |
7 | Fiscal Office Selection and Organization Committee is |
8 | established to organize the office and select the director of |
9 | the office. The committee shall consist of the following: |
10 | (1) The chairman and minority chairman of the |
11 | Appropriations Committee of the Senate and the chairman and |
12 | minority chairman of the Appropriations Committee of the |
13 | House of Representatives. |
14 | (2) The Majority Leader and the Minority Leader of the |
15 | Senate and the Majority Leader and the Minority Leader of the |
16 | House of Representatives. |
17 | (3) The President pro tempore of the Senate and the |
18 | Speaker of the House of Representatives. |
19 | (b) Duties of committee.--By January 15, 2011, the selection |
20 | and organization committee shall deliberate the following: |
21 | (1) The procedures to be adopted to select the director |
22 | of the office. |
23 | (2) The operational budget for the office. |
24 | § 4111. Appointment. |
25 | (a) Director.--The office shall be headed by a director |
26 | appointed by the selection and organization committee by May 30, |
27 | 2011. The appointment shall be made without regard to political |
28 | affiliation and solely on the basis of fitness to perform the |
29 | duties of the office based on qualifications published by the |
30 | selection and organization committee. |
|
1 | (b) Deputy director.--The director shall appoint a deputy |
2 | director who shall perform such duties as assigned by the |
3 | director and who shall during the absence or incapacity of the |
4 | director or a vacancy act as the director. |
5 | (c) Term.--The term of office of the director shall be six |
6 | years. An individual appointed as director to fill a vacancy |
7 | prior to the expiration of a term shall serve only for the |
8 | unexpired portion of that term. An individual serving as |
9 | director at the expiration of a term may continue to serve until |
10 | a successor is appointed. |
11 | (d) Removal.--The director may be removed by a concurrent |
12 | resolution passed by the Senate and the House of |
13 | Representatives. |
14 | § 4112. Powers and duties of director. |
15 | (a) Personnel.--The director shall appoint and fix the |
16 | compensation of personnel as necessary to carry out the duties |
17 | and functions of the office. All personnel of the office shall |
18 | be appointed without regard to political affiliation and solely |
19 | on the basis of their fitness to perform their duties. |
20 | (b) Experts and consultants.--In carrying out the duties and |
21 | functions of the office, the director may procure the temporary |
22 | or intermittent services of attorneys, experts or consultants or |
23 | organization thereof by contract. |
24 | § 4113. Records. |
25 | The office shall be a legislative agency for purpose of the |
26 | act of February 14, 2008 (P.L.6, No.3), known as the Right-to- |
27 | Know Law. |
28 | § 4114. Repeal. |
29 | (a) Intent.--The General Assembly declares that the repeal |
30 | under subsection (b) is necessary to effectuate the purposes of |
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1 | this chapter. |
2 | (b) Provision.--Section 618 of the act of April 9, 1929 |
3 | (P.L.177, No.175), known as The Administrative Code of 1929, is |
4 | repealed to the extent it is inconsistent with this chapter. |
5 | Section 7.1. The definitions of "class of service |
6 | multiplier," "final average salary," "superannuation age" | <-- |
7 | "member's annuity," "pickup contributions," "superannuation | <-- |
8 | age," "total accumulated deductions" and "vestee" in section |
9 | 5102 of Title 71 are amended and the section is amended by | <-- |
10 | adding definitions to read: |
11 | § 5102. Definitions. |
12 | The following words and phrases as used in this part, unless |
13 | a different meaning is plainly required by the context, shall |
14 | have the following meanings: |
15 | * * * |
16 | "Class of service multiplier." |
17 | Class of Service | | Multiplier | | 18 | A | | 1 | | 19 20 21 22 23 24 25 26 | AA | for all purposes except calculating regular member contributions on compensation paid prior to January 1, 2002 | 1.25 | | 27 28 29 30 | AA | for purposes of calculating regular member contributions | | | | 1 2 3 | | on compensation paid prior to January 1, 2002 | 1 | | 4 5 6 7 8 9 10 11 12 | A-3 | for all purposes except the calculation of regular member contributions and contributions for creditable nonstate service | 1 | | 13 14 15 16 17 18 19 20 | A-3 | for purposes of calculating regular member contributions and contributions for creditable nonstate service | 1.25 | | 21 22 23 24 25 | A-4 | for all purposes except the calculation of regular member contributions | 1.25 | | 26 27 28 29 | A-4 | for purposes of calculating regular member contributions | 1.86 | | 30 | B | | .625 | | | 1 | C | | 1 | | 2 | D | | 1.25 | | 3 4 | D-1 | prior to January 1, 1973 | 1.875 | | 5 6 7 | D-1 | on and subsequent to January 1, 1973 | 1.731 | | 8 9 | D-2 | prior to January 1, 1973 | 2.5 | | 10 11 12 | D-2 | on and subsequent to January 1, 1973 | 1.731 | | 13 14 | D-3 | prior to January 1, 1973 | 3.75 | | 15 16 17 18 19 20 21 22 23 | D-3 | on and subsequent to January 1, 1973 | 1.731 | except prior to December 1, 1974 as applied to any additional legislative compensation as an officer of the General Assembly | 24 | | | 3.75 | | 25 26 27 28 29 30 | D-4 | for all purposes except calculating regular member contributions on compensation | | | | 1 2 | | paid prior to July 1, 2001 | 1.5 | | 3 4 5 6 7 8 9 | D-4 | for purposes of calculating regular member contributions on compensation paid prior to July 1, 2001 | 1 | | 10 11 12 13 | E, E-1 | prior to January 1, 1973 | 2 | for each of the first ten years of judicial service, and | 14 15 16 17 | | | 1.5 | for each subsequent year of judicial service | 18 19 20 21 | E, E-1 | on and subsequent to January 1, 1973 | 1.50 | for each of the first ten years of judicial service and | 22 23 | E-2 | prior to September 1 1973 | 1.5 | | 24 25 26 27 | E-2 | on and subsequent to September 1, 1973 | 1.125 | | 28 | G | | 0.417 | | 29 | H | | 0.500 | | 30 | I | | 0.625 | | | 1 | J | | 0.714 | | 2 | K | | 0.834 | | 3 | L | | 1.000 | | 4 | M | | 1.100 | | 5 | N | | 1.250 | | 6 7 8 9 | T-C (Public School Employees' Retirement Code) | | 1 | | 10 11 12 13 | T-E (Public School Employees' Retirement Code) | | 1 | | 14 15 16 17 | T-F (Public School Employees' Retirement Code) | | 1 | |
|
18 | * * * |
19 | "Final average salary." The highest average compensation |
20 | received as a member during any three nonoverlapping periods of |
21 | four consecutive calendar quarters during which the member was a |
22 | State employee, with the compensation for part-time service |
23 | being annualized on the basis of the fractional portion of the |
24 | year for which credit is received; except if the employee was |
25 | not a member for three nonoverlapping periods of four |
26 | consecutive calendar quarters, the total compensation received |
27 | as a member, annualized in the case of part-time service, |
28 | divided by the number of nonoverlapping periods of four |
29 | consecutive calendar quarters of membership; in the case of a |
30 | member with multiple service, the final average salary shall be |
|
1 | determined on the basis of the compensation received by him as a |
2 | State employee or as a school employee, or both; in the case of |
3 | a member with Class A-3 or Class A-4 service and service in one |
4 | or more other classes of service, the final average salary shall |
5 | be determined on the basis of the compensation received by him |
6 | in all classes of State service; and, in the case of a member |
7 | who first became a member on or after January 1, 1996, the final |
8 | average salary shall be determined as hereinabove provided but |
9 | subject to the application of the provisions of section |
10 | 5506.1(a) (relating to annual compensation limit under IRC § |
11 | 401(a)(17)). |
12 | * * * |
13 | "Member's annuity." The single life annuity which is | <-- |
14 | actuarially equivalent, at the effective date of retirement, to |
15 | the sum of the regular accumulated deductions, shared risk |
16 | accumulated deductions, the additional accumulated deductions |
17 | and the social security integration accumulated deductions |
18 | standing to the member's credit in the members' savings account. |
19 | * * * |
20 | "Pickup contributions." Regular or joint coverage member |
21 | contributions, shared risk member contributions, social security |
22 | integration contributions and additional member contributions |
23 | which are made by the Commonwealth or other employer for active |
24 | members for current service on and after January 1, 1982. |
25 | * * * |
26 | "Shared risk accumulated deductions." The total of the |
27 | shared risk member contributions paid into the fund on account |
28 | of current service or previous State service or creditable |
29 | nonstate service, together with the statutory interest credited |
30 | on the contributions until the date of termination of service. |
|
1 | In the case of a vestee, statutory interest shall be credited |
2 | until the effective date of retirement. A member's account shall |
3 | not be credited with statutory interest for more than two years |
4 | during a leave without pay. |
5 | "Shared risk member contributions." The product of the |
6 | shared risk contribution rate and the compensation of a member |
7 | for service credited as Class A-3 or Class A-4. |
8 | * * * |
9 | "Superannuation age." [Any] For classes of service other |
10 | than Class A-3 and Class A-4, any age upon accrual of 35 |
11 | eligibility points or age 60, except for a member of the General |
12 | Assembly, an enforcement officer, a correction officer, a |
13 | psychiatric security aide, a Delaware River Port Authority |
14 | policeman or an officer of the Pennsylvania State Police, age |
15 | 50, and, except for a member with Class G, Class H, Class I, |
16 | Class J, Class K, Class L, Class M or Class N service, age 55 |
17 | upon accrual of 20 eligibility points. For Class A-3 and Class |
18 | A-4 service, any age upon accrual of 35 eligibility points | <-- |
19 | attainment of a superannuation score of 92, provided the member | <-- |
20 | has accrued 35 eligibility points, or age 65, or for park | <-- |
21 | rangers or capitol police officers, age 55 with 20 years of |
22 | service as a park ranger or capitol police officer, except for a |
23 | member of the General Assembly, an enforcement officer, a |
24 | correction officer, a psychiatric security aide, a Delaware |
25 | River Port Authority policeman or an officer of the Pennsylvania |
26 | State Police, age 55. A vestee with Class A-3 or Class A-4 | <-- |
27 | service credit attains superannuation age on the birthday the |
28 | vestee attains the age resulting in a superannuation score of |
29 | 92, provided the vestee has at least 35 eligibility points, or |
30 | attains another applicable superannuation age, whichever occurs |
|
1 | first. |
2 | "Superannuation score." The sum of the member's age in whole |
3 | years on his last birthday and the amount of the member's total |
4 | eligibility points on the member's effective date of retirement, |
5 | expressed in whole years and whole eligibility points and |
6 | disregarding fractions of a year and fractions of total |
7 | eligibility points. |
8 | * * * |
9 | "Total accumulated deductions." The sum of the regular |
10 | accumulated deductions, additional accumulated deductions, the |
11 | social security integration accumulated deductions, shared risk |
12 | member contributions and all other contributions paid into the |
13 | fund for the purchase, transfer or conversion of credit for |
14 | service or other coverage together with all statutory interest |
15 | credited thereon until the date of termination of service. In |
16 | the case of a vestee or a special vestee, statutory interest |
17 | shall be credited until the effective date of retirement. A |
18 | member's account shall not be credited with statutory interest |
19 | for more than two years during a leave without pay. |
20 | * * * |
21 | "Vestee." A member with five or more eligibility points[, |
22 | or] in a class of service other than Class A-3 or Class A-4 or |
23 | Class T-E or Class T-F in the Public School Employees' |
24 | Retirement System, a member with Class G, Class H, Class I, |
25 | Class J, Class K, Class L, Class M or Class N service with five |
26 | or more eligibility points, or a member with Class A-3 or Class |
27 | A-4 service with ten or more eligibility points who has |
28 | terminated State service and has elected to leave his total |
29 | accumulated deductions in the fund and to defer receipt of an |
30 | annuity. |
|
1 | Section 7.2. Sections 5302(e) 5302(b) and (e), 5303(b)(1) | <-- |
2 | and 5304(a) of Title 71 are amended to read: |
3 | § 5302. Credited State service. |
4 | * * * |
5 | (b) Creditable leaves of absence.-- | <-- |
6 | (1) A member on leave without pay who is studying under |
7 | a Federal grant approved by the head of his department or who |
8 | is engaged up to a maximum of two years of temporary service |
9 | with the United States Government, another state or a local |
10 | government under the Intergovernmental Personnel Act of 1970, |
11 | 5 U.S.C. §§ 1304, 3371-3376; 42 U.S.C. §§ 4701-4772, shall be |
12 | eligible for credit for such service: Provided, That |
13 | contributions are made in accordance with sections 5501 |
14 | (relating to regular member contributions for current |
15 | service), 5501.1 (relating to shared risk member |
16 | contributions), 5505.1 (relating to additional member |
17 | contributions) and 5507 (relating to contributions by the |
18 | Commonwealth and other employers), the member returns from |
19 | leave without pay to active State service for a period of at |
20 | least one year, and he is not entitled to retirement benefits |
21 | for such service under a retirement system administered by |
22 | any other governmental agency. |
23 | (2) An active member on paid leave granted by an |
24 | employer for purposes of serving as an elected full-time |
25 | officer for a Statewide employee organization which is a |
26 | collective bargaining representative under the act of June |
27 | 24, 1968 (P.L.237, No.111), referred to as the Policemen and |
28 | Firemen Collective Bargaining Act, or the act of July 23, |
29 | 1970 (P.L.563, No.195), known as the Public Employe Relations |
30 | Act, and up to 14 full-time business agents appointed by an |
|
1 | employee organization that represents correction officers |
2 | employed at State correctional institutions: Provided, That |
3 | for elected full-time officers such leave shall not be for |
4 | more than three consecutive terms of the same office and for |
5 | up to 14 full-time business agents appointed by an employee |
6 | organization that represents correction officers employed at |
7 | State correctional institutions no more than three |
8 | consecutive terms of the same office; that the employer shall |
9 | fully compensate the member, including, but not limited to, |
10 | salary, wages, pension and retirement contributions and |
11 | benefits, other benefits and seniority, as if he were in |
12 | full-time active service; and that the Statewide employee |
13 | organization shall fully reimburse the employer for all |
14 | expenses and costs of such paid leave, including, but not |
15 | limited to, contributions and payment in accordance with |
16 | sections 5501, 5501.1, 5505.1 and 5507, if the employee |
17 | organization either directly pays, or reimburses the |
18 | Commonwealth or other employer for, contributions made in |
19 | accordance with section 5507. |
20 | * * * |
21 | (e) Cancellation of credited service.--All credited service |
22 | shall be cancelled if a member withdraws his total accumulated |
23 | deductions except that a member with Class A-3 or Class A-4 |
24 | service credit and one or more other classes of service credit |
25 | shall not have his service credit as a member of any classes of | <-- |
26 | service other than as a member of Class A-3 or Class A-4 |
27 | cancelled when the member receives a lump sum payment of |
28 | accumulated deductions resulting from Class A-3 or Class A-4 |
29 | service pursuant to section 5705.1 (relating to payment of |
30 | accumulated deductions resulting from Class A-3 and Class A-4 |
|
1 | service). |
2 | § 5303. Retention and reinstatement of service credits. |
3 | * * * |
4 | (b) Eligibility points for prospective credited service.-- |
5 | (1) Every active member of the system or a multiple |
6 | service member who is a school employee and a member of the |
7 | Public School Employees' Retirement System on or after the |
8 | effective date of this part shall receive eligibility points |
9 | in accordance with section 5307 for current State service, |
10 | previous State service, or creditable nonstate service upon |
11 | compliance with sections 5501 (relating to regular member |
