SENATE AMENDED
PRIOR PRINTER'S NOS. 1217, 2914, 4039 PRINTER'S NO. 4095
No. 1069 Session of 1989
INTRODUCED BY PIEVSKY, MAIALE, STEIGHNER, NOYE, BILLOW,
J. L. WRIGHT, RYBAK, E. Z. TAYLOR, COLAIZZO, PISTELLA, VROON,
HECKLER, GIGLIOTTI, MELIO, MOWERY, DAVIES, OLASZ, TRELLO,
BISHOP, CIVERA AND RICHARDSON, APRIL 10, 1989
AS AMENDED ON THIRD CONSIDERATION, IN SENATE, SEPTEMBER 25, 1990
AN ACT
1 Amending Titles 24 (Education) and 71 (State Government) of the <--
2 Pennsylvania Consolidated Statutes, further providing for the
3 compensation and classification of persons appointed by the
4 Public School Employees' Retirement Board and the State
5 Employees' Retirement Board.
6 The General Assembly finds and declares that:
7 (1) The Public School Employees' Retirement System and
8 the State Employees' Retirement System are two of the largest
9 pension systems in the country.
10 (2) The boards of the two systems have consistently
11 demonstrated their fiduciary responsibility as evidenced in
12 the growing rate of returns on investments for the two funds.
13 (3) The level of responsibility and accountability of
14 the executive level management of the two retirement systems
15 has gone unrecognized by the Commonwealth as evidenced by the
16 fact that salaries of the executive directors and investment
17 officers fall substantially below those of other comparable
1 public pension systems.
2 (4) As the accountability and investment of public
3 pension funds continues to become more complex, the retention
4 and recruitment of qualified professionals will become more
5 and more critical to the sound financial management of the
6 Commonwealth's pension funds.
7 (5) It is essential to the continued sound growth of the
8 funds that the members of the boards of directors of the two
9 systems have the capability to hire qualified personnel at
10 salaries competitive with other pension systems.
11 (6) It is the purpose of this act to give the authority
12 to the Board of Directors of the State Employees' Retirement
13 System and the Board of Directors of the Public School
14 Employees' Retirement System to set the salaries of those
15 persons appointed by each of the boards.
16 AMENDING TITLES 24 (EDUCATION) AND 71 (STATE GOVERNMENT) OF THE <--
17 PENNSYLVANIA CONSOLIDATED STATUTES, FURTHER PROVIDING FOR THE
18 PURCHASE OF MILITARY SERVICE TIME; AUTHORIZING RETIREMENT
19 CREDIT FOR MEMBERS OF THE CADET NURSE CORPS; FURTHER
20 PROVIDING FOR TERMINATION OF ANNUITIES, INCLUDING DISABILITY
21 ANNUITIES; TRANSFERRING THE PENSION SERVICE CREDIT OF CERTAIN
22 PHILADELPHIA REGIONAL PORT AUTHORITY EMPLOYEES TO THE STATE
23 EMPLOYEES' RETIREMENT SYSTEM; FURTHER PROVIDING FOR THE TERMS
24 OF MEMBERS OF THE STATE EMPLOYEES' RETIREMENT BOARD AND FOR
25 VENTURE CAPITAL INVESTMENTS; INCLUDING ENFORCEMENT OFFICERS <--
26 AND INVESTIGATORS IN THE OFFICE OF ATTORNEY GENERAL AND
27 PAROLE AGENTS AND PAROLE WARRANT OFFICERS OF THE PENNSYLVANIA
28 BOARD OF PROBATION AND PAROLE WITHIN THE DEFINITION OF
29 "ENFORCEMENT OFFICER" FOR RETIREMENT PURPOSES; AUTHORIZING
30 CREDITABLE SERVICE FOR CERTAIN PERSONS WHO WERE JUSTICES OF
19890H1069B4095 - 2 -
1 THE PEACE; CLARIFYING OUT-OF-STATE EDUCATIONAL SERVICE FOR
2 CERTAIN PERSONS; FURTHER PROVIDING FOR RETIREMENT COUNSELING;
3 FURTHER PROVIDING FOR THE COMPENSATION AND CLASSIFICATION OF
4 PERSONS APPOINTED BY THE PUBLIC SCHOOL EMPLOYEES' RETIREMENT
5 BOARD AND THE STATE EMPLOYEES' RETIREMENT BOARD; CLARIFYING
6 THE AUTHORITY OF THE BOARDS REGARDING VEHICLES FOR AUTHORIZED
7 INVESTMENTS OF THE BOARDS; PROVIDING FOR LEGAL ADVISORS;
8 FURTHER PROVIDING FOR THE ANNUAL INTEREST RATE; FURTHER
9 PROVIDING FOR CONSTRUCTION OF THE ACT; PLACING LIMITATIONS ON
10 INVESTMENTS IN COMPANIES DOING BUSINESS WITH NORTHERN
11 IRELAND; AND MAKING A REPEAL.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 8502(a) of Title 24 of the Pennsylvania <--
15 Consolidated Statutes is amended to read:
16 § 8502. Administrative duties of board.
17 (a) Employees.--The secretary, clerical and other employees
18 of the board and their successors whose positions on the
19 effective date of this part are under the classified service
20 provisions of the act of August 5, 1941 (P.L.752, No.286), known
21 as the ["]Civil Service Act,["] shall NOT continue under such <--
22 provisions. [The] Notwithstanding any other provision of law,
23 the compensation and classification of all [other] persons
24 appointed shall be determined by the board [and shall be
25 consistent with the standards established by the Executive Board
26 of the Commonwealth].
27 * * *
28 Section 2. Section 5902(a) of Title 71 is amended to read:
29 § 5902. Administrative duties of the board.
30 (a) Employees.--The secretary, clerical, and other employees
19890H1069B4095 - 3 -
1 of the board and their successors whose positions on the
2 effective date of this part are under the classified service
3 provisions of the act of August 5, 1941 (P.L.752, No.286), known
4 as the ["]Civil Service Act["], shall NOT continue under such <--
5 provisions. [The] Notwithstanding any other provision of law,
6 the compensation of all [other] persons appointed shall be
7 determined by the board [and shall be consistent with the
8 standards established by the Executive Board of this
9 Commonwealth]. The secretary shall act as chief administrative
10 officer for the board. In addition to other powers and duties
11 conferred upon and delegated to the secretary by the board, the
12 secretary shall:
13 (1) Serve as the administrative agent of the board.
14 (2) Serve as liaison between the board and applicable
15 legislative committees, the Treasury Department, the
16 Department of the Auditor General, and between the board and
17 the investment counsel and the mortgage supervisor in
18 arranging for investments to secure maximum returns to the
19 fund.
20 (3) Review and analyze proposed legislation and
21 legislative developments affecting the system and present
22 findings to the board, legislative committees, and other
23 interested groups or individuals.
24 (4) Direct the maintenance of files and records and
25 preparation of periodic reports required for actuarial
26 evaluation studies.
27 (5) Receive inquiries and requests for information
28 concerning the system from the press, Commonwealth officials,
29 State employees, the general public, research organizations,
30 and officials and organizations from other states, and
19890H1069B4095 - 4 -
1 provide information as authorized by the board.
2 (6) Supervise a staff of administrative, technical, and
3 clerical employees
4 engaged in record-keeping and clerical processing activities
5 in maintaining files of members, accounting for contributions,
6 processing payments to annuitants, and preparing required
7 reports.
8 * * *
9 Section 3. This act shall take effect July 1, 1989, or
10 immediately, whichever is later.
11 SECTION 1. SECTION 8304(B)(2) OF TITLE 24 OF THE <--
12 PENNSYLVANIA CONSOLIDATED STATUTES IS AMENDED AND THE SUBSECTION
13 IS AMENDED BY ADDING A PARAGRAPH TO READ:
14 § 8304. CREDITABLE NONSCHOOL SERVICE.
15 * * *
16 (B) LIMITATIONS ON NONSCHOOL SERVICE.--CREDITABLE NONSCHOOL
17 SERVICE CREDIT SHALL BE LIMITED TO:
18 * * *
19 (2) OTHER MILITARY SERVICE NOT EXCEEDING FIVE YEARS[.];
20 PROVIDED THAT A MEMBER WITH MULTIPLE SERVICE MAY NOT PURCHASE
21 MORE THAN A COMBINED TOTAL OF FIVE YEARS OF MILITARY SERVICE
22 BETWEEN THE SYSTEM AND THE STATE EMPLOYEES' RETIREMENT
23 SYSTEM.
24 * * *
25 (7) SERVICE IN THE CADET NURSE CORPS WITH RESPECT TO ANY
26 PERIOD OF TRAINING AS A STUDENT OR GRADUATE NURSE UNDER A
27 PLAN APPROVED UNDER SECTION 2 OF THE ACT OF JUNE 15, 1943
28 (PUBLIC LAW 78-73, 57 STAT. 153), IF THE TOTAL PERIOD OF
29 TRAINING UNDER SUCH PLAN WAS AT LEAST TWO YEARS, THE CREDIT
30 FOR SUCH SERVICE NOT TO EXCEED THREE YEARS.
19890H1069B4095 - 5 -
1 * * *
2 SECTION 2. THE INTRODUCTORY PARAGRAPH AND PARAGRAPH (3) OF
3 SECTION 8312, SECTIONS 8328(B), 8346(B), 8501(E) AND 8502(A),
4 (B) AND (H) OF TITLE 24 ARE AMENDED TO READ:
5 § 8312. ELIGIBILITY FOR SPECIAL EARLY RETIREMENT.
6 NOTWITHSTANDING ANY PROVISIONS OF THIS TITLE TO THE CONTRARY,
7 FOR THE PERIOD ONLY OF JULY 1, 1985, TO [SEPTEMBER 30, 1991]
8 JUNE 30, 1993, THE FOLLOWING SPECIAL EARLY RETIREMENT PROVISIONS
9 SHALL BE APPLICABLE TO SPECIFIED ELIGIBLE MEMBERS AS FOLLOWS:
10 * * *
11 (3) DURING THE PERIOD OF JULY 1, 1987, TO [SEPTEMBER 30,
12 1991] JUNE 30, 1993, A MEMBER WHO HAS CREDIT FOR AT LEAST 30
13 ELIGIBILITY POINTS SHALL BE ENTITLED, UPON TERMINATION OF
14 SERVICE AND FILING OF A PROPER APPLICATION, TO RECEIVE A
15 MAXIMUM SINGLE LIFE ANNUITY CALCULATED PURSUANT TO SECTION
16 8342 WITHOUT ANY REDUCTION BY VIRTUE OF AN EFFECTIVE DATE OF
17 RETIREMENT WHICH IS UNDER THE SUPERANNUATION AGE.
18 § 8328. ACTUARIAL COST METHOD.
19 * * *
20 (B) NORMAL CONTRIBUTION RATE.--THE NORMAL CONTRIBUTION RATE
21 SHALL BE DETERMINED AFTER EACH ACTUARIAL VALUATION. UNTIL ALL
22 ACCRUED LIABILITY CONTRIBUTIONS HAVE BEEN COMPLETED, THE NORMAL
23 CONTRIBUTION RATE SHALL BE DETERMINED, ON THE BASIS OF AN ANNUAL
24 [5 1/2%] INTEREST RATE AND SUCH MORTALITY AND OTHER TABLES AS
25 SHALL BE ADOPTED BY THE BOARD IN ACCORDANCE WITH GENERALLY
26 ACCEPTED ACTUARIAL PRINCIPLES, AS A LEVEL PERCENTAGE OF THE
27 COMPENSATION OF THE AVERAGE NEW ACTIVE MEMBER, WHICH PERCENTAGE,
28 IF CONTRIBUTED ON THE BASIS OF HIS PROSPECTIVE COMPENSATION
29 THROUGH THE ENTIRE PERIOD OF ACTIVE SCHOOL SERVICE, WOULD BE
30 SUFFICIENT TO FUND THE LIABILITY FOR ANY PROSPECTIVE BENEFIT
19890H1069B4095 - 6 -
1 PAYABLE TO HIM, IN EXCESS OF THAT PORTION FUNDED BY HIS
2 PROSPECTIVE MEMBER CONTRIBUTIONS. AFTER ALL ACCRUED LIABILITY
3 CONTRIBUTIONS HAVE BEEN COMPLETED, THE NORMAL CONTRIBUTION RATE
4 SHALL BE DETERMINED BY DEDUCTING FROM THE PRESENT VALUE OF THE
5 LIABILITIES FOR ALL PROSPECTIVE BENEFITS OF ACTIVE MEMBERS, THE
6 SUM OF THE TOTAL ASSETS IN THE FUND ON THE VALUATION DATE,
7 EXCLUDING THE BALANCE IN THE ANNUITY RESERVE ACCOUNT, AND THE
8 PRESENT VALUE OF PROSPECTIVE MEMBER CONTRIBUTIONS, AND DIVIDING
9 THE REMAINDER BY THE PRESENT VALUE OF THE FUTURE COMPENSATION OF
10 ALL ACTIVE MEMBERS.
11 * * *
12 § 8346. TERMINATION OF ANNUITIES.
