71 Pa.C.S. § 5708.1 — PA Code / Title 71 / Chapter 57 / Section 5708.1
Additional supplemental annuities.
Status: in_force

(a) Benefits.--Commencing with the first monthly annuity payment after July 1, 1984, any eligible benefit recipient shall be entitled to receive an additional monthly supplemental annuity from the State Employees' Retirement System.

(b) Amount of additional supplemental annuity.--The amount of the additional monthly supplemental annuity shall be the total of the following:

(1) One dollar multiplied by the number of years of credited service.

(2) Two dollars multiplied by the number of years on retirement.

(3) Two percent of the monthly annuity being received on July 1, 1984, but not more than $20.

(c) Payment.--The additional monthly supplemental annuity provided for in this section shall be paid automatically unless the intended recipient files a written notice with the system requesting that the additional monthly supplemental annuity not be paid.

(d) Conditions.--The additional supplemental annuity provided for in this section shall be payable under the same terms and conditions as provided under the option plan in effect as of June 30, 1984.

(e) Benefits paid to beneficiaries or survivors.--No supplemental annuity enacted after the death of the member shall be payable to the beneficiary or survivor annuitant of the deceased former State employee. However, when the effective date of the supplement predates the death of the member by virtue of retroactivity of the supplement, payments which were retroactively due the deceased annuitant shall be paid to the beneficiary or designated survivor, as the case may be.

(f) Funding.--The actuary shall annually certify the amount of appropriations for the next fiscal year needed to fund, over a period of ten years from July 1, 2002, the additional monthly supplemental annuity provided for in this section, which amounts shall be paid during the period beginning July 1, 2002, and ending June 30, 2010. For fiscal years beginning on or after July 1, 2010, the additional liability provided in this section

shall be funded as part of the actuarial accrued liability as provided in section 5508 (relating to actuarial cost method).

(g) Definitions.--As used in this section the following words and phrases shall have the meanings given to them in this subsection:

"Eligible benefit recipient." A person who is receiving a superannuation, withdrawal or disability annuity and who commenced receipt of that annuity on or prior to July 1, 1982, but the supplemental annuities shall not be payable to an annuitant receiving a withdrawal annuity prior to the first day of July coincident with or following the annuitant's attainment of superannuation age.

"Years of credited service." The number of full years of service credited as a member for each benefit recipient, which years of service need not have been continuous.

"Years on retirement." The number of full years as of July 1, 1983 which have elapsed since the eligible benefit recipient most recently commenced the receipt of an annuity and during which the eligible benefit recipient received an annuity. (June 29, 1984, P.L.450, No.95, eff. imd.; Aug. 5, 1991, P.L.183, No.23, eff. imd.; May 17, 2001, P.L.26, No.9, eff. July 1, 2002; Nov. 23, 2010, P.L.1269, No.120, eff. imd.) 2010 Amendment. Act 120 amended subsec. (f). 1984 Amendment. Act 95 added section 5708.1. Cross References. Section 5708.1 is referred to in sections 5507, 5508, 5708.2, 5708.3, 5708.5, 5708.6, 5708.7, 5708.8, 5938 of this title.
71 Pa.C.S. § 5934 — PA Code / Title 71 / Chapter 59 / Section 5934
State accumulation account.
Status: in_force

The State accumulation account shall be the ledger account to which shall be credited all contributions of the Commonwealth or other employers whose employees are members of the system and made in accordance with the provisions of section 5507(a) or (d) (relating to contributions to the system by the Commonwealth and other employers) except that the amounts received under the provisions of the act of May 12, 1943 (P.L.259, No.120), and the amounts received under the provisions of the Liquor Code, act of April 12, 1951 (P.L.90, No.21), shall be credited to the State Police benefit account or the enforcement officers' benefit account as the case may be. All amounts transferred to the fund by county retirement systems or pension plans in accordance with the provisions of section 5507(c) also shall be credited to the State accumulation account. All amounts transferred to the fund by the Public School Employees' Retirement System in accordance with section 5303.2(e) (relating to election to convert school service to State service), except amounts credited to the members' savings account, and all amounts paid by the Department of Corrections in accordance with section 5303.2(f) also shall be credited to the State accumulation account. All advance payment of accrued liability contributions under section 5507(h) shall be credited to the State accumulation account. The State accumulation account shall be credited with valuation interest. The reserves necessary for the payment of annuities and death benefits resulting from membership in the system as approved by the board and as provided in Chapter 57 (relating to benefits) shall be transferred from the State accumulation account to the annuity reserve account provided for in section 5935 (relating to

annuity reserve account), except that the reserves necessary on account of a member who is an officer of the Pennsylvania State Police or an enforcement officer shall be transferred from the State accumulation account to the State Police benefit account provided for in section 5936 (relating to State Police benefit account) or to the enforcement officers' benefit account as provided for in section 5937 (relating to enforcement officers' benefit account) as the case may be. The reserves necessary for the payment of supplemental annuities in excess of those reserves credited to the supplemental annuity account on June 30, 2010, shall be transferred from the State accumulation account to the supplemental annuity account. In the event that supplemental annuities are increased by legislation enacted after December 31, 2009, the necessary reserves shall be transferred from the State accumulation account to the supplemental annuity account. (June 22, 1999, P.L.75, No.12, eff. imd.; Apr. 23, 2002, P.L.272, No.38, eff. imd.; Nov. 23, 2010, P.L.1269, No.120, eff. imd.; June 12, 2017, P.L.11, No.5, eff. imd.; Nov. 27, 2019, P.L.723, No.105, eff. imd.) 2019 Amendment. See section 9 of Act 105 in the appendix to this title for special provisions relating to applicability. Cross References. Section 5934 is referred to in sections 5932, 5935 of this title.
71 Pa.C.S. § 2305 — PA Code / Title 71 / Chapter 23 / Section 2305
Ratings of competitors.
Status: in_force

(a) Computation of rating.--The final earned rating of an individual competing in an examination shall be attained by computing the ratings for each part or parts of the examination, the qualifying point for which is set by the Office of Administration, according to weights for each test.

(b) Notification.--The Office of Administration shall provide notice by e-mail or other communication or method, if available, or, alternatively, by United States mail, to all competitors informing them whether they have attained a place on the eligible list and informing those who have attained a place on the eligible list of the number of individuals who took the examination, the number of individuals on the eligible list and the individual's relative standing on the eligible list.
71 Pa.C.S. § 2102 — PA Code / Title 71 / Chapter 21 / Section 2102
Purpose.
Status: in_force

The purpose of this part is to create and sustain a modern merit system of employment within the Commonwealth workforce that promotes the hiring, retention and promotion of highly qualified individuals, ensuring that government services are efficiently and effectively delivered to the public.
71 Pa.C.S. § 2604 — PA Code / Title 71 / Chapter 26 / Section 2604
Removal during probationary period.
Status: in_force

(a) General rule.--The appointing authority may remove an employee from the classified service before the expiration of the probationary period.

(b) Permanent separation.--An individual removed shall be considered permanently separated from the individual's position. The Office of Administration may, if the action is appropriate, place the name of the individual removed on the employment list of the appropriate class for future certification to other appointing authorities.
71 Pa.C.S. § 20 — PA Code / Title 71 / Chapter 20 / Section 20
Requirements for qualification as qualified pension plan.
Status: in_force

Nothing in this act which amends or supplements provisions of 51 Pa.C.S. or 71 Pa.C.S. Pt. XXV shall create in any member of the State Employees' Retirement System or in any other person claiming an interest in the account of any member a contractual right, either expressed or implied, in relation to requirements for qualification of the State Employees' Retirement System as a qualified pension plan under the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.), compliance with nor any construction of 38 U.S.C. Ch. 43 (relating to employment and reemployment rights of members of the uniformed services), known as the Uniformed Services Employment and Reemployment Rights Act or 71 Pa.C.S. Pt. XXV, as amended or supplemented, or any rules or regulations adopted under 71 Pa.C.S. Pt. XXV. The provisions of 71 Pa.C.S. Pt. XXV shall remain subject to the Internal Revenue Code of 1986, and the

General Assembly reserves to itself the further exercise of its legislative power to amend or supplement the provisions as may from time to time be required in order to maintain the qualification of the system as a qualified pension plan under section 401(a) and other applicable provisions of the Internal Revenue Code of 1986 and 38 U.S.C. Ch. 43.
71 Pa.C.S. § 5801 — PA Code / Title 71 / Chapter 58 / Section 5801
Establishment.
Status: in_force

(a) State Employees' Defined Contribution Plan.--The State Employees' Defined Contribution Plan is established. The board shall administer and manage the plan which shall be a defined contribution plan exclusively for the benefit of those State employees who participate in the plan and their beneficiaries within the meaning of and in conformity with IRC § 401(a). The board shall determine the terms and provisions of the plan not inconsistent with this part, the IRC or other applicable law and shall provide for the plan's administration.

(b) State Employees' Defined Contribution Trust.--The State Employees' Defined Contribution Trust is established as part of the plan. The trust shall be comprised of the individual investment accounts and all assets and money in those accounts, and any assets and money held by the board as part of the plan that are not allocated to individual investment accounts. The members of the board shall be the trustees of the trust, which shall be administered exclusively for the benefit of those State employees who participate in the plan and their beneficiaries within the meaning of and in conformity with IRC § 401(a). The board shall determine the terms and provisions of the trust not inconsistent with this part, the IRC or other applicable law and shall provide for the investment and administration of the trust.

(c) Assets held in trust.--All assets and income in the plan that have been or shall be withheld or contributed by the participants, the Commonwealth and other employers in accordance with this part shall be held in trust in any funding vehicle permitted by the applicable provisions of the IRC for the exclusive benefit of the participants and their beneficiaries

until such time as the funds are distributed to the participants or their beneficiaries in accordance with the terms of the plan document. The assets of the plan held in trust for the exclusive benefit of the participants and their beneficiaries may be used for the payment of the fees, costs and expenses related to the administration and investment of the plan and the trust.

