PRINTER'S NO. 1863
No. 1477 Session of 2003
INTRODUCED BY COY, BAKER, BEBKO-JONES, BUNT, CRUZ, DALEY,
J. EVANS, FABRIZIO, GEORGE, GRUCELA, HARHAI, JAMES, LAUGHLIN,
LEACH, MANN, McCALL, McGEEHAN, McILHATTAN, PETRARCA,
PISTELLA, REED, SCAVELLO, SHANER, SOLOBAY, SURRA, THOMAS,
TRAVAGLIO, WASHINGTON, WOJNAROSKI AND YOUNGBLOOD,
MAY 29, 2003
REFERRED TO COMMITTEE ON FINANCE, MAY 29, 2003
AN ACT
1 Amending Title 71 (State Government) of the Pennsylvania
2 Consolidated Statutes, providing service credits for campus
3 police officers of universities of the State System of Higher
4 Education.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. The definitions of "class of service multiplier"
8 and "superannuation age" in section 5102 of Title 71 of the
9 Pennsylvania Consolidated Statutes are amended and the section
10 is amended by adding a definition to read:
11 § 5102. Definitions.
12 The following words and phrases as used in this part, unless
13 a different meaning is plainly required by the context, shall
14 have the following meanings:
15 * * *
16 "Campus police officer." An employee of a State System of
17 Higher Education university who is commissioned and trained as a
1 police officer according to section 2416 of the act of April 9,
2 1929 (P.L.177, No.175), known as The Administrative Code of
3 1929.
4 "Class of service multiplier."
5 Class of Service Multiplier
6 A 1
7 AA for all purposes
8 except
9 calculating regular
10 member contributions
11 on compensation
12 paid prior to
13 January 1, 2002 1.25
14 AA for purposes
15 of calculating
16 regular member
17 contributions
18 on compensation
19 paid prior to
20 January 1, 2002 1
21 B .625
22 C 1
23 D 1.25
24 D-1 prior to
25 January 1, 1973 1.875
26 D-1 on and
27 subsequent to
28 January 1, 1973 1.731
29 D-2 prior to
30 January 1, 1973 2.5
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1 D-2 on and
2 subsequent to
3 January 1, 1973 1.731
4 D-3 prior to
5 January 1, 1973 3.75
6 D-3 on and
7 subsequent to
8 January 1, 1973 1.731 except prior to December
9 1, 1974 as applied to any
10 additional legislative
11 compensation as an officer
12 of the General Assembly
13 3.75
14 D-4 for all purposes
15 except
16 calculating
17 regular member
18 contributions
19 on compensation
20 paid prior to
21 July 1, 2001 1.5
22 D-4 for purposes of
23 calculating
24 regular member
25 contributions
26 on compensation
27 paid prior to
28 July 1, 2001 1
29 E, E-1 prior to
30 January 1, 1973 2 for each of the first ten
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1 years of judicial service,
2 and
3 1.5 for each subsequent year
4 of judicial service
5 E, E-1 on and
6 subsequent to
7 January 1, 1973 1.50 for each of the first
8 ten years of judicial
9 service and
10 1.125 for each subsequent year
11 of judicial service
12 E-2 prior to
13 September 1, 1973 1.5
14 E-2 on and
15 subsequent to
16 September 1, 1973 1.125
17 G 0.417
18 H 0.500
19 I 0.625
20 J 0.714
21 K 0.834
22 L 1.000
23 M 1.100
24 N 1.250
25 P 1
26 T-C (Public School 1
27 Employees'
28 Retirement Code)
29 * * *
30 "Superannuation age." Any age upon accrual of 35 eligibility
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1 points or age 60, except for a member of the General Assembly,
2 an enforcement officer, a correction officer, a psychiatric
3 security aide, a Delaware River Port Authority policeman, campus
4 police officer or an officer of the Pennsylvania State Police,
5 age 50, and, except for a member with Class G, Class H, Class I,
6 Class J, Class K, Class L, Class M or Class N service, age 55
7 upon accrual of 20 eligibility points.
