PRIOR PRINTER'S NO. 768 PRINTER'S NO. 1352
No. 682 Session of 2007
INTRODUCED BY NICKOL, MARCH 9, 2007
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, APRIL 18, 2007
AN ACT
1 Amending Title 71 (State Government) of the Pennsylvania
2 Consolidated Statutes, further providing for mandatory and
3 optional membership, for retention and reinstatement of
4 service credits, for transfer of accumulated deductions and, <--
5 FOR MAXIMUM SINGLE LIFE ANNUITY, FOR RIGHTS AND DUTIES OF
6 STATE EMPLOYEES AND MEMBERS, for members' savings accounts
7 AND FOR APPROVAL OF DOMESTIC RELATIONS ORDERS. <--
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. Sections 5301(a)(16) and (f), 5303(g), 5701.1, <--
11 5702(A)(6), 5907(C) and 5933(c) of Title 71 of the Pennsylvania
12 Consolidated Statutes are amended to read:
13 § 5301. Mandatory and optional membership.
14 (a) Mandatory membership.--Membership in the system shall be
15 mandatory as of the effective date of employment for all State
16 employees except the following:
17 * * *
18 [(16) Employees of the Juvenile Court Judges' Commission
19 who, before the effective date of this paragraph, were
1 transferred from the State System of Higher Education to the
2 Juvenile Court Judges' Commission as a result of an
3 interagency transfer of staff approved by the Office of
4 Administration and who, while employees of the State System
5 of Higher Education, had elected membership in an independent
6 retirement program approved by the employer.]
7 * * *
8 [(f) Additional optional membership.--The State employees
9 listed in subsection (a)(16) shall be mandatory members of the
10 system as of the effective date of employment with the Juvenile
11 Court Judges' Commission unless they elect membership in an
12 independent retirement program approved by the Juvenile Court
13 Judges' Commission. Employees who elect membership in an
14 independent retirement program approved by the Juvenile Court
15 Judges' Commission shall be prohibited from being active members
16 in the system while employed by the Juvenile Court Judges'
17 Commission. If an employee described in this subsection becomes
18 a State employee with an employer other than the Juvenile Court
19 Judges' Commission, then membership for that employee shall be
20 determined as otherwise provided for in this part. The election
21 of membership in the independent retirement program approved by
22 the Juvenile Court Judges' Commission must be made by the
23 transferred employee filing written notice with the employer
24 while a State employee no later than 90 days after the effective
25 date of this subsection. Upon receipt of such an election, the
26 Juvenile Court Judges' Commission shall certify the election to
27 the board and the independent retirement program.]
28 § 5303. Retention and reinstatement of service credits.
29 * * *
30 [(g) Credit for employees of Juvenile Court Judges'
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1 Commission.--An employee of the Juvenile Court Judges'
2 Commission who elects membership in an independent retirement
3 program approved by the employer under section 5301(f) shall
4 have all service credited pursuant to section 5302(a) (relating
5 to credited State service) for State service with the Juvenile
6 Court Judges' Commission on or after the effective date of the
7 interagency transfer canceled and thereafter ineligible to be
8 credited as State service. Additionally, all creditable State
9 service and nonstate service reinstated or purchased while an
10 employee of the Juvenile Court Judges' Commission shall be
11 canceled. Such employees shall be prohibited from receiving
12 credited service for State service performed while a member of
13 an alternate retirement system approved by an employer.]
14 * * *
15 [§ 5701.1. Transfer of accumulated deductions.
16 When an employee of the Juvenile Court Judges' Commission
17 elects membership in an independent retirement program pursuant
18 to section 5301(f) (relating to mandatory and optional
19 membership), the board shall transfer directly to the trustee or
20 administrator of the independent retirement program all
21 accumulated deductions resulting from service credited while an
22 employee of the Juvenile Court Judges' Commission.]