(d) Name for transacting business.--All of the business of the plan shall be transacted, the trust invested, all requisitions for money drawn and payments made and all of its cash and securities and other property shall be held by the name of the "State Employees' Defined Contribution Plan." Notwithstanding any other law to the contrary, the board may establish a nominee registration procedure for the purpose of registering securities to facilitate the purchase, sale or other disposition of securities under the provisions of this part.
71 Pa.C.S. § 5306.6 — PA Code / Title 71 / Chapter 53 / Section 5306.6
Election to purchase nonintervening military service.
Status: in_force

(a) General rule.--A State employee who first becomes a State police officer on or after January 1, 2019, and before the effective date of this section, may elect to have nonintervening military service, as provided under section 5304(c)(2) (relating to creditable nonstate service), that is purchased while a State police officer apply toward the calculation of pension or retirement benefits or rights under the binding arbitration award issued under the act of June 24, 1968 (P.L.237, No.111), referred to as the Policemen and Firemen Collective Bargaining Act.

(b) Period for making election.--

(1) Except as provided under paragraph (2), a State police officer must make the election under subsection (a) by filing written notice with the board within 90 days after the effective date of this section or before the State police officer terminates service as a State police officer, whichever is first.

(2) A State police officer who may make an election under subsection (a) and who begins USERRA leave during the election period without having made an election under subsection (a) shall have the election period extended by the number of days on USERRA leave.

(c) Effect of election.--An election under subsection (a) shall permit a State police officer to purchase nonintervening military service toward the eligibility for and calculation of pension or retirement benefits or rights previously established by or as a result of a binding arbitration award under the Policemen and Firemen Collective Bargaining Act. If the election is made, only nonintervening military service purchased while a State police officer shall apply toward the eligibility for and calculation of pension or retirement benefits or rights under the binding arbitration award. Nonintervening military service purchased by an electing member while not a State police officer and other types of creditable nonstate service purchased by an electing member shall not apply toward the eligibility for and calculation of pension or retirement benefits or rights under the binding arbitration award. If an electing member is eligible for pension or retirement benefits or rights under the binding arbitration award, the nonintervening military service purchased while a State police officer may not be applied for eligibility or calculation of any other benefit under this part.

(d) Effect of failure to elect.--Failure to elect the eligibility to purchase nonintervening military service within the period under subsection (b) shall result in the inability to apply any purchase of nonintervening military service toward the eligibility for and calculation of pension or retirement benefits or rights under the binding arbitration award. If a State police officer fails to elect to become eligible to purchase nonintervening military service in the election period, the provisions under the act of June 12, 2017 (P.L.11, No.5), entitled, "An act amending Titles 24 (Education), 51 (Military Affairs) and 71 (State Government) of the Pennsylvania Consolidated Statutes, extensively revising pension provisions as follows: In Title 24: for retirement for school employees, in the areas of preliminary provisions, of membership, contributions and benefits, of school employees' defined contribution plan and of administration and miscellaneous provisions; and for health insurance for retired school employees, in the area of preliminary provisions. In Title 51: for employment preferences and pensions, in the area of military leave of absence. In Title 71: for boards and offices, in the area of Independent Fiscal Office; and for retirement for State employees and officers, in the areas of preliminary provisions, of membership, credited service, classes of service and eligibility for benefits, of contributions, of benefits, of State employees' defined contribution plan and of administration, funds, accounts, general provisions. Providing, as to the revisions: for construction and administration, for applicability, for liability, for member statements and for suspension of provisions of the Public Employee Retirement Study Commission Act," shall be followed.

(e) Purchase required.--Nothing under this section or section 5955(c) (relating to construction of part) shall do any of the following:

(1) Imply that the other requirements to obtain creditable nonstate service under this part shall not apply.

(2) Grant nonstate service credit for nonintervening military service unless the member completes the purchase as required under this part and by the board. (July 1, 2020, P.L.600, No.55, eff. imd.) 2020 Amendment. Act 55 added section 5306.6. Cross References. Section 5306.6 is referred to in section 5955 of this title.
71 Pa.C.S. § 2701 — PA Code / Title 71 / Chapter 27 / Section 2701
Periodic audits of employees by Office of Administration.
Status: in_force

The Office of Administration shall conduct audits of changes in employment and promotions of employees in the departments, bureaus and agencies under its jurisdiction to ensure strict compliance with this part.
71 Pa.C.S. § 5809 — PA Code / Title 71 / Chapter 58 / Section 5809
Vesting.
Status: in_force

(a) Participant and voluntary contributions.--Subject to the forfeiture and attachment provisions of section 5953 (relating to taxation, attachment and assignment of funds) or otherwise as provided by law, a participant shall be vested immediately with respect to all mandatory pickup participant contributions and voluntary contributions paid by or on behalf of the participant to the trust in addition to interest and investment gains or losses on the participant contributions but minus investment fees and administrative charges applied against those contributions.

(b) Employer defined contributions.--

(1) Subject to the forfeiture and attachment provisions of section 5953 or otherwise as provided by law, a participant shall be vested with respect to all employer defined contributions paid to the participant's individual investment account in the trust in addition to interest and investment gains and losses on the employer defined contributions but minus investment fees and administrative charges applied against those contributions according to the following schedule:

(i) Until such time as a participant has earned three eligibility points as a member of the system or participant in the plan, 0%;

(ii) At and after the attainment of three eligibility points as a member of the system or participant in the plan, 100%.

(2) For purposes of this subsection, all eligibility points credited to a member of the system in any class of service shall be used for determining vested status in the plan even if the employee was not a participant in the plan at the time the eligibility points were earned.

(3) Nonvested employer defined contributions and the interest and investment gains and losses on the nonvested employer defined contributions that are forfeited when a participant terminates State service before accruing three eligibility points as provided under section 5307(c)(3) (relating to eligibility points) shall be retained by the board and used for the payment of the administrative fees, costs and expenses of the plan.

(c) USERRA leave and eligibility points.--A participant in the plan who is reemployed from USERRA leave or who dies while performing USERRA leave shall receive eligibility points under this section for the State service that would have been performed had the member not performed USERRA leave. (Oct. 29, 2020, P.L.775, No.94, eff. imd.) 2020 Amendment. Act 94 amended subsecs. (a) and (b). See section 4 of Act 94 in the appendix to this title for special provisions relating to applicability. References in Text. Section 5307(c)(3), referred to in subsec. (b)(3), does not exist. Cross References. Section 5809 is referred to in sections 5815, 5902 of this title.
71 Pa.C.S. § 5710 — PA Code / Title 71 / Chapter 57 / Section 5710
Payments under other laws.
Status: in_force

No payment provided for in this part shall be reduced on account of any other benefits, now or hereafter provided for, under any workmen's compensation law or any other law, except as otherwise herein provided.
71 Pa.C.S. § 5702 — PA Code / Title 71 / Chapter 57 / Section 5702
Maximum single life annuity.
Status: in_force

(a) General rule.--Any full coverage member who is eligible to receive an annuity pursuant to the provisions of section 5308(a) or (b) (relating to eligibility for annuities) who terminates State service, or if a multiple service member who is a school employee who is an active member of the Public School Employees' Retirement System who terminates school service, before attaining age 70 shall be entitled to receive a maximum single life annuity attributable to his credited service and equal to the sum of the following single life annuities beginning at the effective date of retirement:

(1) A single life annuity that is the sum of the standard single life annuities determined separately for each class of service multiplied by the appropriate class of service multiplier applicable to each standard single life annuity. In case the member on the effective date of retirement is under superannuation age for any service, a reduction factor calculated to provide benefits actuarially equivalent to an annuity starting at superannuation age and subject to the provisions of subsection (f) shall be applied to the product determined for that service: Provided, however, That any standard single life annuity resulting from Class A-5 service shall be reduced by a percentage determined by multiplying the number of months, including a fraction of a month as a full month, by which the effective date of retirement precedes superannuation age by 0.25% if the effective date of retirement is on or after the date the member has attained age 57 and the member has 25 or more eligibility points, and that any standard single life annuity resulting from Class A-6 service shall be reduced by a percentage determined by multiplying the number of months,

including a fraction of a month as a full month, by which the effective date of retirement precedes superannuation age by 0.25% if the effective date of retirement is on or after the date the member has attained age 62 and the member has 25 or more eligibility points. The class of service multiplier for any period of concurrent service shall be multiplied by the proportion of total State and school compensation during such period attributable to State service as a member of the system. In the event a member has two multipliers for one class of service, separate standard single life annuities shall be calculated for the portion of service in the class applicable to each class of service multiplier.

(2) If eligible, a single life annuity of 2% of his average noncovered salary for each year of social security integration credit as provided for in section 5305 (relating to social security integration credits) multiplied, if on the effective date of retirement the member is under superannuation age for any service, by the actuarially determined reduction factor for that service.

(3) If eligible, a single life annuity which is actuarially equivalent to the regular and additional accumulated deductions attributable to contributions as a member of Class C, but not less than such annuity determined as if the member were age 60 on the effective date of retirement, actuarially reduced in the event the member is under superannuation age on the effective date of retirement.

(4) If eligible, a single life annuity which is actuarially equivalent to the amount by which his regular and additional accumulated deductions attributable to any credited service other than as a member of Class A-3, Class A-4, Class A-5, Class A-6 and Class C are greater than one-half of the actuarially equivalent value on the effective date of retirement of the annuity as provided in paragraph

(1) attributable to service other than Class A-3, Class A-4, Class A-5, Class A-6 and Class C for which regular or joint coverage member contributions were made.

(5) If eligible, a single life annuity which is actuarially equivalent to the amount by which his social security integration accumulated deductions are greater than one-half of the actuarially equivalent value on the effective date of retirement of the annuity provided for under paragraph (2).

