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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY ARGALL, HUGHES, RAFFERTY, ERICKSON, TARTAGLIONE, KASUNIC, GREENLEAF AND M. WHITE, JULY 10, 2009 |
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| REFERRED TO FINANCE, JULY 10, 2009 |
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| AN ACT |
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1 | Amending Title 71 (State Government) of the Pennsylvania |
2 | Consolidated Statutes, further providing for creditable |
3 | nonstate service and for contributions for the purchase of |
4 | credit. |
5 | The General Assembly of the Commonwealth of Pennsylvania |
6 | hereby enacts as follows: |
7 | Section 1. Section 5304(c) of Title 71 of the Pennsylvania |
8 | Consolidated Statutes is amended by adding a paragraph and the |
9 | section is amended by adding a subsection to read: |
10 | § 5304. Creditable nonstate service. |
11 | * * * |
12 | (b.1) Prohibition.-- |
13 | (1) In no event shall the service be creditable for |
14 | persons eligible under subsection (c)(9) if the member has |
15 | received, is entitled to receive, is eligible to receive now |
16 | or in the future or is receiving retirement benefits for such |
17 | service or has retirement credit or has now or acquires in |
18 | the future retirement credit under a retirement system |
19 | administered and wholly or partially paid for by any other |
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1 | governmental agency, private employer or labor organization. |
2 | (2) In the event that nonstate service credit is granted |
3 | for the service and the member subsequently receives credit |
4 | for the service that is prohibited by this subsection, the |
5 | nonstate service credited shall be canceled and any member |
6 | contributions and interest paid by the member under section |
7 | 5505(i)(2) shall be refunded to the member by the board. |
8 | (c) Limitations on nonstate service.--Creditable nonstate |
9 | service credit shall be limited to: |
10 | * * * |
11 | (9) Service by mine inspectors, electrical inspectors |
12 | and emergency response training specialists employed in |
13 | accordance with the act of July 7, 2008 (P.L.654, No.55), |
14 | known as the Bituminous Coal Mine Safety Act, or the act of |
15 | November 10, 1965 (P.L.721, No.346), known as the |
16 | Pennsylvania Anthracite Coal Mine Act. This service time may |
17 | be purchased for the period of previous employment in mining |
18 | required for employment and certification, if any, under the |
19 | Bituminous Coal Mine Safety Act or the Pennsylvania |
20 | Anthracite Coal Mine Act, as applicable, not exceeding five |
21 | years, provided that such service is certified by the |
22 | previous employer and contributions are agreed upon and made |
23 | in accordance with section 5505. Persons eligible under this |
24 | paragraph may purchase service only after earning ten |
25 | eligibility points for service performed as a State employee |
26 | and shall purchase service within three years of becoming |
27 | eligible. Failing to purchase service within three years of |
28 | becoming eligible shall preclude the purchase of service |
29 | under this paragraph. |
30 | * * * |
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1 | Section 2. Section 5505(d) of Title 71 is amended and the |
2 | section is amended by adding a subsection to read: |
3 | § 5505. Contributions for the purchase of credit for creditable |
4 | nonstate service. |
5 | * * * |
6 | (d) Nonmilitary and nonmagisterial service.--Contributions |
7 | made under subsection (i) notwithstanding, contributions on |
8 | account of credit for creditable nonstate service other than |
9 | military and magisterial service, shall be determined by |
10 | applying the member's basic contribution rate, the additional |
11 | contribution rate plus the Commonwealth normal contribution rate |
12 | for active members at the time of entry subsequent to such |
13 | creditable nonstate service of the member into State service to |
14 | his compensation at the time of entry into State service and |
15 | multiplying the result by the number of years and fractional |
16 | part of a year of creditable nonstate service being purchased |
17 | together with statutory interest during all periods of |
18 | subsequent State and school service to the date of purchase. |
19 | Upon application for credit for such service payment shall be |
20 | made in a lump sum within 30 days or in the case of an active |
21 | member or eligible school employee who is an active member of |
22 | the Public School Employees' Retirement System it may be |
23 | amortized with statutory interest through salary deductions in |
24 | amounts agreed upon by the member and the board. The salary |
25 | deduction amortization plans agreed to by members and the board |
26 | may include a deferral of payment amounts and statutory interest |
27 | until the termination of school service or State service as the |
28 | board in its sole discretion decides to allow. The board may |
29 | limit salary deduction amortization plans to such terms as the |
30 | board in its sole discretion determines. In the case of an |
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1 | eligible school employee who is an active member of the Public |
2 | School Employees' Retirement System, the agreed upon salary |
3 | deduction shall be remitted to the Public School Employees' |
4 | Retirement Board, which shall certify and transfer to the board |
5 | the amounts paid. |
6 | * * * |
7 | (i) Purchase of service credit by certain mine workers.-- |
8 | (1) The amount due for the purchase of credit for mining |
9 | service as authorized under subsection (a) shall be |
10 | determined by applying the member's basic contribution rate, |
11 | the additional contribution rate plus the Commonwealth normal |
12 | contribution rate for active members at the time of entry, |
13 | subsequent to such mining service, of the member into State |
14 | service to his average annual rate of compensation over the |
15 | first three years of such subsequent State service and |
16 | multiplying the result by the number of years of creditable |
17 | mining service being purchased together with statutory |
18 | interest during all periods of subsequent State service to |
19 | date of purchase. Applicants purchasing credit under this |
20 | subsection shall make only one purchase up to the total |
21 | amount for which they are eligible. |
22 | (2) The purchase payment may be made in a lump sum by |
23 | the member within 30 days of certification by the board of |
24 | the required purchase amount or may be amortized with |
25 | statutory interest through salary deductions in amounts |
26 | agreed upon by the member and the board. The salary deduction |
27 | amortization plans agreed to by members and the board may |
28 | include a deferral of payment amounts and statutory interest |
29 | until the termination of State service as the board in its |
30 | sole discretion decides to allow. The board may limit salary |
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1 | deduction amortization plans to such terms as the board in |
2 | its sole discretion determines. |
3 | Section 3. This act shall take effect in 120 days. |
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