12 | contributions for current service), 5501.1 (relating to | <-- |
13 | shared risk contributions), 5504 (relating to member |
14 | contributions for the purchase of credit for previous State |
15 | service or to become a full coverage member), 5505 (relating |
16 | to contributions for the purchase of credit for creditable |
17 | nonstate service), 5505.1 (relating to additional member |
18 | contributions) or 5506 (relating to incomplete payments). |
19 | Subject to the limitations in sections 5306.1 (relating to |
20 | election to become a Class AA member) and 5306.2 (relating to |
21 | elections by members of the General Assembly), the class or |
22 | classes of service in which the member may be credited for |
23 | previous State service prior to the effective date of this |
24 | part shall be the class or classes in which he was or could |
25 | have at any time elected to be credited for such service, |
26 | except that a State employee who first becomes a member of |
27 | the system on or after January 1, 2011, or on or after |
28 | December 1, 2010, as a member of the General Assembly and: |
29 | (i) is credited with Class A-3 service for such |
30 | membership, shall be credited only with Class A-3 service |
|
1 | for previous State service performed before January 1, |
2 | 2011, that was not previously credited in the system; or |
3 | (ii) is credited with Class A-4 service for such |
4 | membership, shall be credited only with Class A-3 A-4 | <-- |
5 | service for previous State service performed before |
6 | January 1, 2011, that was not previously credited in the |
7 | system. The class of service in which a member shall be | <-- |
8 | credited for |
9 | The class of service in which a member shall be credited for | <-- |
10 | service subsequent to the effective date of this part shall |
11 | be determined in accordance with section 5306 (relating to |
12 | classes of service). |
13 | * * * |
14 | § 5304. Creditable nonstate service. |
15 | (a) Eligibility.-- |
16 | (1) An active member who first becomes an active member |
17 | before January 1, 2011, or before December 1, 2010, as a |
18 | member of the General Assembly, or a multiple service member |
19 | who first becomes an active member before January 1, 2011, or |
20 | before December 1, 2010, as a member of the General Assembly, |
21 | and who is a school employee and an active member of the |
22 | Public School Employees' Retirement System shall be eligible |
23 | for Class A service credit for creditable nonstate service as |
24 | set forth in subsections (b) and (c) except that intervening |
25 | military service shall be credited in the class of service |
26 | for which the member was eligible at the time of entering |
27 | into military service and for which he makes the required |
28 | contributions and except that a multiple service member who |
29 | is a school employee and an active member of the Public |
30 | School Employees' Retirement System shall not be eligible to |
|
1 | purchase service credit for creditable nonstate service set |
2 | forth in subsection (c)(5). |
3 | (2) An active member who first becomes an active member |
4 | on or after January 1, 2011, or on or after December 1, 2010, |
5 | as a member of the General Assembly, or a multiple service |
6 | member who first becomes an active member on or after January |
7 | 1, 2011, or on or after December 1, 2010, as a member of the |
8 | General Assembly, and who is a school employee and an active |
9 | member of the Public School Employees' Retirement System |
10 | shall be eligible for Class A-3 service credit for creditable |
11 | nonstate service as set forth in subsections (b) and (c) |
12 | except that intervening military service shall be credited in |
13 | the class of service for which the member was eligible at the |
14 | time of entering into military service and for which he makes |
15 | the required contributions and except that a multiple service |
16 | member who is a school employee and an active member of the |
17 | Public School Employees' Retirement System shall not be |
18 | eligible to purchase service credit for creditable nonstate |
19 | service set forth in subsection (c)(5). |
20 | * * * |
21 | Section 7.3. Section 5306(a), (a.1)(1), (2), (5) and (6) and |
22 | (a.2) of Title 71 are amended and the section is amended by |
23 | adding a subsection to read: |
24 | § 5306. Classes of service. |
25 | (a) Class A and Class A-3 membership.-- |
26 | (1) A State employee who is a member of Class A on the |
27 | effective date of this part or who first becomes a member of |
28 | the system subsequent to the effective date of this part and |
29 | before January 1, 2011, or before December 1, 2010, as a |
30 | member of the General Assembly, shall be classified as a |
|
1 | Class A member and receive credit for Class A service upon |
2 | payment of regular and additional member contributions for |
3 | Class A service, provided that the State employee does not |
4 | become a member of Class AA pursuant to subsection (a.1) or a |
5 | member of Class D-4 pursuant to subsection (a.2). |
6 | (2) A State employee who first becomes a member of the |
7 | system on or after January 1, 2011, or on or after December |
8 | 1, 2010, as a member of the General Assembly, shall be |
9 | classified as a Class A-3 member and receive credit for Class |
10 | A-3 service upon payment of regular member contributions and | <-- |
11 | shared risk member contributions for Class A-3 service |
12 | provided that the State employee does not become a member of |
13 | Class A-4 pursuant to subsection (a.3), except that a member |
14 | of the judiciary shall be classified as a member of such |
15 | other class of service for which the member of the judiciary |
16 | is eligible, shall elect, and make regular member |
17 | contributions. |
18 | (a.1) Class AA membership.-- |
19 | (1) A person who becomes a State employee and an active |
20 | member of the system after June 30, 2001, and who first |
21 | became an active member before January 1, 2011, or before |
22 | December 1, 2010, as a member of the General Assembly, and |
23 | who is not a State police officer and not employed in a |
24 | position for which a class of service other than Class A is |
25 | credited or could be elected shall be classified as a Class |
26 | AA member and receive credit for Class AA State service upon |
27 | payment of regular member contributions for Class AA service |
28 | and, subject to the limitations contained in paragraph (7), |
29 | if previously a member of Class A or previously employed in a |
30 | position for which Class A service could have been earned, |
|
1 | shall have all Class A State service (other than State |
2 | service performed as a State police officer or for which a |
3 | class of service other than Class A was earned or could have |
4 | been elected) classified as Class AA service. |
5 | (2) A person who is a State employee on June 30, 2001, |
6 | and July 1, 2001, but is not an active member of the system |
7 | because membership in the system is optional or prohibited |
8 | pursuant to section 5301 (relating to mandatory and optional |
9 | membership) and who first becomes an active member after June |
10 | 30, 2001, and before January 1, 2011, or before December 1, |
11 | 2010, as a member of the General Assembly, and who is not a |
12 | State police officer and not employed in a position for which |
13 | a class of service other than Class A is credited or could be |
14 | elected shall be classified as a Class AA member and receive |
15 | credit for Class AA State service upon payment of regular |
16 | member contributions for Class AA service and, subject to the |
17 | limitations contained in paragraph (7), if previously a |
18 | member of Class A or previously employed in a position for |
19 | which Class A service could have been earned, shall have all |
20 | Class A State service (other than State service performed as |
21 | a State Police officer or for which a class of service other |
22 | than Class A was earned or could have been elected) |
23 | classified as Class AA service. |
24 | * * * |
25 | (5) A former State employee who first becomes a member |
26 | before January 1, 2011, or before December 1, 2010, as a |
27 | member of the General Assembly, other than a former State |
28 | employee who was a State police officer on or after July 1, |
29 | 1989, who is a school employee and who on or after July 1, |
30 | 2001, becomes a multiple service member, subject to the |
|
1 | limitations contained in paragraph (7), shall receive Class |
2 | AA service credit for all Class A State service other than |
3 | State service performed as a State employee in a position in |
4 | which the former State employee could have elected a class of |
5 | service other than Class A. |
6 | (6) A State employee who after June 30, 2001, becomes a |
7 | State police officer or who is employed in a position in |
8 | which the member could elect membership in a class of service |
9 | other than Class AA or Class D-4 shall retain any Class AA |
10 | service credited prior to becoming a State police officer or |
11 | being so employed but shall be ineligible to receive Class AA |
12 | credit thereafter and instead shall receive Class A credit |
13 | for service as a member of the judiciary or if he first |
14 | became a member before January 1, 2011, or December 1, 2010, |
15 | as a member of the General Assembly, or Class A-3 credit for |
16 | service other than as a member of the judiciary and he first |
17 | became a member on or after January 1, 2011, or December 1, |
18 | 2010, as a member of the General Assembly, unless a class of |
19 | membership other than Class A is elected. |
20 | * * * |
21 | (a.2) Class of membership for members of the General |
22 | Assembly.-- |
23 | (1) A person who: |
24 | (i) becomes a member of the General Assembly and an |
25 | active member of the system after June 30, 2001, and |
26 | before December 1, 2010; or |
27 | (ii) is a member of the General Assembly on July 1, |
28 | 2001, but is not an active member of the system because |
29 | membership in the system is optional pursuant to section |
30 | 5301 and who becomes an active member after June 30, |
|
1 | 2001, and before December 1, 2010; |
2 | and who was not a State police officer on or after July 1, |
3 | 1989, shall be classified as a Class D-4 member and receive |
4 | credit as a Class D-4 member for all State service as a |
5 | member of the General Assembly upon payment of regular member |
6 | contributions for Class D-4 service and, subject to the |
7 | limitations contained in subsection (a.1)(7), if previously a |
8 | member of Class A or employed in a position for which Class A |
9 | service could have been earned, shall receive Class AA |
10 | service credit for all Class A State service, other than |
11 | State service performed as a State police officer or for |
12 | which a class of service other than Class A or Class D-4 was |
13 | or could have been elected or credited. |
14 | (2) Provided an election to become a Class D-4 member is |
15 | made pursuant to section 5306.2 (relating to elections by |
16 | members of the General Assembly), a State employee who was |
17 | not a State police officer on or after July 1, 1989, who on |
18 | July 1, 2001, is a member of the General Assembly and an |
19 | active member of the system and not a member of Class D-3 |
20 | shall be classified as a Class D-4 member and receive credit |
21 | as a Class D-4 member for all State service performed as a |
22 | member of the General Assembly not credited as another class |
23 | other than Class A upon payment of regular member |
24 | contributions for Class D-4 service and, subject to the |
25 | limitations contained in paragraph (a.1)(7), shall receive |
26 | Class AA service credit for all Class A State service, other |
27 | than State service performed as a State police officer or as |
28 | a State employee in a position in which the member could have |
29 | elected a class of service other than Class A, performed |
30 | before July 1, 2001. |
|
1 | (3) A member of the General Assembly who after June 30, |
2 | 2001, becomes a State police officer shall retain any Class |
3 | AA service or Class D-4 service credited prior to becoming a |
4 | State police officer or being so employed but shall be |
5 | ineligible to receive Class AA or Class D-4 credit thereafter |
6 | and instead shall receive Class A credit or Class A-3 credit |
7 | if he first becomes a member of the system on or after |
8 | January 1, 2011. |
9 | (4) Notwithstanding the provisions of this subsection, |
10 | no service as a member of the General Assembly performed |
11 | before December 1, 2010, that is not credited as Class D-4 |
12 | service on November 30, 2010, shall be credited as Class D-4 |
13 | service, unless such service was previously credited in the |
14 | system as Class D-4 service and the member withdrew his total |
15 | accumulated deductions as provided in section 5311 (relating |
16 | to eligibility for refunds) or 5701 (relating to return of |
17 | total accumulated deductions). No service as a member of the |
18 | General Assembly performed on or after December 1, 2010, |
19 | shall be credited as Class D-4 service unless the member |
20 | previously was credited with Class D-4 service credits. |
21 | (a.3) Class A-4 membership.--Provided that an election to |
22 | become a Class A-4 member is made pursuant to section 5306.3 |
23 | (relating to election to become a Class A-4 member), a State |
24 | employee who otherwise would be a member of Class A-3 shall be |
25 | classified as a Class A-4 member and receive Class A-4 credit | <-- |
26 | for all creditable State service performed after the effective |
27 | date of membership in the system, except as a member of the |
28 | judiciary, upon payment of regular member contributions and | <-- |
29 | shared risk member contributions for Class A-4 service. |
30 | * * * |
|
1 | Section 7.4. Title 71 is amended by adding a section to |
2 | read: |
3 | § 5306.3. Election to become a class Class A-4 member. | <-- |
4 | (a) General rule.--A person who otherwise is eligible for |
5 | Class A-3 membership who has not previously elected or declined |
6 | to elect Class A-4 membership may elect to become a member of |
7 | Class A-4. |
8 | (b) Time for making election.--The election to become a |
9 | Class A-4 member must be made by the member filing written |
10 | notice with the board in a form and manner determined by the |
11 | board no later than 45 days after notice from the board of the |
12 | member's eligibility to elect Class A-4 membership. |
13 | (c) Effect of election.--An election to become a Class A-4 |
14 | member shall be irrevocable and shall become effective on the |
15 | effective date of membership in the system and shall remain in |
16 | effect for all future creditable State service, other than |
17 | service performed as a member of the judiciary. Payment of |
18 | regular member contributions for Class A-4 State service |
19 | performed prior to the election of Class A-4 service membership | <-- |
20 | shall be made in a form, manner and time determined by the |
21 | board. Upon termination and subsequent reemployment, a member |
22 | who elected Class A-4 membership shall be credited as a Class |
23 | A-4 member for creditable State service performed after |
24 | reemployment, except as a member of the judiciary, regardless of |
25 | termination of employment, termination of membership by |
26 | withdrawal of accumulated deductions or status as an annuitant, |
27 | vestee or inactive member after the termination of service. |
28 | (d) Effect of failure to make election.--Failure to elect to |
29 | become a Class A-4 member within the election period set forth |
30 | in subsection (b) shall result in all of the member's State |
|
1 | service, other than service performed as a member of the |
2 | judiciary, being credited as Class A-3 service and not subject |
3 | to further election or crediting as Class A-4 service. Upon |
4 | termination and subsequent employment, a member who failed to |
5 | elect to become a Class A-4 member shall not be eligible to make |
6 | another election to become a Class A-4 member for either past or |
7 | future State service. |
8 | Section 7.5. Sections 5308(b) and 5309 of Title 71 are |
9 | amended to read: |
10 | § 5308. Eligibility for annuities. |
11 | * * * |
12 | (b) Withdrawal annuity.-- |
13 | (1) Any vestee or any active member or inactive member |
14 | on leave without pay who terminates State service having five |
15 | or more eligibility points and who does not have Class A-3 or |
16 | Class A-4 service credit or Class T-E or Class T-F service |
17 | credit in the Public School Employees' Retirement System, or |
18 | who has Class G, Class H, Class I, Class J, Class K, Class L, |
19 | Class M or Class N service and terminates State service |
20 | having five or more eligibility points, upon compliance with |