(6) If eligible, a single life annuity sufficient together with the annuity provided for in paragraph (1) as a Class A, Class AA, Class A-3, Class A-4, Class A-5 or Class A-6 member and the highest annuity provided for in paragraph

(2) to which he is entitled, or at his option could have been entitled, to produce that percentage of the sums of the standard single life annuities adjusted by the application of the class of service multiplier for Class A, Class AA, Class A-3, Class A-4, Class A-5 or Class A-6 as set forth in paragraph (1) in the case where any service is credited as a member of Class A, Class AA, Class A-3, Class A-4, Class A-5 or Class A-6 on the effective date of retirement as determined by his total years of credited service as a member of Class A, Class AA, Class A-3, Class A-4, Class A-5 or Class A-6 and by the following table: Percentage of Sums of Total Years of Standard Credited Service Single Life as a Member of Annuities Adjusted for Class A,

Class A, Class AA, Class AA, Class A-3, Class A-3, Class A-4, Class A-5 and Class A-6 Class A-4, Class A-5 and Class A-6 Class of Service Multipliers 100% 35-40 102%

104%

106%

108%

110% 45 or more

(a.1) Rule for terminations after attaining age 70.--

(1) Any full coverage member who is eligible to receive an annuity pursuant to the provisions of section 5308(a) who terminates State service, or if a multiple service member who is a school employee and an active member of the Public School Employees' Retirement System who terminates school service, on or after attaining age 70 and who applies for a superannuation annuity to be effective the day after the termination of State service or school service, as the case may be, shall be entitled to receive a maximum single life annuity as of a determination date that is equal to the greater of subparagraph (i) or (ii):

(i) the sum of the annuities provided in subsection

(a)(1) through (6) calculated as of the determination date; and

(ii) the greater of clause (A) or (B):

(A) the sum of the annuities provided in subsection (a)(1), (3), (4) and (6) as of the preceding determination date adjusted by the actuarial increase factor, plus the annuities provided in subsection (a)(2) and (5) as of the determination date; and

(B) the maximum single life annuity as of the preceding determination date adjusted by the actuarial increase factor. The maximum single life annuity shall be calculated for each determination date.

(2) For purposes of this subsection, the determination date shall be:

(i) the member's birthday, provided that as of such date the member qualifies for a maximum single life annuity under this subsection; or

(ii) if the member's maximum single life annuity is being determined as of the member's effective date of retirement, then the determination date shall be the member's effective date of retirement.

(3) In the event an active member, an inactive member on leave without pay or a multiple service member who is a school employee and an active member of the Public School Employees' Retirement System has attained age 70 before the effective date of this subsection, or enters State service or school service, as the case may be, after attaining age 70, then section 5305.1 (relating to eligibility for actuarial increase factor) and subsections (a) and (a.1) shall be effective prospectively with respect to such member at the member's next birthday after the effective date of this subsection, entry into State service, or school service. Nothing in this subsection shall be construed to provide an actuarial increase factor for any period of service prior to the effective date of this subsection.

(b) Present value of annuity.--The present value of the maximum single life annuity as calculated in accordance with subsection (a) of this section shall be determined by multiplying the maximum single life annuity by the cost of a dollar annuity on the effective date of retirement. Such present value shall be decreased only as required under the provisions of section 5506 (relating to incomplete payments), 5509(c) (relating to appropriations and assessments by the Commonwealth) or 5703 (relating to reduction of annuities on account of social security old-age insurance benefits).

(c) Limitation on amount of annuity.--The annuity paid to a member under subsection (a) and reduced in accordance with the option elected under section 5705 (relating to member's options) shall not exceed the highest compensation received as a member of the system during any period of twelve consecutive months of credited service. No limit on the total annuity paid to a member with Class D-3 service shall be applied in the case of a member who served as a constitutional officer of the General Assembly.

(d) Limitation regarding annual benefit under IRC § 415.--Notwithstanding any provision of this part to the contrary, including, but not limited to, subsection (c), no benefit shall be payable to the extent that such benefit exceeds any limitations under IRC § 415 in effect with respect to governmental plans as such term is defined in IRC § 414(d) on the date the benefit payment becomes effective, provided however, that any increase in any limitation under IRC § 415 shall be applicable to all current and future annuitants and survivor annuitants.

(e) Coordination of benefits.--The determination and payment of the maximum single life annuity under this section shall be in addition to any payments a member may be entitled to receive, has received or is receiving as a result of being a participant in the plan.

(f) Special calculation for Class A-5 and Class A-6.--For the calculation under subsection (a) for all Class A-5 and Class A-6 members the reduction factor used in the calculation for an annuity for a member, other than a Class A-5 member who has attained age 57 and 25 eligibility points, who has not attained the age of 62 shall be determined so that a maximum single life annuity with an effective date of retirement before the member attains age 62 shall be actuarially equivalent to the maximum single life annuity the member would receive if the member became a vestee and later applied for an annuity with an effective date of retirement on the date the member attained age 62. For purposes of this subsection, the annuity that the member would receive at age 62 shall not be determined using the 0.25% per month reduction in subsection (a)(1) based on having 25 years of service. For purposes of this subsection, the maximum single life annuity actually being received is actuarially equivalent to the maximum single life annuity with an effective date of attaining age 62 if the actual maximum single life annuity has the same present value as the maximum single life annuity at age 62, computed on the basis of interest at 7.375% per annum, compounded annually, and the mortality tables adopted by the board. (Oct. 7, 1975, P.L.348, No.101, eff. imd.; July 22, 1983, P.L.104, No.31, eff. imd.; May 17, 2001, P.L.26, No.9; Nov. 23, 2010, P.L.1269, No.120, eff. imd.; Dec. 28, 2015, P.L.529, No.93, eff. imd.; June 12, 2017, P.L.11, No.5, eff. imd.; July 2, 2019, P.L.434, No.72, eff. 60 days)

2019 Amendment. Act 72 amended subsec. (a)(1). See section 6.2 of Act 72 in the appendix to this title for special provisions relating to severability. 2017 Amendment. Act 5 amended subsecs. (a)(1), (4) and (6) and (c) and added subsecs. (e) and (f). 2015 Amendment. Act 93 amended subsec. (d). 2001 Amendment. Act 9 amended subsecs. (a) and (c) and added subsecs. (a.1) and (d), effective immediately as to subsecs.

(c) and (d), September 1, 2001, as to subsecs. (a) intro. par. and (a.1) and July 1, 2001, as to the remainder of the section. 1983 Amendment. See section 10 of Act 31 in the appendix to this title for special provisions relating to waiver of actuarial note requirement for retirement bills. 1975 Amendment. Act 101 amended subsecs. (a) and (b). Special Provisions in Appendix. See sections 2(c) and 3(1),

(3) and (4) of Act 31 of 1974 in the appendix to this title for special provisions relating to limitations on salaries of members for retirement purposes and additional retirement benefits for judges and legislative officers. Cross References. Section 5702 is referred to in sections 5305.1, 5308.1, 5308.2, 5703, 5704, 5705, 5707, 5905 of this title.
71 Pa.C.S. § 5902 — PA Code / Title 71 / Chapter 59 / Section 5902
Administrative duties of the board.
Status: in_force

(a) Employees.--

(1) Effective 30 days after the effective date of this paragraph, the positions of secretary, assistant secretary and investment professional shall be placed under the unclassified service provisions of the act of August 5, 1941 (P.L.752, No.286), known as the Civil Service Act, as those positions are vacated. All other positions of the board shall be placed in either the classified or unclassified service

according to the definition of the terms under the Civil Service Act.

(2) Notwithstanding any other provisions of law, the compensation of investment professionals and legal counsel shall be established by the board. The compensation of all other officers and employees of the board who are not covered by a collective bargaining agreement shall be established by the board consistent with the standards of compensation established by the Executive Board of the Commonwealth.

(a.1) Secretary.--The secretary shall act as chief administrative officer for the board with respect to both the system and the plan. In addition to other powers and duties conferred upon and delegated to the secretary by the board, the secretary shall:

(1) Serve as the administrative agent of the board.

(2) Serve as liaison between the board and applicable legislative committees, the Treasury Department, the Department of the Auditor General, and between the board and the investment counsel and the mortgage supervisor in arranging for investments to secure maximum returns to the fund.

(3) Review and analyze proposed legislation and legislative developments affecting the system or the plan and present findings to the board, legislative committees, and other interested groups or individuals.

(4) Direct the maintenance of files and records and preparation of periodic reports required for actuarial evaluation studies.

(5) Receive inquiries and requests for information concerning the system or the plan from the press, Commonwealth officials, State employees, the general public, research organizations, and officials and organizations from other states, and provide information as authorized by the board.

(6)

(i) Supervise a staff of administrative, technical, and clerical employees engaged in record-keeping and clerical processing activities for both the system and the plan in maintaining files of members and participants, accounting for contributions, processing payments to annuitants and terminated participants, preparing required reports, and retirement counseling.

(ii) The board may utilize the staff of employees provided for under this paragraph for both the system and the plan but shall allocate the fees, costs and expenses incurred under this paragraph between the system and the plan as appropriate.

(b) Professional personnel.--

(1) The board shall contract for the services of a chief medical examiner, an actuary, investment advisors and counselors, and such other professional personnel as it deems advisable. The board may contract for legal services.

(2) The board may utilize the same individuals and firms contracted under this subsection for both the system and the plan but shall allocate the fees, costs and expenses incurred under this subsection between the system and the plan as appropriate.

(c) Expenses.--

(1) The board shall, through the Governor, submit to the General Assembly annually a budget covering the administrative expenses of the system and a separate budget covering the administrative expenses of the plan. Budgets

under this paragraph shall include those expenses necessary to establish the plan and trust.

(2) Such expenses of the system as approved by the General Assembly in an appropriation bill shall be paid from investment earnings of the fund.

(3) For fiscal years ending on or before June 30, 2020, and for any additional fiscal years as the General Assembly may provide, such expenses of the plan as approved by the General Assembly in an appropriation bill shall be paid from the General Fund. For fiscal years beginning on or after July 1, 2020, such expenses of the plan as approved by the General Assembly that are not paid under sections 5809 (relating to vesting), 5812(2) (relating to powers and duties of board), 5814(b) (relating to investments based on participant's investment allocation choices) and 5953(a)(2)(ii) (relating to taxation, attachment and assignment of funds) shall be paid as otherwise provided in this part except as the General Assembly otherwise provides by appropriations from the General Fund.

(4) Concurrently with its administrative budget, the board shall also submit to the General Assembly annually a list of proposed expenditures which the board intends to pay through the use of directed commissions, together with a list of the actual expenditures from the past year actually paid by the board through the use of directed commissions. All such directed commission expenditures shall be made by the board for the exclusive benefit of the system and its members.

(d) Meetings.--The board shall hold at least six regular meetings annually and such other meetings as it may deem necessary.

(e) Records.--

(1) The board shall keep a record of all its proceedings which shall be open to access by the public, except as otherwise provided in this part or by other law.