13 * * *
14 (B) RETURN TO SCHOOL SERVICE DURING EMERGENCY.--WHEN, IN THE
15 JUDGMENT OF THE EMPLOYER, AN EMERGENCY CREATES AN INCREASE IN
16 THE WORK LOAD SUCH THAT THERE IS SERIOUS IMPAIRMENT OF SERVICE
17 TO THE PUBLIC, AN ANNUITANT MAY BE RETURNED TO SCHOOL SERVICE
18 FOR A PERIOD NOT TO EXCEED [75] 95 DAYS IN ANY SCHOOL YEAR
19 WITHOUT LOSS OF HIS ANNUITY. IN COMPUTING THE NUMBER OF DAYS AN
20 ANNUITANT HAS RETURNED TO SCHOOL SERVICE, ANY AMOUNT OF TIME
21 LESS THAN ONE-HALF OF A DAY SHALL BE COUNTED AS ONE-HALF OF A
22 DAY.
23 * * *
24 § 8501. PUBLIC SCHOOL EMPLOYEES' RETIREMENT BOARD.
25 * * *
26 (E) CORPORATE POWER AND LEGAL ADVISOR.--FOR THE PURPOSES OF
27 THIS PART, THE BOARD SHALL POSSESS THE POWER AND PRIVILEGES OF A
28 CORPORATION. THE [ATTORNEY GENERAL OF THE COMMONWEALTH] COUNSEL
29 EMPLOYED BY THE BOARD SHALL BE THE LEGAL ADVISOR OF THE BOARD.
30 § 8502. ADMINISTRATIVE DUTIES OF BOARD.
19890H1069B4095 - 7 -
1 (A) EMPLOYEES.--THE SECRETARY, CLERICAL AND OTHER EMPLOYEES
2 OF THE BOARD AND THEIR SUCCESSORS WHOSE POSITIONS ON THE
3 EFFECTIVE DATE OF THIS PART ARE UNDER THE CLASSIFIED SERVICE
4 PROVISIONS OF THE ACT OF AUGUST 5, 1941 (P.L.752, NO.286), KNOWN
5 AS THE ["]CIVIL SERVICE ACT,["] SHALL CONTINUE UNDER SUCH
6 PROVISIONS. [THE] NOTWITHSTANDING ANY OTHER PROVISION OF LAW,
7 THE COMPENSATION AND CLASSIFICATION OF ALL [OTHER] PERSONS
8 APPOINTED SHALL BE DETERMINED BY THE BOARD [AND SHALL BE
9 CONSISTENT WITH THE STANDARDS ESTABLISHED BY THE EXECUTIVE BOARD
10 OF THE COMMONWEALTH].
11 (B) PROFESSIONAL PERSONNEL.--THE BOARD SHALL CONTRACT FOR
12 THE SERVICES OF A CHIEF MEDICAL EXAMINER, AN ACTUARY, INVESTMENT
13 ADVISORS, COUNSELORS, AN INVESTMENT COORDINATOR, AND SUCH OTHER
14 PROFESSIONAL PERSONNEL AS IT DEEMS ADVISABLE. THE BOARD SHALL
15 HAVE THE POWER TO CONTRACT FOR LEGAL SERVICES.
16 * * *
17 (H) REGULATIONS AND PROCEDURES.--THE BOARD SHALL, WITH THE
18 ADVICE OF THE [ATTORNEY GENERAL] BOARD COUNSEL AND THE ACTUARY,
19 ADOPT AND PROMULGATE RULES AND REGULATIONS FOR THE UNIFORM
20 ADMINISTRATION OF THE SYSTEM. THE ACTUARY SHALL APPROVE IN
21 WRITING ALL COMPUTATIONAL PROCEDURES USED IN THE CALCULATION OF
22 CONTRIBUTIONS AND BENEFITS PRIOR TO THEIR APPLICATION BY THE
23 BOARD.
24 * * *
25 SECTION 3. SECTION 8508 OF TITLE 24 IS AMENDED BY ADDING A
26 SUBSECTION TO READ:
27 § 8508. RIGHTS AND DUTIES OF ANNUITANTS.
28 * * *
29 (D) ESTABLISHING CONTINUED DISABILITY.--IN ALL INSTANCES,
30 THE ANNUITANT SHALL HAVE THE BURDEN OF ESTABLISHING CONTINUED
19890H1069B4095 - 8 -
1 DISABILITY.
2 SECTION 4. SECTION 8521(N) AND (O) OF TITLE 24 ARE AMENDED
3 TO READ:
4 § 8521. MANAGEMENT OF FUND AND ACCOUNTS.
5 * * *
6 (N) [LIMITED PARTNERSHIPS AND SEPARATE ACCOUNTS] VEHICLES
7 FOR AUTHORIZED INVESTMENTS.--THE BOARD MAY [INVEST IN] MAKE ANY
8 INVESTMENTS AUTHORIZED IN THIS [SECTION] PART OR OTHER LAW BY
9 BECOMING A LIMITED PARTNER IN PARTNERSHIPS THAT WILL HOLD SUCH
10 INVESTMENTS, OR BY [PARTICIPATING] ACQUIRING SHARES OR UNITS OF
11 PARTICIPATION OR OTHERWISE PARTICIPATING BENEFICIALLY IN BANK
12 COLLECTIVE TRUSTS OR IN SEPARATE ACCOUNTS OF ANY INSURANCE
13 COMPANY AUTHORIZED TO DO BUSINESS IN THIS COMMONWEALTH, OR BY
14 ACQUIRING STOCKS OR SHARES OR UNITS OF PARTICIPATION OR
15 OTHERWISE PARTICIPATING BENEFICIALLY IN THE FUND OF ANY
16 CORPORATION OR TRUST ORGANIZED OR EXISTING UNDER THE LAWS OF THE
17 UNITED STATES OR OF ANY STATE, DISTRICT OR TERRITORY THEREOF
18 WHICH FUND IS MAINTAINED FOR AND CONSISTS OF ASSETS OF
19 EMPLOYEES' BENEFIT TRUSTS (INCLUDING GOVERNMENTAL PLANS AS
20 DEFINED IN SECTION 414(D) OF THE FEDERAL INTERNAL REVENUE CODE
21 OF 1986 (26 U.S.C. § 414(D)), AS FROM TIME TO TIME AMENDED)
22 WHICH MEET THE REQUIREMENTS FOR QUALIFICATION UNDER SECTION 401
23 OF THE INTERNAL REVENUE CODE (26 U.S.C. § 401); PROVIDED THAT,
24 IN [EITHER] ANY SUCH CASE, THE LIABILITY OF THE [FUND] PUBLIC
25 SCHOOL EMPLOYEES' RETIREMENT FUND SHALL BE LIMITED TO THE AMOUNT
26 OF [THE] ITS INVESTMENT. IN THE CASE OF AUTHORIZED INVESTMENTS
27 IN REAL ESTATE OR INTERESTS THEREIN, THE BOARD'S ACQUISITION OF
28 THE STOCK OR SHARES OF OR ITS OTHER PARTICIPATION BENEFICIALLY
29 IN THE FUND OR ANY SUCH VEHICLE (INCLUDING ANY ENTITY ORGANIZED
30 AND MAINTAINED AS A VEHICLE FOR AN INVESTMENT OR INVESTMENTS OF
19890H1069B4095 - 9 -
1 THE BOARD EXCLUSIVELY) SHALL NOT BE DEEMED AN INVESTMENT IN THE
2 COMMON STOCK AS DEFINED IN SUBSECTION (I) OF ANY CORPORATION AS
3 DEFINED IN SUBSECTION (J) FOR THE PURPOSES OF ANY LIMITATION ON
4 INVESTMENT IN CORPORATE STOCKS SET FORTH IN SUBSECTION (H) OF
5 THIS SECTION.
6 (O) VENTURE CAPITAL.--THE PROVISIONS OF SUBSECTION (L)
7 NOTWITHSTANDING, VENTURE CAPITAL INVESTMENTS MADE THROUGH
8 LIMITED PARTNERSHIPS AND THROUGH SEPARATE ACCOUNTS SHALL BE
9 LIMITED TO NOT MORE THAN [1%] 2% OF THE BOOK VALUE OF THE TOTAL
10 ASSETS OF THE FUND. A VENTURE CAPITAL INVESTMENT SHALL BE MADE
11 ONLY IF SUCH INVESTMENT WILL ENHANCE THE GENERAL WELFARE OF THIS
12 COMMONWEALTH AND ITS CITIZENS THROUGH ECONOMIC DEVELOPMENT AND
13 MEETS THE STANDARD OF PRUDENCE SET FORTH IN SUBSECTION (L). AN
14 INVESTMENT SHALL BE DEEMED A VENTURE CAPITAL INVESTMENT IF IT
15 RESULTS IN THE ACQUISITION OF EQUITY INTERESTS OR A COMBINATION
16 OF DEBT AND EQUITY INTERESTS IN A BUSINESS WHICH IS EXPECTED TO
17 GROW SUBSTANTIALLY IN THE FUTURE AND IN WHICH THE EXPECTED
18 RETURN ON INVESTMENT IS TO COME PREDOMINANTLY FROM AN INCREASE
19 IN VALUE OF THE EQUITY INTEREST AND THAT ARE NOT HELD THROUGH OR
20 SECURED BY STOCK THAT IS AN AUTHORIZED INVESTMENT UNDER THE
21 AUTHORITY OF SUBSECTION (H) AND ARE NOT INTERESTS IN OR SECURED
22 BY REAL ESTATE.
23 SECTION 5. TITLE 24 IS AMENDED BY ADDING A SECTION TO READ:
24 § 8526. NORTHERN IRELAND-RELATED INVESTMENTS.