8 * * *
9 Section 2. Sections 5303(b), 5306(a) and (b) and 5308(c) of
10 Title 71 are amended to read:
11 § 5303. Retention and reinstatement of service credits.
12 * * *
13 (b) Eligibility points for prospective credited service.--
14 (1) Every active member of the system or a multiple
15 service member who is a school employee and a member of the
16 Public School Employees' Retirement System on or after the
17 effective date of this part shall receive eligibility points
18 in accordance with section 5307 for current State service,
19 previous State service, or creditable nonstate service upon
20 compliance with sections 5501 (relating to regular member
21 contributions for current service), 5504 (relating to member
22 contributions for the purchase of credit for previous State
23 service or to become a full coverage member), 5505 (relating
24 to contributions for the purchase of credit for creditable
25 nonstate service), 5505.1 (relating to additional member
26 contributions) or 5506 (relating to incomplete payments).
27 Subject to the limitations in sections 5306.1 (relating to
28 election to become a Class AA member) and 5306.2 (relating to
29 elections by members of the General Assembly), the class or
30 classes of service in which the member may be credited for
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1 previous State service prior to the effective date of this
2 part shall be the class or classes in which he was or could
3 have at any time elected to be credited for such service,
4 provided however, that eligibility for Class P credit shall
5 be limited in accordance with section 5306 (relating to
6 classes of service). The class of service in which a member
7 shall be credited for service subsequent to the effective
8 date of this part shall be determined in accordance with
9 section 5306 [(relating to classes of service)].
10 (1.1) Every active member of the system who elects to
11 convert county service to State service pursuant to section
12 5303.1 (relating to election to convert county service to
13 State service) shall receive eligibility points in accordance
14 with section 5307 for converted county service upon
15 compliance with section 5303.1(b). The class or classes of
16 service in which the member may be credited for converted
17 county service shall be determined in accordance with section
18 5306(c).
19 (1.2) Every member of the system who elects to convert
20 school service to State service pursuant to section 5303.2
21 (relating to election to convert school service to State
22 service) shall receive eligibility points in accordance with
23 section 5307 for converted school service. The class or
24 classes of service in which the member may be credited for
25 converted school service shall be determined in accordance
26 with section 5306(d).
27 (2) A special vestee or person otherwise eligible to be
28 a special vestee who returns to State service or withdraws
29 his accumulated deductions pursuant to section 5311 (relating
30 to eligibility for refunds) or 5701 (relating to return of
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1 total accumulated deductions) shall receive or retain
2 eligibility points in accordance with paragraph (1) but upon
3 subsequent termination of State service shall only be
4 eligible to be an annuitant vestee or inactive member without
5 regard to previous status as a special vestee and without
6 regard to the provisions of this part providing for special
7 vestees.
8 (3) A special vestee or person otherwise eligible to be
9 a special vestee who becomes an active member of the Public
10 School Employees' Retirement System and elects multiple
11 service shall receive or retain eligibility points as
12 otherwise provided for in this part and 24 Pa.C.S. Pt. IV
13 (relating to retirement for school employees) but upon
14 subsequent termination of school service shall only be
15 eligible to be an annuitant, vestee or inactive member as
16 otherwise eligible as a multiple service member without
17 regard to previous status as a special vestee and without
18 regard to the provisions of this part providing for special
19 vestees.
20 * * *
21 § 5306. Classes of service.
22 (a) Class A membership.--A State employee, other than a
23 campus police officer, who is a member of Class A on the
24 effective date of this part or who becomes a member of the
25 system subsequent to the effective date of this part shall be
26 classified as a Class A member and receive credit for Class A
27 service upon payment of regular and additional member
28 contributions for Class A service, provided that the State
29 employee does not become a member of Class AA pursuant to
30 subsection (a.1) or a member of Class D-4 pursuant to subsection
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1 (a.2).
2 * * *
3 (b) Other class membership.--
4 (1) A State employee who is a member of a class of
5 service other than Class A on the effective date of this part
6 shall retain his membership in that class until such service
7 is discontinued; any service other than service as a campus
8 police officer thereafter shall be credited as Class A
9 service, Class AA service or Class D-4 service as provided
10 for in this section.