23 § 5702. MAXIMUM SINGLE LIFE ANNUITY. <--
24 (A) GENERAL RULE.--ANY FULL COVERAGE MEMBER WHO IS ELIGIBLE
25 TO RECEIVE AN ANNUITY PURSUANT TO THE PROVISIONS OF SECTION
26 5308(A) OR (B) (RELATING TO ELIGIBILITY FOR ANNUITIES) WHO
27 TERMINATES STATE SERVICE, OR IF A MULTIPLE SERVICE MEMBER WHO IS
28 A SCHOOL EMPLOYEE WHO IS AN ACTIVE MEMBER OF THE PUBLIC SCHOOL
29 EMPLOYEES' RETIREMENT SYSTEM WHO TERMINATES SCHOOL SERVICE,
30 BEFORE ATTAINING AGE 70 SHALL BE ENTITLED TO RECEIVE A MAXIMUM
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1 SINGLE LIFE ANNUITY ATTRIBUTABLE TO HIS CREDITED SERVICE AND
2 EQUAL TO THE SUM OF THE FOLLOWING SINGLE LIFE ANNUITIES
3 BEGINNING AT THE EFFECTIVE DATE OF RETIREMENT:
4 * * *
5 (6) IF ELIGIBLE, A SINGLE LIFE ANNUITY SUFFICIENT
6 TOGETHER WITH THE ANNUITY PROVIDED FOR IN PARAGRAPH (1) AS A
7 CLASS A AND CLASS AA MEMBER AND THE HIGHEST ANNUITY PROVIDED
8 FOR IN PARAGRAPH (2) TO WHICH HE IS ENTITLED, OR AT HIS
9 OPTION COULD HAVE BEEN ENTITLED, TO PRODUCE THAT PERCENTAGE
10 OF A STANDARD SINGLE LIFE ANNUITY ADJUSTED BY THE APPLICATION
11 OF THE CLASS OF SERVICE MULTIPLIER FOR CLASS A OF CLASS AA AS
12 SET FORTH IN PARAGRAPH (1) IN THE CASE WHERE ANY SERVICE IS
13 CREDITED AS A MEMBER OF CLASS A OR CLASS AA ON THE EFFECTIVE
14 DATE OF RETIREMENT AS DETERMINED BY HIS TOTAL YEARS OF
15 CREDITED SERVICE AS A MEMBER OF CLASS A AND CLASS AA AND BY
16 THE FOLLOWING TABLE:
17 TOTAL YEARS OF PERCENTAGE OF
18 CREDITED SERVICE STANDARD
19 AS A MEMBER OF SINGLE LIFE
20 CLASS A AND ANNUITY ADJUSTED
21 CLASS AA FOR CLASS A AND
22 CLASS AA CLASS OF
23 SERVICE MULTIPLIERS
24 35-40 100%
25 41 102%
26 42 104%
27 43 106%
28 44 108%
29 45 OR MORE 110%
30 * * *
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1 § 5907. RIGHTS AND DUTIES OF STATE EMPLOYEES AND MEMBERS.
2 * * *
3 (C) MULTIPLE SERVICE MEMBERSHIP.--ANY ACTIVE MEMBER WHO WAS
4 FORMERLY AN ACTIVE MEMBER IN THE PUBLIC SCHOOL EMPLOYEES'
5 RETIREMENT SYSTEM MAY ELECT TO BECOME A MULTIPLE SERVICE MEMBER.
6 SUCH ELECTION SHALL OCCUR NO LATER THAN [30] 365 DAYS AFTER
7 BECOMING AN ACTIVE MEMBER IN THIS SYSTEM.
8 * * *
9 § 5933. Members' savings account.
10 * * *
11 (c) Charges to account.--Upon the election of a member to
12 withdraw his total accumulated deductions [or upon the transfer
13 of accumulated deductions pursuant to section 5701.1 (relating
14 to transfer of accumulated deductions)], the payment of such
15 amount shall be charged to the members' savings account.
16 SECTION 2. SECTION 5953.1 OF TITLE 71 IS AMENDED BY ADDING A <--
17 SUBSECTION TO READ:
18 § 5953.1. APPROVAL OF DOMESTIC RELATIONS ORDERS.
