PRINTER'S NO. 1058
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
862
Session of
2015
INTRODUCED BY P. DALEY, COHEN, DRISCOLL, CONKLIN, O'BRIEN,
HARHAI, GINGRICH, MURT, ROEBUCK AND GIBBONS, APRIL 1, 2015
REFERRED TO COMMITTEE ON STATE GOVERNMENT, APRIL 1, 2015
AN ACT
Amending Title 71 (State Government) of the Pennsylvania
Consolidated Statutes, in retirement for State employees and
officers, providing for eligibility for special early
retirement.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 71 of the Pennsylvania Consolidated
Statutes is amended by adding a section to read:
ยง 5308.3. Eligibility for special early retirement.
(a) Eligibility.--
(1) Notwithstanding any provisions of this title to the
contrary, this section shall apply to a member who, during
the period of time after February 29, 2016, through June 2,
2016:
(i) has attained either 30 eligibility points or a
combination of age and eligibility points that totals 80;
(ii) has terminated State service; and
(iii) files an application for an annuity with an
effective date of retirement not later than July 1, 2016.
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(2) A member under paragraph (1) shall be entitled to
receive a maximum single life annuity calculated pursuant to
section 5702 (relating to maximum single life annuity)
without any reduction by virtue of an effective date of
retirement which is under the superannuation age and shall be
entitled to insurance coverage under a contract of insurance
affecting the member that is in effect on the effective date
of retirement of the member.
(b) Net savings cost.--
(1) Each calendar quarter, the secretary shall do all of
the following:
(i) Reduce the allocation for each Commonwealth
agency for the ensuing calendar quarter by an amount
equal to 60% of the net savings cost for that agency.
(ii) Transfer the amount reduced under subparagraph
(i) to the fund.
(2) This subsection shall expire June 30, 2017.
(c) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection:
" Net savings cost. " The greater of paragraph (1) or (2):
(1) The difference between:
(i) Twenty-five percent of the total of the final
salaries for members who retire from a Commonwealth
agency under this section; and
(ii) the total salaries of all new hires in the six-
month period before, and the six-month period after, July
1, 2014.
(2) Twenty percent of the total of the entry level
salaries to replace retired members in that Commonwealth
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agency.
" Secretary. " The Secretary of the Budget.
Section 2. This act shall take effect immediately.
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