11 (2) A campus police officer shall be classified as a
12 Class P member and any service performed as a campus police
13 officer on or after the effective date of this paragraph
14 shall be credited as Class P service, provided however, that
15 an active member or inactive member on leave without pay who
16 is a campus police officer on the effective date of this
17 paragraph shall have all service as a campus police officer
18 credited as Class P service, including service as a campus
19 police officer previously credited as Class A service, and
20 further provided that any service of a member that is
21 credited as Class P service shall be credited as Class A
22 service if the member is an officer of the Pennsylvania State
23 Police on or after July 1, 1989.
24 * * *
25 § 5308. Eligibility for annuities.
26 * * *
27 (c) Disability annuity.--An active member or inactive member
28 on leave without pay who has credit for at least five years of
29 service or any active member or inactive member on leave without
30 pay who is an officer of the Pennsylvania State Police, a campus
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1 police officer or an enforcement officer shall, upon compliance
2 with section 5907(k), be entitled to a disability annuity if he
3 becomes mentally or physically incapable of continuing to
4 perform the duties for which he is employed and qualifies in
5 accordance with the provisions of section 5905(c)(1) (relating
6 to duties of the board regarding applications and elections of
7 members).
8 Section 3. Section 5508 of Title 71 is amended by adding a
9 subsection to read:
10 § 5508. Actuarial cost method.
11 * * *
12 (h) Determination of liability for Class P service.--
13 Notwithstanding any other provision of this part or other law,
14 the total addition accrued actuarial liability resulting from
15 Class P service performed before the effective date of this
16 subsection shall be determined by the actuary as part of the
17 first annual valuation made after the effective date of this
18 subsection. The resulting additional accrued actuarial liability
19 shall be paid by the State System of Higher Education in annual
20 payments over a period of 20 years from the first day of July,
21 coincident with or next following the first valuation made after
22 the effective date of this subsection. The amount of each annual
23 accrued liability contribution for Class P service shall be 5%
24 greater than the amount of such contribution for the previous
25 fiscal year.
26 Section 4. Sections 5702(a) and 5902(k) of Title 71 are
27 amended to read:
28 § 5702. Maximum single life annuity.
29 (a) General rule.--Any full coverage member who is eligible
30 to receive an annuity pursuant to the provisions of section
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1 5308(a) or (b) (relating to eligibility for annuities) who
2 terminates State service, or if a multiple service member who is
3 a school employee who is an active member of the Public School
4 Employees' Retirement System who terminates school service,
5 before attaining age 70 shall be entitled to receive a maximum
6 single life annuity attributable to his credited service and
7 equal to the sum of the following single life annuities
8 beginning at the effective date of retirement:
9 (1) A standard single life annuity multiplied by the sum
10 of the products, determined separately for each class of
11 service, obtained by multiplying the appropriate class of
12 service multiplier by the ratio of years of service credited
13 in that class to the total credited service. In case the
14 member on the effective date of retirement is under
15 superannuation age for any service, a reduction factor
16 calculated to provide benefits actuarially equivalent to an
17 annuity starting at superannuation age shall be applied to
18 the product determined for that service. The class of service
19 multiplier for any period of concurrent service shall be
20 multiplied by the proportion of total State and school
21 compensation during such period attributable to State
22 service. In the event a member has two multipliers for one
23 class of service the class of service multiplier to be used
24 for calculating benefits for that class shall be the average
25 of the two multipliers weighted by the proportion of
26 compensation attributable to each multiplier during the three
27 years of highest annual compensation in that class of
28 service: Provided, That in the case of a member of Class E-1,
29 a portion but not all of whose three years of highest annual
30 judicial compensation is prior to January 1, 1973, two class
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1 of service multipliers shall be calculated on the basis of
2 his entire judicial service, the one applying the judicial
3 class of service multipliers effective prior to January 1,
4 1973 and the second applying the class of service multipliers
5 effective subsequent to January 1, 1973. The average class of
6 service multiplier to be used for calculating benefits for
7 his judicial service shall be the average of the two
8 calculated multipliers weighted by the proportion of
9 compensation attributable to each of the calculated
10 multipliers during the three years of highest annual
11 compensation in that class of service[.]: Further provided,
12 That in the case of a member who has 20 years or more of
13 Class P service, the standard single life annuity shall be
14 calculated without including any years of Class P service
15 credit and the member in addition shall receive a single life
16 annuity equal to 50% of the member's final average salary if
17 the member has 20 years or more but less than 25 years of
18 Class P service and a single life annuity of 75% of the
19 member's final average salary if the member has 25 years or
20 more of Class P service. Any single life annuity based upon
21 20 years or more of Class P service shall be unreduced in the
22 event the member is under superannuation age.