25 (A) GENERAL RULE.--NOTWITHSTANDING ANY OTHER PROVISION OF
26 LAW, ON AND AFTER THE EFFECTIVE DATE OF THIS SECTION, ANY MONEYS
27 OR ASSETS OF THE FUND WHICH SHALL REMAIN OR BE INVESTED IN THE
28 STOCKS, SECURITIES OR OTHER OBLIGATIONS OF ANY INSTITUTION OR
29 COMPANY DOING BUSINESS IN OR WITH NORTHERN IRELAND, OR WITH
30 AGENCIES OR INSTRUMENTALITIES THEREOF, SHALL BE INVESTED SUBJECT
19890H1069B4095 - 10 -
1 TO THE PROVISIONS OF SUBSECTION (C).
2 (B) ANNUAL REVIEW.--ON OR BEFORE JANUARY 1 OF EACH YEAR, THE
3 BOARD SHALL DETERMINE THE EXISTENCE OF AFFIRMATIVE ACTION TAKEN
4 BY INSTITUTIONS OR COMPANIES DOING BUSINESS IN NORTHERN IRELAND
5 TO ELIMINATE ETHNIC OR RELIGIOUS DISCRIMINATION, BASED ON
6 ACTIONS TAKEN FOR:
7 (1) INCREASING THE REPRESENTATION OF INDIVIDUALS FROM
8 UNDERREPRESENTED RELIGIOUS GROUPS IN THE WORK FORCE,
9 INCLUDING MANAGERIAL, SUPERVISORY, ADMINISTRATIVE, CLERICAL
10 AND TECHNICAL JOBS.
11 (2) PROVIDING ADEQUATE SECURITY FOR THE PROTECTION OF
12 MINORITY EMPLOYEES, BOTH AT THE WORKPLACE AND WHILE TRAVELING
13 TO AND FROM WORK.
14 (3) THE BANNING OF PROVOCATIVE RELIGIOUS OR POLITICAL
15 EMBLEMS FROM THE WORKPLACE.
16 (4) PUBLICLY ADVERTISING ALL JOB OPENINGS AND MAKING
17 SPECIAL RECRUITMENT EFFORTS TO ATTRACT APPLICANTS FROM
18 UNDERREPRESENTED RELIGIOUS GROUPS.
19 (5) PROVIDING THAT LAYOFF, RECALL AND TERMINATION
20 PROCEDURES SHOULD NOT IN PRACTICE FAVOR PARTICULAR RELIGIOUS
21 GROUPINGS.
22 (6) THE ABOLITION OF JOB RESERVATIONS, APPRENTICESHIP
23 RESTRICTIONS AND DIFFERENTIAL EMPLOYMENT CRITERIA WHICH
24 DISCRIMINATE ON THE BASIS OF RELIGION OR ETHNIC ORIGIN.
25 (7) THE DEVELOPMENT OF TRAINING PROGRAMS THAT WILL
26 PREPARE SUBSTANTIAL NUMBERS OF CURRENT MINORITY EMPLOYEES FOR
27 SKILLED JOBS, INCLUDING THE EXPANSION OF EXISTING PROGRAMS
28 AND THE CREATION OF NEW PROGRAMS TO TRAIN, UPGRADE AND
29 IMPROVE THE SKILLS OF MINORITY EMPLOYEES.
30 (8) THE ESTABLISHMENT OF PROCEDURES TO ASSESS, IDENTIFY
19890H1069B4095 - 11 -
1 AND ACTIVELY RECRUIT MINORITY EMPLOYEES WITH POTENTIAL FOR
2 FURTHER ADVANCEMENT.
3 (9) THE APPOINTMENT OF SENIOR MANAGEMENT STAFF MEMBERS
4 TO OVERSEE AFFIRMATIVE ACTION EFFORTS AND THE SETTING UP OF
5 TIMETABLES TO CARRY OUT AFFIRMATIVE ACTION PRINCIPLES.
6 (C) INVESTMENTS.--CONSISTENT WITH SOUND INVESTMENT POLICY,
7 THE BOARD SHALL INVEST THE ASSETS OF THE FUND IN SUCH A MANNER
8 THAT THE INVESTMENTS IN INSTITUTIONS DOING BUSINESS IN OR WITH
9 NORTHERN IRELAND SHALL REFLECT THE ADVANCES MADE BY SUCH
10 INSTITUTIONS IN ELIMINATING DISCRIMINATION AS ESTABLISHED
11 PURSUANT TO SUBSECTION (B).
12 SECTION 6. THE DEFINITIONS OF "ENFORCEMENT OFFICER,"
13 "RETIREMENT COUNSELOR" AND "STATE EMPLOYEE" IN SECTION 5102 OF
14 TITLE 71 ARE AMENDED AND THE SECTION IS AMENDED BY ADDING
15 DEFINITIONS TO READ:
16 § 5102. DEFINITIONS.
17 THE FOLLOWING WORDS AND PHRASES AS USED IN THIS PART, UNLESS
18 A DIFFERENT MEANING IS PLAINLY REQUIRED BY THE CONTEXT, SHALL
19 HAVE THE FOLLOWING MEANINGS:
20 "ACADEMIC ADMINISTRATOR." A MANAGEMENT EMPLOYEE IN THE FIELD
21 OF PUBLIC EDUCATION WHOSE WORK IS DIRECTLY RELATED TO ACADEMIC
22 INSTRUCTION, EXCLUDING ANY EMPLOYEE IN A POSITION THAT IS
23 NONACADEMIC IN NATURE, SUCH AS, WITHOUT LIMITATION, A POSITION
24 THAT RELATES TO ADMISSIONS, FINANCIAL AID, COUNSELING,
25 SECRETARIAL AND CLERICAL SERVICES, RECORDS MANAGEMENT, HOUSING,
26 FOOD SERVICE, MAINTENANCE AND SECURITY.
27 * * *
28 "ENFORCEMENT OFFICER." <--
29 (1) ANY ENFORCEMENT OFFICER OR INVESTIGATOR OF THE
30 PENNSYLVANIA LIQUOR CONTROL BOARD WHO IS A PEACE OFFICER
19890H1069B4095 - 12 -
1 VESTED WITH POLICE POWER AND AUTHORITY THROUGHOUT THE
2 COMMONWEALTH AND ANY ADMINISTRATIVE OR SUPERVISORY EMPLOYEE
3 OF THE PENNSYLVANIA LIQUOR CONTROL BOARD VESTED WITH POLICE
4 POWER WHO IS CHARGED WITH THE ADMINISTRATION OR ENFORCEMENT
5 OF THE LIQUOR LAWS OF THE COMMONWEALTH.
6 (2) ANY ENFORCEMENT OFFICER OR INVESTIGATOR OF THE
7 OFFICE OF ATTORNEY GENERAL WHO IS A PEACE OFFICER VESTED WITH
8 POLICE POWER AND AUTHORITY THROUGHOUT THIS COMMONWEALTH AND
9 ANY ADMINISTRATIVE OR SUPERVISORY EMPLOYEE OF THE OFFICE OF
10 ATTORNEY GENERAL VESTED WITH POLICE POWER WHO IS CHARGED WITH
11 THE ADMINISTRATION OR ENFORCEMENT OF THE CRIMINAL LAWS OF
12 THIS COMMONWEALTH.
13 (3) ANY PAROLE AGENT OR PAROLE WARRANT OFFICER OF THE
14 PENNSYLVANIA BOARD OF PROBATION AND PAROLE, WHO IS A PEACE
15 OFFICER VESTED WITH POLICE POWER AND AUTHORITY THROUGHOUT THE
16 COMMONWEALTH, AND ANY ADMINISTRATIVE OR SUPERVISORY EMPLOYEE
17 OF THE PENNSYLVANIA BOARD OF PROBATION AND PAROLE VESTED WITH
18 POLICE POWER, WHO IS CHARGED WITH ADMINISTRATIVE OR
19 ENFORCEMENT OF THE PAROLE LAWS OF THIS COMMONWEALTH.
20 * * *
21 "NONSTUDENT SERVICE." EMPLOYMENT IN AN EDUCATIONAL
22 INSTITUTION THAT IS NOT CONTINGENT ON THE EMPLOYEE'S ENROLLMENT
23 AS A STUDENT OR MAINTENANCE OF STUDENT STATUS AT SUCH
24 INSTITUTION AND FOR WHICH ONLY MONETARY COMPENSATION IS
25 RECEIVED, EXCLUDING TUITION WAIVERS OR REIMBURSEMENT, ACADEMIC
26 CREDIT, HOUSING, MEALS AND OTHER IN-KIND COMPENSATION.
27 * * *
28 "RETIREMENT COUNSELOR." THE STATE EMPLOYEES' RETIREMENT
29 SYSTEM EMPLOYEE WHOSE DUTY IT SHALL BE TO ADVISE EACH EMPLOYEE
30 [OF THE DEPARTMENT] OF HIS RIGHTS AND DUTIES AS A MEMBER OF THE
19890H1069B4095 - 13 -
1 SYSTEM. [SUCH EMPLOYEE SHALL BE DESIGNATED BY THE HEAD OF EACH
2 DEPARTMENT WITH THE APPROVAL OF THE BOARD.]
3 * * *
4 "STATE EMPLOYEE." ANY PERSON HOLDING A STATE OFFICE OR
5 POSITION UNDER THE COMMONWEALTH, EMPLOYED BY THE STATE
6 GOVERNMENT OF THE COMMONWEALTH, IN ANY CAPACITY WHATSOEVER,
7 EXCEPT AN INDEPENDENT CONTRACTOR OR ANY PERSON COMPENSATED ON A
8 FEE BASIS, AND SHALL INCLUDE MEMBERS OF THE GENERAL ASSEMBLY,
9 AND ANY OFFICER OR EMPLOYEE OF THE FOLLOWING:
10 (1) (I) THE DEPARTMENT OF EDUCATION.
11 (II) STATE-OWNED EDUCATIONAL INSTITUTIONS.
12 (III) COMMUNITY COLLEGES.
13 (IV) THE PENNSYLVANIA STATE UNIVERSITY, EXCEPT AN
14 EMPLOYEE IN THE COLLEGE OF AGRICULTURE WHO IS PAID WHOLLY
15 FROM FEDERAL FUNDS OR AN EMPLOYEE WHO IS PARTICIPATING IN
16 THE FEDERAL CIVIL SERVICE RETIREMENT SYSTEM. THE
17 UNIVERSITY SHALL BE TOTALLY RESPONSIBLE FOR ALL EMPLOYER
18 CONTRIBUTIONS UNDER SECTION 5507 (RELATING TO
19 CONTRIBUTIONS BY THE COMMONWEALTH AND OTHER EMPLOYERS).
20 (2) THE PENNSYLVANIA TURNPIKE COMMISSION, THE DELAWARE
21 RIVER PORT AUTHORITY, THE PORT AUTHORITY TRANSIT CORPORATION,
22 THE PHILADELPHIA REGIONAL PORT AUTHORITY, THE DELAWARE RIVER
23 JOINT TOLL BRIDGE COMMISSION, THE STATE PUBLIC SCHOOL
24 BUILDING AUTHORITY, THE GENERAL STATE AUTHORITY, THE STATE
25 HIGHWAY AND BRIDGE AUTHORITY, THE DELAWARE VALLEY REGIONAL
26 PLANNING COMMISSION, THE INTERSTATE COMMISSION OF THE
27 DELAWARE RIVER BASIN, AND THE SUSQUEHANNA RIVER BASIN
28 COMMISSION ANY TIME SUBSEQUENT TO ITS CREATION, PROVIDED THE
29 COMMISSION OR AUTHORITY AGREES TO CONTRIBUTE AND DOES
30 CONTRIBUTE TO THE FUND, FROM TIME TO TIME, THE MONEYS
19890H1069B4095 - 14 -
1 REQUIRED TO BUILD UP THE RESERVES NECESSARY FOR THE PAYMENT
2 OF THE ANNUITIES OF SUCH OFFICERS AND EMPLOYEES WITHOUT ANY
3 LIABILITY ON THE PART OF THE COMMONWEALTH TO MAKE
4 APPROPRIATIONS FOR SUCH PURPOSES, AND PROVIDED IN THE CASE OF
5 EMPLOYEES OF THE INTERSTATE COMMISSION OF THE DELAWARE RIVER
6 BASIN, THAT THE EMPLOYEE SHALL HAVE BEEN A MEMBER OF THE
7 SYSTEM FOR AT LEAST TEN YEARS PRIOR TO JANUARY 1, 1963.
8 (3) ANY SEPARATE INDEPENDENT PUBLIC CORPORATION CREATED
9 BY STATUTE, NOT INCLUDING ANY MUNICIPAL OR QUASI-MUNICIPAL
10 CORPORATION, SO LONG AS HE REMAINS AN OFFICER OR EMPLOYEE OF
11 SUCH PUBLIC CORPORATION, AND PROVIDED THAT SUCH OFFICER OR
12 EMPLOYEE OF SUCH PUBLIC CORPORATION WAS AN EMPLOYEE OF THE
13 COMMONWEALTH IMMEDIATELY PRIOR TO HIS EMPLOYMENT BY SUCH
14 CORPORATION, AND FURTHER PROVIDED SUCH PUBLIC CORPORATION
15 SHALL AGREE TO CONTRIBUTE AND CONTRIBUTES TO THE FUND, FROM
16 TIME TO TIME, THE MONEYS REQUIRED TO BUILD UP THE RESERVES
17 NECESSARY FOR THE PAYMENT OF THE ANNUITIES OF SUCH OFFICERS
18 AND EMPLOYEES WITHOUT ANY LIABILITY ON THE PART OF THE
19 COMMONWEALTH TO MAKE APPROPRIATIONS FOR SUCH PURPOSES.
20 * * *
21 SECTION 7. SECTION 5301(A) AND (C) OF TITLE 71 ARE AMENDED
22 TO READ:
23 § 5301. MANDATORY AND OPTIONAL MEMBERSHIP.