21 | section 5907(f), (g) or (h) shall be entitled to receive an |
22 | annuity. |
23 | (2) Any vestee, active member or inactive member on |
24 | leave without pay who has Class A-3 or Class A-4 service |
25 | credit or Class T-E or Class T-F service credit in the Public |
26 | School Employees' Retirement System who terminates State |
27 | service having ten or more eligibility points, upon |
28 | compliance with section 5907(f), (g) or (h), shall be |
29 | entitled to receive an annuity. |
30 | (3) Any vestee, active member or inactive member on |
|
1 | leave without pay who has either Class A-3 or Class A-4 |
2 | service credit or Class T-E or Class T-F service credit in |
3 | the Public School Employees' Retirement System and also has |
4 | service credited in the system in one or more other classes |
5 | of service who has five or more, but fewer than ten, |
6 | eligibility points, upon compliance with section 5907(f), (g) |
7 | or (h) shall be eligible to receive an annuity calculated on |
8 | his service credited in classes of service other than Class |
9 | A-3 or Class A-4, provided that the member has five or more |
10 | eligibility points resulting from service in classes other |
11 | than Class A-3 or Class A-4 or Class T-E or Class T-F service |
12 | in the Public School Employees' Retirement System. |
13 | * * * |
14 | § 5309. Eligibility for vesting. |
15 | Any member who: |
16 | (1) Does not have Class A-3 or Class A-4 service credit |
17 | or Class T-E or Class T-F service credit in the Public School |
18 | Employees' Retirement System and terminates State service |
19 | with five or more eligibility points, or any member with |
20 | Class G, Class H, Class I, Class J, Class K, Class L, Class M |
21 | or Class N service with five or more eligibility points, |
22 | shall be eligible until attainment of superannuation age to |
23 | vest his retirement benefits. |
24 | (2) Has Class A-3 or Class A-4 service credit or Class |
25 | T-E or Class T-F service credit in the Public School |
26 | Employees' Retirement System and terminates State service |
27 | with ten or more eligibility points shall be eligible until |
28 | attainment of superannuation age to vest his retirement |
29 | benefits. |
30 | (3) Has either Class A-3 or Class A-4 service credit or |
|
1 | Class T-E or Class T-F service credit in the Public School |
2 | Employees' Retirement System, also has service credited in |
3 | the system in one or more other classes of service and has |
4 | five or more, but fewer than ten, eligibility points shall be |
5 | eligible until the attainment of superannuation age to vest |
6 | his retirement benefits calculated on his service credited in |
7 | classes of service other than Class A-3 or Class A-4 and to |
8 | be credited with statutory interest on total accumulated |
9 | deductions, regardless of whether or not any part of his |
10 | accumulated deductions are a result of Class A-3 or Class A-4 |
11 | service credit. |
12 | Section 8. Title 71 is amended by adding a section sections | <-- |
13 | to read: |
14 | § 5501.1. Shared risk member contributions for Class A-3 and | <-- |
15 | Class A-4 service. |
16 | (a) General.--Shared risk member contributions shall be made |
17 | to the fund on behalf of each member of Class A-3 or Class A-4 |
18 | for current service credited as Class A-3 or Class A-4 as |
19 | provided under this section, except for any period of current |
20 | service in which the making of the contributions has ceased |
21 | solely by reason of any provision of this part relating to the |
22 | limitations under IRC § 401(a)(17) or 415. Shared risk member |
23 | contributions shall be credited to the members' savings account. |
24 | (b) Determination of shared risk contribution rate.-- |
25 | (1) For the period from the effective date of this |
26 | section until June 30, 2014, the shared risk contribution |
27 | rate shall be zero. |
28 | (2) For the period from July 1, 2014, to June 30, 2017, |
29 | if the annual interest rate adopted by the board for use |
30 | during the period from January 1, 2011, to December 31, 2013, |
|
1 | for the calculation of the normal contribution rate is more |
2 | than 1% greater than the actual rate of return, net of fees, |
3 | of the investments of the fund based on market value over the |
4 | period, the shared risk contribution rate shall be .5%. In |
5 | all other situations, the shared risk contribution rate shall |
6 | be zero. |
7 | (3) For each subsequent three-year period, the shared |
8 | risk contribution rate shall be increased by .5% if the |
9 | annual interest rate adopted by the board for use during the |
10 | previous ten-year period for the calculation of the normal |
11 | contribution rate is more than 1% greater than the actual |
12 | rate of return, net of fees, of the investments of the fund |
13 | based on market value over the period. The shared risk |
14 | contribution rate shall be decreased by .5% if the annual |
15 | interest rate adopted by the board for use during the |
16 | previous ten-year period for the calculation of the normal |
17 | contribution rate is equal to or less than the actual rate of |
18 | return, net of fees, of the investments of the fund based on |
19 | market value over that period. |
20 | (4) Notwithstanding paragraphs (2) and (3), the shared |
21 | risk contribution rate shall not be less than zero and shall |
22 | not be more than the experience adjustment factor resulting |
23 | from investment gains or losses in effect on the first day |
24 | when the new rate would be applied, expressed as a percentage |
25 | of member compensation and shall not be more than 2%. For the |
26 | determination of the shared risk contribution rate to be |
27 | effective July 1, 2017, the determination period shall be |
28 | January 1, 2011, through December 31, 2016. For the |
29 | determination of the shared risk contribution rate to be |
30 | effective July 1, 2020, the determination period shall be |
|
1 | January 1, 2011, through December 31, 2019. |
2 | (5) The shared risk contribution rate and the factors |
3 | entering into its calculation shall be certified by the |
4 | actuary as part of the annual valuations and the actuarial |
5 | investigation and evaluation of the system conducted every |
6 | five years under section 5902(j) (relating to administrative |
7 | duties of the board). |
8 | (6) In the event that the annual interest rate adopted |
9 | by the board for the calculation is changed during the period |
10 | used to determine the shared risk contribution rate, the |
11 | board with the advice of the actuary shall determine the |
12 | applicable rate during the entire period, expressed as an |
13 | annual rate. |
14 | (7) For any fiscal year in which the actual |
15 | contributions by the Commonwealth or an employer are lower |
16 | than those required to be made under section 5507(d) |
17 | (relating to contributions by the Commonwealth and other |
18 | employers), the prospective shared risk contribution rate for |
19 | those employees whose employers are not making the |
20 | contributions required by section 5507(d) shall be zero and |
21 | shall not subsequently be increased except as otherwise |
22 | provided in this section. |
23 | (8) If the actuary certifies that the accrued liability |
24 | contributions calculated in accordance with the actuarial |
25 | cost method provided in section 5508(b) (relating to |
26 | actuarial cost method), as adjusted by the experience |
27 | adjustment factor, are zero or less, then the shared risk |
28 | contribution rate for the next fiscal year shall be zero and |
29 | shall not subsequently be increased except as otherwise |
30 | provided in this section. |
|
1 | § 5501.1 5501.2. Definitions. | <-- |
2 | The following words and phrases when used in this chapter |
3 | shall have the meanings given to them in this section unless the |
4 | context clearly indicates otherwise: |
5 | "Actuarially required contribution rate." The employer |
6 | contribution rate as calculated pursuant to section 5508(a), |
7 | (b), (c), (e) and (f) (relating to actuarial cost method). |
8 | "Costs added by legislation." The sum, if positive, of all |
9 | changes in the actuarially required contribution rate resulting |
10 | from legislation enacted in the year since the last actuarial |
11 | valuation and not included in the determination of the prior |
12 | year's final contribution rate, computed as the rate of total |
13 | compensation of all active members certified by the actuary as |
14 | sufficient to make the employer normal contributions and |
15 | sufficient to amortize legislatively created changes in the |
16 | unfunded actuarial liability as a level percentage of | <-- |
17 | compensation in equal dollar annual installments over a period | <-- |
18 | of ten years from the July 1 following the valuation date. |
19 | Section 9. Sections 5502.1, 5504(a), 5505(b) and (d), 5507, | <-- |
20 | 5508, 5702(a)(4) and (6), 5704(e) and 5705(a) of Title 71 are |
21 | amended to read: |
22 | Section 9. Sections 5502.1, 5503.1(a), 5504(a), 5505, 5507, | <-- |
23 | 5508, 5702(a)(4) and (6), 5704(e) and 5705(a) of Title 71 are |
24 | amended to read: |
25 | § 5502.1. Waiver of regular member contributions and Social |
26 | Security integration member contributions. |
27 | (a) General rule.--Notwithstanding the provisions of |
28 | sections 5501 (relating to regular member contributions for |
29 | current service) and 5502 (relating to Social Security |
30 | integration member contributions), no regular member |
|
1 | contributions or Social Security integration member |
2 | contributions shall be made by an active member for the period |
3 | from July 1 to the following June 30 if the maximum single life |
4 | annuity to which the member would have been entitled to receive |
5 | had the member retired with an effective date of retirement on |
6 | the preceding January 1 is greater than 110% of the highest |
7 | calendar year compensation of the member, provided the member |
8 | files a written election as prescribed by the board. |
9 | (b) Applicability.--This section shall not apply to any |
10 | member who has Class A-3 or Class A-4 service credit. |
11 | § 5503.1. Pickup contributions. | <-- |
12 | (a) Treatment for purposes of IRC § 414(h).--All |
13 | contributions required to be made under sections 5501 (relating |
14 | to regular member contributions for current service), 5501.1 |
15 | (relating to shared risk member contributions), 5502 (relating |
16 | to Social Security integration member contributions), 5503 |
17 | (relating to joint coverage member contributions) and section |
18 | 5505.1 (relating to additional member contributions), with |
19 | respect to current State service rendered by an active member on |
20 | or after January 1, 1982, shall be picked up by the Commonwealth |
21 | or other employer and shall be treated as the employer's |
22 | contribution for purposes of IRC § 414(h). |
23 | * * * |
24 | § 5504. Member contributions for the purchase of credit for |
25 | previous State service or to become a full coverage |
26 | member. |
27 | (a) Amount of contributions for service in other than Class |
28 | G through N.-- |
29 | (1) The contributions to be paid by an active member or |
30 | eligible school employee for credit for total previous State |
|
1 | service other than service in Class G, Class H, Class I, |
2 | Class J, Class K, Class L, Class M and Class N or to become a |
3 | full coverage member shall be sufficient to provide an amount |
4 | equal to the regular and additional accumulated deductions |
5 | which would have been standing to the credit of the member |
6 | for such service had regular and additional member |
7 | contributions been made with full coverage in the class of |
8 | service and at the rate of contribution applicable during |
9 | such period of previous service and had his regular and |
10 | additional accumulated deductions been credited with |
11 | statutory interest during all periods of subsequent State and |
12 | school service up to the date of purchase. |
13 | (2) Notwithstanding paragraph (1), members with Class |
14 | A-3 State service shall make contributions and receive credit |
15 | as if the previous State service was Class A-3 service, and |
16 | members with Class A-4 State service shall make contributions |
17 | and receive credit as if the previous State service was Class |
18 | A-4 service, even if it would have been credited as a |
19 | different class of service had the State employee been a |
20 | member of the system at the time the service was performed |
21 | unless it was mandatory that the State employee be an active |
22 | member of the system and the previous State service is being |
23 | credited as the result of a mandatory active membership |
24 | requirement. |
25 | * * * |
26 | § 5505. Contributions for the purchase of credit for creditable |
27 | nonstate service. |
28 | * * * | <-- |
29 | (a) Source of contributions.--The total contributions to | <-- |
30 | purchase credit for creditable nonstate service of an active |
|
1 | member or eligible school employee shall be paid either by the |
2 | member, the member's previous employer, or by some agreed upon |
3 | combination of the member, his previous employer, and, if |
4 | specifically provided, the Commonwealth. |
5 | (b) Nonintervening military service.-- |
6 | (1) The amount due for the purchase of credit for |
7 | military service other than intervening military service by | <-- |
8 | State employees who first become members of the system before |
9 | January 1, 2011, or before December 1, 2010, as a member of |
10 | the General Assembly shall be determined by applying the |
11 | product of the member's basic contribution rate and the class | <-- |
12 | of service multiplier applicable to contributions for the |
13 | class of service to which the military service will be |
14 | credited, the additional contribution rate plus the |
15 | Commonwealth normal contribution rate for active members at |
16 | the time of entry, subsequent to such military service, of |
17 | the member into State service to his average annual rate of |
18 | compensation over the first three years of such subsequent |
19 | State service and multiplying the result by the number of |
20 | years and fractional part of a year of creditable |
21 | nonintervening military service being purchased together with |
22 | statutory interest during all periods of subsequent State and |
23 | school service to date of purchase. Upon application for |
24 | credit for such service, payment shall be made in a lump sum |
25 | within 30 days or in the case of an active member or eligible |
26 | school employee who is an active member of the Public School |
27 | Employees' Retirement System it may be amortized with |
28 | statutory interest through salary deductions in amounts |
29 | agreed upon by the member and the board. The salary deduction |
30 | amortization plans agreed to by members and the board may |
|
1 | include a deferral of payment amounts and statutory interest |
2 | until the termination of school service or State service as |
3 | the board in its sole discretion decides to allow. The board |
4 | may limit salary deduction amortization plans to such terms |
5 | as the board in its sole discretion determines. In the case |
6 | of an eligible school employee who is an active member of the |
7 | Public School Employees' Retirement System, the agreed upon |
8 | salary deductions shall be remitted to the Public School |
9 | Employees' Retirement Board, which shall certify and transfer |
10 | to the board the amounts paid. Application may be filed for |
11 | all such military service credit upon completion of three |
12 | years of subsequent State service and shall be credited as | <-- |
13 | Class A-3 service for State employees who first become |
14 | members of the system on or after January 1, 2011, or on or |
15 | after December 1, 2010, as a member of the General Assembly, |
16 | and as Class A service for all other members. | <-- |
17 | (2) Applicants may purchase credit as follows: |
18 | (i) one purchase of the total amount of creditable |
19 | nonintervening military service; or |
20 | (ii) one purchase per 12-month period of a portion |
21 | of creditable nonintervening military service. |
22 | The amount of each purchase shall be not less than one year |
23 | of creditable nonintervening military service. |
24 | * * * | <-- |
25 | (c) Intervening military service.--Contributions on account | <-- |
26 | of credit for intervening military service shall be determined |
27 | by the member's regular contribution rate, shared risk |
28 | contribution rate, Social Security integration contribution |
29 | rate, the additional contribution rate which shall be applied |
30 | only to those members who began service on or after the |
|
1 | effective date of this amendatory act and compensation at the |
2 | time of entry of the member into active military service, |
3 | together with statutory interest during all periods of |
