PRINTER'S NO. 1391
No. 1175 Session of 2003
INTRODUCED BY BOYES, CLYMER, CORRIGAN, ADOLPH, BAKER, BELFANTI,
BROWNE, BUNT, CAPPELLI, CAUSER, CAWLEY, COY, CREIGHTON,
CURRY, DAILEY, J. EVANS, FABRIZIO, FAIRCHILD, FLICK, FORCIER,
GEORGE, GOODMAN, HARHAI, HARRIS, HENNESSEY, HERSHEY,
HUTCHINSON, LEVDANSKY, LEWIS, LYNCH, MACKERETH, McILHATTAN,
S. MILLER, NAILOR, PAYNE, RAYMOND, ROSS, RUBLEY, SAINATO,
SANTONI, SATHER, SAYLOR, SCHRODER, SCRIMENTI, SEMMEL, SHANER,
SOLOBAY, STERN, R. STEVENSON, E. Z. TAYLOR, TIGUE,
WASHINGTON, WATSON, WILT AND YUDICHAK, APRIL 15, 2003
REFERRED TO COMMITTEE ON EDUCATION, APRIL 15, 2003
AN ACT
1 Amending Title 24 (Education) of the Pennsylvania Consolidated
2 Statutes, defining "median employer contribution rate" and
3 "school district"; and further providing for administrative
4 duties of board and for duties of employers.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Section 8102 of Title 24 of the Pennsylvania
8 Consolidated Statutes is amended by adding definitions to read:
9 § 8102. Definitions.
10 The following words and phrases when used in this part shall
11 have, unless the context clearly indicates otherwise, the
12 meanings given to them in this section:
13 * * *
14 "Median employer contribution rate." The median of the total
15 employer contribution rate as determined under section 8328
1 (relating to actuarial cost method) for the current fiscal year
2 and the immediately preceding nine fiscal years.
3 * * *
4 "School district." A school district of any class as
5 provided for under the act of March 10, 1949 (P.L.30, No.14),
6 known as the Public School Code of 1949.
7 * * *
8 Section 2. Sections 8502 and 8506 of Title 24 are amended by
9 adding subsections to read:
10 § 8502. Administrative duties of board.
11 * * *
12 (q) Publication of median employer contribution rate.--No
13 later than December 31 of each year, the board shall determine
14 and publish the median employer contribution rate as a notice in
15 the Pennsylvania Bulletin.
16 § 8506. Duties of employers.
17 * * *
18 (k) Employer contribution reserve fund.--
19 (1) Each employer that is a school district shall
20 establish a special fund, which may be designated as an
21 employer contribution reserve fund, to which shall be
22 credited payments required under this section.
23 (2) During a fiscal year in which the total employer
24 contribution rate as determined under section 8328 (relating
25 to actuarial cost method) is less than the median employer
26 contribution rate, the school district shall make payments to
27 the employer contribution reserve fund each quarter of the
28 fiscal year in an amount equal to the difference between one-
29 half of the median employer contribution rate applied to the
30 total compensation during the pay periods in the preceding
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1 quarter of all its employees who were members of the system
2 during such period, including members on activated military
3 service leave, and one-half of the payment made by the school
4 district for the current quarter under section 8327(c)
5 (relating to payments by employers).
6 (3) (i) During a fiscal year in which the employer
7 contribution rate is greater than the median employer
8 contribution rate, the school district shall, except as
9 provided in subparagraph (ii), (iii) or (iv), expend
10 moneys from the employer contribution reserve fund to
11 make payments required under section 8327(c).
12 (ii) If there are no moneys in the employer
13 contribution reserve fund, the school district shall make
14 payments required under section 8327(c) from its general
15 fund.
16 (iii) If the amount of money in the employer
17 contribution reserve fund is less than the amount
18 necessary to make payments required under section
19 8327(c), the school district shall expend moneys from its
20 general fund to complete such payments.
21 (iv) If the amount of money in the employer
22 contribution reserve fund exceeds that which is necessary
23 to make payments under section 8327(c), all unexpended
24 moneys shall remain in the employer contribution reserve
25 fund.
26 (4) In the event that the moneys in the employer
27 contribution reserve fund exceed an amount equal to 6% of the
28 school district's employee payroll budget for the fiscal
29 year, all excess moneys shall be transferred to its general
30 fund.
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1 Section 3. The addition of 24 Pa.C.S. § 8506(k) shall apply
2 to the first fiscal year of a school district in which the total
3 employer contribution rate as determined under 24 Pa.C.S. § 8328
4 equals or exceeds the median employer contribution rate and each
5 fiscal year thereafter.
6 Section 4. This act shall take effect in 60 days.
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