24 (A) MANDATORY MEMBERSHIP.--MEMBERSHIP IN THE SYSTEM SHALL BE
25 MANDATORY AS OF THE EFFECTIVE DATE OF EMPLOYMENT FOR ALL STATE
26 EMPLOYEES EXCEPT THE FOLLOWING:
27 (1) GOVERNOR.
28 (2) LIEUTENANT GOVERNOR.
29 (3) MEMBERS OF THE GENERAL ASSEMBLY.
30 (4) HEADS OR DEPUTY HEADS OF ADMINISTRATIVE DEPARTMENTS.
19890H1069B4095 - 15 -
1 (5) MEMBERS OF ANY INDEPENDENT ADMINISTRATIVE BOARD OR
2 COMMISSION.
3 (6) MEMBERS OF ANY DEPARTMENTAL BOARD OR COMMISSION.
4 (7) MEMBERS OF ANY ADVISORY BOARD OR COMMISSION.
5 (8) SECRETARY TO THE GOVERNOR.
6 (9) BUDGET SECRETARY.
7 (10) LEGISLATIVE EMPLOYEES.
8 (11) SCHOOL EMPLOYEES WHO HAVE ELECTED MEMBERSHIP IN THE
9 PUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM.
10 (12) SCHOOL EMPLOYEES WHO HAVE ELECTED MEMBERSHIP IN AN
11 INDEPENDENT RETIREMENT PROGRAM APPROVED BY THE EMPLOYER,
12 PROVIDED THAT IN NO CASE, EXCEPT AS HEREINAFTER PROVIDED,
13 SHALL THE EMPLOYER CONTRIBUTE ON ACCOUNT OF SUCH ELECTED
14 MEMBERSHIP AT A RATE GREATER THAN THE EMPLOYER NORMAL
15 CONTRIBUTION RATE AS DETERMINED IN SECTION 5508(B) (RELATING
16 TO ACTUARIAL COST METHOD). FOR THE FISCAL YEAR 1986-1987 AN
17 EMPLOYER MAY CONTRIBUTE ON ACCOUNT OF SUCH ELECTED MEMBERSHIP
18 AT A RATE WHICH IS THE GREATER OF 7% OR THE EMPLOYER NORMAL
19 CONTRIBUTION RATE AS DETERMINED IN SECTION 5508(B) AND FOR
20 ALL YEARS AFTER THAT AT A RATE OF 8.95%.
21 (13) PERSONS WHO HAVE ELECTED TO RETAIN MEMBERSHIP IN
22 THE RETIREMENT SYSTEM OF THE POLITICAL SUBDIVISION BY WHICH
23 THEY WERE EMPLOYED PRIOR TO BECOMING ELIGIBLE FOR MEMBERSHIP
24 IN THE STATE EMPLOYEES' RETIREMENT SYSTEM.
25 (14) PERSONS WHO ARE NOT MEMBERS OF THE SYSTEM AND ARE
26 EMPLOYED ON A PER DIEM OR HOURLY BASIS FOR LESS THAN 100 DAYS
27 OR 750 HOURS IN A 12-MONTH PERIOD.
28 (15) EMPLOYEES OF THE PHILADELPHIA REGIONAL PORT
29 AUTHORITY WHO HAVE ELECTED TO RETAIN MEMBERSHIP IN THE
30 PENSION PLAN OR RETIREMENT SYSTEM IN WHICH THEY WERE ENROLLED
19890H1069B4095 - 16 -
1 AS EMPLOYEES OF THE PREDECESSOR PHILADELPHIA PORT CORPORATION
2 PRIOR TO THE CREATION OF THE PHILADELPHIA REGIONAL PORT
3 AUTHORITY.
4 * * *
5 (C) PROHIBITED MEMBERSHIP.--THE STATE EMPLOYEES LISTED IN
6 SUBSECTION (A)(12), (13) [AND (14)], (14) AND (15) SHALL NOT
7 HAVE THE RIGHT TO ELECT MEMBERSHIP IN THE SYSTEM.
8 * * *
9 SECTION 8. SECTION 5303 OF TITLE 71 IS AMENDED BY ADDING A
10 SUBSECTION TO READ:
11 § 5303. RETENTION AND REINSTATEMENT OF SERVICE CREDITS.