4 | subsequent State and school service to date of purchase. Upon |
5 | application for such credit the amount due shall be certified in |
6 | the case of each member by the board in accordance with methods |
7 | approved by the actuary, and contributions may be made by: |
8 | (1) regular monthly payments during active military |
9 | service; or |
10 | (2) a lump sum payment within 30 days of certification; |
11 | or |
12 | (3) salary deductions in amounts agreed upon by the |
13 | member or eligible school employee who is an active member of |
14 | the Public School Employees' Retirement System and the board. |
15 | The salary deduction amortization plans agreed to by members and |
16 | the board may include a deferral of payment amounts and |
17 | statutory interest until the termination of school service or |
18 | State service as the board in its sole discretion decides to |
19 | allow. The board may limit salary deduction amortization plans |
20 | to such terms as the board in its sole discretion determines. In |
21 | the case of an eligible school employee who is an active member |
22 | of the Public School Employees' Retirement System, the agreed |
23 | upon salary deductions shall be remitted to the Public School |
24 | Employees' Retirement Board, which shall certify and transfer to |
25 | the board the amounts paid. |
26 | (d) Nonmilitary and nonmagisterial service.--Contributions |
27 | on account of credit for creditable nonstate service other than |
28 | military and magisterial service by State employees who first | <-- |
29 | become members of the system before January 1, 2011, or before |
30 | December 1, 2010, as a member of the General Assembly shall be |
|
1 | determined by applying the product of the member's basic | <-- |
2 | contribution rate and the class of service multiplier applicable | <-- |
3 | to contributions for the class of service to which such nonstate |
4 | service will be credited, the additional contribution rate plus |
5 | the Commonwealth normal contribution rate for active members at |
6 | the time of entry subsequent to such creditable nonstate service |
7 | of the member into State service to his compensation at the time |
8 | of entry into State service and multiplying the result by the |
9 | number of years and fractional part of a year of creditable |
10 | nonstate service being purchased together with statutory |
11 | interest during all periods of subsequent State and school |
12 | service to the date of purchase. Upon application for credit for |
13 | such service payment shall be made in a lump sum within 30 days |
14 | or in the case of an active member or eligible school employee |
15 | who is an active member of the Public School Employees' |
16 | Retirement System it may be amortized with statutory interest |
17 | through salary deductions in amounts agreed upon by the member |
18 | and the board. The salary deduction amortization plans agreed to |
19 | by members and the board may include a deferral of payment |
20 | amounts and statutory interest until the termination of school |
21 | service or State service as the board in its sole discretion |
22 | decides to allow. The board may limit salary deduction |
23 | amortization plans to such terms as the board in its sole |
24 | discretion determines. In the case of an eligible school |
25 | employee who is an active member of the Public School Employees' |
26 | Retirement System, the agreed upon salary deduction shall be |
27 | remitted to the Public School Employees' Retirement Board, which |
28 | shall certify and transfer to the board the amounts paid. |
29 | * * * | <-- |
30 | (e) Philadelphia magisterial service.--Contributions on | <-- |
|
1 | account of credit for service as a magistrate of the City of |
2 | Philadelphia shall be determined by the board to be equal to the |
3 | amount he would have paid as employee contributions together |
4 | with statutory interest to date of purchase had he been a State |
5 | employee during his period of service as a magistrate of the |
6 | City of Philadelphia. The amount so determined by the State |
7 | Employees' Retirement Board to be paid into the State Employees' |
8 | Retirement System shall be the obligation of the judge who |
9 | requested credit for previous service as a magistrate of the |
10 | City of Philadelphia; in no event shall such amount be an |
11 | obligation of the City of Philadelphia or the City of |
12 | Philadelphia retirement system. |
13 | (f) Temporary Federal service.--Contributions on account of |
14 | credit for service as a temporary Federal employee assigned to |
15 | an air quality control complement for the Department of |
16 | Environmental Resources during the period of 1970 through 1975, |
17 | as authorized in section 5304(c)(5) (relating to creditable |
18 | nonstate service), shall be equal to the full actuarial cost of |
19 | the increased benefit obtained by virtue of the purchase. The |
20 | increased benefit attributable to the purchased service shall be |
21 | the difference between: |
22 | (1) the annual amount of a standard single life annuity, |
23 | beginning at the earliest possible superannuation age, |
24 | calculated assuming no future salary increases, assuming |
25 | credit for the service to be purchased; and |
26 | (2) the annual amount of a standard single life annuity, |
27 | calculated on the same basis, but excluding credit for the |
28 | service to be purchased. |
29 | The earliest possible superannuation age shall be the age at |
30 | which the member becomes first eligible for superannuation |
|
1 | retirement assuming continued full-time service and credit for |
2 | the amount of service which the member has elected to purchase, |
3 | or the current attained age of the member, whichever is later. |
4 | The full actuarial cost of the increased benefit attributable to |
5 | the purchased service shall be the actuarial present value of a |
6 | deferred annuity equal to the amount of the increased benefit |
7 | determined above, beginning at the earliest possible |
8 | superannuation age and payable for life, calculated using a |
9 | preretirement interest assumption of 1.5%, a postretirement |
10 | interest assumption of 4%, no preretirement mortality assumption |
11 | and standard postretirement mortality assumptions. The purchase |
12 | payment shall be made in lump sum by the member within 30 days |
13 | of certification by the board of the required purchase amount or |
14 | may be amortized through salary deductions in amounts agreed |
15 | upon by the member and the board with interest payable on the |
16 | unpaid balance at the rate applicable to the most recently |
17 | issued 30-year bonds of the United States Treasury Department. |
18 | (g) Justice of the peace service.--Contributions on account |
19 | of credit for service as a justice of the peace shall be |
20 | determined by the board to be equal to the amount he would have |
21 | paid as employee contributions together with statutory interest |
22 | to date of purchase had he been a State employee during his |
23 | period of service as a justice of the peace for the Commonwealth |
24 | plus the amount determined by applying the Commonwealth normal |
25 | contribution rate for active members at the beginning of the |
26 | district justice system as of January 1970 to the starting |
27 | salary of the district justice for the magisterial district in |
28 | which the member was elected dating from the beginning of the |
29 | district justice system as of January 1970 and multiplying the |
30 | result by the number of years and fractional part of a year of |
|
1 | creditable service being purchased together with statutory |
2 | interest from entry into State service as a district justice to |
3 | the date of purchase. The amount so determined by board to be |
4 | paid into the system shall be the obligation of the justice who |
5 | requested credit for previous service as a justice of the peace |
6 | for the Commonwealth prior to 1970. A justice of the peace |
7 | desiring to purchase his or her service time prior to 1970 shall |
8 | have been elected or appointed a district justice any time |
9 | during or after 1970. The class of service credit a member shall |
10 | receive upon entry into the system shall be determined by the |
11 | time of his entry into the district justice system. It shall be |
12 | incumbent upon the district justice to certify to the board with |
13 | a copy of his commission or commissions the amount of time that |
14 | he served the Commonwealth as a justice of the peace. The salary |
15 | dollar amount that shall be used in the formula for determining |
16 | the member's contributions shall be equal to the starting salary |
17 | of the district justice for the magisterial district in which he |
18 | was elected, dating from the beginning of the district justice |
19 | system as of January 1970. In no event shall such an amount be |
20 | the obligation of the Commonwealth or the county in which the |
21 | justice served. |
22 | (h) County service.--For purposes of this section, Class G, |
23 | Class H, Class I, Class J, Class K, Class L, Class M and Class N |
24 | service shall be disregarded in determining when a member enters |
25 | State service or the period of subsequent State service. |
26 | (i) Purchases of nonstate service credit by State employees |
27 | who first became members of the system on or after December 1, |
28 | 2010.-- |
29 | (1) Contributions on account of credit for creditable |
30 | nonstate service other than intervening military service and |
|
1 | magisterial service by State employees who first become |
2 | members of the system on or after January 1, 2011, or on or |
3 | after December 1, 2010, as a member of the General Assembly |
4 | shall be equal to the full actuarial cost of the increased |
5 | benefit obtained by virtue of such service. |
6 | (2) The full actuarial cost of the increased benefit |
7 | attributable to the purchased nonstate service credit shall |
8 | be the difference between: |
9 | (i) the present value of a standard single life |
10 | annuity, beginning at the earliest possible |
11 | superannuation age assuming Class A-3 service credit for |
12 | the nonstate service to be purchased; and |
13 | (ii) the present value of a standard single life |
14 | annuity, beginning at the earliest possible |
15 | superannuation age, excluding the nonstate service credit |
16 | to be purchased. |
17 | (3) The full actuarial cost under paragraph (2) shall be |
18 | calculated using future salary increases, mortality tables, |
19 | interest rates and other actuarial assumptions as adopted by |
20 | the board with the advice of the actuary. The earliest |
21 | possible superannuation age shall be the current attained age |
22 | of the member if the member has attained superannuation age |
23 | for his current class of service or if the member has not |
24 | attained superannuation age, the age upon which the member |
25 | would attain superannuation age as a member in the current |
26 | class of service assuming continued full-time State service |
27 | through the attainment of superannuation age and credit for |
28 | the amount of service which the member has elected to |
29 | purchase. |
30 | (4) The payment for credit purchased under this |
|
1 | subsection shall be certified in each case by the board in |
2 | accordance with methods approved by the actuary and shall be |
3 | paid in a lump sum within 30 days or in the case of an active |
4 | member or eligible school employee who is an active member of |
5 | the Public School Employees' Retirement System may be |
6 | amortized with statutory interest through salary deductions |
7 | in amounts agreed upon by the member and the board. The |
8 | salary deduction amortization plans agreed to by members and |
9 | the board may include a deferral of payment amounts and |
10 | interest until the termination of school service or State |
11 | service as the board in its sole discretion decides to allow. |
12 | The board may limit the salary deduction amortization plans |
13 | to such terms as the board in its sole discretion determines. |
14 | In the case of an eligible school employee who is an active |
15 | member of the Public School Employees' Retirement System, the |
16 | agreed upon salary deductions shall be remitted to the Public |
17 | School Employees' Retirement Board, which shall certify and |
18 | transfer to the board the amounts paid. |
19 | § 5507. Contributions by the Commonwealth and other employers. |
20 | (a) Contributions on behalf of active members.--The |
21 | Commonwealth and other employers whose employees are members of |
22 | the system shall make contributions to the fund on behalf of all |
23 | active members in such amounts as shall be certified by the |
24 | board as necessary to provide, together with the members' total |
25 | accumulated deductions, annuity reserves on account of |
26 | prospective annuities other than those provided in [section] | <-- |
27 | sections 5708 (relating to supplemental annuities), 5708.1 |
28 | (relating to additional supplemental annuities), 5708.2 |
29 | (relating to further additional supplemental annuities), 5708.3 |
30 | (relating to supplemental annuities commencing 1994), 5708.4 |
|
1 | (relating to special supplemental postretirement adjustment), |
2 | 5708.5 (relating to supplemental annuities commencing 1998), |
3 | 5708.6 (relating to supplemental annuities commencing 2002), |
4 | 5708.7 (relating to supplemental annuities commencing 2003) and |
5 | 5708.8 (relating to special supplemental postretirement |
6 | adjustment of 2002), in accordance with the actuarial cost |
7 | method provided in section 5508(a), (b), (c), (d) and (f) |
8 | (relating to actuarial cost method). |
9 | (b) Contributions on behalf of annuitants.--The Commonwealth |
10 | and other employers whose employees are members of the system |
11 | shall make contributions on behalf of annuitants in such amounts |
12 | as shall be certified by the board as necessary to fund the |
13 | liabilities for supplemental annuities in accordance with the |
14 | actuarial cost method provided in section 5508(e) (relating to |
15 | actuarial cost method). |
16 | (c) Contributions transferred by county retirement |
17 | systems.-- |
18 | (1) Each county retirement system or pension plan which |
19 | is notified by certification from the board that a former |
20 | contributor who was transferred to State employment pursuant |
21 | to 42 Pa.C.S. § 1905 (relating to county-level court |
22 | administrators) has elected to convert county service to |
23 | State service in accordance with section 5303.1 (relating to |
24 | election to convert county service to State service) shall |
25 | transfer to the board an amount equal to the actuarial |
26 | liability for the additional benefits that result in the |
27 | system as a result of the conversion as certified by the |
28 | board. This amount shall be calculated in such a manner and |
29 | using such actuarial factors and assumptions as the board, |
30 | after obtaining the advice of its actuary, shall determine |
|
1 | and shall be calculated by determining the present value of |
2 | the future benefits for the former county contributors and |
3 | subtracting from that present value the present value of |
4 | future employee contributions and future employer normal cost |
5 | contributions. |
6 | (2) The transfer shall occur no later than 180 days |
7 | after the certification by the board of the actuarial |
8 | liability for the additional benefits or 30 days following |
9 | the date of termination of service if the member terminates |
10 | State service after making the election to convert service, |
11 | whichever occurs first. |
12 | (3) If any county retirement system or pension plan |
13 | fails to transfer, within the required time, the money |
14 | certified by the board under this subsection, then the |
15 | service of such members for the period of converted service |
16 | shall be credited, and the board shall notify the county |
17 | which employed the employee who is converting the county |
18 | service and the State Treasurer of the amount due. The State |
19 | Treasurer shall withhold out of any grants, subsidies or |
20 | other payments from the State General Fund appropriation or |
21 | appropriations next due such county an amount equal to the |
22 | amount which the county retirement system or pension plan |
23 | failed to pay and shall pay the amount so withheld to the |
24 | board for the payment of the amount due from that county's |
25 | retirement system or pension plan for the converted service. |
26 | (d) Payment of final contribution rate.--Notwithstanding the |
27 | calculation of the actuarially required contribution rate and |
28 | the provisions of subsections (a) and (b), the Commonwealth and |
29 | other employers whose employees are members of the system shall |
30 | make contributions to the fund on behalf of all active members |
|
1 | and annuitants in such amounts as shall be certified by the |
