PRINTER'S NO. 1844
No. 1411 Session of 2000
INTRODUCED BY RHOADES, CONTI, MADIGAN, WENGER, HOLL, HART, KUKOVICH, STAPLETON, BELL, STOUT, TARTAGLIONE, TOMLINSON, BODACK, THOMPSON, WHITE, KASUNIC, SCHWARTZ, SLOCUM, COSTA, BOSCOLA AND LEMMOND, APRIL 10, 2000
REFERRED TO FINANCE, APRIL 10, 2000
AN ACT 1 Amending Title 24 (Education) of the Pennsylvania Consolidated 2 Statutes, further providing for creditable nonschool service. 3 The General Assembly of the Commonwealth of Pennsylvania 4 hereby enacts as follows: 5 Section 1. Sections 8304(b) and 8324(e) of Title 24 of the 6 Pennsylvania Consolidated Statutes are amended to read: 7 § 8304. Creditable nonschool service. 8 * * * 9 (b) Limitations on nonschool service.--Creditable nonschool 10 service credit shall be limited to: 11 (1) Intervening military service. 12 (2) Military service other than intervening military 13 service and activated military service not exceeding five 14 years provided that a member with multiple service may not 15 purchase more than a total of five years of military service 16 in both the system and the State Employees' Retirement 17 System.
1 (3) Service in any public school or public educational 2 institution in any state other than this Commonwealth or in 3 any territory or area under the jurisdiction of the United 4 States. This paragraph includes service, prior to July 1, 5 1965, at a community college established under the act of 6 August 24, 1963 (P.L.1132, No.484), known as the Community 7 College Act of 1963. 8 (4) Service as an administrator, teacher, or instructor 9 in the field of public school education for any agency or 10 department of the government of the United States whether or 11 not such area was under the jurisdiction of the United 12 States. 13 (5) Previous service as an employee of a county board of 14 school directors which employment was terminated because of 15 the transfer of the administration of such service or of the 16 entire agency to a governmental entity. 17 (6) Previous service as a county employee as a nurse. 18 For every three years or major fraction thereof in previous 19 work experience, an individual may buy one year of creditable 20 service, not to exceed a total of five years. The purchase of 21 this service shall begin within three years of the employee's 22 eligibility to purchase this creditable service. 23 (7) (i) Service for the period of time spent on a 24 maternity leave of absence required by the employer, 25 which creditable service shall not exceed two years per 26 leave and shall be applicable only to a maternity leave 27 which was mandatory prior to May 17, 1975. The purchase 28 of this service shall begin within one year of the 29 employee's eligibility to purchase the creditable service 30 under this subparagraph as originally enacted by the act 20000S1411B1844 - 2 -
1 of August 5, 1991 (P.L.183, No.23), entitled "An act 2 amending Titles 24 (Education) and 71 (State Government) 3 of the Pennsylvania Consolidated Statutes, further 4 providing for the Public School Employees' Retirement 5 System and the State Employees' Retirement System; adding 6 and amending certain definitions; further providing for 7 membership in the systems, for creditable nonschool and 8 nonstate service and the purchase of credit, for 9 incentives for special early retirement, for 10 contributions to the retirement funds, for annuities and 11 the rights and duties of annuitants, for health insurance 12 premium assistance, for board membership and for the re- 13 amortization and management of the retirement funds." 14 (ii) Service for the period of time spent on a 15 maternity leave of absence required by the employer, 16 which creditable service shall not exceed two years per 17 leave and shall be applicable only to a maternity leave 18 that was mandatory and began after May 16, 1975, and 19 prior to November 1, 1978. The purchase of this service 20 shall begin within one year of the employee's eligibility 21 to purchase the creditable service under this 22 subparagraph. 23 (8) Service in the Cadet Nurse Corps with respect to any 24 period of training as a student or graduate nurse under a 25 plan approved under section 2 of the act of June 15, 1943 26 (Public Law 78-73, 57 Stat. 153), if the total period of 27 training under the plan was at least two years, the credit 28 for such service not to exceed three years. 29 (9) Previous work experience used by the member to 30 obtain certification as a vocational teacher under a 20000S1411B1844 - 3 -
1 nonbaccalaureate program. The previous work experience used 2 to obtain certification shall be verified by the Department 3 of Education upon request of the member and shall be 4 transmitted to the system. For every two years of the 5 previous work experience, an individual can buy one year of 6 creditable service, not to exceed a total of three years. A 7 fraction of a year of the previous work experience that is 8 equal to or greater than one-half shall be considered one 9 year for purposes of this paragraph. The previous work 10 experience shall not include time served in an 11 apprenticeship. The purchase of this service shall begin 12 within three years of the employee's eligibility to purchase 13 this creditable service. 14 * * * 15 § 8324. Contributions for purchase of credit for creditable 16 nonschool service. 17 * * * 18 (e) Creditable work experience.-- 19 (1) Contributions on account of T-C credit for 20 creditable work experience pursuant to section 8304(b)(6) 21 shall be the present value of the full actuarial cost of the 22 increase in the projected superannuation annuity caused by 23 the additional service credited on account of the purchase of 24 creditable work experience. [The amount paid for the purchase 25 of credit for creditable work experience shall not be payable 26 as a lump sum under section 8345(a)(4)(iii) (relating to 27 member's options).] Any individual eligible to receive an 28 annuity, excluding an annuity received under the Federal 29 Social Security Act (42 U.S.C. § 301 et seq.), in another 30 pension system, other than a military pension system, shall 20000S1411B1844 - 4 -
1 not be eligible to purchase this service. 2 (2) Contributions on account of T-C credit for 3 creditable work experience pursuant to section 8304(b)(9) 4 shall be the increase in the present value at the time of 5 purchase attributable to the additional service credited on 6 account of the purchase of such creditable work experience, 7 calculated on the basis of the average annual compensation 8 received during the first three years of credited school 9 service subsequent to such creditable work experience. 10 (3) The amount paid for the purchase of service under 11 this subsection shall not be payable as a lump sum under 12 section 8345(a)(4)(iii) (relating to member's options). 13 * * * 14 Section 2. This act shall take effect in 60 days. C27L24RZ/20000S1411B1844 - 5 -