12 * * *
13 (E) TRANSFER OF CERTAIN PENSION SERVICE CREDIT; PHILADELPHIA
14 REGIONAL PORT AUTHORITY.--
15 (1) ANY EMPLOYEE OF THE PHILADELPHIA REGIONAL PORT
16 AUTHORITY WHO BECOMES A STATE EMPLOYEE, AS DEFINED IN SECTION
17 5102 (RELATING TO DEFINITIONS), SHALL BE ELIGIBLE TO OBTAIN
18 RETIREMENT CREDIT FOR PRIOR UNCREDITED SERVICE WITH THE
19 PHILADELPHIA PORT CORPORATION, A PENNSYLVANIA NOT-FOR-PROFIT
20 CORPORATION ("PREDECESSOR CORPORATION"), PROVIDED THAT THE
21 COMMONWEALTH DOES NOT INCUR ANY LIABILITY FOR THE FUNDING OF
22 THE ANNUITIES ATTRIBUTABLE TO THE PRIOR, UNCREDITED
23 "PREDECESSOR CORPORATION" SERVICE, THE COST OF WHICH SHALL BE
24 DETERMINED ACCORDING TO PARAGRAPH (2).
25 (2) THE EMPLOYEE SHALL BE ENTITLED TO HAVE ANY PRIOR
26 SERVICE IN THE "PREDECESSOR CORPORATION" TRANSFERRED TO THE
27 SYSTEM AND DEEMED TO BE STATE SERVICE FOR ALL PURPOSES UNDER
28 THIS PART. HOWEVER, FOR THOSE EMPLOYEES WHO WERE IN
29 CONTINUOUS EMPLOYMENT WHICH COMMENCED PRIOR TO JULY 22, 1983,
30 THE PROVISIONS OF SECTION 5505.1 SHALL NOT APPLY. THE
19890H1069B4095 - 17 -
1 TRANSFER OF PRIOR SERVICE CREDIT TO THE SYSTEM SHALL OCCUR
2 UPON THE TRANSFER BY THE MEMBER OR THE "PREDECESSOR
3 CORPORATION" TO THE SYSTEM OF THE AMOUNT OF ACCUMULATED
4 MEMBER CONTRIBUTIONS, PICK-UP CONTRIBUTIONS AND CREDITED
5 INTEREST STANDING IN THE EMPLOYEE'S PENSION PLAN OR
6 RETIREMENT SYSTEM ACCOUNT AS OF THE DATE THAT THESE FUNDS ARE
7 TRANSFERRED TO THE SYSTEM. IN THE EVENT THAT THESE FUNDS HAVE
8 BEEN REFUNDED TO THE MEMBER, THE TRANSFER OF SERVICE CREDIT
9 SHALL OCCUR WHEN THE MEMBER TRANSFERS AN AMOUNT EQUAL TO
10 EITHER THE REFUND WHICH THE MEMBER RECEIVED FROM THE MEMBER'S
11 PENSION PLAN OR RETIREMENT SYSTEM OR THE AMOUNT DUE UNDER
12 SECTION 5504, IF LESS. IN THE CASE OF A TRANSFER BY THE
13 MEMBER, THE TRANSFER SHALL OCCUR BY DECEMBER 31, 1991, IN
14 ORDER FOR THE MEMBER TO RECEIVE CREDIT FOR THE PRIOR SERVICE.
15 IN THE CASE OF A TRANSFER BY THE "PREDECESSOR CORPORATION"
16 PENSION PLAN OR RETIREMENT SYSTEM, THE TRANSFER SHALL ALSO
17 OCCUR BY DECEMBER 31, 1991. NOTWITHSTANDING THE PROVISIONS OF
18 SECTION 5504, THE PHILADELPHIA REGIONAL PORT AUTHORITY SHALL
19 PAY AS PICK-UP CONTRIBUTIONS THE DIFFERENCE BETWEEN THE
20 AMOUNT CREDITED TO THE MEMBER'S ACCOUNT AND THE AMOUNT
21 OTHERWISE DUE UNDER SECTION 5504. SUCH ADDITIONAL
22 CONTRIBUTIONS PAID BY THE PHILADELPHIA REGIONAL PORT
23 AUTHORITY SHALL NOT BE CONSIDERED COMPENSATION FOR THE
24 PURPOSES OF THIS PART. IF THE AMOUNT TRANSFERRED TO THE
25 SYSTEM BY THE MEMBER IS GREATER THAN THE AMOUNT THAT WOULD
26 HAVE ACCUMULATED IN THE MEMBER'S ACCOUNT IF THE EMPLOYEE HAD
27 BEEN A MEMBER OF THE SYSTEM, ALL EXCESS FUNDS SHALL BE
28 RETURNED TO THE EMPLOYEE WITHIN 90 DAYS OF THE DATE ON WHICH
29 SUCH FUNDS ARE CREDITED TO THE MEMBER'S ACCOUNT IN THE
30 SYSTEM. WITHIN 60 DAYS OF RECEIPT OF WRITTEN NOTICE THAT AN
19890H1069B4095 - 18 -
1 EMPLOYEE HAS ELECTED TO TRANSFER CREDITS UNDER THE PROVISIONS
2 OF THIS SUBSECTION, THE PENSION PLAN OR RETIREMENT SYSTEM IN
3 WHICH THE EMPLOYEE WAS ENROLLED PRIOR TO THE CREATION OF THE
4 PHILADELPHIA REGIONAL PORT AUTHORITY SHALL BE REQUIRED TO
5 TRANSFER TO THE SYSTEM AN AMOUNT, EXCLUDING CONTRIBUTIONS DUE
6 UNDER SECTION 5504(A), EQUAL TO THE LIABILITY OF THE PRIOR
7 SERVICE MULTIPLIED BY THE RATIO OF SYSTEM ACTUARIAL VALUE OF
8 ASSETS FOR ACTIVE MEMBERS TO THE SYSTEM ACTUARIAL ACCRUED
9 LIABILITY FOR ACTIVE MEMBERS SO LONG AS THE AMOUNT TO BE
10 TRANSFERRED IS EQUAL TO OR LESS THAN THE TOTAL EMPLOYER
11 CONTRIBUTIONS MADE ON BEHALF OF THE EMPLOYEE. IN THE EVENT
12 THAT THE AMOUNT REQUIRED TO BE TRANSFERRED IS GREATER THAN
13 THE TOTAL EMPLOYER CONTRIBUTIONS MADE ON BEHALF OF THE
14 EMPLOYEE, THE TOTAL EMPLOYER CONTRIBUTIONS MADE ON BEHALF OF
15 THE EMPLOYEE SHALL BE TRANSFERRED TO THE SYSTEM AND THE
16 PHILADELPHIA REGIONAL PORT AUTHORITY SHALL BE REQUIRED TO
17 TRANSFER TO THE SYSTEM THE ADDITIONAL FUNDS NEEDED TO SATISFY
18 THE REQUIREMENTS OF THE CALCULATION IN THIS PARAGRAPH. IF THE
19 AMOUNT REQUIRED TO BE TRANSFERRED IS LESS THAN THE TOTAL
20 EMPLOYER CONTRIBUTIONS MADE ON BEHALF OF THE EMPLOYEE, THE
21 PENSION PLAN OR RETIREMENT SYSTEM IN WHICH THE EMPLOYEE WAS
22 ENROLLED PRIOR TO THE CREATION OF THE PHILADELPHIA REGIONAL
23 PORT AUTHORITY MAY RETAIN THE AMOUNT NOT NEEDED FOR TRANSFER.
24 (3) IF THE MEMBER DIES ON OR AFTER THE EFFECTIVE DATE OF
25 THIS SUBSECTION AND BEFORE JANUARY 1, 1992, WITHOUT MAKING
26 THE TRANSFER OR REQUESTING THE TRANSFER NECESSARY TO RECEIVE
27 CREDIT FOR THE PRIOR SERVICE AUTHORIZED IN PARAGRAPH (2), THE
28 PERSONAL REPRESENTATIVE FOR THE ESTATE OF THE MEMBER MAY MAKE
29 ANY TRANSFER OR MAY REQUEST THAT THE PHILADELPHIA REGIONAL
30 PORT AUTHORITY MAKE ANY TRANSFER NECESSARY TO RECEIVE CREDIT
19890H1069B4095 - 19 -
1 FOR THE PRIOR SERVICE. IN ORDER TO RECEIVE CREDIT FOR THE
2 PRIOR SERVICE, THE TRANSFER MUST BE MADE BY MARCH 31, 1992.
3 IF THE MEMBER DIES AFTER DECEMBER 31, 1991, WITHOUT MAKING
4 THE TRANSFER OR WITHOUT REQUESTING THE TRANSFER NECESSARY TO
5 RECEIVE CREDIT FOR THE PRIOR SERVICE AUTHORIZED IN PARAGRAPH
6 (2), NEITHER THE MEMBER NOR HIS ESTATE SHALL RECEIVE CREDIT
7 FOR THE PRIOR SERVICE.
8 (4) ANY PERSON WHO BECAME EMPLOYED BY THE PHILADELPHIA
9 REGIONAL PORT AUTHORITY BETWEEN JULY 10, 1989, AND PASSAGE OF
10 THIS ACT AND WHO BECOMES A STATE EMPLOYEE, AS DEFINED IN
11 SECTION 5102, SHALL BE ELIGIBLE TO OBTAIN RETIREMENT CREDIT
12 FOR SERVICE FROM THE DATE OF EMPLOYMENT WITH THE PHILADELPHIA
13 REGIONAL PORT AUTHORITY, PROVIDED THAT THE CONTRIBUTIONS ARE
14 MADE IN ACCORDANCE WITH SECTIONS 5501, 5504, 5505.1 AND 5506.
15 SECTION 9. SECTIONS 5304(C)(2) AND (3) AND 5308.1 OF TITLE
16 71 ARE AMENDED TO READ:
17 § 5304. CREDITABLE NONSTATE SERVICE.
18 * * *
19 (C) LIMITATIONS ON NONSTATE SERVICE.--CREDITABLE NONSTATE
20 SERVICE CREDIT SHALL BE LIMITED TO:
21 * * *
22 (2) OTHER MILITARY SERVICE [NOT EXCEEDING FIVE YEARS]:
23 PROVIDED THAT A MEMBER WITH MULTIPLE SERVICE MAY NOT PURCHASE
24 MORE THAN A COMBINED TOTAL OF FIVE YEARS OF MILITARY SERVICE
25 BETWEEN THE SYSTEM AND THE PUBLIC SCHOOL EMPLOYEES'
26 RETIREMENT SYSTEM;
27 [(3) SERVICE IN ANY PUBLIC SCHOOL OR PUBLIC EDUCATIONAL
28 INSTITUTION IN ANY STATE OTHER THAN THIS COMMONWEALTH OR IN
29 ANY TERRITORY OR AREA UNDER THE JURISDICTION OF THE UNITED
30 STATES; OR SERVICE AS AN ADMINISTRATOR, TEACHER, OR
19890H1069B4095 - 20 -
1 INSTRUCTOR IN THE FIELD OF EDUCATION FOR ANY AGENCY OR
2 DEPARTMENT OF THE GOVERNMENT OF THE UNITED STATES, WHETHER OR
3 NOT SUCH AREA WAS UNDER THE JURISDICTION OF THE UNITED
4 STATES, THE TOTAL OF SUCH SERVICE NOT EXCEEDING THE LESSER OF
5 TEN YEARS OR THE NUMBER OF YEARS OF ACTIVE MEMBERSHIP IN THE
6 SYSTEM, AS AN OFFICER OR EMPLOYEE OF THE DEPARTMENT OF
7 EDUCATION OR AS AN ADMINISTRATOR, TEACHER, OR INSTRUCTOR
8 EMPLOYED IN ANY STATE-OWNED EDUCATIONAL INSTITUTION OR THE
9 PENNSYLVANIA STATE UNIVERSITY;]
10 (3) IN THE CASE OF AN ACADEMIC ADMINISTRATOR, TEACHER OR
11 INSTRUCTOR EMPLOYED IN THE DEPARTMENT OF EDUCATION, THE STATE
12 SYSTEM OF HIGHER EDUCATION, ANY STATE-OWNED EDUCATIONAL
13 INSTITUTION OR THE PENNSYLVANIA STATE UNIVERSITY,
14 (I) NONSTUDENT SERVICE AS AN ACADEMIC ADMINISTRATOR,
15 TEACHER OR INSTRUCTOR IN ANY PUBLIC SCHOOL OR PUBLIC
16 EDUCATIONAL INSTITUTION IN ANY STATE OTHER THAN THIS
17 COMMONWEALTH; OR
18 (II) NONSTUDENT SERVICE AS AN ACADEMIC
19 ADMINISTRATOR, TEACHER OR INSTRUCTOR IN THE FIELD OF
20 EDUCATION FOR ANY AGENCY OR DEPARTMENT OF THE FEDERAL
21 GOVERNMENT, WHETHER OR NOT SUCH AREA WAS UNDER THE
22 JURISDICTION OF THE UNITED STATES, PROVIDED THAT THE
23 TOTAL AMOUNT OF SERVICE CREDITABLE UNDER THIS PARAGRAPH
24 SHALL NOT EXCEED THE LESSER OF TEN YEARS OR THE NUMBER OF
25 YEARS OF ACTIVE MEMBERSHIP IN THE SYSTEM AS AN ACADEMIC
26 ADMINISTRATOR, TEACHER OR INSTRUCTOR IN THE DEPARTMENT OF
27 EDUCATION, STATE SYSTEM OF HIGHER EDUCATION, ANY STATE-
28 OWNED EDUCATIONAL INSTITUTION OR THE PENNSYLVANIA STATE
29 UNIVERSITY;
30 * * *
19890H1069B4095 - 21 -
1 § 5308.1. ELIGIBILITY FOR SPECIAL EARLY RETIREMENT.
2 NOTWITHSTANDING ANY PROVISIONS OF THIS TITLE TO THE CONTRARY,
3 FOR THE PERIOD ONLY OF JULY 1, 1985, TO [SEPTEMBER 30, 1991]
4 JUNE 30, 1993, THE FOLLOWING SPECIAL EARLY RETIREMENT PROVISIONS
5 SHALL BE APPLICABLE TO SPECIFIED ELIGIBLE MEMBERS AS FOLLOWS:
6 (1) DURING THE PERIOD OF JULY 1, 1985, TO [SEPTEMBER 30,
7 1991] JUNE 30, 1993, AN ACTIVE MEMBER WHO HAS ATTAINED THE
8 AGE OF AT LEAST 53 YEARS AND HAS ACCRUED AT LEAST 30
9 ELIGIBILITY POINTS SHALL BE ENTITLED, UPON TERMINATION OF
10 STATE SERVICE AND COMPLIANCE WITH SECTION 5907(F) (RELATING
11 TO RIGHTS AND DUTIES OF STATE EMPLOYEES AND MEMBERS), TO
12 RECEIVE A MAXIMUM SINGLE LIFE ANNUITY CALCULATED UNDER
13 SECTION 5702 (RELATING TO MAXIMUM SINGLE LIFE ANNUITY)
14 WITHOUT A REDUCTION BY VIRTUE OF AN EFFECTIVE DATE OF
15 RETIREMENT WHICH IS UNDER THE SUPERANNUATION AGE.
16 (2) DURING THE PERIOD OF JULY 1, 1985, TO [SEPTEMBER 30,
17 1991] JUNE 30, 1993, AN ACTIVE MEMBER WHO HAS ATTAINED THE
18 AGE OF AT LEAST 50 YEARS BUT NOT GREATER THAN 53 YEARS AND
19 HAS ACCRUED AT LEAST 30 ELIGIBILITY POINTS SHALL BE ENTITLED,
20 UPON TERMINATION OF STATE SERVICE AND COMPLIANCE WITH SECTION
21 5907(F), TO RECEIVE A MAXIMUM SINGLE LIFE ANNUITY CALCULATED
22 UNDER SECTION 5702 WITH A REDUCTION BY VIRTUE OF AN EFFECTIVE
23 DATE OF RETIREMENT WHICH IS UNDER THE SUPERANNUATION AGE OF A
24 PERCENTAGE FACTOR WHICH SHALL BE DETERMINED BY MULTIPLYING
25 THE NUMBER OF MONTHS, INCLUDING A FRACTION OF A MONTH AS A
26 FULL MONTH, BY WHICH THE EFFECTIVE DATE OF RETIREMENT
27 PRECEDES THE ATTAINMENT OF AGE 53 BY 0.25%.
28 SECTION 10. SECTION 5505 OF TITLE 71 IS AMENDED BY ADDING A
29 SUBSECTION TO READ:
30 § 5505. CONTRIBUTIONS FOR THE PURCHASE OF CREDIT FOR CREDITABLE
19890H1069B4095 - 22 -
1 NONSTATE SERVICE.
2 * * *
3 (G) JUSTICE OF THE PEACE SERVICE.--CONTRIBUTIONS ON ACCOUNT
4 OF CREDIT FOR SERVICE AS A JUSTICE OF THE PEACE SHALL BE
5 DETERMINED BY THE BOARD TO BE EQUAL TO THE AMOUNT HE OR SHE
6 WOULD HAVE PAID AS EMPLOYEE CONTRIBUTIONS TOGETHER WITH
7 STATUTORY INTEREST TO DATE OF PURCHASE HAD HE OR SHE BEEN A
8 STATE EMPLOYEE DURING HIS OR HER PERIOD OF SERVICE AS A JUSTICE
9 OF THE PEACE FOR THE COMMONWEALTH PLUS THE AMOUNT DETERMINED BY
10 APPLYING THE COMMONWEALTH NORMAL CONTRIBUTION RATE FOR ACTIVE
11 MEMBERS AT THE BEGINNING OF THE DISTRICT JUSTICE SYSTEM AS OF
12 JANUARY 1970 TO THE STARTING SALARY OF THE DISTRICT JUSTICE FOR
13 THE MAGISTERIAL DISTRICT IN WHICH THE MEMBER WAS ELECTED DATING
14 FROM THE BEGINNING OF THE DISTRICT JUSTICE SYSTEM AS OF JANUARY
15 1970 AND MULTIPLYING THE RESULT BY THE NUMBER OF YEARS AND
16 FRACTIONAL PART OF A YEAR OF CREDITABLE SERVICE BEING PURCHASED
17 TOGETHER WITH STATUTORY INTEREST FROM ENTRY INTO STATE SERVICE
18 AS A DISTRICT JUSTICE TO THE DATE OF PURCHASE. THE AMOUNT SO
19 DETERMINED BY THE STATE EMPLOYEE RETIREMENT BOARD TO BE PAID
20 INTO THE STATE EMPLOYEE RETIREMENT SYSTEM SHALL BE THE
21 OBLIGATION OF THE JUSTICE WHO REQUESTED CREDIT FOR PREVIOUS
22 SERVICE AS A JUSTICE OF THE PEACE FOR THE COMMONWEALTH PRIOR TO
23 1970. A JUSTICE OF THE PEACE DESIRING TO PURCHASE HIS OR HER
24 SERVICE TIME PRIOR TO 1970 SHALL HAVE BEEN ELECTED OR APPOINTED
25 A DISTRICT JUSTICE ANY TIME DURING OR AFTER 1970. THE CLASS THAT
26 HE OR SHE IS TO ENTER IN THE PENSION SYSTEM SHALL BE DETERMINED
27 BY THE TIME OF HIS OR HER ENTRY INTO THE DISTRICT JUSTICE
28 SYSTEM. IT SHALL BE INCUMBENT UPON THE DISTRICT JUSTICE TO
29 CERTIFY TO THE BOARD WITH A COPY OF HIS OR HER COMMISSION OR
30 COMMISSIONS THE AMOUNT OF TIME THAT HE OR SHE SERVED THE
19890H1069B4095 - 23 -
1 COMMONWEALTH AS A JUSTICE OF THE PEACE. THE SALARY DOLLAR AMOUNT
2 THAT SHALL BE USED IN THE FORMULA FOR DETERMINING THE MEMBER'S
3 CONTRIBUTIONS SHALL BE EQUAL TO THE STARTING SALARY OF THE
4 DISTRICT JUSTICE FOR THE MAGISTERIAL DISTRICT IN WHICH HE OR SHE
5 WAS ELECTED, DATING FROM THE BEGINNING OF THE DISTRICT JUSTICE
6 SYSTEM AS OF JANUARY 1970. IN NO EVENT SHALL SUCH AN AMOUNT BE
7 THE OBLIGATION OF THE COMMONWEALTH OR THE COUNTY IN WHICH THE
8 JUSTICE SERVED.
9 SECTION 11. SECTIONS 5508(B), 5901(B) AND (E), 5902(A), (B)
10 AND (H) AND 5903(A) AND (B) OF TITLE 71 ARE AMENDED TO READ:
11 § 5508. ACTUARIAL COST METHOD.