2 | board in accordance with section 5508(i). |
3 | (e) Benefits completion plan contributions.--In addition to |
4 | all other contributions required under this section and section |
5 | 5508, the Commonwealth and other employers whose employees are | <-- |
6 | members of the system shall make contributions as certified by |
7 | the board pursuant to section 5941 (relating to benefits |
8 | completion plan). |
9 | § 5508. Actuarial cost method. |
10 | (a) Employer contribution rate on behalf of active |
11 | members.--The amount of the Commonwealth and other employer |
12 | contributions on behalf of all active members shall be computed |
13 | by the actuary as a percentage of the total compensation of all |
14 | active members during the period for which the amount is |
15 | determined and shall be so certified by the board. The [total |
16 | employer] actuarially required contribution rate on behalf of |
17 | all active members shall consist of the employer normal |
18 | contribution rate, as defined in subsection (b), and the accrued |
19 | liability contribution rate as defined in subsection (c). The |
20 | [total employer] actuarially required contribution rate on |
21 | behalf of all active members shall be modified by the experience |
22 | adjustment factor as calculated in subsection (f) [but in no |
23 | case shall it be less than zero. The total employer contribution |
24 | rate shall be modified by the experience adjustment factor as |
25 | calculated in subsection (f), but in no case shall it be less |
26 | than: |
27 | (1) 2% for the fiscal year beginning July 1, 2004; |
28 | (2) 3% for the fiscal year beginning July 1, 2005; and |
29 | (3) 4% for the fiscal year beginning July 1, 2006, and |
30 | thereafter]. |
|
1 | (b) Employer normal contribution rate.--The employer normal |
2 | contribution rate shall be determined after each actuarial |
3 | valuation on the basis of an annual interest rate and such |
4 | mortality and other tables as shall be adopted by the board in |
5 | accordance with generally accepted actuarial principles. The |
6 | employer normal contribution rate shall be determined as a level |
7 | percentage of the compensation of the average new active member, |
8 | which percentage, if contributed on the basis of his prospective |
9 | compensation through his entire period of active State service, |
10 | would be sufficient to fund the liability for any prospective |
11 | benefit payable to him[, except for the supplemental benefits |
12 | provided for in sections 5708 (relating to supplemental |
13 | annuities), 5708.1 (relating to additional supplemental |
14 | annuities), 5708.2 (relating to further additional supplemental |
15 | annuities), 5708.3 (relating to supplemental annuities |
16 | commencing 1994), 5708.4 (relating to special supplemental |
17 | postretirement adjustment), 5708.5 (relating to supplemental |
18 | annuities commencing 1998), 5708.6 (relating to supplemental |
19 | annuities commencing 2002), 5708.7 (relating to supplemental |
20 | annuities commencing 2003) and 5708.8 (relating to special |
21 | supplemental postretirement adjustment of 2002),] in excess of |
22 | that portion funded by his prospective member contributions, | <-- |
23 | excluding shared risk member contributions. |
24 | (c) Accrued liability contribution rate.-- |
25 | (1) For the fiscal [year] years beginning July 1, 2002, |
26 | and July 1, 2003, the accrued liability contribution rate |
27 | shall be computed as the rate of total compensation of all |
28 | active members which shall be certified by the actuary as |
29 | sufficient to fund over a period of ten years from July 1, |
30 | 2002, the present value of the liabilities for all |
|
1 | prospective benefits, except for the supplemental benefits as |
2 | provided in sections 5708 (relating to supplemental |
3 | annuities), 5708.1 (relating to additional supplemental |
4 | annuities), 5708.2 (relating to further additional |
5 | supplemental annuities), 5708.3 (relating to supplemental |
6 | annuities commencing 1994), 5708.4 (relating to special |
7 | supplemental postretirement adjustment), 5708.5 (relating to |
8 | supplemental annuities commencing 1998), 5708.6 (relating to |
9 | supplemental annuities commencing 2002), 5708.7 (relating to |
10 | supplemental annuities commencing 2003) and 5708.8 (relating |
11 | to special supplemental postretirement adjustment of 2002), |
12 | in excess of the total assets in the fund (calculated |
13 | recognizing all investment gains and losses over a five-year |
14 | period), excluding the balance in the supplemental annuity |
15 | account, and the present value of employer normal |
16 | contributions and of member contributions payable with |
17 | respect to all active members on December 31, 2001, and |
18 | excluding contributions to be transferred by county |
19 | retirement systems or pension plans pursuant to section |
20 | 5507(c) (relating to contributions by the Commonwealth and |
21 | other employers). The amount of each annual accrued liability |
22 | contribution shall be equal to the amount of such |
23 | contribution for the fiscal year beginning July 1, 2002, |
24 | except that, if the accrued liability is increased by |
25 | legislation enacted subsequent to June 30, 2002, but before |
26 | July 1, 2003, such additional liability shall be funded over |
27 | a period of ten years from the first day of July, coincident |
28 | with or next following the effective date of the increase. |
29 | The amount of each annual accrued liability contribution for |
30 | such additional legislative liabilities shall be equal to the |
|
1 | amount of such contribution for the first annual payment. |
2 | (2) Notwithstanding any other provision of law, |
3 | beginning July 1, 2004, and ending June 30, 2010, the |
4 | outstanding balance of the increase in accrued liability due |
5 | to the change in benefits enacted in 2001 shall be amortized |
6 | in equal dollar annual contributions over a period that ends |
7 | 30 years after July 1, 2002, and the outstanding balance of |
8 | the net actuarial loss incurred in calendar year 2002 shall |
9 | be amortized in equal dollar annual contributions over a |
10 | period that ends 30 years after July 1, 2003. For fiscal |
11 | years beginning on or after July 1, 2004, and ending June 30, |
12 | 2010, if the accrued liability is increased by legislation |
13 | enacted subsequent to June 30, 2003, but before January 1, |
14 | 2009, such additional liability shall be funded in equal |
15 | dollar annual contributions over a period of ten years from |
16 | the first day of July coincident with or next following the |
17 | effective date of the increase. |
18 | (3) For the fiscal year beginning July 1, 2010, the |
19 | accrued liability contribution rate shall be computed as the |
20 | rate of total compensation of all active members which shall |
21 | be certified by the actuary as sufficient to fund as a level | <-- |
22 | percentage of compensation in equal dollar installments over | <-- |
23 | a period of 30 years from July 1, 2010, the present value of |
24 | the liabilities for all prospective benefits calculated as of |
25 | the immediately prior valuation date, including the |
26 | supplemental benefits as provided in sections 5708, 5708.1, |
27 | 5708.2, 5708.3, 5708.4, 5708.5, 5708.6, 5708.7 and 5708.8, |
28 | but excluding the benefits payable from the retirement |
29 | benefit plan established pursuant to section 5941 (relating |
30 | to benefits completion plan), in excess of the actuarially |
|
1 | calculated assets in the fund (calculated recognizing all |
2 | realized and unrealized investment gains and losses each year |
3 | in level annual installments over five years), including the |
4 | balance in the supplemental annuity account, and the present |
5 | value of employer normal contributions and of member |
6 | contributions payable with respect to all active members, |
7 | inactive members on leave without pay, vestees and special |
8 | vestees on December 31, 2009. If the accrued liability is |
9 | changed by legislation enacted subsequent to December 31, |
10 | 2009, such change in liability shall be funded as a level | <-- |
11 | percentage of compensation in equal dollar installments over | <-- |
12 | a period of ten years from the first day of July following |
13 | the valuation date coincident with or next following the date |
14 | such legislation is enacted. |
15 | (d) Special provisions on calculating contributions.--In |
16 | calculating the contributions required by subsections (a), (b) |
17 | and (c), the active members of Class C shall be considered to be |
18 | members of Class A. In addition, the actuary shall determine the |
19 | Commonwealth or other employer contributions required for active |
20 | members of Class C and officers of the Pennsylvania State Police |
21 | and enforcement officers and investigators of the Pennsylvania |
22 | Liquor Control Board who are members of Class A to finance their |
23 | benefits in excess of those to which other members of Class A |
24 | are entitled. Such additional contributions shall be determined |
25 | separately for officers and employees of the Pennsylvania State |
26 | Police and for enforcement officers and investigators of the |
27 | Pennsylvania Liquor Control Board. Such contributions payable on |
28 | behalf of officers and employees of the Pennsylvania State |
29 | Police shall include the amounts received by the system under |
30 | the provisions of the act of May 12, 1943 (P.L.259, No.120), |
|
1 | referred to as the Foreign Casualty Insurance Premium Tax |
2 | Allocation Law, and on behalf of enforcement officers or |
3 | investigators of the Pennsylvania Liquor Control Board, the |
4 | amounts received by the system under the provisions of the act |
5 | of April 12, 1951 (P.L.90, No.21), known as the Liquor Code. |
6 | (e) Supplemental annuity contribution rate.--[Contributions] |
7 | (1) For the period July 1, 2002, to June 30, 2010, |
8 | contributions from the Commonwealth and other employers whose |
9 | employees are members of the system required to provide for |
10 | the payment of supplemental annuities as provided in sections |
11 | 5708, 5708.1, 5708.2, 5708.3, 5708.4 and 5708.5 shall be paid |
12 | over a period of ten years from July 1, 2002. The funding for |
13 | the supplemental annuities commencing 2002 provided for in |
14 | section 5708.6 shall be as provided in section 5708.6(f). The |
15 | funding for the supplemental annuities commencing 2003 |
16 | provided for in section 5708.7 shall be as provided in |
17 | section 5708.7(f). The funding for the special supplemental |
18 | postretirement adjustment of 2002 under section 5708.8 shall |
19 | be as provided in section 5708.8(g). The amount of each |
20 | annual supplemental annuities contribution shall be equal to |
21 | the amount of such contribution for the fiscal year beginning |
22 | July 1, 2002. [In the event that supplemental annuities are |
23 | increased by legislation enacted subsequent to June 30, 2002, |
24 | the additional liability for the increase in benefits shall |
25 | be funded in equal dollar annual installments over a period |
26 | of ten years from the July first, coincident with or next |
27 | following the effective date of such legislation.] |
28 | (2) For fiscal years beginning on or after July 1, 2010, |
29 | contributions from the Commonwealth and other employers whose |
30 | employees are members of the system required to provide for |
|
1 | the payment of supplemental annuities as provided in sections |
2 | 5708, 5708.1, 5708.2, 5708.3, 5708.4, 5708.5, 5708.6, 5708.7 |
3 | and 5708.8 shall be paid as part of the accrued liability |
4 | contribution rate as provided for in subsection (c)(3) and |
5 | there shall not be a separate supplemental annuity |
6 | contribution rate attributable to those supplemental |
7 | annuities. In the event that supplemental annuities are |
8 | increased by legislation enacted subsequent to December 31, |
9 | 2009, the additional liability for the increase in benefits |
10 | shall be funded as a level percentage of compensation in | <-- |
11 | equal dollar installments over a period of ten years from the |
12 | first day of July following the valuation date coincident |
13 | with or next following the date such legislation is enacted. |
14 | (f) Experience adjustment factor.-- |
15 | (1) For each year after the establishment of the accrued |
16 | liability contribution rate and the supplemental annuity |
17 | contribution rate for the fiscal year beginning July 1, |
18 | [2002] 2010, any increase or decrease in the unfunded accrued |
19 | liability[, including liability] and any increase or decrease |
20 | in the liabilities and funding for supplemental annuities, |
21 | due to actual experience differing from assumed experience[,] |
22 | (recognizing all realized and unrealized investment gains and |
23 | losses over a five-year period), changes in contributions |
24 | caused by the final contribution rate being different from |
25 | the actuarially required contribution rate, State employees | <-- |
26 | making shared risk member contributions, changes in actuarial |
27 | assumptions[,] or changes in the terms and conditions of the |
28 | benefits provided by the system by judicial, administrative |
29 | or other processes other than legislation, including, but not |
30 | limited to, reinterpretation of the provisions of this part, |
|
1 | shall be amortized [in equal dollar annual contributions] as | <-- |
2 | a level percentage of compensation over a period of [ten] 30 |
3 | years beginning with the July 1 succeeding the actuarial |
4 | valuation determining said increases or decreases. |
5 | (2) [Notwithstanding the provisions of paragraph (1), |
6 | for each year after the establishment of the accrued |
7 | liability contribution rate for the fiscal year beginning |
8 | July 1, 2003, any increase or decrease in the unfunded |
9 | accrued liability due to actual experience differing from |
10 | assumed experience, changes in actuarial assumptions, changes |
11 | in the terms and conditions of the benefits provided by the |
12 | system by judicial, administrative or other processes other |
13 | than legislation, including, but not limited to, |
14 | reinterpretation of the provisions of this part, shall be |
15 | amortized in equal dollar annual contributions over a period |
16 | of 30 years beginning with the July 1 succeeding the |
17 | actuarial valuation determining said increases and decreases] |
18 | The actuarially required contribution rate shall be the sum |
19 | of the normal contribution rate, the accrued liability |
20 | contribution rate and the supplemental annuity contribution |
21 | rate, modified by the experience adjustment factor as |
22 | calculated in paragraph (1). |
23 | (g) Determination of liability for special vestee.-- |
24 | Notwithstanding any other provision of this part or other law, |
25 | the total additional accrued actuarial liability resulting from |
26 | eligibility of special vestees for benefits upon the attainment |
27 | of superannuation age shall be determined by the actuary as part |
28 | of the first annual valuation made after June 30, 1997. The |
29 | resulting additional accrued actuarial liability shall be paid |
30 | by The Pennsylvania State University to the board in one lump |
|
1 | sum payment within 90 days of the board's certification of the |
2 | amount to The Pennsylvania State University. |
3 | (h) Temporary application of collared contribution rate.-- |
4 | The collared contribution rate for each year shall be determined |
5 | by comparing the actuarially required contribution rate |
6 | calculated without regard for costs added by legislation to the |
7 | prior year's final contribution rate. If for any of the fiscal |
8 | years beginning July 1, 2011, July 1, 2012 and on or after July |
9 | 1, 2013, the actuarially required contribution rate calculated |
10 | without regard for costs added by legislation is more than 3%, |
11 | 3.5% and 4.5%, respectively, of the total compensation of all |
12 | active members greater than the prior year's final contribution |
13 | rate, then the collared contribution rate shall be applied and |
14 | be equal to the prior year's final contribution rate increased |
15 | by the respective percentage above of total compensation of all |
16 | active members. Otherwise, and for all subsequent fiscal years, |
17 | the collared contribution rate shall not be applicable. In no |
18 | case shall the collared contribution rate be less than 4% of |
19 | total compensation of all active members. |
20 | (i) Final contribution rate.--For the fiscal year beginning |
21 | July 1, 2010, the final contribution rate shall be 5% of total |
22 | compensation of all active members. For each subsequent fiscal |
23 | year for which the collared contribution rate is applicable, the |
24 | final contribution rate shall be the collared contribution rate |
25 | plus the costs added by legislation. For all other fiscal years, |