(2) Any record, material or data received, prepared, used or retained by the board or its employees, investment professionals or agents relating to an investment shall not constitute a public record subject to public access under the act of February 14, 2008 (P.L.6, No.3), known as the Right-to-Know Law, if, in the reasonable judgment of the board, the access would:

(i) in the case of an alternative investment or alternative investment vehicle, involve the release of sensitive investment or financial information relating to the alternative investment or alternative investment vehicle which the fund or trust was able to obtain only upon agreeing to maintain its confidentiality;

(ii) cause substantial competitive harm to the person from whom sensitive investment or financial information relating to the investment was received; or

(iii) have a substantial detrimental impact on the value of an investment to be acquired, held or disposed of by the fund or trust or would cause a breach of the standard of care or fiduciary duty set forth in this part.

(3) The following apply:

(i) The sensitive investment or financial information excluded from access under paragraph (2)(i), to the extent not otherwise excluded from access, shall constitute a public record subject to public access under

the Right-to-Know Law once the board is no longer required by its agreement to maintain confidentiality.

(ii) The sensitive investment or financial information excluded from access under paragraph (2)(ii), to the extent not otherwise excluded from access, shall constitute a public record subject to public access under the Right-to-Know Law once:

(A) the access no longer causes substantial competitive harm to the person from whom the information was received; or

(B) the entity in which the investment was made is liquidated; whichever is later.

(iii) The sensitive investment or financial information excluded from access under paragraph

(2)(iii), to the extent not otherwise excluded from access, shall constitute a public record subject to public access under the Right-to-Know Law once:

(A) the access no longer has a substantial detrimental impact on the value of an investment of the fund or trust and would not cause a breach of the standard of care or fiduciary duty set forth in this part; or

(B) the entity in which the investment was made is liquidated; whichever is later.

(4) Except for the provisions of paragraph (3), nothing in this subsection shall be construed to designate any record, material or data received, prepared, used or retained by the board or its employees, investment professionals or agents relating to an investment as a public record subject to public access under the Right-to-Know Law.

(5) Any record, material or data received, prepared, used or retained by the board or its employees, or agents relating to the contributions, account value or benefits payable to or on account of a participant shall not constitute a public record subject to public access under the Right-to-Know Law if, in the reasonable judgment of the board, the access would disclose any of the following:

(i) The existence, date, amount and any other information pertaining to the voluntary contributions, including rollover contributions or trustee-to-trustee transfers, of any participant.

(ii) The investment option selections of any participant.

(iii) The balance of a participant's individual investment account, including the amount distributed to the participant, investment gains or losses or rates of return.

(iv) The identity of a participant's designated beneficiary, successor payee or alternate payee.

(v) The form of distribution of a participant's account.

(6) Nothing in this subsection shall be construed to designate any record, material or data received, prepared, used or retained by the board or its employees, or agents relating to the contributions, account value or benefits payable to or on account of a participant as a public record subject to public access under the Right-to-Know Law.

(7) The following apply:

(i) Nothing in this part shall be construed to mean that the release or publicizing of a record, material

or data which would not constitute a public record under this subsection shall be a violation of the board's fiduciary duties.

(ii) This subsection shall apply to a record, material or data under this subsection, notwithstanding any of the following:

(A) Whether the record, material or data was created, generated or stored before the effective date of this paragraph.

(B) Whether the record, material or data was previously released or made public.

(C) Whether a request for the record, material or data was made or is pending final response under the Right-to-Know Law.

(f) Functions.--The board shall perform such other functions as are required for the execution of the provisions of this part.

(g) Performance of departmental duties.--In the event the head of the department fails to comply with the procedures as mandated in section 5906 (relating to duties of heads of departments), the board shall perform such duties and bill the department for the cost of same.

(h) Regulations and procedures.--The board shall, with the advice of the Attorney General, legal counsel and the actuary, adopt and promulgate rules and regulations for the uniform administration of the system. The actuary shall approve in writing all computational procedures used in the calculation of contributions and benefits pertaining to the system, and the board shall by resolution adopt such computational procedures, prior to their application by the board. Such rules, regulations and computational procedures as so adopted from time to time and as in force and effect at any time, together with such tables as are adopted pursuant to subsection (j) as necessary for the calculation of annuities and other benefits, shall be as effective as if fully set forth in this part. Any actuarial assumption specified in or underlying any such rule, regulation or computational procedure and utilized as a basis for determining any benefit shall be applied in a uniform manner.

(i) Data.--The board shall keep in convenient form such data as are stipulated by the actuary in order that an annual actuarial valuation of the various accounts of the fund can be completed within six months of the close of each calendar year.

(j) Actuarial investigation and valuation.--The board shall have the actuary make an annual valuation of the various accounts of the fund within six months of the close of each calendar year. In the year 1975 and in every fifth year thereafter the board shall have the actuary conduct an actuarial investigation and evaluation of the system based on data including the mortality, service, and compensation experience provided by the board annually during the preceding five years concerning the members and beneficiaries of the system. The board shall by resolution adopt such tables as are necessary for the actuarial valuation of the fund and calculation of contributions, annuities and other benefits based on the reports and recommendations of the actuary. Within 30 days of their adoption, the secretary of the board shall cause those tables which relate to the calculation of annuities and other benefits to be published in the Pennsylvania Bulletin in accordance with the provisions of 45 Pa.C.S. § 725(a) (relating to additional contents of Pennsylvania Bulletin) and, unless the board specifies therein a later effective date, such tables shall become effective on such publication. The board shall include

a report on the significant facts, recommendations and data developed in each five-year actuarial investigation and evaluation of the system in the annual financial statement published pursuant to the requirements of subsection (m) for the fiscal year in which such investigation and evaluation were concluded.

(k) Certification of employer contributions to fund.--The board shall, each year in addition to the itemized budget required under section 5509 (relating to appropriations and assessments by the Commonwealth), certify, as a percentage of the members' payroll, the shared-risk contribution rate, the shared-gain adjustment to the regular member contribution rate, the employers' contributions as determined pursuant to section 5508 (relating to actuarial cost method) necessary for the funding of prospective annuities for active members and the annuities of annuitants and certify the rates and amounts of the employers' normal contributions as determined pursuant to section 5508(b), accrued liability contributions as determined pursuant to section 5508(c), supplemental annuities contribution rate as determined pursuant to section 5508(e), the experience adjustment factor as determined pursuant to section 5508(f), the collared contribution rate pursuant to section 5508(h) and the final contribution rate pursuant to section 5508(i), which shall be paid to the fund and credited to the appropriate accounts. The board shall certify the dollar amount of the annual contribution setoff for each eligible employer that has made advance payment of accrued liability contributions under section 5507(h) (relating to contributions to the system by the Commonwealth and other employers). The board may allocate the final contribution rate and certify various employer contribution rates and amounts based upon advance payment of accrued liability contributions and the different benefit eligibility, class of service multiplier, superannuation age, final average salary calculation, compensation limits and other benefit differences resulting from State service credited for individual members even though such allocated employer contribution rate on behalf of any given member may be more or less than 5% of the member's compensation for the period from July 1, 2010, to June 30, 2011, or may differ from the prior year's contribution for that member by more or less than the percentages used to calculate the collared contribution rate for that year and may be below any minimum contribution rate established for the collared contribution rate or final contribution rate. These certifications shall be regarded as final and not subject to modification by the Secretary of the Budget.

(l) Member contributions.--The board shall cause all pickup contributions made on behalf of a member to be credited to the account of the member and credit to his account any other payment made by such member, including, but not limited to, amounts collected by the Public School Employees' Retirement System for the reinstatement of previous State service or creditable nonstate service and amounts paid to return benefits paid after the date of return to State service or entering school service representing lump sum payments made pursuant to section 5705(a)(4)(iii) or (a.1) (relating to member's options) and member's annuity payments, but not including other benefits returned pursuant to section 5706(a.2) or (a.3) (relating to termination of annuities), and shall pay all such amounts into the fund.

(m) Annual financial statement.--The board shall prepare and have published, on or before July 1 of each year, financial

statements as of the calendar year ending December 31 of the previous year showing the condition of the fund, the trust and the various accounts, including, but not limited to, the board's accrual and expenditure of directed commissions, and setting forth such other facts, recommendations, and data as may be of use in the advancement of knowledge concerning annuities and other benefits provided by this part. The board shall submit said financial statements to the Governor and shall file copies with the head of each department for the use of the State employees and the public.

(n) Independent audits.--

(1) The board shall provide for annual audits of the system and the plan by independent certified public accountants. The audits shall include the board's accrual and expenditure of directed commissions. The board may use the same independent certified public accountant for the audits of both the system and the plan.

(2) The following shall apply:

(i) Except as provided under subparagraph (ii), the board shall provide for an internal control audit of the system and the plan at least every five years.

(ii) If an annual financial report prepared under this section identifies a material weakness or significant deficiency or an internal control audit identifies a material weakness or significant deficiency, the board shall provide for an additional internal control audit of the system and the plan for the year subsequent to the report or audit in which the weakness or deficiency was identified.

(o) USERRA leave.--The board shall have the authority to take whatever action is necessary for the implementation of the requirements of this part pertaining to State employees on USERRA leave or who have been granted a leave of absence under 51 Pa.C.S. § 4102 (relating to leaves of absence for certain government employees) or a military leave of absence under 51 Pa.C.S. § 7302 (relating to granting military leaves of absence) and to establish administrative, reporting and payment requirements and processes pertaining to the leaves applicable to heads of departments and members.

(p) Participant and employer contributions to trust.--The board shall, each year in addition to any fees and itemized budget required under section 5509, certify, as a percentage of each participant's compensation, the employer defined contributions, which shall be paid to the trust and credited to each participant's individual investment account. Certifications under this subsection shall be regarded as final and not subject to modification by the Secretary of the Budget. The board shall cause all mandatory pickup participant contributions made on behalf of a participant and all voluntary contributions made by a participant to be credited to the participant's individual investment account.

(q) Limitation on fees charged to the board.--In order to strive towards actuarial savings of $1,500,000,000 over 30 years from the effective date of this subsection while achieving the assumed annual rate of return at the least cost and maximum return on the system assets, the board shall:

(1) Consider the findings and recommendations of the Public Pension Management and Asset Investment Review Commission. The board shall, at its discretion, adopt guidelines and procedures to implement any recommendations of the Public Pension Management and Asset Investment Review

Commission that the board believes will ensure the highest return on investment at the lowest responsible cost.

(2) Review, identify and implement any investment fee reduction and cost avoidance strategies identified to be prudent by the board, to reduce expenditures for investment.