12 * * *
13 (B) EMPLOYER NORMAL CONTRIBUTION RATE.--THE EMPLOYER NORMAL
14 CONTRIBUTION RATE SHALL BE DETERMINED AFTER EACH ACTUARIAL
15 VALUATION ON THE BASIS OF AN ANNUAL [5 1/2%] INTEREST RATE AND
16 SUCH MORTALITY AND OTHER TABLES AS SHALL BE ADOPTED BY THE BOARD
17 IN ACCORDANCE WITH GENERALLY ACCEPTED ACTUARIAL PRINCIPLES.
18 UNTIL ALL ACCRUED LIABILITY CONTRIBUTIONS HAVE BEEN COMPLETED,
19 THE EMPLOYER NORMAL CONTRIBUTION RATE SHALL BE DETERMINED AS A
20 LEVEL PERCENTAGE OF THE COMPENSATION OF THE AVERAGE NEW ACTIVE
21 MEMBER, WHICH PERCENTAGE, IF CONTRIBUTED ON THE BASIS OF HIS
22 PROSPECTIVE COMPENSATION THROUGH HIS ENTIRE PERIOD OF ACTIVE
23 STATE SERVICE, WOULD BE SUFFICIENT TO FUND THE LIABILITY FOR ANY
24 PROSPECTIVE BENEFIT PAYABLE TO HIM, EXCEPT A SUPPLEMENTAL
25 BENEFIT AS PROVIDED IN SECTION 5708 (RELATING TO SUPPLEMENTAL
26 ANNUITIES), IN EXCESS OF THAT PORTION FUNDED BY HIS PROSPECTIVE
27 MEMBER CONTRIBUTIONS. AFTER ALL ACCRUED LIABILITY CONTRIBUTIONS
28 HAVE BEEN COMPLETED, THE EMPLOYER NORMAL CONTRIBUTION RATE SHALL
29 BE DETERMINED BY DEDUCTING FROM THE PRESENT VALUE OF THE
30 LIABILITIES FOR ALL PROSPECTIVE BENEFITS, EXCEPT SUPPLEMENTAL
19890H1069B4095 - 24 -
1 BENEFITS AS PROVIDED IN SECTION 5708, THE SUM OF THE TOTAL
2 ASSETS IN THE FUND ON THE VALUATION DATE, EXCLUDING THE BALANCE
3 IN THE SUPPLEMENTAL ANNUITY ACCOUNT, AND THE PRESENT VALUE OF
4 PROSPECTIVE MEMBER CONTRIBUTIONS, AND DIVIDING THE REMAINDER BY
5 THE PRESENT VALUE OF THE FUTURE COMPENSATION OF ALL ACTIVE
6 MEMBERS.
7 * * *
8 § 5901. THE STATE EMPLOYEES' RETIREMENT BOARD.
9 * * *
10 (B) APPOINTMENTS AND TERMS.--THE TWO MEMBERS ELECTED BY THE
11 BOARD AND SERVING ON THE EFFECTIVE DATE OF THIS TITLE SHALL
12 CONTINUE TO SERVE UNTIL THE EXPIRATION OF THEIR RESPECTIVE
13 TERMS. THE MEMBERS OF THE SENATE SHALL BE APPOINTED BY THE
14 PRESIDENT PRO TEMPORE OF THE SENATE AND SHALL CONSIST OF A
15 MAJORITY AND A MINORITY MEMBER. THE MEMBERS OF THE HOUSE OF
16 REPRESENTATIVES SHALL BE APPOINTED BY THE SPEAKER OF THE HOUSE
17 OF REPRESENTATIVES AND SHALL CONSIST OF A MAJORITY AND A
18 MINORITY MEMBER. THE LEGISLATIVE MEMBERS SHALL SERVE ON THE
19 BOARD FOR THE DURATION OF THE TERMS FOR WHICH THEY WERE ELECTED.
20 OF THE REMAINING FOUR APPOINTEES, ONE SHALL BE APPOINTED FOR AN
21 INITIAL TERM OF TWO YEARS, ONE FOR AN INITIAL TERM OF THREE
22 YEARS, AND TWO FOR AN INITIAL TERM OF FOUR YEARS. A VACANCY
23 OCCURRING DURING THE TERM OF AN APPOINTED MEMBER SHALL BE FILLED
24 FOR THE UNEXPIRED TERM BY THE APPOINTMENT AND CONFIRMATION OF A
25 SUCCESSOR IN THE SAME MANNER AS HIS PREDECESSOR. [NO APPOINTED
26 MEMBER SHALL SERVE MORE THAN TWO CONSECUTIVE FULL TERMS.]
27 * * *
28 (E) CORPORATE POWER AND LEGAL ADVISOR.--FOR THE PURPOSES OF
29 THIS PART, THE BOARD SHALL POSSESS THE POWER AND PRIVILEGES OF A
30 CORPORATION. THE [ATTORNEY GENERAL OF THE COMMONWEALTH] COUNSEL
19890H1069B4095 - 25 -
1 EMPLOYED BY THE BOARD SHALL BE THE LEGAL ADVISOR OF THE BOARD.
2 § 5902. ADMINISTRATIVE DUTIES OF THE BOARD.
3 (A) EMPLOYEES.--THE SECRETARY, CLERICAL, AND OTHER EMPLOYEES
4 OF THE BOARD AND THEIR SUCCESSORS WHOSE POSITIONS ON THE
5 EFFECTIVE DATE OF THIS PART ARE UNDER THE CLASSIFIED SERVICE
6 PROVISIONS OF THE ACT OF AUGUST 5, 1941 (P.L.752, NO.286), KNOWN
7 AS THE ["]CIVIL SERVICE ACT["], SHALL CONTINUE UNDER SUCH
8 PROVISIONS. [THE] NOTWITHSTANDING ANY OTHER PROVISION OF LAW,
9 THE COMPENSATION OF ALL [OTHER] PERSONS APPOINTED SHALL BE
10 DETERMINED BY THE BOARD [AND SHALL BE CONSISTENT WITH THE
11 STANDARDS ESTABLISHED BY THE EXECUTIVE BOARD OF THIS
12 COMMONWEALTH]. THE SECRETARY SHALL ACT AS CHIEF ADMINISTRATIVE
13 OFFICER FOR THE BOARD. IN ADDITION TO OTHER POWERS AND DUTIES
14 CONFERRED UPON AND DELEGATED TO THE SECRETARY BY THE BOARD, THE
15 SECRETARY SHALL:
16 (1) SERVE AS THE ADMINISTRATIVE AGENT OF THE BOARD.