26 | the final contribution rate shall be the actuarially required |
27 | contribution rate, provided that the final contribution rate |
28 | shall not be less than the employer normal contribution rate, as |
29 | defined in subsection (b). |
30 | § 5702. Maximum single life annuity. |
|
1 | (a) General rule.--Any full coverage member who is eligible |
2 | to receive an annuity pursuant to the provisions of section |
3 | 5308(a) or (b) (relating to eligibility for annuities) who |
4 | terminates State service, or if a multiple service member who is |
5 | a school employee who is an active member of the Public School |
6 | Employees' Retirement System who terminates school service, |
7 | before attaining age 70 shall be entitled to receive a maximum |
8 | single life annuity attributable to his credited service and |
9 | equal to the sum of the following single life annuities |
10 | beginning at the effective date of retirement: |
11 | * * * |
12 | (4) If eligible, a single life annuity which is |
13 | actuarially equivalent to the amount by which his regular and |
14 | additional accumulated deductions attributable to any |
15 | credited service other than as a member of Class C are |
16 | greater than one-half of the actuarially equivalent value on |
17 | the effective date of retirement of the annuity as provided |
18 | in paragraph (1) attributable to service other than Class C |
19 | for which regular or joint coverage member contributions were |
20 | made. This paragraph shall not apply to any member with State |
21 | service credited as Class A-3 or Class A-4. |
22 | * * * |
23 | (6) If eligible, a single life annuity sufficient |
24 | together with the annuity provided for in paragraph (1) as a |
25 | Class A [and], Class AA, Class A-3 and Class A-4 member and |
26 | the highest annuity provided for in paragraph (2) to which he |
27 | is entitled, or at his option could have been entitled, to |
28 | produce that percentage of a standard single life annuity |
29 | adjusted by the application of the class of service |
30 | multiplier for Class A, Class AA, Class A-3 or Class A-4 as |
|
1 | set forth in paragraph (1) in the case where any service is |
2 | credited as a member of Class A, Class AA, Class A-3 or Class |
3 | A-4 on the effective date of retirement as determined by his |
4 | total years of credited service as a member of Class A [and], |
5 | Class AA, Class A-3 and Class A-4 and by the following table: |
6 7 8 9 10 11 12 13 | Total Years of Credited Service as a Member of Class A [and], Class AA, Class A-3 and Class A-4 | Percentage of Standard Single Life Annuity Adjusted for Class A, Class AA, Class A-3 and Class A-4 Class of Service Multipliers | 14 | 35-40 | 100% | 15 | 41 | 102% | 16 | 42 | 104% | 17 | 43 | 106% | 18 | 44 | 108% | 19 | 45 or more | 110% |
|
20 | * * * |
21 | § 5704. Disability annuities. |
22 | * * * |
23 | (e) Termination of State service.--Upon termination of |
24 | disability annuity payments in excess of an annuity calculated |
25 | in accordance with section 5702, a disability annuitant who: |
26 | (1) does not have Class A-3 or Class A-4 service credit; |
27 | or |
28 | (2) has Class A-3 or Class A-4 service credit and fewer |
29 | than ten eligibility points; |
30 | and who does not return to State service may file an application |
|
1 | with the board for an amount equal to the excess, if any, of the |
2 | sum of the shared risk accumulated deductions plus the regular | <-- |
3 | and additional accumulated deductions standing to his credit at |
4 | the effective date of disability over one-third of the total |
5 | disability annuity payments received. If the annuitant on the |
6 | date of termination of service was eligible for an annuity as |
7 | provided in section [5308(b)] 5308(a) or (b) (relating to |
8 | eligibility for annuities), he may file an application with the |
9 | board for an election of an optional modification of his |
10 | annuity. |
11 | * * * |
12 | § 5705. Member's options. |
13 | (a) General rule.--Any special vestee who has attained |
14 | superannuation age, any vestee who does not have Class A-3 or |
15 | Class A-4 service credit having five or more eligibility points |
16 | for service other than Class T-E or Class T-F service in the |
17 | Public School Employees' Retirement System, or vestee who has |
18 | Class A-3 or Class A-4 service credit having ten or more |
19 | eligibility points, any member with Class G, Class H, Class I, |
20 | Class J, Class K, Class L, Class M or Class N service having |
21 | five or more eligibility points or any other eligible member |
22 | upon termination of State service who has not withdrawn his |
23 | total accumulated deductions as provided in section 5701 |
24 | (relating to return of total accumulated deductions) may apply |
25 | for and elect to receive either a maximum single life annuity, |
26 | as calculated in accordance with the provisions of section 5702 |
27 | (relating to maximum single life annuity), or a reduced annuity |
28 | certified by the actuary to be actuarially equivalent to the |
29 | maximum single life annuity and in accordance with one of the |
30 | following options; except that no member shall elect an annuity |
|
1 | payable to one or more survivor annuitants other than his spouse |
2 | or alternate payee of such a magnitude that the present value of |
3 | the annuity payable to him for life plus any lump sum payment he |
4 | may have elected to receive is less than 50% of the present |
5 | value of his maximum single life annuity: |
6 | (1) Option 1.--A life annuity to the member with a |
7 | guaranteed total payment equal to the present value of the |
8 | maximum single life annuity on the effective date of |
9 | retirement with the provision that, if, at his death, he has |
10 | received less than such present value, the unpaid balance |
11 | shall be payable to his beneficiary. |
12 | (2) Option 2.--A joint and survivor annuity payable |
13 | during the lifetime of the member with the full amount of |
14 | such annuity payable thereafter to his survivor annuitant, if |
15 | living at his death. |
16 | (3) Option 3.--A joint and fifty percent (50%) survivor |
17 | annuity payable during the lifetime of the member with one- |
18 | half of such annuity payable thereafter to his survivor |
19 | annuitant, if living at his death. |
20 | (4) Option 4.--Some other benefit which shall be |
21 | certified by the actuary to be actuarially equivalent to the |
22 | maximum single life annuity, subject to the following |
23 | restrictions: |
24 | (i) any annuity shall be payable without reduction |
25 | during the lifetime of the member; |
26 | (ii) the sum of all annuities payable to the |
27 | designated survivor annuitants shall not be greater than |
28 | one and one-half times the annuity payable to the member; |
29 | and |
30 | (iii) a portion of the benefit may be payable as a |
|
1 | lump sum, except that such lump sum payment shall not |
2 | exceed an amount equal to the total accumulated |
3 | deductions standing to the credit of the member that are |
4 | not the result of contributions and statutory interest |
5 | made or credited as a result of Class A-3 or Class A-4 |
6 | service. The balance of the present value of the maximum |
7 | single life annuity adjusted in accordance with section |
8 | 5702(b) shall be paid in the form of an annuity with a |
9 | guaranteed total payment, a single life annuity, or a |
10 | joint and survivor annuity or any combination thereof but |
11 | subject to the restrictions of subparagraphs (i) and (ii) |
12 | under this option. |
13 | * * * |
14 | Section 10. Title 71 is amended by adding a section to read: |
15 | § 5705.1. Payment of accumulated deductions resulting from |
16 | Class A-3 and Class A-4 service. |
17 | Any superannuation or withdrawal annuitant who: |
18 | (1) has Class A-3 or Class A-4 service credit; |
19 | (2) has service credited in one or more classes of |
20 | service; and |
21 | (3) because he has five or more, but fewer than ten, |
22 | eligibility points is not eligible to receive an annuity on |
23 | his Class A-3 or Class A-4 service |
24 | shall receive in a lump sum at the time of his retirement, in |
25 | addition to any other annuity or lump sum payment which he may |
26 | elect, his accumulated deductions resulting from his Class A-3 |
27 | or Class A-4 service credit. Payment of these accumulated |
28 | deductions resulting from Class A-3 or Class A-4 service credit |
29 | shall not be eligible for installment payments pursuant to |
30 | section 5905.1 (relating to installment payments of accumulated |
|
1 | deductions) but shall be considered a lump sum payment for |
2 | purposes of section 5905.1(d). |
3 | Section 11. Sections 5708.1(f), 5708.2(f), 5708.3(f), |
4 | 5708.5(f), 5708.6(f), 5708.7(f), 5708.8(g), 5902(k), 5903(c), |
5 | 5905(a), 5905.1(d), 5907(c), 5933(a), 5934, 5936(b), 5937(b), | <-- |
6 | 5938 and 5955 of Title 71 are amended to read: |
7 | § 5708.1. Additional supplemental annuities. |
8 | * * * |
9 | (f) Funding.--The actuary shall annually certify the amount |
10 | of appropriations for the next fiscal year needed to fund, over |
11 | a period of ten years from July 1, 2002, the additional monthly |
12 | supplemental annuity provided for in this section[. The board |
13 | shall submit the actuary's certification to the Secretary of the |
14 | Budget on or before November 1 of each year. If, in any year |
15 | after 1984, the amount certified is disapproved under section |
16 | 610 of the act of April 9, 1929 (P.L.177, No.175), known as The |
17 | Administrative Code of 1929, as insufficient to meet the funding |
18 | requirements of this subsection or is not appropriated on or |
19 | before July 1, the additional supplemental annuity provided for |
20 | in this section shall be suspended until such time as an amount |
21 | certified and approved as sufficient is appropriated], which |
22 | amounts shall be paid during the period beginning July 1, 2002, |
23 | and ending June 30, 2010. For fiscal years beginning on or after |
24 | July 1, 2010, the additional liability provided in this section |
25 | shall be funded as part of the actuarial accrued liability as |
26 | provided in section 5508 (relating to actuarial cost method). |
27 | * * * |
28 | § 5708.2. Further additional supplemental annuities. |
29 | * * * |
30 | (f) Funding.--The actuary shall annually estimate the amount |
|
1 | of Commonwealth appropriations for the next fiscal year needed |
2 | to fund, over a period of ten years from July 1, 2002, the |
3 | additional monthly supplemental annuity provided for in this |
4 | section[. The board shall submit the actuary's estimation to the |
5 | Secretary of the Budget on or before November 1 of each year. |
6 | If, in any year after 1988, the amount estimated is disapproved |
7 | under section 610 of the act of April 9, 1929 (P.L.177, No.175), |
8 | known as The Administrative Code of 1929, as insufficient to |
9 | meet the funding requirements of this subsection or is not |
10 | appropriated on or before July 1, the additional supplemental |
11 | annuity provided for in this section shall be suspended until |
12 | such time as an amount certified and approved as sufficient is |
13 | appropriated], which amounts shall be paid during the period |
14 | beginning July 1, 2002, and ending June 30, 2010. For fiscal |
15 | years beginning on or after July 1, 2010, the additional |
16 | liability provided in this section shall be funded as part of |
17 | the actuarial accrued liability as provided in section 5508 |
18 | (relating to actuarial cost method). |
19 | * * * |
20 | § 5708.3. Supplemental annuities commencing 1994. |
21 | * * * |
22 | (f) Funding.--[The] For the period beginning July 1, 2002, |
23 | and ending June 30, 2010, the additional liability for the |
24 | increase in benefits provided in this section shall be funded in |
25 | equal dollar annual installments over a period of ten years |
26 | beginning July 1, 2002. For fiscal years beginning on or after |
27 | July 1, 2010, the additional liability for the increase in |
28 | benefits provided in this section shall be funded as part of the |
29 | actuarial accrued liability as provided in section 5508 |
30 | (relating to actuarial cost method). |
|
1 | * * * |
2 | § 5708.5. Supplemental annuities commencing 1998. |
3 | * * * |
4 | (f) Funding.--[The] For the period beginning July 1, 2002, |
5 | and ending June 30, 2010, the additional liability for the |
6 | increase in benefits provided in this section shall be funded in |
7 | equal dollar annual installments over a period of ten years |
8 | beginning July 1, 2002. For fiscal years beginning on or after |
9 | July 1, 2010, the additional liability for the increase in |
10 | benefits provided in this section shall be funded as part of the |
11 | actuarial accrued liability as provided in section 5508 |
12 | (relating to actuarial cost method). |
13 | * * * |
14 | § 5708.6. Supplemental annuities commencing 2002. |
15 | * * * |
16 | (f) Funding.--[The] For the period beginning July 1, 2003, |
17 | and ending June 30, 2010, the additional liability for the |
18 | increase in benefits provided in this section shall be funded in |
19 | equal dollar annual installments over a period of ten years |
20 | beginning July 1, 2003. For fiscal years beginning on or after |
21 | July 1, 2010, the additional liability for the increase in |
22 | benefits provided in this section shall be funded as part of the |
23 | actuarial accrued liability as provided in section 5508 |
24 | (relating to actuarial cost method). |
25 | * * * |
26 | § 5708.7. Supplemental annuities commencing 2003. |
27 | * * * |
28 | (f) Funding.--[The] For the period beginning July 1, 2004, |
29 | and ending June 30, 2010, the additional liability for the |
30 | increase in benefits provided in this section shall be funded in |
|
1 | equal dollar annual installments over a period of ten years |
2 | beginning July 1, 2004. For fiscal years beginning on or after |
3 | July 1, 2010, the additional liability for the increase in |
4 | benefits provided in this section shall be funded as part of the |
5 | actuarial accrued liability as provided in section 5508 |
6 | (relating to actuarial cost method). |
7 | * * * |
8 | § 5708.8. Special supplemental postretirement adjustment of |
9 | 2002. |
10 | * * * |
11 | (g) Funding.--[The] For the period beginning July 1, 2003, |
12 | and ending June 30, 2010, the additional liability for the |
13 | increase in benefits provided in this section shall be funded in |
14 | equal dollar annual installments over a period of ten years |
15 | beginning July 1, 2003. For fiscal years beginning on or after |
16 | July 1, 2010, the additional liability for the increase in |
17 | benefits provided in this section shall be funded as part of the |
18 | actuarial accrued liability as provided in section 5508 |
19 | (relating to actuarial cost method). |
20 | * * * |
21 | § 5902. Administrative duties of the board. |
22 | * * * |
23 | (k) Certification of employer contributions.--The board |
24 | shall, each year in addition to the itemized budget required |
25 | under section 5509 (relating to appropriations and assessments |
26 | by the Commonwealth), certify, as a percentage of the members' |
27 | payroll, the shared risk contribution rate, the employers' | <-- |
28 | contributions as determined pursuant to section 5508 (relating |
29 | to actuarial cost method) necessary for the funding of |
30 | prospective annuities for active members and the annuities of |
|
1 | annuitants and certify the rates and amounts of the employers' |
2 | normal contributions as determined pursuant to section 5508(b), |
3 | accrued liability contributions as determined pursuant to |
4 | section 5508(c), supplemental annuities contribution rate as |
5 | determined pursuant to section 5508(e) [and], the experience |
6 | adjustment factor as determined pursuant to section 5508(f), the |
7 | collared contribution rate pursuant to section 5508(h) and the |
8 | final contribution rate pursuant to section 5508(i), which shall |
9 | be paid to the fund and credited to the appropriate accounts. |
10 | The board may allocate the final contribution rate and certify |
11 | various employer contribution rates based upon the different |
12 | benefit eligibility, class of service multiplier, superannuation |
13 | age and other benefit differences resulting from State service |
14 | credited for individual members even though such allocated |
15 | employer contribution rate on behalf of any given member may be |
16 | more or less than 5% of the member's compensation for the period |
17 | from July 1, 2010, to June 30, 2011, or may differ from the |
18 | prior year's contribution for that member by more or less than |
19 | the percentages used to calculate the collared contribution rate |
20 | for that year and may be below any minimum contribution rate |
21 | established for the collared contribution rate or final |