23 (2) If eligible, a single life annuity of 2% of his
24 average noncovered salary for each year of social security
25 integration credit as provided for in section 5305 (relating
26 to social security integration credits) multiplied, if on the
27 effective date of retirement the member is under
28 superannuation age for any service, by the actuarially
29 determined reduction factor for that service.
30 (3) If eligible, a single life annuity which is
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1 actuarially equivalent to the regular and additional
2 accumulated deductions attributable to contributions as a
3 member of Class C, but not less than such annuity determined
4 as if the member were age 60 on the effective date of
5 retirement, actuarially reduced in the event the member is
6 under superannuation age on the effective date of retirement.
7 (4) If eligible, a single life annuity which is
8 actuarially equivalent to the amount by which his regular and
9 additional accumulated deductions attributable to any
10 credited service other than as a member of Class C are
11 greater than one-half of the actuarially equivalent value on
12 the effective date of retirement of the annuity as provided
13 in paragraph (1) attributable to service other than Class C
14 for which regular or joint coverage member contributions were
15 made.
16 (5) If eligible, a single life annuity which is
17 actuarially equivalent to the amount by which his social
18 security integration accumulated deductions are greater than
19 one-half of the actuarially equivalent value on the effective
20 date of retirement of the annuity provided for under
21 paragraph (2).
22 (6) If eligible, a single life annuity sufficient
23 together with the annuity provided for in paragraph (1) as a
24 Class A [and], Class AA and Class P member and the highest
25 annuity provided for in paragraph (2) to which he is
26 entitled, or at his option could have been entitled, to
27 produce that percentage of a standard single life annuity on
28 the effective date of retirement as determined by his total
29 years of credited service as a member of Class A [and], Class
30 AA and Class P, treating Class P service as Class A service,
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1 and by the following table:
2 Total Years of Percentage of
3 Credited Service Standard
4 as a Member of Single Life
5 Class A [and], Annuity
6 Class AA and Class P
7 35-40 100%
8 41 102%
9 42 104%
10 43 106%
11 44 108%
12 45 or more 110%
13 * * *
14 § 5902. Administrative duties of the board.
15 * * *
16 (k) Certification of employer contributions.--The board
17 shall, each year in addition to the itemized budget required
18 under section 5509 (relating to appropriations and assessments
19 by the Commonwealth), certify, as a percentage of the members'
20 payroll, the employers' contributions as determined pursuant to
21 section 5508 (relating to actuarial cost method) necessary for
22 the funding of prospective annuities for active members and the
23 annuities of annuitants and certify the rates and amounts of the
24 employers' normal contributions as determined pursuant to
25 section 5508(b), accrued liability contributions as determined
26 pursuant to section 5508(c) and 5508(h), supplemental annuities
27 contribution rate as determined pursuant to section 5508(e) and
28 the experience adjustment factor as determined pursuant to
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1 section 5508(f), which shall be paid to the fund and credited to
2 the appropriate accounts. These certifications shall be regarded
3 as final and not subject to modification by the Budget
4 Secretary.
5 * * *
6 Section 5. Section 5903 of Title 71 is amended by adding a
7 subsection to read:
8 § 5903. Duties of the board to advise and report to heads of
9 departments and members.
10 * * *
11 (g) Transfer to Class P membership certifications.--The
12 board shall certify to each campus police officer who is
13 transferred from Class A to Class P the amount of class service
14 that is so transferred.
15 Section 6. This act shall take effect in 90 days.
D9L71MSP/20030H1477B1863 - 14 -