(r) Additional report on investment performance.--In addition to any other report required to be made by the board under this part, the board shall prepare a separate report of the investment performance of the State Employees' Retirement System for the period of July 1 through June 30 of each year. (Oct. 7, 1975, P.L.348, No.101, eff. imd.; Mar. 4, 1982, P.L.141, No.45, eff. imd.; Dec. 14, 1982, P.L.1249, No.284, eff. imd.; Aug. 5, 1991, P.L.183, No.23; Apr. 29, 1994, P.L.159, No.29, eff. imd.; Dec. 20, 1995, P.L.689, No.77, eff. 60 days; Apr. 2, 1998, P.L.229, No.41, eff. imd.; June 18, 1998, P.L.685, No.88, eff. imd.; May 17, 2001, P.L.26, No.9, eff. July 1, 2001; Oct. 27, 2006, P.L.1177, No.120, eff. imd.; Nov. 23, 2010, P.L.1269, No.120, eff. imd.; Oct. 24, 2012, P.L.1436, No.181, eff. Dec. 31, 2012; June 12, 2017, P.L.11, No.5, eff. imd.; Nov. 27, 2019, P.L.723, No.105, eff. imd.; Oct. 29, 2020, P.L.775, No.94; Nov. 25, 2020, P.L.1237, No.128, eff. 90 days) 2020 Amendments. Act 94 amended subsec. (c)(3) and added subsec. (r), effective immediately as to subsec. (c)(3) and 30 days as to subsec. (r), and Act 128 amended subsec. (n). See section 4 of Act 94 in the appendix to this title for special provisions relating to applicability. 2019 Amendment. Act 105 amended subsec. (k). See section 9 of Act 105 in the appendix to this title for special provisions relating to applicability. 2017 Amendment. Act 5 amended subsecs. (a)(2), (a.1), (b),

(c), (e), (h), (i), (j), (k), (l), (m) and (n) and added subsecs. (p) and (q).

Amendment . Act 181 amended subsec. (l) and added subsec. (o). 2010 Amendment. See section 24 of Act 120 in the appendix to this title for special provisions relating to construction and administration of act. 2006 Amendment. See sections 3, 4, 5 and 6 of Act 120 in the appendix to this title for special provisions relating to authority of Auditor General, construction of law for release of records, etc., applicability and fees collected by State Employees' Retirement System. 1998 Amendments. Act 41 amended subsec. (a) and Act 88 amended subsec. (a) and added subsec. (a.1). Transfer of Functions. The powers and duties of the Attorney General and/or the Department of Justice contained in section 5902(h) were transferred to the Office of General Counsel by section 502 of the act of October 15, 1980 (P.L.950, No.164), known as the Commonwealth Attorneys Act, effective January 20, 1981. References in Text. The act of August 5, 1941 (P.L.752, No.286), known as the Civil Service Act, referred to in subsec.

(a)(1), was repealed June 28, 2018 (P.L.460, No.71), effective in nine months. Cross References. Section 5902 is referred to in sections 5501.1, 5953, 5955.2 of this title.
71 Pa.C.S. § 5807 — PA Code / Title 71 / Chapter 58 / Section 5807
Eligibility for benefits.
Status: in_force

(a) Termination of service.--A participant who terminates State service shall be eligible to withdraw the vested accumulated total defined contributions standing to the participant's credit in the participant's individual investment account or a lesser amount as the participant may request. Payment shall be made in a lump sum unless the board has established other forms of distribution in the plan document. A participant who withdraws his vested accumulated total defined contributions shall no longer be a participant in the plan, notwithstanding that the former State employee may continue to be a member of the system or may have contracted to receive an annuity or other form of payment from a provider retained by the board for such purposes.

(b) Required distributions.--All payments under this section shall start and be made in compliance with the minimum distribution requirements and incidental death benefit rules of IRC § 401(a)(9). The board shall take any action and make any distributions it may determine are necessary to comply with those requirements.

(c) (Reserved).

(d) Prohibited distributions.--A State employee must be terminated from all positions that result in either membership in the system or participation in the plan to be eligible to receive a distribution. No distribution shall be allowed that would be an in-service distribution prohibited by the IRC.

(e) Loans.--Loans or other distributions, including hardship or unforeseeable emergency distributions, from the plan to State employees who have not terminated State service are not permitted, except as required by law.

(f) Small individual investment accounts.--A participant who terminates State service and whose vested accumulated total defined contributions are below the threshold established by law as of the date of termination of service may be paid the

vested accumulated total defined contributions in a lump sum as provided in IRC § 401(a)(31).

(g) Option to purchase annuity.--Except as prohibited by the IRC or as otherwise provided in this part, a participant who is eligible and elects to receive a distribution or vested accumulated employer defined contributions may purchase an annuity with that distribution from an annuity provider contracted by the board under section 5808(c) (relating to death benefits) and under such conditions as provided in the plan document. The conditions may include that the board is authorized to make the distribution directly to the annuity provider.
71 Pa.C.S. § 5306.4 — PA Code / Title 71 / Chapter 53 / Section 5306.4
Election to become a Class A-6 member or solely a participant in the plan.
Status: in_force

(a) General rule.--A State employee who was not eligible to make an election under section 5306.5 (relating to election by active members to become a Class A-5 member, Class A-6 member or plan participant) and who otherwise is eligible for Class A-5 membership who has not previously elected or declined to elect Class A-6 membership or to be solely a participant in the plan may elect to become either a member of Class A-6 or solely a participant in the plan.

(b) Time for making election.--The election to become a Class A-6 member or solely a participant in the plan must be made by the member filing written notice with the board in a form and manner determined by the board no later than 45 days after notice from the board of the member's eligibility to elect Class A-6 membership or to be solely a participant in the plan. This notice shall be given upon a State employee first beginning State service in a position eligible to be a member of the system that is not as a Class A-5 exempt employee. A State employee who is eligible to elect to become a Class A-6 member or solely a participant in the plan who begins USERRA leave during the election period without having elected Class A-6 membership or to be solely a participant in the plan will have the election period extended by the number of days on USERRA leave.

(c) Effect of election to be a Class A-6 member.--An election to become a Class A-6 member shall be irrevocable and shall become effective on the effective date of membership in the system and shall remain in effect for all future creditable State service, other than service performed as a Class A-5 exempt employee. Payment and adjustment of regular member contributions and mandatory pickup participant contributions for Class A-5 State service and for Class A-6 State service performed prior to the election of Class A-6 membership shall be made in a form, manner and time determined by the board. Upon termination and subsequent reemployment, a member who elected Class A-6 membership shall be credited as a Class A-6 member for creditable State service performed after reemployment, except as a Class A-5 exempt employee, regardless of termination of employment, termination of membership by withdrawal of accumulated deductions or status as an annuitant, vestee or inactive member after the termination of service.

(d) Effect of election to be solely a participant in the plan.--An election to become solely a participant in the plan shall be irrevocable and shall become effective on the date that membership in the system would have been effective had the election not been made and shall remain in effect for all future State service, other than service performed as a Class A-5 exempt employee. Adjustment of regular member contributions for Class A-5 State service and payment of mandatory participant pickup contributions for service solely as a participant in the plan performed prior to the election shall be made in a form, manner and time determined by the board. Upon termination and subsequent reemployment, a State employee who elected to be solely a participant in the plan shall resume active participation for State service performed after reemployment, except as a Class A-5 exempt employee, regardless of termination of employment, termination of participation by a partial or total distribution of vested total defined contributions or

status as an annuitant, vestee or inactive member of the system as a Class A-5 exempt employee after the termination of service.

(e) Effect of failure to make election.--Failure to elect to become a Class A-6 member or solely a participant in the plan within the election period set forth in subsection (b) shall result in all of the member's State service not performed as a Class A-5 exempt employee being credited as Class A-5 service and not subject to further election or crediting as Class A-6 service or solely as a participant in the plan. Upon termination and subsequent employment, a member who failed to elect to become a Class A-6 member or solely a participant in the plan shall not be eligible to make another election to become a Class A-6 member or solely a participant in the plan for either past or future State service. (June 12, 2017, P.L.11, No.5, eff. imd.; July 2, 2019, P.L.434, No.72, eff. 60 days) 2019 Amendment. Act 72 amended subsecs. (c) and (d). See section 6.2 of Act 72 in the appendix to this title for special provisions relating to severability. 2017 Amendment. Act 5 added section 5306.4. Cross References. Section 5306.4 is referred to in sections 5301, 5306 of this title.
71 Pa.C.S. § 2203 — PA Code / Title 71 / Chapter 22 / Section 2203
Regulations.
Status: in_force

(a) Authority.--The Office of Administration may promulgate regulations necessary to carry out the provisions of this part.

(b) Temporary regulations.--

(1) In order to facilitate the prompt implementation of this part, the Office of Administration may promulgate temporary regulations which shall expire no later than three years following the publication of the temporary regulations. The Office of Administration may promulgate temporary regulations not subject to:

(i) Sections 201, 202, 203, 204 and 205 of the act of July 31, 1968 (P.L.769, No.240), referred to as the Commonwealth Documents Law.

(ii) Section 204(b) of the act of October 15, 1980 (P.L.950, No.164), known as the Commonwealth Attorneys Act.

(iii) The act of June 25, 1982 (P.L.633, No.181), known as the Regulatory Review Act.

(2) The authority provided to the Office of Administration to adopt temporary regulations under paragraph

(1) shall expire three years following the publication of the temporary regulations. Regulations adopted after this period shall be promulgated as provided by law. 2018 Amendment. Act 71 added section 2203, effective immediately as to subsec. (b) and nine months as to the remainder of the section. See section 3 of Act 71 in the appendix to this title for special provisions relating to continuation of prior law and applicability.
71 Pa.C.S. § 5308.1 — PA Code / Title 71 / Chapter 53 / Section 5308.1
Eligibility for special early retirement.
Status: in_force

Notwithstanding any provisions of this title to the contrary, the following special early retirement provisions shall be applicable to specified eligible members:

(1) During the period of July 1, 1985, to September 30, 1991, an active member who has attained the age of at least 53 years and has accrued at least 30 eligibility points shall be entitled, upon termination of State service and compliance with section 5907(f) (relating to rights and duties of State employees, members and participants), to receive a maximum single life annuity calculated under section 5702 (relating to maximum single life annuity) without a reduction by virtue of an effective date of retirement which is under the superannuation age.