19 * * *
20 (E) PAYMENTS ISSUED PRIOR TO RECEIPT AND APPROVAL OF
21 DOMESTIC RELATIONS ORDER.--NOTWITHSTANDING THE PROVISIONS OF 23
22 PA.C.S. (RELATING TO DOMESTIC RELATIONS) WHICH PROVIDE FOR POST
23 MORTEM EQUITABLE DISTRIBUTION, UNDER NO CIRCUMSTANCES SHALL THE
24 SYSTEM BE OBLIGATED TO ISSUE DUPLICATE DEATH BENEFIT OR
25 RETIREMENT PAYMENTS IF THE ORIGINAL PAYMENTS WERE MADE PRIOR TO
26 RECEIPT AND APPROVAL OF AN APPROPRIATE COURT ORDER DIRECTED TO
27 THE SYSTEM OR THE BOARD. ANY PERSON WHO RECEIVES A DEATH BENEFIT
28 OR RETIREMENT PAYMENT TO WHICH HE OR SHE IS NOT ENTITLED BY
29 OPERATION OF SUCH ORDER SHALL BE SOLELY LIABLE TO ANY PERSON
30 OTHERWISE SO ENTITLED, WHO SHALL HAVE THE RIGHT TO SEEK FURTHER
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1 REDRESS IN A COURT OF COMPETENT JURISDICTION.
2 Section 2 3. It is the expressed intent of the General <--
3 Assembly to remove from 71 Pa.C.S. Pt. XXV the provisions
4 authorizing the Juvenile Court Judges' Commission to approve an
5 independent retirement program for employees transferred from
6 Shippensburg University of Pennsylvania. The Juvenile Court
7 Judges' Commission did not approve an independent retirement
8 program within the time permitted by the act of April 23, 2002
9 (P.L.272, No.38), entitled "An act amending Titles 24
10 (Education) and 71 (State Government) of the Pennsylvania
11 Consolidated Statutes, further providing for creditable
12 nonschool service, for election to become a Class T-D member,
13 for actuarial cost method and for termination of annuities;
14 providing for supplemental annuities commencing 2002 and 2003;
15 further providing for payment of benefits, for annuity reserve
16 account and for the definitions of 'creditable nonstate
17 service,' 'State employee,' 'State service' and 'total
18 accumulated deductions'; providing for notice to members;
19 further providing for mandatory and optional membership, for
20 credited State service and for retention and reinstatement of
21 service credits; providing for election to convert school
22 service to State service; further providing for creditable
23 nonstate service, for classes of service, for contributions by
24 the Commonwealth and other employers and for actuarial cost
25 method; providing for transfer of accumulated deductions;
26 further providing for disability annuities; providing for
27 supplemental annuities commencing 2002 and 2003 and for special
28 supplemental postretirement adjustment of 2002; further
29 providing for duties of the board to advise and report to heads
30 of departments and members, for duties of the board to report to
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1 the Public School Employees' Retirement Board, for rights and
2 duties of annuitants, for members' savings account, for State
3 accumulation account and for supplemental annuity account; and
4 making technical corrections," and the General Assembly hereby
5 removes the authority of the Juvenile Court Judges' Commission
6 to approve an independent retirement plan.
