PRINTER'S NO. 2614
No. 1892 Session of 2007
INTRODUCED BY HALUSKA, DeWEESE, BELFANTI, BRENNAN, CALTAGIRONE,
CAPPELLI, DALEY, FREEMAN, GRUCELA, HARHART, HARKINS,
HENNESSEY, JAMES, JOSEPHS, KOTIK, KULA, MAHONEY, M. O'BRIEN,
PETRARCA, READSHAW, SAINATO, SIPTROTH, STABACK, STERN, SURRA,
THOMAS, J. WHITE, WOJNAROSKI, YOUNGBLOOD, PETRONE AND COHEN,
OCTOBER 15, 2007
REFERRED TO COMMITTEE ON FINANCE, OCTOBER 15, 2007
AN ACT
1 Amending Title 71 (State Government) of the Pennsylvania
2 Consolidated Statutes, further providing for creditable
3 nonstate service and for contributions for the purchase of
4 credit.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Section 5304(c) of Title 71 of the Pennsylvania
8 Consolidated Statutes is amended by adding a paragraph and the
9 section is amended by adding a subsection to read:
10 § 5304. Creditable nonstate service.
11 * * *
12 (b.1) Prohibition.--In no event shall the service be
13 creditable for persons eligible under subsection (c)(9) if the
14 member has received, is entitled to receive, eligible to receive
15 now or in the future or is receiving retirement benefits for
16 such service or has retirement credit or has now or acquires in
17 the future retirement credit under a retirement system
1 administered and wholly or partially paid for by any other
2 governmental agency, private employer or labor organization. In
3 the event that nonstate service credit is granted for the
4 service and the member subsequently receives credit for the
5 service that is prohibited by this paragraph, the nonstate
6 service credited shall be canceled and any member contributions
7 and interest paid by the member under section 5505(i)(2) shall
8 be refunded to the member by the board.
9 (c) Limitations on nonstate service.--Creditable nonstate
10 service credit shall be limited to:
11 * * *
12 (9) Service by mine inspectors, electrical inspectors
13 and emergency response training specialists employed in
14 accordance with the act of July 17, 1961 (P.L.659, No.339),
15 known as the Pennsylvania Bituminous Coal Mine Act, or the
16 act of November 10, 1965 (P.L.721, No.346), known as the
17 Pennsylvania Anthracite Coal Mine Act. This service time may
18 be purchased for the period of previous employment in mining
19 required for employment and certification, if any, under the
20 Pennsylvania Bituminous Coal Mine Act or the Pennsylvania
21 Anthracite Coal Mine Act, as applicable, not exceeding five
22 years, provided that such service is certified by the
23 previous employer and contributions are agreed upon and made
24 in accordance with section 5505 (relating to contributions
25 for the purchase of credit for creditable nonstate service).
26 Persons eligible under this paragraph may purchase service
27 only after earning five eligibility points for service
28 performed as a State employee.
29 * * *
30 Section 2. Section 5505(d) of Title 71 is amended and the
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1 section is amended by adding a subsection to read:
2 § 5505. Contributions for the purchase of credit for creditable
3 nonstate service.
4 * * *
5 (d) Nonmilitary and nonmagisterial service.--Contributions
6 made pursuant to subsection (i) notwithstanding, contributions
7 on account of credit for creditable nonstate service other than
8 military and magisterial service, shall be determined by
9 applying the member's basic contribution rate, the additional
10 contribution rate plus the Commonwealth normal contribution rate
11 for active members at the time of entry subsequent to such
12 creditable nonstate service of the member into State service to
13 his compensation at the time of entry into State service and
14 multiplying the result by the number of years and fractional
15 part of a year of creditable nonstate service being purchased
16 together with statutory interest during all periods of
17 subsequent State and school service to the date of purchase.
18 Upon application for credit for such service payment shall be
19 made in a lump sum within 30 days or in the case of an active
20 member or eligible school employee who is an active member of
21 the Public School Employees' Retirement System it may be
22 amortized with statutory interest through salary deductions in
23 amounts agreed upon by the member and the board. The salary
24 deduction amortization plans agreed to by members and the board
25 may include a deferral of payment amounts and statutory interest
26 until the termination of school service or State service as the
27 board in its sole discretion decides to allow. The board may
28 limit salary deduction amortization plans to such terms as the
29 board in its sole discretion determines. In the case of an
30 eligible school employee who is an active member of the Public
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1 School Employees' Retirement System, the agreed upon salary
2 deduction shall be remitted to the Public School Employees'
3 Retirement Board, which shall certify and transfer to the board
4 the amounts paid.
5 * * *
6 (i) Purchase of service credit by certain mine workers.--
7 (1) The amount due for the purchase of credit for mining
8 service as authorized under subsection (a) shall be
9 determined by applying the member's basic contribution rate,
10 the additional contribution rate plus the Commonwealth normal
11 contribution rate for active members at the time of entry,
12 subsequent to such mining service, of the member into State
13 service to his average annual rate of compensation over the
14 first three years of such subsequent State service and
15 multiplying the result by the number of years of creditable
16 mining service being purchased together with statutory
17 interest during all periods of subsequent State service to
18 date of purchase. Applicants purchasing credit pursuant to
19 this subsection shall make only one purchase up to the total
20 amount for which they are eligible.
21 (2) The purchase payment may be made in a lump sum by
22 the member within 30 days of certification by the board of
23 the required purchase amount or may be amortized with
24 statutory interest through salary deductions in amounts
25 agreed upon by the member and the board. The salary deduction
26 amortization plans agreed to by members and the board may
27 include a deferral of payment amounts and statutory interest
28 until the termination of State service as the board in its
29 sole discretion decides to allow. The board may limit salary
30 deduction amortization plans to such terms as the board in
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1 its sole discretion determines.
2 Section 3. This act shall take effect in 120 days.
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