22 | contribution rate. These certifications shall be regarded as |
23 | final and not subject to modification by the [Budget Secretary] |
24 | Secretary of the Budget. |
25 | * * * |
26 | § 5903. Duties of the board to advise and report to heads of |
27 | departments and members. |
28 | * * * |
29 | (c) Purchase of credit and full coverage membership |
30 | certifications.--Upon receipt of an application from an active |
|
1 | member or eligible school employee to purchase credit for |
2 | previous State or creditable nonstate service, an election for |
3 | membership in a specific class of service, or an election to |
4 | become a full coverage member, the board shall determine and |
5 | certify to the member the amount required to be paid by the |
6 | member. When necessary, the board shall certify to the previous |
7 | employer the amount due in accordance with sections 5504 |
8 | (relating to member contributions for the purchase of credit for |
9 | previous State service or to become a full coverage member) and |
10 | 5505 (relating to contributions for the purchase of credit for |
11 | creditable nonstate service). |
12 | * * * |
13 | § 5905. Duties of the board regarding applications and |
14 | elections of members. |
15 | (a) Statement to new members.--As soon as practicable after |
16 | each member shall have become an active member in the system, |
17 | the board shall issue to the member notice of any election of |
18 | class of service membership he may be eligible to make, a |
19 | statement certifying his class of service, his member |
20 | contribution rate, and the aggregate length of total previous |
21 | State service and creditable nonstate service for which he may |
22 | receive credit. |
23 | * * * |
24 | § 5905.1. Installment payments of accumulated deductions. |
25 | * * * |
26 | (d) Statutory interest.--Any lump sum, including a lump sum |
27 | payable pursuant to section 5705.1 (relating to payment of |
28 | accumulated deductions resulting from Class A-3 and Class A-4 |
29 | service), or installment payable shall include statutory |
30 | interest credited to the date of payment, except in the case of |
|
1 | a member, other than a vestee or special vestee, who has not |
2 | filed his application prior to 90 days following his termination |
3 | of service. |
4 | § 5907. Rights and duties of State employees and members. |
5 | * * * |
6 | (c) Multiple service membership.--Any active member who was |
7 | formerly an active member in the Public School Employees' |
8 | Retirement System may elect to become a multiple service member. |
9 | Such election shall occur no later than [30] 365 days after |
10 | becoming an active member in this system. |
11 | * * * |
12 | § 5933. Members' savings account. | <-- |
13 | (a) Credits to account.--The members' savings account shall |
14 | be the ledger account to which shall be credited the amounts of |
15 | the pickup contributions made by the Commonwealth or other |
16 | employer and contributions or lump sum payments made by active |
17 | members in accordance with the provisions of sections 5501 |
18 | (relating to regular member contributions for current service), |
19 | 5501.1 (relating to shared risk member contributions), 5502 |
20 | (relating to social security integration member contributions), |
21 | 5503 (relating to joint coverage member contributions), 5504 |
22 | (relating to member contributions for the purchase of credit for |
23 | previous State service or to become a full coverage member), |
24 | 5505.1 (relating to additional member contributions) and 5505 |
25 | (relating to contributions for the purchase of credit for |
26 | creditable nonstate service) and transferred from the members' |
27 | savings account of the Public School Employees' Retirement |
28 | System in accordance with the provisions of section 5303.2 |
29 | (relating to election to convert school service to State |
30 | service). |
|
1 | * * * |
2 | § 5934. State accumulation account. |
3 | The State accumulation account shall be the ledger account to |
4 | which shall be credited all contributions of the Commonwealth or |
5 | other employers whose employees are members of the system and |
6 | made in accordance with the provisions of section 5507(a) or (d) |
7 | (relating to contributions by the Commonwealth and other |
8 | employers) except that the amounts received under the provisions |
9 | of the act of May 12, 1943 (P.L.259, No.120), and the amounts |
10 | received under the provisions of the Liquor Code, act of April |
11 | 12, 1951 (P.L.90, No.21), shall be credited to the State Police |
12 | benefit account or the enforcement officers' benefit account as |
13 | the case may be. All amounts transferred to the fund by county |
14 | retirement systems or pension plans in accordance with the |
15 | provisions of section 5507(c) also shall be credited to the |
16 | State accumulation account. All amounts transferred to the fund |
17 | by the Public School Employees' Retirement System in accordance |
18 | with section 5303.2(e) (relating to election to convert school |
19 | service to State service), except amounts credited to the |
20 | members' savings account, and all amounts paid by the Department |
21 | of Corrections in accordance with section 5303.2(f) also shall |
22 | be credited to the State accumulation account. The State |
23 | accumulation account shall be credited with valuation interest. |
24 | The reserves necessary for the payment of annuities and death |
25 | benefits as approved by the board and as provided in Chapter 57 |
26 | (relating to benefits) shall be transferred from the State |
27 | accumulation account to the annuity reserve account provided for |
28 | in section 5935 (relating to annuity reserve account), except |
29 | that the reserves necessary on account of a member who is an |
30 | officer of the Pennsylvania State Police or an enforcement |
|
1 | officer shall be transferred from the State accumulation account |
2 | to the State Police benefit account provided for in section 5936 |
3 | (relating to State Police benefit account) or to the enforcement |
4 | officers' benefit account as provided for in section 5937 |
5 | (relating to enforcement officers' benefit account) as the case |
6 | may be. The reserves necessary for the payment of supplemental |
7 | annuities in excess of those reserves credited to the |
8 | supplemental annuity account on June 30, 2010, shall be |
9 | transferred from the State accumulation account to the |
10 | supplemental annuity account. In the event that supplemental |
11 | annuities are increased by legislation enacted subsequent to | <-- |
12 | after December 31, 2009, the necessary reserves shall be | <-- |
13 | transferred from the State accumulation account to the |
14 | supplemental annuity account. |
15 | § 5936. State Police benefit account. |
16 | * * * |
17 | (b) Transfers from account.--Should the said annuitant be |
18 | subsequently restored to active service, the present value of |
19 | the member's annuity at the time of reentry into State service |
20 | shall be transferred from the State Police benefit account and |
21 | placed to his individual credit in the members' savings account. |
22 | In addition, the actuarial reserve for his annuity calculated as |
23 | if he had been a member of Class A if he has Class A or Class C |
24 | service credited; as if he had been a member of Class A-3 if the |
25 | annuitant has Class A-3 State service credited; or as if he had |
26 | been a member of Class A-4 if the annuitant has Class A-4 |
27 | service credited, less the amount transferred to the members' |
28 | savings account shall be transferred from the State Police |
29 | benefit account to the State accumulation account. Upon |
30 | subsequent retirement other than as an officer of the |
|
1 | Pennsylvania State Police the actuarial reserve remaining in the |
2 | State Police benefit account shall be transferred to the |
3 | appropriate reserve account. |
4 | § 5937. Enforcement officers' benefit account. |
5 | * * * |
6 | (b) Transfers from account.--Should the said annuitant be |
7 | subsequently restored to active service, the present value of |
8 | the member's annuity at the time of reentry into State service |
9 | shall be transferred from the enforcement officers' benefit |
10 | account and placed to his individual credit in the members' |
11 | savings account. In addition, the actuarial reserve for his |
12 | annuity calculated as if he had been a member of Class A if the |
13 | annuitant does not have any Class AA, Class A-3 or Class A-4 |
14 | service credited [and calculated]; as if he had been a member of |
15 | Class AA if the annuitant does have Class AA service credited; |
16 | as if he had been a member of Class A-3 if the annuitant has |
17 | Class A-3 State service credited; or as if he had been a member |
18 | of Class A-4 if the annuitant has Class A-4 service credited, |
19 | less the amount transferred to the members' savings account |
20 | shall be transferred from the enforcement officers' benefit |
21 | account to the State accumulation account. Upon subsequent |
22 | retirement other than as an enforcement officer the actuarial |
23 | reserve remaining in the enforcement officers' benefit account |
24 | shall be transferred to the appropriate reserve account. |
25 | § 5938. Supplemental annuity account. |
26 | The supplemental annuity account shall be the ledger account |
27 | to which shall be credited all contributions from the |
28 | Commonwealth and other employers in accordance with section |
29 | 5507(b) (relating to contributions by the Commonwealth and other |
30 | employers) for the payment of the supplemental annuities |
|
1 | provided in sections 5708 (relating to supplemental annuities), |
2 | 5708.1 (relating to additional supplemental annuities), 5708.2 |
3 | (relating to further additional supplemental annuities), 5708.3 |
4 | (relating to supplemental annuities commencing 1994), 5708.4 |
5 | (relating to special supplemental postretirement adjustment), |
6 | 5708.5 (relating to supplemental annuities commencing 1998), |
7 | 5708.6 (relating to supplemental annuities commencing 2002), |
8 | 5708.7 (relating to supplemental annuities commencing 2003) and |
9 | 5708.8 (relating to special supplemental postretirement |
10 | adjustment of 2002) made before July 1, 2010, the amount |
11 | transferred from the State accumulation account to provide all |
12 | additional reserves necessary as of June 30, 2010, to pay such |
13 | supplemental annuities and adjustments, and the amounts |
14 | transferred from the State accumulation account to provide all |
15 | additional reserves necessary as a result of supplemental |
16 | annuities enacted after December 31, 2009. The supplemental |
17 | annuity account shall be credited with valuation interest. The |
18 | reserves necessary for the payment of such supplemental |
19 | annuities shall be transferred from the supplemental annuity |
20 | account to the annuity reserve account as provided in section |
21 | 5935 (relating to annuity reserve account). |
22 | § 5955. Construction of part. |
23 | Regardless of any other provision of law, pension rights of |
24 | State employees shall be determined solely by this part or any |
25 | amendment thereto, and no collective bargaining agreement nor |
26 | any arbitration award between the Commonwealth and its employees |
27 | or their collective bargaining representatives shall be |
28 | construed to change any of the provisions herein, to require the |
29 | board to administer pension or retirement benefits not set forth |
30 | in this part, or otherwise require action by any other |
|
1 | government body pertaining to pension or retirement benefits or |
2 | rights of State employees. Notwithstanding the foregoing, any |
3 | pension or retirement benefits or rights previously so |
4 | established by or as a result of an arbitration award shall |
5 | remain in effect after the expiration of the current collective |
6 | bargaining agreement between the State employees so affected and |
7 | the Commonwealth until the expiration of each of the collective |
8 | bargaining agreements in effect on January 1, 2011, at which |
9 | time the classes of membership and resulting member contribution |
10 | rates and contributions for creditable nonstate service, | <-- |
11 | eligibility for vesting, withdrawal and superannuation |
12 | annuities, optional modification of annuities and other terms |
13 | and conditions related to class of membership shall be as |
14 | determined by this part for employees covered by those and |
15 | successor collective bargaining agreements. For purposes of |
16 | administering this part, for those State employees who are |
17 | members of each such collective bargaining unit, the date |
18 | January 1, 2011, contained in this part, except in this section, |
19 | shall be replaced with the date of the day immediately following |
20 | the expiration of each such collective bargaining agreement. The |
21 | provisions of this part insofar as they are the same as those of |
22 | existing law are intended as a continuation of such laws and not |
23 | as new enactments. The provisions of this part shall not affect |
24 | any act done, liability incurred, right accrued or vested, or |
25 | any suit or prosecution pending or to be instituted to enforce |
26 | any right or penalty or to punish any offense under the |
27 | authority of any repealed laws. |
28 | Section 11.1. Title 71 is amended by adding a section to | <-- |
29 | read: |
30 | § 5957. Independent Fiscal Office study. |
|
1 | The Independent Fiscal Office shall study and analyze the |
2 | implementation of shared risk contributions under section 5501.1 |
3 | (relating to shared risk member contributions for Class A-3 and |
4 | Class A-4 service) and its impact on the system. The study shall |
5 | be completed by December 31, 2015, and shall be transmitted to |
6 | the Appropriations Committee and the Finance Committee of the |
7 | Senate, the Appropriations Committee and the Finance Committee |
8 | of the House of Representatives and to the Governor. |
9 | Section 12. Contribution rates shall remain in effect until |
10 | June 30, 2010, as follows: |
11 | (1) Notwithstanding the provisions of this act, the |
12 | employer contribution rates certified by the Public School |
13 | Employees' Retirement Board for fiscal year 2009-2010 shall |
14 | remain in effect until June 30, 2010. |
15 | (2) Notwithstanding the provisions of this act, the |
16 | employer contribution rates certified by the State Employees' |
17 | Retirement Board for fiscal year 2009-2010 shall remain in |
18 | effect until June 30, 2010. |
19 | Section 12.1. Nothing in 71 Pa.C.S. § 5955 shall affect the | <-- |
20 | eligibility of an officer or member of the Pennsylvania State |
21 | Police to retire after June 30, 1989, as provided in a binding |
22 | arbitration award issued before July 1, 1989, pursuant to the |
23 | act of June 24, 1968 (P.L.237, No.111), referred to as the |
24 | Policemen and Firemen Collective Bargaining Act, as implemented |
25 | by the State Employees' Retirement Board. This section permits |
26 | retirement at: |
27 | (1) 50% of highest year salary and 20 years of service; |
28 | and |
29 | (2) 75% of highest year salary and 25 years of service. |
30 | Section 13. Recertification to the Secretary of the Budget | <-- |
|
1 | shall be as follows: |
2 | (1) Within 15 days of the later of: |
3 | (i) the effective date of this section; or |
4 | (ii) the date of the passage of this Commonwealth's |
5 | budget for fiscal year 2010-2011, the Secretary of the |
6 | Budget shall certify to the Public School Employees' |
7 | Retirement Board the amount of money appropriated for |
8 | public school employees' retirement. |
9 | Notwithstanding any other provisions of law to the contrary, |
10 | the Public School Employees' Retirement Board shall, |
11 | effective for the fiscal year beginning July 1, 2010, |
12 | recertify to the Secretary of the Budget, within 15 days of |
13 | the effective date of the Secretary of the Budget's |
14 | certification to the Public School Employees' Retirement |
15 | Board of the amount of money appropriated for public school |
16 | employees' retirement, the employer contributions, rates, |
17 | factors and amounts set forth in 24 Pa.C.S. § 8502(k), as |
18 | amended by this act. The recertification rate shall be not |
19 | less than 5% nor more than 7.58%, plus the premium assistance |
20 | contribution rate. The recertification shall supersede the |
21 | prior certification for all purposes. This recertified rate |
22 | shall not affect the application of the collared contribution |
23 | rate as set forth in 24 Pa.C.S. § 8328(g). |
24 | (2) Notwithstanding any other provision of law to the |
25 | contrary, the State Employees' Retirement Board shall, |
26 | effective for the fiscal year beginning July 1, 2010, |
27 | recertify to the Secretary of the Budget and heads of |
28 | departments, within 15 days of the effective date of this |