(2) During the period of July 1, 1985, to September 30, 1991, an active member who has attained the age of at least 50 years but not greater than 53 years and has accrued at least 30 eligibility points shall be entitled, upon termination of State service and compliance with section 5907(f), to receive a maximum single life annuity calculated under section 5702 with a reduction by virtue of an effective date of retirement which is under the superannuation age of a percentage factor which shall be determined by multiplying the number of months, including a fraction of a month as a full month, by which the effective date of retirement precedes the attainment of age 53 by 0.25%.

(3) During the period of October 1, 1991, to June 30, 1993, a member who has credit for at least 30 eligibility points shall be entitled, upon termination of service and filing of a proper application, to receive a maximum single life annuity calculated pursuant to section 5702 without any reduction by virtue of an effective date of retirement which is under the superannuation age.

(4) During the period of July 1, 1993, to July 1, 1997, a member who has credit for at least 30 eligibility points shall be entitled, upon termination of service and filing of a proper application, to receive a maximum single life annuity calculated pursuant to section 5702 without any reduction by virtue of an effective date of retirement which is under the superannuation age.

(June 29, 1984, P.L.450, No.95, eff. imd.; June 13, 1985, P.L.40, No.19, eff. imd.; July 8, 1986, P.L.435, No.91, eff. imd.; July 13, 1987, P.L.354, No.69, eff. imd.; Oct. 21, 1988, P.L.844, No.112, eff. Jan. 1, 1989; Aug. 5, 1991, P.L.183, No.23, eff. imd.; Apr. 29, 1994, P.L.159, No.29, eff. imd.; June 12, 2017, P.L.11, No.5, eff. imd.) 2017 Amendment. Act 5 amended the intro. par. and par. (1). 1994 Amendment. Act 29 amended the entire section, retroactive to July 1, 1993. See section 19 of Act 29 in the appendix to this title for special provisions relating to liability for additional benefits.
71 Pa.C.S. § 10 — PA Code / Title 71 / Chapter 10 / Section 10
Construction and administration of State employees' provisions.
Status: in_force

This act shall be construed and administered in such manner that the State Employees' Retirement System will satisfy the requirements necessary to qualify as a qualified pension plan under section 401(a)(8), (a)(17) and (a)(25) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.). The rules, regulations and procedures adopted and promulgated by the State Employees' Retirement Board under 71 Pa.C.S. § 5902(h) shall include those necessary to accomplish the purpose of this section. Effective Date. Section 16(6) of Act 77 provided that section 10 shall take effect in 60 days with respect to the duties of the State Employees' Retirement Board in regard to the adoption and promulgation of rules, regulations and computational procedures by such board but in all other respects shall be deemed declaratory of the intent of the General Assembly upon the original enactment of 71 Pa.C.S. Pt. XXV and to have been in effect from the date of enactment of such part. Explanatory Note. Act 77 amended or added sections 8102, 8302, 8321, 8322, 8322.1, 8325.1, 8327, 8346, 8502, 8503, 8506, 8521 and 8533 of Title 24 and sections 5102, 5302, 5501, 5502, 5503, 5503.1, 5506.1, 5706, 5902, 5903, 5906, 5931 and 5953 of Title 71.
71 Pa.C.S. § 401 — PA Code / Title 71 / Chapter 4 / Section 401
Applicability.
Status: in_force

The following shall apply:

(1) The following provisions shall not create in a member of the Public School Employees' Retirement System, a participant in the School Employees' Defined Contribution Plan or another person claiming an interest in the account of a member or participant an express or implied contractual right in the provisions nor in a construction of 24 Pa.C.S. Pt. IV, 51 Pa.C.S. or rules or regulations adopted under 24 Pa.C.S. Pt. IV or 51 Pa.C.S.:

(i) A provision of this act which amends 51 Pa.C.S. or 24 Pa.C.S. Pt. IV in relation to requirements for any of the following:

(A) (Reserved).

(B) Qualification of the School Employees' Defined Contribution Plan as a qualified pension plan under the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §§ 401(a) and 415(b)), or compliance with the Uniformed Services Employment and Reemployment Rights Act of 1994 (Public Law 103-353, 108 Stat. 3149).

(C) Domestic relations orders regarding alternate payees of participants in the School Employees' Defined Contribution Plan.

(ii) A construction of 24 Pa.C.S. Pt. IV or 51 Pa.C.S. or rules or regulations adopted under 24 Pa.C.S. Pt. IV or 51 Pa.C.S. or a term or provision of the School Employees' Defined Contribution Plan or School Employees' Defined Contribution Trust, established by statute or in the plan document or trust declaration or by contract with providers of investment and administrative services to the School Employees' Defined Contribution Plan or the School Employees' Defined Contribution Trust.

(2) The provisions of 24 Pa.C.S. Pt. IV shall remain subject to the Internal Revenue Code of 1986 and the Uniformed Services Employment and Reemployment Rights Act, and regulations under those statutes, and the General Assembly reserves to itself the further exercise of its legislative power to amend or supplement the provisions as may be required in order to maintain the qualification of the Public School Employees' Retirement System and the School Employees' Defined Contribution Plan as a qualified pension plan under section 401(a) and other applicable provisions of the Internal Revenue Code of 1986 and the Uniformed Services Employment and Reemployment Rights Act.

(3) The following provisions shall not create in a member of the State Employees' Retirement System, a participant in the State Employees' Defined Contribution Plan or another person claiming an interest in the account of a member or participant an expressed or implied contractual right in the provisions nor in a construction of 51 Pa.C.S. § 7306, 71 Pa.C.S. Pt. XXV, or rules or regulations adopted under 51 Pa.C.S. § 7306 or 71 Pa.C.S. Pt. XXV:

(i) A provision of this act which amends 51 Pa.C.S. § 7306 or 71 Pa.C.S. Pt. XXV, in relation to requirements for any of the following:

(A) Qualification of the State Employees' Defined Contribution Plan as a qualified pension plan under the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 401(a)).

(B) Compliance with the Uniformed Services Employment and Reemployment Rights Act of 1994 (Public Law 103-353).

(C) Domestic relations orders regarding alternate payees of participants in the State Employees' Defined Contribution Plan.

(ii) A construction of 51 Pa.C.S. or 71 Pa.C.S. Pt. XXV, or rules or regulation promulgated under 51 Pa.C.S. or 71 Pa.C.S. Pt. XXV, or a term or provision of the State Employees' Defined Contribution Plan or State Employees' Defined Contribution Trust established by statute or in the plan document or trust declaration or by contract with providers of investment and administrative services to the State Employees' Defined Contribution Plan or State Employees' Defined Contribution Trust.

(4) The provisions of 71 Pa.C.S. Pt. XXV shall remain subject to the Internal Revenue Code of 1986 and the Uniformed Services Employment and Reemployment Rights Act, and regulations promulgated under those statutes.

(5) The General Assembly reserves to itself the further exercise of its legislative power to amend or supplement the

provisions of 71 Pa.C.S. Pt. XXV in order to maintain the qualification of the State Employees' Retirement System and the State Employees' Defined Contribution Plan as qualified pension plans under section 401(a) and other applicable provisions of the Internal Revenue Code of 1986 and the Uniformed Services Employment and Reemployment Rights Act. Explanatory Note. Act 5 amended or added sections 8102, 8103, 8103.2, 8301, 8302, 8303, 8304, 8305, 8305.3, 8305.4, 8305.5, 8306, 8307, 8308, 8310, 8321, 8322.1, 8323, 8324, 8325.1, 8326, 8327, 8328, 8330, 8341, 8342, 8344, 8345, 8346, 8347 and 8349, Chapter 84 and sections 8501, 8502, 8502.2, 8503, 8505, 8506, 8507, 8521, 8522, 8524, 8525, 8531, 8533, 8533.1, 8533.2, 8533.3, 8533.4, 8533.5, 8534, 8535, 8535.1, 8537, 8538, 8702 of Title 24, section 7306 of Title 51 and sections 5102, 5103, 5104, 5301, 5302, 5303, 5303.2, 5304, 5305, 5305.1, 5306, 5306.1, 5306.2, 5306.3, 5306.4, 5306.5, 5307, 5308, 5308.1, 5309, 5310, 5311, 5501.1, 5502, 5503.1, 5504, 5505, 5506.1, 5507, 5508, 5509, 5701, 5701.1, 5702, 5704, 5705, 5705.1, 5706, 5707 and 5709, Chapter 58 and sections 5901, 5902, 5903, 5904, 5905, 5905.1, 5906, 5907, 5931, 5932, 5933, 5934, 5935, 5936, 5937, 5938, 5939, 5951, 5953, 5953.1, 5953.2, 5953.3, 5953.4, 5953.6, 5954, 5955, 5955.2, 5957 and 5958 of Title 71.
71 Pa.C.S. § 5508.1 — PA Code / Title 71 / Chapter 55 / Section 5508.1
Advance payment of accrued liability contributions.
Status: in_force

(a) Authorization.--The board and the head of department of an eligible employer of members of the system may enter into an agreement by which the eligible employer agrees to make one lump sum payment of all or a part of the eligible employer's portion of the present value of future accrued liability contributions determined under section 5508(c)(4) (relating to actuarial cost method) as modified by the cumulative experience adjustment factors calculated under section 5508(f)(1). The amount shall be calculated by the actuary in a manner and using actuarial factors and assumptions as the board, after obtaining the advice of the board's actuary, shall determine, and shall be certified by the board.

(b) Terms of lump sum payment.--The terms of an advance payment of accrued liability contributions shall be set forth in the agreement between the board and the head of department and subject to the following restrictions:

(1) Each eligible employer may make only one lump sum advance payment of accrued liability contributions.

(2) The lump sum may be based on not less than 75% and not more than 100% of the portion of the unfunded actuarial accrued liability of the system allocated to the eligible employer.

(3) The calculation of the unfunded actuarial accrued liability of the system and the portion allocated to the eligible employer shall be made by the actuary and approved by the board.

(4) The allocation of the unfunded actuarial accrued liability to the eligible employer must be made using a methodology, and the setoff schedule and other terms and conditions of the agreement must be such that if all eligible employers that employ members of the system simultaneously enter into agreements to make 100% advance payments of accrued liability contributions using the same date to calculate and allocate the unfunded actuarial accrued liability contributions and the same date to make lump sum payments, the total of the lump sum payments would equal the unfunded actuarial accrued liability on the calculation date.