7 SECTION 4. IT IS THE EXPRESSED INTENT OF THE GENERAL <--
8 ASSEMBLY THAT THE AMENDMENT OF 71 PA.C.S. § 5702(A)(6) CODIFIES
9 THE STATE EMPLOYEES' RETIREMENT BOARD'S INTERPRETATION AND
10 APPLICATION OF 71 PA.C.S. § 5702(A)(6) AS IT PERTAINS TO THE
11 APPLICATION OF THE AMENDMENTS OF THE ACT OF MAY 17, 2001
12 (P.L.26, NO.9), ENTITLED "AN ACT AMENDING TITLES 24 (EDUCATION)
13 AND 71 (STATE GOVERNMENT) OF THE PENNSYLVANIA CONSOLIDATED
14 STATUTES, FURTHER PROVIDING FOR PUBLIC SCHOOL EMPLOYEES'
15 RETIREMENT AND STATE EMPLOYEES' RETIREMENT; DEFINING TERMS;
16 PROVIDING FOR ADDITIONAL OPTIONAL CLASSIFICATIONS FOR EXISTING
17 MEMBERS, FOR NEW CLASSIFICATIONS FOR PROSPECTIVE MEMBERS AND FOR
18 HEALTH INSURANCE FOR RETIRED SCHOOL EMPLOYEES; AND FURTHER
19 PROVIDING FOR CREDITABLE SCHOOL AND STATE SERVICE, FOR
20 CREDITABLE NONSCHOOL AND NONSTATE SERVICE, FOR ELIGIBILITY, FOR
21 VESTING, FOR REGULAR MEMBER CONTRIBUTIONS, FOR RETURN TO
22 SERVICE, FOR PAYMENTS BY EMPLOYERS AND THE COMMONWEALTH, FOR
23 TERMINATION OF ANNUITIES, FOR ACTUARIAL COST METHODS, FOR MEMBER
24 OPTIONS, FOR FUNDING OF SUPPLEMENTAL ANNUITIES, FOR
25 ADMINISTRATION, FOR REPORTS TO AGENCIES AND MEMBERS, FOR
26 APPLICATIONS AND ELECTIONS, FOR THE COMPOSITION OF THE PUBLIC
27 SCHOOL EMPLOYEES' RETIREMENT BOARD AND OF THE STATE EMPLOYEES'
28 RETIREMENT BOARD, FOR INVESTMENT POWERS OF THE BOARDS, FOR
29 MANAGEMENT OF FUNDS AND ACCOUNTS AND FOR ENFORCEMENT OFFICERS'
30 BENEFIT AND SUPPLEMENTAL ANNUITY ACCOUNTS," AND IS MERELY A
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1 CORRECTION OF AN ERROR IN SAID ACT WHEN IT WAS ENACTED. ANY
2 ANNUITY OR OTHER BENEFIT GRANTED TO A STATE EMPLOYEE BY THE
3 STATE EMPLOYEE'S RETIREMENT BOARD PURSUANT TO 71 PA.C.S. §
4 5702(A)(6) ON OR AFTER JULY 1, 2001, THAT CONFORMS TO THE
5 AMENDMENT MADE BY THIS ACT IS HEREBY RATIFIED AND SHALL BE IN
6 EFFECT AS IF THIS ACT WAS IN EFFECT ON THE EFFECTIVE DATE OF
7 RETIREMENT OF THE STATE EMPLOYEE RECEIVING SUCH A BENEFIT. ANY
8 WAIVER OF REGULAR MEMBER CONTRIBUTIONS AND SOCIAL SECURITY
9 INTEGRATION CONTRIBUTIONS THAT HAVE BEEN MADE PURSUANT TO 71
10 PA.C.S. § 5502.1 AS A RESULT OF ANY INTERPRETATION OF 71 PA.C.S.
11 § 5702(A)(6) THAT CONFORMS TO THE AMENDMENT MADE BY THIS ACT
12 SHALL REMAIN EFFECTIVE.
13 SECTION 5. THE AMENDMENT OF:
14 (1) 71 PA.C.S. § 5702(A)(6) SHALL BE RETROACTIVE TO JULY
15 1, 2001.
16 (2) 71 PA.C.S. § 5953.1 SHALL APPLY RETROACTIVELY TO ALL
17 EQUITABLE DISTRIBUTIONS THAT ARE SUBJECT TO THE PROVISIONS OF
18 23 PA.C.S. § 3323(D.1).
19 Section 3 6. The provisions of this act are nonseverable. If <--
20 any provision of this act or its application to any person or
21 circumstance is held invalid, the remaining provisions or
22 applications of this act are void.
23 Section 4 7. This act shall take effect immediately. <--
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