29 | section, the contributions, rates, factors and amounts set |
30 | forth in 71 Pa.C.S. § 5902(k), as amended by this act. The |
|
1 | recertification shall supersede the prior certification for |
2 | all purposes. |
3 | Section 13. The following apply to pension obligation bonds: | <-- |
4 | (1) No executive agency or independent agency may issue |
5 | a pension obligation bond for the benefit of: |
6 | (i) the Public School Employees' Retirement System |
7 | of Pennsylvania; or |
8 | (ii) the State Employees' Retirement System of |
9 | Pennsylvania. |
10 | (2) As used in this section, the following words and |
11 | phrases shall have the meanings given to them in this |
12 | paragraph unless the context clearly indicates otherwise: |
13 | "Executive agency." As defined in 62 Pa.C.S. § 103 |
14 | (relating to definitions). |
15 | "Independent agency." As defined in 62 Pa.C.S. § |
16 | 103. |
17 | Section 14. Certain public officials shall be held harmless, |
18 | as follows: |
19 | (1) Notwithstanding any other provision of law, |
20 | fiduciary requirement, actuarial standard of practice or |
21 | other requirement to the contrary, the members of the Public |
22 | School Employees' Retirement Board, the actuary and other |
23 | employees and officials of the Public School Employees' |
24 | Retirement System shall not be held liable or in breach or |
25 | violation of any law or standard either as individuals or in |
26 | their official capacity or as a governmental or corporate |
27 | entity for any action or calculation related to calculating |
28 | and certifying a final contribution rate as provided for in |
29 | this act that is different from the actuarially required |
30 | contribution rate as otherwise appropriately calculated under |
|
1 | the provisions of the Public School Employees' Retirement |
2 | Code. |
3 | (2) Notwithstanding any other provision of law, |
4 | fiduciary requirement, actuarial standard of practice or |
5 | other requirement to the contrary, the members of the State |
6 | Employees' Retirement Board, the actuary and other employees |
7 | and officials of the State Employees' Retirement System shall |
8 | not be held liable or in breach or violation of any law or |
9 | standard either as individuals or in their official capacity |
10 | or as a governmental or corporate entity for any action or |
11 | calculation related to calculating and certifying a final |
12 | contribution rate as provided for in this act that is |
13 | different from the actuarially required contribution rate as |
14 | otherwise appropriately calculated under the provisions of |
15 | the State Employees' Retirement Code. |
16 | Section 15. Construction of a calculation or actuarial |
17 | method shall be as follows: |
18 | (1) Nothing in this act shall be construed or deemed to |
19 | imply that any calculation or actuarial method used by the |
20 | Public School Employees' Retirement Board, its actuaries or |
21 | the Public School Employees' Retirement System was not in |
22 | accordance with the provisions of the Public School |
23 | Employees' Retirement Code or other applicable law prior to |
24 | the effective date of this section. |
25 | (2) Nothing in this act shall be construed or deemed to |
26 | imply that any calculation or actuarial method used by the |
27 | State Employees' Retirement Board, its actuaries or the State |
28 | Employees' Retirement System was not in accordance with the |
29 | provisions of the State Employees' Retirement Code or other |
30 | applicable law prior to the effective date of this section. |
|
1 | Section 16. Nothing in this act shall be deemed to permit |
2 | the restoration of service credit or retirement benefits which |
3 | were the subject of an order of forfeiture pursuant to the act |
4 | of July 8, 1978 (P.L.752, No.140), known as the Public Employee |
5 | Pension Forfeiture Act, or subject to section 16 of Article V of |
6 | the Constitution of Pennsylvania or 42 Pa.C.S. § 3352. |
7 | Section 17. Nothing Except for 24 Pa.C.S. § 8303(d), nothing | <-- |
8 | in this act shall be construed or deemed to imply that any |
9 | interpretation or application of the provisions of 24 Pa.C.S. |
10 | Pt. IV or benefits available to members of the Public School |
11 | Employees' Retirement System was not in accordance with the |
12 | provisions of 24 Pa.C.S. Pt. IV or other applicable law prior to |
13 | the effective date of this section. It is the express intent of |
14 | the General Assembly that nothing in this act shall be construed |
15 | to grant to or be deemed to imply that this act expands, |
16 | contracts or otherwise affects any contractual rights, either |
17 | expressed or implied, or any other constitutionally protected |
18 | rights, in the terms and conditions of the Public School |
19 | Employees' Retirement System or other pension or retirement |
20 | benefits as a school employee, including, but not limited to, |
21 | benefits, options, rights or privileges established by 24 |
22 | Pa.C.S. Pt. IV for any current or former school employees. |
23 | Section 18. This act shall be construed and administered in |
24 | such a manner that the Public School Employees' Retirement |
25 | System will satisfy the requirements necessary to qualify as a |
26 | qualified pension plan under section 401(a) and other applicable |
27 | provisions of the Internal Revenue Code of 1986 (Public Law |
28 | 99-514, 26 U.S.C. § 1 et seq.). The rules, regulations and |
29 | procedures adopted and promulgated by the Public School |
30 | Employees' Retirement Board under 24 Pa.C.S. § 8502(h) may |
|
1 | include those necessary to accomplish the purpose of this |
2 | section. |
3 | Section 19. (a) Nothing in this act which amends or |
4 | supplements provisions of 24 Pa.C.S. Pt. IV shall create in any |
5 | member of the system or in any other person claiming an interest |
6 | in the account of any such member a contractual right, either |
7 | express or implied, in relation to requirements for |
8 | qualification of the Public School Employees' Retirement System |
9 | as a qualified pension plan under the Internal Revenue Code of |
10 | 1986 (Public Law 99-514, 26 U.S.C. § 401(a)) nor any |
11 | construction of 24 Pa.C.S. Pt. IV, as so amended or |
12 | supplemented, or any rules or regulations adopted under 24 |
13 | Pa.C.S. Pt. IV. The provisions of 24 Pa.C.S. Pt. IV shall remain |
14 | subject to the Internal Revenue Code of 1986, and the General |
15 | Assembly reserves to itself such further exercise of its |
16 | legislative power to amend or supplement such provisions as may |
17 | from time to time be required in order to maintain the |
18 | qualification of such system as a qualified pension plan under |
19 | section 401(a) and other applicable provisions of the Internal |
20 | Revenue Code of 1986. |
21 | (b) References in this act to the Internal Revenue Code of |
22 | 1986, including for this purpose administrative regulations |
23 | promulgated thereunder, are intended to include such laws and |
24 | regulations in effect on the effective date of this section and |
25 | as they may hereafter be amended or supplemented or supplanted |
26 | by successor provisions. |
27 | Section 20. No school employee otherwise a member of, |
28 | eligible to be a member of, or having school or nonschool |
29 | service credited in a class of service other than Class T-E or |
30 | Class T-F may cancel, decline or waive membership in such other |
|
1 | class of service in order to obtain Class T-E or Class T-F |
2 | service credit, become a member of Class T-E or Class T-F or |
3 | elect Class T-E or Class T-F membership. |
4 | Section 21. Notwithstanding any other provision of law, any |
5 | change in accrued liability of the Public School Employees' |
6 | Retirement System created by this act shall be funded as a level |
7 | percentage of compensation over a period of 30 24 years | <-- |
8 | beginning July 1, 2012 2011, subject to any limits imposed on | <-- |
9 | employer contributions to the Public School Employees' |
10 | Retirement System. For purposes of 24 Pa.C.S. §§ 8321, 8326 and |
11 | 8328, such changes shall not be considered to be costs added by |
12 | legislation. |
13 | Section 22. Notwithstanding any regulation promulgated by |
14 | the Public School Employees' Retirement Board, application or |
15 | interpretation of 24 Pa.C.S. Pt. IV, or administrative practice |
16 | to the contrary, a member's eligibility deriving from Class T-E |
17 | or Class T-F service credit for a superannuation annuity or |
18 | other rights and benefits based upon attaining superannuation |
19 | age shall require the actual accrual of 35 eligibility points be | <-- |
20 | determined by including only those eligibility points actually |
21 | accrued. |
22 | Section 23. Nothing in this act shall be construed or deemed |
23 | to imply that any interpretation or application of the |
24 | provisions of 71 Pa.C.S. Pt. XXV or benefits available to |
25 | members of the State Employees' Retirement System was not in |
26 | accordance with the provisions of 71 Pa.C.S. Pt. XXV or other |
27 | applicable law prior to the effective date of this section. It |
28 | is the express intent of the General Assembly that nothing in |
29 | this act shall be construed to grant to or be deemed to imply |
30 | that this act expands, contracts or otherwise affects any |
|
1 | contractual rights, either expressed or implied, or any other |
2 | constitutionally protected rights, in the terms and conditions |
3 | of the State Employees' Retirement System or other pension or |
4 | retirement benefits as a State employee, including, but not |
5 | limited to, benefits, options, rights or privileges established |
6 | by 71 Pa.C.S. Pt. XXV for any current or former State employees. |
7 | Section 24. This act shall be construed and administered in |
8 | such a manner that the State Employees' Retirement System will |
9 | satisfy the requirements necessary to qualify as a qualified |
10 | pension plan under section 401(a) and other applicable |
11 | provisions of the Internal Revenue Code of 1986 (Public Law |
12 | 99-514, 26 U.S.C. § 1 et seq.). The rules, regulations and |
13 | procedures adopted and promulgated by the State Employees' |
14 | Retirement Board under 71 Pa.C.S. § 5902(h) may include those |
15 | necessary to accomplish the purpose of this section. |
16 | Section 25. (a) Nothing in this act which amends or |
17 | supplements provisions of 71 Pa.C.S. Pt. XXV shall create in any |
18 | member of the system or in any other person claiming an interest |
19 | in the account of any such member a contractual right, either |
20 | express or implied, in relation to requirements for |
21 | qualification of the State Employees' Retirement System as a |
22 | qualified pension plan under the Internal Revenue Code of 1986 |
23 | (Public Law 99-514, 26 U.S.C. § 401(a)) nor any construction of |
24 | 71 Pa.C.S. Pt. XXV, as so amended or supplemented, or any rules |
25 | or regulations adopted under 71 Pa.C.S. Pt. XXV. The provisions |
26 | of 71 Pa.C.S. Pt. XXV shall remain subject to the Internal |
27 | Revenue Code of 1986, and the General Assembly reserves to |
28 | itself such further exercise of its legislative power to amend |
29 | or supplement such provisions as may from time to time be |
30 | required in order to maintain the qualification of such system |
|
1 | as a qualified pension plan under section 401(a) and other |
2 | applicable provisions of the Internal Revenue Code of 1986. |
3 | (b) References in this act to the Internal Revenue Code of |
4 | 1986, including for this purpose administrative regulations |
5 | promulgated thereunder, are intended to include such laws and |
6 | regulations in effect on the effective date of this section and |
7 | as they may hereafter be amended or supplemented or supplanted |
8 | by successor provisions. |
9 | Section 26. No State employee otherwise a member of, |
10 | eligible to be a member of, or having State or nonstate service |
11 | credited in, a class of service other than Class A-3 or Class | <-- |
12 | A-4 may cancel, decline or waive membership in such other class |
13 | of service in order to obtain Class A-3 or Class A-4 service |
14 | credit, become a member of Class A-3 or Class A-4 or elect Class |
15 | A-3 or Class A-4 membership. |
16 | Section 27. Notwithstanding any other provision of law, any |
17 | change in accrued liability of the State Employees' Retirement |
18 | System created by this act as a result of changes in benefits |
19 | shall be funded as a level percentage of compensation in equal | <-- |
20 | dollar installments over a period of 30 years beginning July 1, |
21 | 2011, subject to any limits imposed by this act on employer | <-- |
22 | contributions to the State Employees' Retirement System. For |
23 | purposes of 71 Pa.C.S. §§ 5501.1 5501.2, 5507 and 5508, any such | <-- |
24 | changes shall not be considered to be costs added by |
25 | legislation. |
26 | Section 28. Notwithstanding any regulation promulgated by |
27 | the State Employees' Retirement Board, application or |
28 | interpretation of 71 Pa.C.S. Pt. XXV, or administrative practice |
29 | to the contrary, a member's eligibility deriving from Class A-3 |
30 | or Class A-4 service credit for a superannuation annuity or |
|
1 | other rights and benefits based upon attaining a superannuation | <-- |
2 | age shall require the actual accrual of 35 eligibility points | <-- |
3 | score of 92 or the accrual of 35 eligibility points shall be | <-- |
4 | determined by including only those eligibility points actually |
5 | accrued. |
6 | Section 28.1. (1) Nothing in this act shall be construed or | <-- |
7 | deemed to imply that, but for the expressed applications of the |
8 | limitations on benefits or other requirements under section |
9 | 401(a) or 415 of the Internal Revenue Code of 1986 (Public Law |
10 | 99-514, 26 U.S.C. § 401 or 415), those limitations would not |
11 | otherwise apply to members of the State Employees' Retirement |
12 | System and the benefits payable under 71 Pa.C.S. Pt. XXV. |
13 | (2) Nothing in this act shall be construed or deemed to |
14 | imply that any member of Class A-3 or Class A-4 shall be |
15 | required to make contributions to the State Employees' |
16 | Retirement System for the purchase of nonstate service credit in |
17 | excess of the limits established by Section 415(n)(3)(A)(iii) of |
18 | the Internal Revenue Code of 1986. Any contributions made by a |
19 | member of Class A-3 or Class A-4 for the purchase of nonstate |
20 | service credit which are determined to be in excess of the |
21 | limits shall be refunded to the member in a lump sum subject to |
22 | withholding for all applicable taxes and penalties as soon as |
23 | administratively possible after such determination is made. Any |
24 | refund of excess contributions made under this section shall not |
25 | affect the benefit payable to the member and shall not be |
26 | treated as or deemed to be a withdrawal of the member's |
27 | accumulated deductions. |
28 | Section 29. This act shall take effect as follows: |
29 | (1) The amendment or addition of the following |
30 | provisions of 24 Pa.C.S. shall take effect July 1, 2011: |
|
1 | (i) section 8102; | <-- |
2 | (ii) section 8303(c) and (d); | <-- |
3 | (iii) section 8304(a); | <-- |
4 | (iv) section 8305(d) and (e); | <-- |
5 | (v) section 8305.2; | <-- |
6 | (vi) section 8307(b); | <-- |
7 | (vii) section 8308; | <-- |
8 | (viii) section 8321(b); | <-- |
9 | (ix) section 8323(a), (c) and (c.1); | <-- |
10 | (x) section 8324(a), (d), (e) and (f); | <-- |
11 | (xi) section 8326(a); | <-- |
12 | (xii) section 8327(a) and (c); | <-- |
13 | (xiii) section 8328; | <-- |
14 | (xiv) section 8342(a); | <-- |
15 | (xv) section 8344(d); | <-- |
16 | (xvi) section 8345(a); | <-- |
17 | (xvii) section 8348.1(f); | <-- |
18 | (xviii) section 8348.2(f); | <-- |
19 | (xix) section 8348.3(f); | <-- |
20 | (xx) section 8348.5(f); | <-- |
21 | (xxi) section 8348.6(f); | <-- |
22 | (xxii) section 8348.7(f); | <-- |
23 | (xxiii) section 8348.8; | <-- |
24 | (xxiv) section 8502(k); | <-- |
25 | (xxv) section 8505(l); and | <-- |
26 | (xxvi) section 8535(3). | <-- |
27 | (2) The following apply to 71 Pa.C.S. Pt. V: | <-- |
28 | (i) The addition of the following provisions shall |
29 | take effect November 30, 2010: |
30 | (A) Section 4102. |
|
1 | (B) Section 4110. |
2 | (ii) The addition of the remaining provisions of 71 |
3 | Pa.C.S. Pt. V shall take effect May 1, 2011. |
4 | (2) (3) Sections 17, 18, 19, 20, 21 and 22 of this act | <-- |
5 | shall take effect July 1, 2011. |
6 | (3) The remainder of this act shall take effect | <-- |
7 | immediately. |
8 | (3) Except as set forth in paragraph (4), this act shall | <-- |
9 | take effect upon the enactment of legislation establishing an |
10 | independent fiscal office charged with providing independent |
11 | revenue estimates and other functions. |
12 | (4) Paragraph (3) and this paragraph The remainder of | <-- |
13 | this act shall take effect immediately. |
|