17 (2) SERVE AS LIAISON BETWEEN THE BOARD AND APPLICABLE
18 LEGISLATIVE COMMITTEES, THE TREASURY DEPARTMENT, THE
19 DEPARTMENT OF THE AUDITOR GENERAL, AND BETWEEN THE BOARD AND
20 THE INVESTMENT COUNSEL AND THE MORTGAGE SUPERVISOR IN
21 ARRANGING FOR INVESTMENTS TO SECURE MAXIMUM RETURNS TO THE
22 FUND.
23 (3) REVIEW AND ANALYZE PROPOSED LEGISLATION AND
24 LEGISLATIVE DEVELOPMENTS AFFECTING THE SYSTEM AND PRESENT
25 FINDINGS TO THE BOARD, LEGISLATIVE COMMITTEES, AND OTHER
26 INTERESTED GROUPS OR INDIVIDUALS.
27 (4) DIRECT THE MAINTENANCE OF FILES AND RECORDS AND
28 PREPARATION OF PERIODIC REPORTS REQUIRED FOR ACTUARIAL
29 EVALUATION STUDIES.
30 (5) RECEIVE INQUIRIES AND REQUESTS FOR INFORMATION
19890H1069B4095 - 26 -
1 CONCERNING THE SYSTEM FROM THE PRESS, COMMONWEALTH OFFICIALS,
2 STATE EMPLOYEES, THE GENERAL PUBLIC, RESEARCH ORGANIZATIONS,
3 AND OFFICIALS AND ORGANIZATIONS FROM OTHER STATES, AND
4 PROVIDE INFORMATION AS AUTHORIZED BY THE BOARD.
5 (6) SUPERVISE A STAFF OF ADMINISTRATIVE, TECHNICAL, AND
6 CLERICAL EMPLOYEES ENGAGED IN RECORD-KEEPING AND CLERICAL
7 PROCESSING ACTIVITIES IN MAINTAINING FILES OF MEMBERS,
8 ACCOUNTING FOR CONTRIBUTIONS, PROCESSING PAYMENTS TO
9 ANNUITANTS, [AND] PREPARING REQUIRED REPORTS, AND RETIREMENT
10 COUNSELING.
11 (B) PROFESSIONAL PERSONNEL.--THE BOARD SHALL CONTRACT FOR
12 THE SERVICES OF A CHIEF MEDICAL EXAMINER, AN ACTUARY, INVESTMENT
13 ADVISORS AND COUNSELORS, AND SUCH OTHER PROFESSIONAL PERSONNEL
14 AS IT DEEMS ADVISABLE. THE BOARD [MAY, WITH THE APPROVAL OF THE
15 ATTORNEY GENERAL,] SHALL HAVE THE POWER TO CONTRACT FOR LEGAL
16 SERVICES.
17 * * *
18 (H) REGULATIONS AND PROCEDURES.--THE BOARD SHALL, WITH THE
19 ADVICE OF THE [ATTORNEY GENERAL] BOARD COUNSEL AND THE ACTUARY,
20 ADOPT AND PROMULGATE RULES AND REGULATIONS FOR THE UNIFORM
21 ADMINISTRATION OF THE SYSTEM. THE ACTUARY SHALL APPROVE IN
22 WRITING ALL COMPUTATIONAL PROCEDURES USED IN THE CALCULATION OF
23 CONTRIBUTIONS AND BENEFITS PRIOR TO THEIR APPLICATION BY THE
24 BOARD.
25 * * *
26 § 5903. DUTIES OF THE BOARD TO ADVISE AND REPORT TO HEADS OF
27 DEPARTMENTS AND MEMBERS.
28 (A) MANUAL OF REGULATIONS.--THE BOARD SHALL, WITH THE ADVICE
29 OF THE ATTORNEY GENERAL AND THE ACTUARY, PREPARE AND PROVIDE,
30 WITHIN 90 DAYS OF THE EFFECTIVE DATE OF THIS PART, A MANUAL
19890H1069B4095 - 27 -
1 INCORPORATING RULES AND REGULATIONS CONSISTENT WITH THE
2 PROVISIONS OF THIS PART TO THE HEADS OF DEPARTMENTS [AND THEIR
3 RESPECTIVE RETIREMENT COUNSELORS] WHO SHALL MAKE THE INFORMATION
4 CONTAINED THEREIN AVAILABLE TO THE GENERAL MEMBERSHIP. THE BOARD
5 SHALL THEREAFTER ADVISE THE HEADS OF DEPARTMENTS WITHIN 90 DAYS
6 OF ANY CHANGES IN SUCH RULES AND REGULATIONS DUE TO CHANGES IN
7 THE LAW OR DUE TO CHANGES IN ADMINISTRATIVE POLICIES.
8 (B) MEMBER STATUS STATEMENTS AND CERTIFICATIONS.--THE BOARD
9 SHALL FURNISH ANNUALLY TO THE HEAD OF EACH DEPARTMENT ON OR
10 BEFORE APRIL 1, A STATEMENT FOR EACH MEMBER EMPLOYED IN SUCH
11 DEPARTMENT SHOWING THE TOTAL ACCUMULATED DEDUCTIONS STANDING TO
12 HIS CREDIT AS OF DECEMBER 31 OF THE PREVIOUS YEAR AND REQUESTING
13 THE MEMBER TO MAKE ANY NECESSARY CORRECTIONS OR REVISIONS
14 REGARDING HIS DESIGNATED BENEFICIARY. IN ADDITION, FOR EACH
15 MEMBER EMPLOYED IN ANY DEPARTMENT AND FOR WHOM THE [RETIREMENT
16 COUNSELOR] DEPARTMENT HAS FURNISHED THE NECESSARY INFORMATION,
17 THE BOARD SHALL CERTIFY THE NUMBER OF YEARS AND FRACTIONAL PART
18 OF A YEAR OF CREDITED SERVICE ATTRIBUTABLE TO EACH CLASS OF
19 SERVICE, THE NUMBER OF YEARS AND FRACTIONAL PART OF A YEAR
20 ATTRIBUTABLE TO SOCIAL SECURITY INTEGRATION CREDITS IN EACH
21 CLASS OF SERVICE AND, IN THE CASE OF A MEMBER ELIGIBLE TO
22 RECEIVE AN ANNUITY, THE BENEFIT TO WHICH HE IS ENTITLED UPON THE
23 ATTAINMENT OF SUPERANNUATION AGE.
24 * * *
25 SECTION 12. SECTION 5905 OF TITLE 71 IS AMENDED BY ADDING A
26 SUBSECTION TO READ:
27 § 5905. DUTIES OF THE BOARD REGARDING APPLICATIONS AND
28 ELECTIONS OF MEMBERS.
29 * * *
30 (C.1) TERMINATION OF SERVICE.--THE BOARD SHALL, IN THE CASE
19890H1069B4095 - 28 -
1 OF ANY MEMBER TERMINATING STATE SERVICE WHO IS ENTITLED TO AN
2 ANNUITY, ADVISE SUCH MEMBER IN WRITING OF ANY BENEFITS TO WHICH
3 HE MAY BE ENTITLED UNDER THE PROVISIONS OF THIS PART AND SHALL
4 HAVE THE MEMBER PREPARE, ON OR BEFORE THE DATE OF TERMINATION OF
5 STATE SERVICE ONE OF THE FOLLOWING THREE FORMS, A COPY OF WHICH
6 SHALL BE GIVEN TO THE MEMBER AND THE ORIGINAL OF WHICH SHALL BE
7 FILED WITH THE BOARD:
8 (1) AN APPLICATION FOR THE RETURN OF TOTAL ACCUMULATED
9 DEDUCTIONS; OR
10 (2) AN ELECTION TO VEST HIS RETIREMENT RIGHTS, AND IF HE
11 IS A JOINT COVERAGE MEMBER AND SO DESIRES, ELECT TO BECOME A
12 FULL COVERAGE MEMBER AND AGREE TO PAY WITHIN 30 DAYS OF THE
13 DATE OF TERMINATION OF SERVICE THE LUMP SUM REQUIRED; OR
14 (3) AN APPLICATION FOR AN IMMEDIATE ANNUITY, AND IF HE
15 DESIRES:
16 (I) AN ELECTION TO CONVERT HIS MEDICAL, MAJOR
17 MEDICAL AND HOSPITALIZATION INSURANCE COVERAGE TO THE
18 PLAN FOR STATE ANNUITANTS; AND
19 (II) IF HE IS A JOINT COVERAGE MEMBER, AN ELECTION
20 TO BECOME A FULL COVERAGE MEMBER AND AN AGREEMENT TO PAY
21 WITHIN 30 DAYS OF DATE OF TERMINATION OF SERVICE THE LUMP
22 SUM REQUIRED.
23 * * *
24 SECTION 13. SECTION 5906(F) AND (J) OF TITLE 71 ARE AMENDED
25 TO READ:
26 § 5906. DUTIES OF HEADS OF DEPARTMENTS.
27 * * *
28 [(F) RETIREMENT COUNSELOR.--THE HEAD OF DEPARTMENT SHALL
29 DESIGNATE AN EMPLOYEE OF HIS DEPARTMENT TO SERVE AS A RETIREMENT
30 COUNSELOR SUBJECT TO APPROVAL BY THE BOARD. SUCH RETIREMENT
19890H1069B4095 - 29 -
1 COUNSELOR SHALL ASSIST THE HEAD OF DEPARTMENT IN ADVISING THE
2 EMPLOYEES OF THE DEPARTMENT OF THEIR RIGHTS AND DUTIES AS
3 MEMBERS OF THE SYSTEM.]
4 * * *
5 (J) TERMINATION OF SERVICE.--THE HEAD OF DEPARTMENT SHALL,
6 IN THE CASE OF ANY MEMBER TERMINATING STATE SERVICE WHO IS
7 INELIGIBLE FOR AN IMMEDIATE ANNUITY, ADVISE SUCH MEMBER IN
8 WRITING OF ANY BENEFITS TO WHICH HE MAY BE ENTITLED UNDER THE
9 PROVISIONS OF THIS PART AND SHALL HAVE THE MEMBER PREPARE, ON OR
10 BEFORE THE DATE OF TERMINATION OF STATE SERVICE [ONE OF THE
11 FOLLOWING THREE FORMS, A COPY OF WHICH SHALL BE GIVEN TO THE
12 MEMBER AND THE ORIGINAL OF WHICH SHALL BE FILED WITH THE BOARD:
13 (1)] AN APPLICATION FOR THE RETURN OF TOTAL ACCUMULATED
14 DEDUCTIONS[; OR
15 (2) AN ELECTION TO VEST HIS RETIREMENT RIGHTS, AND IF HE
16 IS A JOINT COVERAGE MEMBER AND SO DESIRES, ELECT TO BECOME A
17 FULL COVERAGE MEMBER AND AGREE TO PAY WITHIN 30 DAYS OF THE
18 DATE OF TERMINATION OF SERVICE THE LUMP SUM REQUIRED; OR
19 (3) AN APPLICATION FOR AN IMMEDIATE ANNUITY; AND IF HE
20 DESIRES,
21 (I) AN ELECTION TO CONVERT HIS MEDICAL, MAJOR
22 MEDICAL, AND HOSPITALIZATION INSURANCE COVERAGE TO THE
23 PLAN FOR STATE ANNUITANTS; AND
24 (II) IF HE IS A JOINT COVERAGE MEMBER, AN ELECTION
25 TO BECOME A FULL COVERAGE MEMBER AND AN AGREEMENT TO PAY
26 WITHIN 30 DAYS OF DATE OF TERMINATION OF SERVICE THE LUMP
27 SUM REQUIRED].
28 * * *
29 SECTION 14. SECTION 5908 OF TITLE 71 IS AMENDED BY ADDING A
30 SUBSECTION TO READ:
19890H1069B4095 - 30 -
1 § 5908. RIGHTS AND DUTIES OF ANNUITANTS.
2 * * *
3 (D) ESTABLISHING CONTINUED DISABILITY.--IN ALL INSTANCES,
4 THE ANNUITANT SHALL HAVE THE BURDEN OF ESTABLISHING CONTINUED
5 DISABILITY.
6 SECTION 15. SECTION 5931(O) AND (P) OF TITLE 71 ARE AMENDED
7 TO READ:
8 § 5931. MANAGEMENT OF FUND AND ACCOUNTS.
9 * * *
10 (O) [LIMITED PARTNERSHIPS AND SEPARATE ACCOUNTS] HOLDING
11 ENTITIES FOR AUTHORIZED INVESTMENTS.--THE BOARD MAY [INVEST IN]
12 MAKE ANY INVESTMENTS AUTHORIZED BY THIS [SECTION] PART OR OTHER
13 LAW BY BECOMING A LIMITED PARTNER IN PARTNERSHIPS THAT WILL HOLD
14 SUCH INVESTMENTS, OR BY [PARTICIPATING] ACQUIRING SHARES OR
15 UNITS OF PARTICIPATION OR OTHERWISE PARTICIPATING BENEFICIALLY
16 IN BANK COLLECTIVE TRUSTS OR IN SEPARATE ACCOUNTS OF ANY
17 INSURANCE COMPANY AUTHORIZED TO DO BUSINESS IN THIS
18 COMMONWEALTH, OR BY ACQUIRING STOCKS OR SHARES OR UNITS OF
19 PARTICIPATION OR OTHERWISE PARTICIPATING BENEFICIALLY IN THE
20 FUND OF ANY CORPORATION OR TRUST ORGANIZED OR EXISTING UNDER THE
21 LAWS OF THE UNITED STATES OR OF ANY STATE, DISTRICT OR TERRITORY
22 THEREOF WHICH FUND IS MAINTAINED FOR AND CONSISTS OF ASSETS OF
23 EMPLOYEES' BENEFIT TRUSTS (INCLUDING GOVERNMENTAL PLANS AS
24 DEFINED IN SECTION 414(D) OF THE FEDERAL INTERNAL REVENUE CODE
25 OF 1986 (26 U.S.C. § 414(D)), AS FROM TIME TO TIME AMENDED)
26 WHICH MEET THE REQUIREMENTS FOR QUALIFICATION UNDER SECTION 401
27 OF THE INTERNAL REVENUE CODE (26 U.S.C. § 401), PROVIDED THAT,
28 IN [EITHER] ANY SUCH CASE, THE LIABILITY OF THE [FUND] STATE
29 EMPLOYEES' RETIREMENT FUND SHALL BE LIMITED TO THE AMOUNT OF
30 [THE] ITS INVESTMENT. IN THE CASE OF AUTHORIZED INVESTMENTS IN
19890H1069B4095 - 31 -
1 REAL ESTATE OR INTERESTS THEREIN, THE BOARD'S ACQUISITION OF THE
2 STOCK OR SHARES OF OR ITS OTHER PARTICIPATION BENEFICIALLY IN
3 THE FUND OF ANY SUCH VEHICLE (INCLUDING ANY ENTITY ORGANIZED AND
4 MAINTAINED AS A VEHICLE FOR AN INVESTMENT OR INVESTMENTS OF THE
5 BOARD EXCLUSIVELY) SHALL NOT BE DEEMED AN INVESTMENT IN THE
6 COMMON STOCK AS DEFINED IN SUBSECTION (I) OF ANY CORPORATION AS
7 DEFINED IN SUBSECTION (J) FOR THE PURPOSES OF ANY LIMITATION ON
8 INVESTMENT IN CORPORATE STOCKS SET FORTH IN SUBSECTION (H) OF
9 THIS SECTION. NOTHING IN THIS SUBSECTION SHALL BE DEEMED TO
10 SUPERSEDE THE LIMITATION ON INVESTMENT IN INSTITUTIONAL REAL
11 ESTATE FUND SET FORTH IN SUBSECTION (L).
12 (P) VENTURE CAPITAL.--THE PROVISIONS OF SUBSECTION (M)
13 NOTWITHSTANDING, VENTURE CAPITAL INVESTMENTS MADE THROUGH
14 LIMITED PARTNERSHIPS AND THROUGH SEPARATE ACCOUNTS SHALL BE
15 LIMITED TO NOT MORE THAN [1%] 2% OF THE BOOK VALUE OF THE TOTAL
16 ASSETS OF THE FUND. A VENTURE CAPITAL INVESTMENT SHALL BE MADE
17 ONLY IF SUCH INVESTMENT WILL ENHANCE THE GENERAL WELFARE OF THIS
18 COMMONWEALTH AND ITS CITIZENS THROUGH ECONOMIC DEVELOPMENT AND
19 MEETS THE STANDARD OF PRUDENCE SET FORTH IN SUBSECTION (M). AN
20 INVESTMENT SHALL BE DEEMED A VENTURE CAPITAL INVESTMENT IF IT
21 RESULTS IN THE ACQUISITION OF EQUITY INTERESTS OR A COMBINATION
22 OF DEBT AND EQUITY INTERESTS IN A BUSINESS WHICH IS EXPECTED TO
23 GROW SUBSTANTIALLY IN THE FUTURE AND IN WHICH THE EXPECTED
24 RETURN ON INVESTMENT IS TO COME PREDOMINANTLY FROM AN INCREASE
25 IN VALUE OF THE EQUITY INTEREST AND THAT ARE NOT HELD THROUGH OR
26 SECURED BY STOCK THAT IS AN AUTHORIZED INVESTMENT UNDER THE
27 AUTHORITY OF SUBSECTION (H) AND ARE NOT INTERESTS IN OR SECURED
28 BY REAL ESTATE.
29 SECTION 16. TITLE 71 IS AMENDED BY ADDING A SECTION TO READ:
30 § 5940. NORTHERN IRELAND-RELATED INVESTMENTS.
