Bill Text: PA HB1479 | 2009-2010 | Regular Session | Introduced

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Bill Title: Further providing for creditable nonschool service, for contributions for purchase of credit for creditable nonschool service, for creditable nonstate service and for contributions for the purchase of credit for creditable nonstate service.

Spectrum: Slight Partisan Bill (Democrat 26-15)

Status: (Introduced - Dead) 2009-05-12 - Referred to FINANCE [HB1479 Detail]

Download: Pennsylvania-2009-HB1479-Introduced.html

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PRINTER'S NO. 1841
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1479 Session of2009
INTRODUCED BY MANN, BISHOP, BRADFORD, DONATUCCI, FRANKEL, GEORGE, GRUCELA, HARHAI, HESS, HUTCHINSON, KAUFFMAN, KIRKLAND, KOTIK, KULA, LONGIETTI, MAHONEY, MILLER, MURPHY, MURT, PHILLIPS, PYLE, READSHAW, SCAVELLO, SEIP, SIPTROTH, SWANGER, TALLMAN, WHEATLEY, CONKLIN, RAPP AND YOUNGBLOOD, MAY 12, 2009
REFERRED TO COMMITTEE ON FINANCE, MAY 12, 2009
AN ACT
Amending Titles 24 (Education) and 71 (State Government) of the
Pennsylvania Consolidated Statutes, further providing for
creditable nonschool service, for contributions for purchase
of credit for creditable nonschool service, for creditable
nonstate service and for contributions for the purchase of
credit for creditable nonstate service.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 8304(a) and 8324(b) of Title 24 of the
Pennsylvania Consolidated Statutes are amended to read:
§ 8304. Creditable nonschool service.
(a) Eligibility.--An active member or a multiple service
member who is an active member of the State Employees'
Retirement System shall be eligible to receive Class T-C service
credit for creditable nonschool service [and], Class T-D service
for intervening military service and military service described
in subsection(b)(2), provided the member becomes a Class T-D
member pursuant to section 8305.1 (relating to election to
become a Class T-D member) or 8305 (relating to classes of
service), as set forth in subsection (b) provided that he is not
entitled to receive, eligible to receive now or in the future,
or is receiving retirement benefits for such service under a
retirement system administered and wholly or partially paid for
by any other governmental agency or by any private employer, or
a retirement program approved by the employer in accordance with
section 8301(a)(1) (relating to mandatory and optional
membership), and further provided that such service is certified
by the previous employer and the manner of payment of the amount
due is agreed upon by the member, the employer, and the board.
* * *
§ 8324. Contributions for purchase of credit for creditable
nonschool service.
* * *
(b) Nonintervening military service.--The amount due for the
purchase of credit for military service other than intervening
military service shall be determined by applying the member's
basic contribution rate plus the normal contribution rate as
provided in section 8328 (relating to actuarial cost method) at
the time of entry of the member into school service subsequent
to such military service to one-third of his total compensation
received during the first three years of such subsequent
credited school service and multiplying the product by the
number of years and fractional part of a year of creditable
nonintervening military service being purchased together with
statutory interest during all periods of subsequent school and
State service to date of purchase. Upon certification of the
amount due, payment may be made in a lump sum within 90 days or
in the case of an active member or an eligible State employee
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who is an active member of the State Employees' Retirement
System it may be amortized with statutory interest through
salary deductions in amounts agreed upon by the member and the
board. The salary deduction amortization plans agreed to by
members and the board may include a deferral of payment amounts
and statutory interest until the termination of school service
or State service as the board in its sole discretion decides to
allow. The board may limit salary deduction amortization plans
to such terms as the board in its sole discretion determines. In
the case of an eligible State employee who is an active member
of the State Employees' Retirement System, the agreed upon
salary deductions shall be remitted to the State Employees'
Retirement Board, which shall certify and transfer to the board
the amounts paid. Application may be filed for all such military
service credit upon completion of three years of subsequent
credited school service and shall be credited as Class [T-C] T-D
service.
* * *
Section 2. Sections 5304(a) and 5505(b)(1) of Title 71 are
amended to read:
§ 5304. Creditable nonstate service.
(a) Eligibility.--An active member or a multiple service
member who is a school employee and an active member of the
Public School Employees' Retirement System shall be eligible for
Class A service credit for creditable nonstate service as set
forth in subsections (b) and (c) except that intervening
military service and military service as set forth in subsection
(c)(2) shall be credited [in the class of service for which the
member was eligible at the time of entering into military
service and for which he] as Class AA service, provided that the
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member makes the required contributions and except that a
multiple service member who is a school employee and an active
member of the Public School Employees' Retirement System shall
not be eligible to purchase service credit for creditable
nonstate service set forth in subsection (c)(5).
* * *
§ 5505. Contributions for the purchase of credit for creditable
nonstate service.
* * *
(b) Nonintervening military service.--
(1) The amount due for the purchase of credit for
military service other than intervening military service
shall be determined by applying the member's basic
contribution rate, the additional contribution rate plus the
Commonwealth normal contribution rate for active members at
the time of entry, subsequent to such military service, of
the member into State service to his average annual rate of
compensation over the first three years of such subsequent
State service and multiplying the result by the number of
years and fractional part of a year of creditable
nonintervening military service being purchased together with
statutory interest during all periods of subsequent State and
school service to date of purchase. Upon application for
credit for such service, payment shall be made in a lump sum
within 30 days or in the case of an active member or eligible
school employee who is an active member of the Public School
Employees' Retirement System it may be amortized with
statutory interest through salary deductions in amounts
agreed upon by the member and the board. The salary deduction
amortization plans agreed to by members and the board may
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include a deferral of payment amounts and statutory interest
until the termination of school service or State service as
the board in its sole discretion decides to allow. The board
may limit salary deduction amortization plans to such terms
as the board in its sole discretion determines. In the case
of an eligible school employee who is an active member of the
Public School Employees' Retirement System, the agreed upon
salary deductions shall be remitted to the Public School
Employees' Retirement Board, which shall certify and transfer
to the board the amounts paid. Application may be filed for
all such military service credit upon completion of three
years of subsequent State service and shall be credited as
Class [A] AA service.
* * *
Section 3. This act shall take effect in 60 days.
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