(5) The agreement must establish a schedule of dollar-denominated annual setoffs against the future contributions of the eligible employer to amortize the lump sum advance payment of actuarial accrued liability contributions.

(6) The following shall apply:

(i) The agreement must provide a schedule of annual setoffs to provide for not less than 75% and not more

than 100% of the anticipated future accrued liability contributions of the eligible employer as determined by the actuary and approved by the board as of the determination date. The schedule of setoffs of anticipated future accrued liability contributions:

(A) must be in dollar amounts that are consistent with the system's amortization bases that exist as of the determination date; and

(B) cannot be for a time period longer than the longest remaining amortization period for any initial actuarial accrued liability or experience adjustment factor included in the calculation of the advance payment of accrued liability contributions.

(ii) A good faith determination, calculation and payment of the lump sum that produces an annual setoff that is less than 75% or more than 100% of the anticipated future accrued liability contribution by a de minimis amount shall not be a violation of this subsection.

(7) The agreement shall provide a mechanism or method of recognizing or crediting the setoff against the actual contributions of the eligible employer, which may include recognizing or crediting the setoff in monthly, semi-monthly, biweekly or other periodic or reconciling increments to correspond to the schedule by which the eligible employer makes employer contributions to and to account for and reflect changes in the schedule of compensation payments to the members.

(8) After the lump sum payment is made, the annual setoff schedule and amounts established in the agreement cannot be changed except that:

(i) in no fiscal year can the recognized setoff be larger than the contributions by the eligible employer that are eligible for the setoff. If in any fiscal year the available setoff amount is larger than the actual contributions by the eligible employer that are eligible to be setoff, the excess setoff for that fiscal year shall be added to the next fiscal year's setoff amount as provided under subsection (c); and

(ii) if the General Assembly changes the actuarial cost method under section 5508, the board may change the schedule or amount of annual setoffs to conform to the amended actuarial cost method, as determined actuarially by the board, with the agreement of the head of the department.

(9) The board may not be involved in the issuance, service or administration of any bonds or financial instruments or any obligations of an eligible employer, the proceeds of which are used in total or in part to make any part of the lump sum advance payment of accrued liability contributions. The board may not provide financial advice or in any way act as a broker, banker, financial advisor, investment manager or in a similar capacity to the eligible employer. Any money received as a result of a lump sum payment of advance payment of accrued liability contributions shall be part of the general assets of the funds and may not be segregated or invested separately for the account of or benefit of the eligible employer that made the payment.

(10) An amount paid into the fund as an advance payment of accrued liability contributions may not be refunded or repaid to any eligible employer except as a setoff against future employer contributions.

(11) Advance payment of accrued liability contributions made prior to the execution of an agreement that, in the sole determination of the board or in the determination of the commissioner, could result in the system failing to satisfy the requirements necessary to be a qualified pension plan under IRC § 401(a) and other applicable provisions of the IRC, shall not be permitted.

(c) Effect of payment.--The effect of a payment shall be as follows:

(1) Any eligible employer that makes a lump sum payment of advance accrued liability contributions shall receive an annual setoff on a fiscal year basis against the payment of future accrued liability contributions in an amount and for the time period provided in the agreement. If the amount of the annual setoff exceeds the accrued liability contributions of the eligible employer for that fiscal year, the remaining setoff amount shall be applied against any supplemental annuity contributions determined under section 5508(e)(2). If no supplemental annuity contributions are due, or if the remaining annual setoff exceeds the amount of the supplemental annuity contributions, any remaining annual setoff shall be applied against the employer normal contributions of the eligible employer. Any annual setoff amount in excess of the actual accrued liability contributions, supplemental annuity contributions and employer normal contributions for that fiscal year shall be deferred without interest and made part of the scheduled annual setoff amount of the eligible employer for the next subsequent year as determined by the actuary and certified by the board. In no event shall a setoff for advance payments reduce or be used to pay additional accrued liability contributions under section 5507(g) (relating to contributions to the system by the Commonwealth and other employers), benefits completion plan contributions under section 5507(e), employer defined contributions paid into the trust on account of a participant's State service or any member or participant contributions to the system or the plan. A lump sum amount or annual excess setoff of advance accrued liability contributions may not be paid from the fund by the board to the eligible employer.

(2) Advance payment of accrued liability contributions results only in a dollar amount setoff against actual future contributions as set forth in the agreement between the board and eligible employer and determined by the actuary and certified by the board. An eligible employer shall be subject to all changes in employer contribution rates and actual contribution amounts caused by any reason, including actual recognition of investment returns, changes in economic or demographic actuarial assumptions, including the assumed rate of investment return, actual experience being different from the economic or demographic assumptions, including the number of State employees who are members of the system and their compensation, changes in benefits and changes in the actuarial cost method.

(d) Payment of costs and fees.--

(1) The costs incurred by the board after the effective date of this section, including any fees charged by the actuary, to estimate, determine, calculate or administer the amount of any lump sum payment and annual setoff potentially or actually resulting from advance payment of accrued liability contributions shall be paid by the eligible employer on whose behalf the costs were incurred, in amounts

certified by the board. Notwithstanding this paragraph, costs may not be paid by the eligible employer until the board provides a written estimate of the costs to the eligible employer and receives written approval from the eligible employer to incur the costs on the eligible employer's behalf.

(2) Payment of fees and costs incurred by the board at the request of the head of a department shall be paid by the corresponding eligible employer without regard to whether an agreement is entered into between the board and the head of department of an eligible employer under subsection (a) and without regard to whether the costs and fees are incurred before or after an agreement is entered into under subsection

(a).

(3) The board may require advance payment of costs and fees before performing any estimate, determination, calculation or administrative work under this section.

(4) The board may setoff the payment of costs and fees against either the lump sum payment or annual setoffs.

(5) Notwithstanding this subsection, the board may waive all or part of the reimbursement due by an eligible employer if the board in its sole discretion determines that it is in the best interests of the fund and the members of the system to do so.

(e) Limitation of time.--

(1) A lump sum payment for advance payment of accrued liability contributions made on or after July 1 and on or before the following May 1 will be recognized by annual setoffs beginning the next fiscal year. A lump sum payment for advance payment of accrued liability contributions made on or after May 2 and before July 1 will be recognized by annual setoffs beginning the second following fiscal year.

(2) Any agreement under this section must be entered into by December 31, 2024. Any lump sum payment under this section must be made by May 1, 2025. (Nov. 27, 2019, P.L.723, No.105, eff. imd.) 2019 Amendment. Act 105 added section 5508.1. See section 9 of Act 105 in the appendix to this title for special provisions relating to applicability. Cross References. Section 5508.1 is referred to in section 5507 of this title.
71 Pa.C.S. § 5957 — PA Code / Title 71 / Chapter 59 / Section 5957
Independent Fiscal Office study.
Status: in_force

The Independent Fiscal Office shall study and analyze the implementation of shared-risk contributions under section 5501.1 (relating to shared-risk member contributions and shared-gain adjustments to regular member contributions) and its impact on the system. The study shall be completed by December 31, 2015,

and shall be transmitted to the Appropriations Committee and the Finance Committee of the Senate, the Appropriations Committee and the Finance Committee of the House of Representatives and to the Governor. (Nov. 23, 2010, P.L.1269, No.120, eff. imd.; June 12, 2017, P.L.11, No.5, eff. imd.)
71 Pa.C.S. § 13 — PA Code / Title 71 / Chapter 13 / Section 13
Computation of benefits.
Status: in_force

Upon the effective date of this section, the State Employees' Retirement Board shall recompute the retirement benefits of former State employees who died before the effective date of this section and on or after January 1, 2007, while performing uniformed service pursuant to 38 U.S.C. Ch. 43 (relating to employment and reemployment rights of members of the uniformed services).
71 Pa.C.S. § 3103 — PA Code / Title 71 / Chapter 31 / Section 3103
Records open to public.
Status: in_force

(a) General rule.--The minutes of the commission shall be preserved as permanent records. Correspondence, other papers and records of the commission shall be maintained for periods established in the commission's records retention schedule, which may, upon publication of notice in the Pennsylvania

Bulletin, be changed at the discretion of the commission to meet the criteria and needs of the commission.

(b) Electronic records.--The commission and the director, in their deliberations, may rely on computerized or electronically or mechanically reproduced records.

(c) Records to be public.--On written request, supported by justification acceptable to the director and subject to reasonable regulation, all records of the commission shall be open to public inspection during ordinary business hours except as otherwise provided for under this chapter.
71 Pa.C.S. § 9 — PA Code / Title 71 / Chapter 9 / Section 9
Applicability.
Status: in_force

The following shall apply:

(1) The board is not obligated to enter into any agreement with the head of department of any eligible employer.

(2) The General Assembly reserves to itself the further exercise of its legislative power to amend, supplement or repeal the provisions of this act, or 71 Pa.C.S. Pt. XXV, including the actuarial cost method under 71 Pa.C.S. § 5508, without regard to whether the head of department of an eligible employer has entered into an agreement with the board under this act, except that if any eligible employer has made an advance payment of accrued liability contributions, that eligible employer shall receive setoffs of future employer contributions as determined by the State

Employees' Retirement Board's actuary and certified by the State Employees' Retirement Board.

(3) Notwithstanding any other provision of law, fiduciary requirement, actuarial standard of practice or other requirement to the contrary, the members of the State Employees' Retirement Board, the actuary and other employees and officials of the State Employees' Retirement System:

(i) May not be held liable or in breach or violation of any law or standard either as individuals or in their official capacity or as a governmental or corporate entity for any action or calculation related to calculating and certifying:

(A) An employer normal contribution rate.

(B) A supplemental contribution rate.

(C) An accrued liability contribution rate or final contribution rate or actual employer contribution rate.

(D) An allocation of the unfunded actuarial accrued liability to an eligible employer.

(E) A lump sum amount of advance payment of accrued liability contributions.

(F) A setoff against employer contributions.

(G) The actual employer contributions as provided in this act.