19890H1069B4095 - 32 -
1 (A) GENERAL RULE.--NOTWITHSTANDING ANY OTHER PROVISION OF
2 LAW, ON AND AFTER THE EFFECTIVE DATE OF THIS SECTION, ANY MONEYS
3 OR ASSETS OF THE FUND WHICH SHALL REMAIN OR BE INVESTED IN THE
4 STOCKS, SECURITIES OR OTHER OBLIGATIONS OF ANY INSTITUTION OR
5 COMPANY DOING BUSINESS IN OR WITH NORTHERN IRELAND, OR WITH
6 AGENCIES OR INSTRUMENTALITIES THEREOF, SHALL BE INVESTED SUBJECT
7 TO THE PROVISIONS OF SUBSECTION (C).
8 (B) ANNUAL REVIEW.--ON OR BEFORE JANUARY 1 OF EACH YEAR, THE
9 BOARD SHALL DETERMINE THE EXISTENCE OF AFFIRMATIVE ACTION TAKEN
10 BY INSTITUTIONS OR COMPANIES DOING BUSINESS IN NORTHERN IRELAND
11 TO ELIMINATE ETHNIC OR RELIGIOUS DISCRIMINATION BASED ON ACTIONS
12 TAKEN FOR:
13 (1) INCREASING THE REPRESENTATION OF INDIVIDUALS FROM
14 UNDERREPRESENTED RELIGIOUS GROUPS IN THE WORK FORCE,
15 INCLUDING MANAGERIAL, SUPERVISORY, ADMINISTRATIVE, CLERICAL
16 AND TECHNICAL JOBS.
17 (2) PROVIDING ADEQUATE SECURITY FOR THE PROTECTION OF
18 MINORITY EMPLOYEES BOTH AT THE WORKPLACE AND WHILE TRAVELING
19 TO AND FROM WORK.
20 (3) THE BANNING OF PROVOCATIVE RELIGIOUS OR POLITICAL
21 EMBLEMS FROM THE WORKPLACE.
22 (4) PUBLICLY ADVERTISING ALL JOB OPENINGS AND MAKING
23 SPECIAL RECRUITMENT EFFORTS TO ATTRACT APPLICANTS FROM
24 UNDERREPRESENTED RELIGIOUS GROUPS.
25 (5) PROVIDING THAT LAYOFF, RECALL AND TERMINATION
26 PROCEDURES SHOULD NOT IN PRACTICE FAVOR PARTICULAR RELIGIOUS
27 GROUPINGS.
28 (6) THE ABOLITION OF JOB RESERVATIONS, APPRENTICESHIP
29 RESTRICTIONS AND DIFFERENTIAL EMPLOYMENT CRITERIA WHICH
30 DISCRIMINATE ON THE BASIS OF RELIGION OR ETHNIC ORIGIN.
19890H1069B4095 - 33 -
1 (7) THE DEVELOPMENT OF TRAINING PROGRAMS THAT WILL
2 PREPARE SUBSTANTIAL NUMBERS OF CURRENT MINORITY EMPLOYEES FOR
3 SKILLED JOBS, INCLUDING THE EXPANSION OF EXISTING PROGRAMS
4 AND THE CREATION OF NEW PROGRAMS TO TRAIN, UPGRADE AND
5 IMPROVE THE SKILLS OF MINORITY EMPLOYEES.
6 (8) THE ESTABLISHMENT OF PROCEDURES TO ASSESS, IDENTIFY
7 AND ACTIVELY RECRUIT MINORITY EMPLOYEES WITH POTENTIAL FOR
8 FURTHER ADVANCEMENT.
9 (9) THE APPOINTMENT OF SENIOR MANAGEMENT STAFF MEMBERS
10 TO OVERSEE AFFIRMATIVE ACTION EFFORTS AND THE SETTING UP OF
11 TIMETABLES TO CARRY OUT AFFIRMATIVE ACTION PRINCIPLES.
12 (C) INVESTMENTS.--CONSISTENT WITH SOUND INVESTMENT POLICY,
13 THE BOARD SHALL INVEST THE ASSETS OF THE FUND IN SUCH A MANNER
14 THAT THE INVESTMENTS IN INSTITUTIONS DOING BUSINESS IN OR WITH
15 NORTHERN IRELAND SHALL REFLECT THE ADVANCES MADE BY SUCH
16 INSTITUTIONS IN ELIMINATING DISCRIMINATION AS ESTABLISHED
17 PURSUANT TO SUBSECTION (B).
18 SECTION 17. SECTION 5955 OF TITLE 71 IS AMENDED TO READ:
19 § 5955. CONSTRUCTION OF PART.
20 PENSION RIGHTS OF STATE EMPLOYEES SHALL BE DETERMINED SOLELY
21 BY THIS PART OR ANY AMENDMENT THERETO, AND NO COLLECTIVE
22 BARGAINING AGREEMENT NOR ANY ARBITRATION AWARD BETWEEN THE
23 COMMONWEALTH AND ITS EMPLOYEES SHALL BE CONSTRUED TO CHANGE ANY
24 OF THE PROVISIONS HEREIN. THE PROVISIONS OF THIS PART INSOFAR AS
25 THEY ARE THE SAME AS THOSE OF EXISTING LAW ARE INTENDED AS A
26 CONTINUATION OF SUCH LAWS AND NOT AS NEW ENACTMENTS. THE
27 PROVISIONS OF THIS PART SHALL NOT AFFECT ANY ACT DONE, LIABILITY
28 INCURRED, RIGHT ACCRUED OR VESTED, OR ANY SUIT OR PROSECUTION
29 PENDING OR TO BE INSTITUTED TO ENFORCE ANY RIGHT OR PENALTY OR
30 TO PUNISH ANY OFFENSE UNDER THE AUTHORITY OF ANY REPEALED LAWS.
19890H1069B4095 - 34 -
1 SECTION 18. ANY AND ALL AUTHORIZED INVESTMENTS OF THE PUBLIC
2 SCHOOL EMPLOYEES' RETIREMENT BOARD AND OF THE STATE EMPLOYEES'
3 RETIREMENT BOARD, RESPECTIVELY, WHICH ON THE EFFECTIVE DATE OF
4 THIS ACT ARE OWNED OR HELD THROUGH A VEHICLE AS DESCRIBED IN 24
5 PA.C.S. § 8521(N) (RELATING TO MANAGEMENT OF FUND AND ACCOUNTS)
6 OR 71 PA.C.S. § 5931(O) (RELATING TO MANAGEMENT OF FUND AND
7 ACCOUNTS), AS APPLICABLE, SHALL BE DEEMED TO HAVE BEEN LAWFULLY
8 MADE THROUGH SUCH VEHICLE AT INCEPTION.
9 SECTION 19. THE PROVISIONS OF SECTION 7 OF THE ACT OF JULY
10 9, 1981 (P.L.208, NO.66), KNOWN AS THE PUBLIC EMPLOYEE
11 RETIREMENT STUDY COMMISSION ACT, SHALL NOT APPLY TO THIS ACT.
12 SECTION 20. SECTION 502 OF THE ACT OF OCTOBER 15, 1980
13 (P.L.950, NO.164), KNOWN AS THE COMMONWEALTH ATTORNEYS ACT, IS
14 REPEALED INSOFAR AS IT PROVIDES FOR THE GENERAL COUNSEL TO BE
15 THE LEGAL ADVISOR TO THE STATE EMPLOYEES' RETIREMENT BOARD OR
16 THE PUBLIC SCHOOL EMPLOYEES' RETIREMENT BOARD.
17 SECTION 21. THE AMENDMENTS TO LIMITATIONS ON CREDITABLE
18 NONSCHOOL SERVICE IN SECTION 1 (24 PA.C.S. § 8304(B)(7)) SHALL
19 BE RETROACTIVE TO JANUARY 1, 1989, IN ORDER TO BE CONSISTENT
20 WITH THE AMENDMENT TO 71 PA.C.S. § 5304(C)(6) BY THE ACT OF
21 OCTOBER 21, 1988 (P.L.844, NO.112), ENTITLED "AN ACT AMENDING
22 TITLES 24 (EDUCATION) AND 71 (STATE GOVERNMENT) OF THE
23 PENNSYLVANIA CONSOLIDATED STATUTES, TO INCLUDE CERTAIN FEDERAL
24 SERVICE AS NONSTATE SERVICE; FURTHER PROVIDING FOR SPECIAL EARLY
25 RETIREMENT; PROVIDING FOR FURTHER SUPPLEMENTED ANNUITIES AND FOR
26 CERTAIN OPTIONAL BENEFITS; AND FURTHER PROVIDING FOR
27 COMPENSATION OF THE PUBLIC SCHOOL EMPLOYEES' RETIREMENT BOARD."
28 SECTION 22. WITHIN 90 DAYS OF THE EFFECTIVE DATE OF THIS
29 ACT, THE PUBLIC SCHOOL EMPLOYEES' RETIREMENT BOARD AND THE STATE
30 EMPLOYEES' RETIREMENT BOARD SHALL EACH EMPLOY COUNSEL FOR THE
19890H1069B4095 - 35 -
1 RESPECTIVE BOARDS.
2 SECTION 23. (A) ANY EMPLOYEE OF THE OFFICE OF ATTORNEY <--
3 GENERAL WHO COMES WITHIN THE DEFINITION OF "ENFORCEMENT OFFICER"
4 UNDER THE PROVISIONS OF THIS AMENDATORY ACT SHALL RECEIVE
5 CREDITED SERVICE AS AN ENFORCEMENT OFFICER FOR PREVIOUS SERVICE
6 IN ANOTHER AGENCY OF STATE GOVERNMENT IN WHICH HE PERFORMED
7 SERVICES NOW PERFORMED BY THE OFFICE OF ATTORNEY GENERAL AND FOR
8 SERVICE IN THE OFFICE OF ATTORNEY GENERAL PRIOR TO THE EFFECTIVE
9 DATE OF THIS AMENDATORY ACT.
10 (B) ANY PAROLE AGENT OR PAROLE WARRANT OFFICER OF THE
11 PENNSYLVANIA BOARD OF PROBATION AND PAROLE WHO COMES WITHIN THE
12 DEFINITION OF "ENFORCEMENT OFFICER" UNDER PROVISIONS OF THIS
13 AMENDATORY ACT SHALL RECEIVE CREDITED SERVICE AS AN ENFORCEMENT
14 OFFICER FOR SERVICE IN THE PENNSYLVANIA BOARD OF PROBATION AND
15 PAROLE PRIOR TO THE EFFECTIVE DATE OF THIS AMENDATORY ACT.
16 SECTION 23 24. THIS ACT SHALL TAKE EFFECT AS FOLLOWS: <--
17 (1) THE AMENDMENTS TO THE DEFINITION OF "RETIREMENT
18 COUNSELOR" IN 71 PA.C.S. § 5102 AND THE AMENDMENTS TO 71
19 PA.C.S. §§ 5902(A)(6), 5903(A) AND (B), 5905(C.1), REPEALING
20 71 PA.C.S. § 5906(F) AND AMENDING 71 PA.C.S. § 5906(J) SHALL
21 TAKE EFFECT ON THE DATE OF PUBLICATION IN THE PENNSYLVANIA
22 BULLETIN OF A CERTIFICATION BY THE STATE EMPLOYEES'
23 RETIREMENT BOARD THAT THE SEVEN-OFFICE STATEWIDE RETIREMENT
24 COUNSELING FIELD OFFICE NETWORK IS FULLY IMPLEMENTED.
25 (2) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT
26 IMMEDIATELY.
C28L24CHF/19890H1069B4095 - 36 -