(ii) Do not warrant, guarantee or promise that any actuarial, economic or demographic assumptions, projections or estimates used for calculations under subparagraph (i) will in fact occur, or that future increases of accrued liability contributions will not occur or be assessed against any eligible employer that makes an advanced payment of accrued liability contributions under this act. Explanatory Note. Act 105 amended or added sections 5102, 5302, 5501.1, 5507, 5508, 5508.1, 5902, 5906 and 5934 of Title 71. 2020, OCTOBER 29, P.L.775, NO.94
71 Pa.C.S. § 5306.2 — PA Code / Title 71 / Chapter 53 / Section 5306.2
Elections by members of the General Assembly.
Status: in_force

(a) General rule.--A member of the General Assembly who on the effective date of this section is eligible for Class D-4 membership may elect to become a member of Class D-4. The election to become a Class D-4 member must be made by the member of the General Assembly by filing written notice with the board before July 1, 2001, or before the member terminates State service as a member of the General Assembly, whichever occurs first.

(b) Effect of election.--Membership as a Class D-4 member shall become effective on July 1, 2001, and shall remain in effect until the termination of service as a member of the General Assembly or an election is made to become a member of Class A-5 or Class A-6 or solely a participant in the plan under section 5306.5 (relating to election by active members to become a Class A-5 member, Class A-6 member or plan participant). Upon termination and a subsequent reemployment, the member's class of service shall be credited in the class of service otherwise provided for in this part, and the State employee's eligibility for participation in the plan shall be as provided in this part.

(c) Effect of failure to make election.--A member of the General Assembly who is a member of Class A as a result of failure to elect to become a member of another class or who is a member of another class other than Class D-4 as a result of electing membership in such class for legislative service shall not be eligible to receive or elect a different class of service for such legislative service either during the period of legislative service or upon termination and subsequent employment unless the State employee elects to become a member of Class A-5 or Class A-6 or solely a participant in the plan under section 5306.5. (May 17, 2001, P.L.26, No.9, eff. imd.; June 12, 2017, P.L.11, No.5, eff. imd.) 2017 Amendment. Act 5 amended subsecs. (b) and (c). 2001 Amendment. Act 9 added section 5306.2. Cross References. Section 5306.2 is referred to in sections 5303, 5306 of this title.
71 Pa.C.S. § 5501.2 — PA Code / Title 71 / Chapter 55 / Section 5501.2
Definitions.
Status: in_force

The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise:

"Actuarially required contribution rate." The employer contribution rate as calculated pursuant to section 5508(a),

(b), (c), (e) and (f) (relating to actuarial cost method).

"Costs added by legislation." The sum, if positive, of all changes in the actuarially required contribution rate resulting from legislation enacted in the year since the last actuarial valuation and not included in the determination of the prior year's final contribution rate, computed as the rate of total compensation of all active members certified by the actuary as sufficient to make the employer normal contributions and sufficient to amortize legislatively created changes in the unfunded actuarial liability in equal dollar annual installments

over a period of ten years from the July 1 following the valuation date. (Nov. 23, 2010, P.L.1269, No.120, eff. imd.) 2010 Amendment. Act 120 added section 5501.2. See section 27 of Act 120 in the appendix to this title for special provisions relating to changes in accrued liability of State Employees' Retirement System.
71 Pa.C.S. § 3 — PA Code / Title 71 / Chapter 3 / Section 3
Continuation of prior law and applicability.
Status: in_force

The addition of 71 Pa.C.S. Pt. III is a continuation of the act of August 5, 1941 (P.L.752, No.286), known as the Civil Service Act. The following apply:

(1) Except as otherwise provided in 71 Pa.C.S. Pt. III, all activities initiated under the act of August 5, 1941 (P.L.752, No.286), known as the Civil Service Act, shall continue and remain in full force and effect and may be completed under 71 Pa.C.S. Pt. III. Orders, regulations, rules and decisions which were made under the Civil Service Act and which are in effect on the effective date of section 2(3) of this act shall remain in full force and effect until revoked, vacated or modified under 71 Pa.C.S. Pt. III. Contracts, obligations and collective bargaining agreements entered into under the Civil Service Act are not affected nor impaired by the repeal of the Civil Service Act.

(1.1) Each position given civil service status under the Civil Service Act or any other act shall not be affected nor impaired by the repeal of the Civil Service Act and the addition of 71 Pa.C.S. Pt. III.

(2) Except as set forth in paragraph (3), any difference in language between 71 Pa.C.S. Pt. III and the Civil Service Act is intended only to conform to the style of the Pennsylvania Consolidated Statutes and is not intended to change or affect the legislative intent, judicial construction or administration and implementation of the Civil Service Act.

(3) Paragraph (2) does not apply to the addition of the following:

(i) The addition of the definitions of "job," "job title" and "board" under 71 Pa.C.S. § 2103.

(ii) The authority of the Office of Administration to issue regulations, including temporary regulations, under 71 Pa.C.S. § 2203.

(iii) The administration of merit system employment by the Office of Administration under 71 Pa.C.S. Chs. 22, 23, 24, 25, 26, 27, 28 and 29.

(iv) 71 Pa.C.S. Chs. 32 and 33.

(v) The transfer of records under 71 Pa.C.S. § 3301. Explanatory Note. Act 71 added Part III of Title 71. 2019, JULY 2, P.L.356, NO.52
71 Pa.C.S. § 5805 — PA Code / Title 71 / Chapter 58 / Section 5805
Mandatory pickup participant contributions.
Status: in_force

(a) Treatment for purposes of IRC § 414(h).--The contributions to the trust required to be made under section 5804(a) (relating to participant contributions) with respect to State service rendered by an active participant shall be picked up by the Commonwealth or other employer and shall be treated as the employer's contribution for purposes of IRC § 414(h). After the effective date of this section, an employer employing a participant in the plan shall pick up the required mandatory participant contributions by a reduction in the compensation of the participant.

(b) Treatment for other purposes.--For all other purposes under this part and otherwise, mandatory pickup participant contributions shall be treated as contributions made by a participant in the same manner and to the same extent as if the contributions were made directly by the participant and not picked up. Cross References. Section 5805 is referred to in section 5302 of this title.
71 Pa.C.S. § 5309 — PA Code / Title 71 / Chapter 53 / Section 5309
Eligibility for vesting.
Status: in_force

Any member who:

(1) Does not have Class A-3, Class A-4, Class A-5 or Class A-6 service credit or, if a multiple service member, Class T-E, Class T-F, Class T-G or Class T-H service credit in the Public School Employees' Retirement System and terminates State service, or if a multiple service member and an active member of the Public School Employees' Retirement System terminates school service, with five or more eligibility points, or any member with Class G, Class H, Class I, Class J, Class K, Class L, Class M or Class N service with five or more eligibility points, shall be eligible until his required beginning date to vest his retirement benefits.

(2) Has only Class A-3, Class A-4, Class A-5 or Class A-6 service credit and, if a multiple service member, only Class T-E, Class T-F, Class T-G or Class T-H service credit in the Public School Employees' Retirement System and terminates State service, or if a multiple service member and an active member of the Public School Employees' Retirement System terminates school service, with ten or more eligibility points shall be eligible until his required beginning date to vest his retirement benefits.

(3) Has either Class A-3, Class A-4, Class A-5 or Class A-6 service credit and, if a multiple service member, Class T-E, Class T-F, Class T-G or Class T-H service credit in the Public School Employees' Retirement System, also has service credited in the system in one or more other classes of service and has five or more, but fewer than ten, eligibility points and terminates State service, or if a multiple service member and an active member of the Public School Employees' Retirement System terminates school service, shall be eligible until his required beginning date to vest his retirement benefits calculated on his service credited in classes of service other than Class A-3, Class A-4, Class

A-5 or Class A-6 and to be credited with statutory interest on total accumulated deductions, regardless of whether or not any part of his accumulated deductions are a result of Class A-3, Class A-4, Class A-5 or Class A-6 service credit. (June 22, 1999, P.L.75, No.12, eff. imd.; May 17, 2001, P.L.26, No.9, eff. July 1, 2001; Nov. 23, 2010, P.L.1269, No.120, eff. imd.; Dec. 28, 2015, P.L.529, No.93, eff. imd.; June 12, 2017, P.L.11, No.5, eff. imd.) 2001 Amendment. See section 37 of Act 9 in the appendix to this title for special provisions relating to applicability of amendment to State Employees' Retirement System members. Cross References. Section 5309 is referred to in sections 5307, 5955.2 of this title.
71 Pa.C.S. § 2103 — PA Code / Title 71 / Chapter 21 / Section 2103
Definitions.
Status: in_force

Subject to additional definitions contained in subsequent provisions of this part which are applicable to specific provisions of this part, the following words and phrases when used in this part shall have the meanings given to them in this section unless the context clearly indicates otherwise:

"Appointing authority." The officers, board, commission, individual or group of individuals having power by law to make appointments in the classified service.

"Board." The Executive Board of the Commonwealth.

"Civil Service Act." The former act of August 5, 1941 (P.L.752, No.286), known as the Civil Service Act.

"Classified service." As follows:

(1) A position filled under the merit system of employment, including:

(i) Each position existing on or created after August 5, 1941, in the Department of Human Services, including the county boards of assistance, except for a student worker in institutions operated by the Office of Children, Youth and Families.

(ii) The following:

(A) Each position existing on or created after August 5, 1941, in the Department of Labor and Industry which is charged with the administration of the act of December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment Compensation Law.

(B) Each position which is charged with the administration of the act of June 2, 1915 (P.L.736, No.338), known as the Workers' Compensation Act, and the act of July 26, 1913 (P.L.1363, No.851), referred to as the Occupational Disease Prevention Law, including the positions of workers' compensation judges. The term shall not include the positions of members of the Workers' Compensation Appeal Board and members and employees of the State Workers' Insurance Board and the State Workers' Insurance Fund.

(iii) Each position existing on or created after August 5, 1941, in the Pennsylvania Liquor Control Board.

(iv) Each position existing on or created after August 5, 1941, in the commission.

(v) Each position existing on or created after August 5, 1941, in the Pennsylvania Board of Probation and Parole.

(vi) Each position existing on or created after August 5, 1941, in the Department of Education. The term shall not include the presidents, faculty members and

student employees of the State colleges, the heads and faculty members of the Department of Education's other educational institutions and county superintendents, assistant county superintendents and supervisors of special education.

(vii) Each position existing on or created after August 5, 1941, in the Department of Health. The term shall not include patient employees at institutions operated by the Department of Health.

(viii) Each position existing on or created after August 5, 1941, in the Department of Banking and Securities.

(ix) Each position existing on or created after August 5, 1941, in the Insurance Department.

(x) Each position existing on or created after August 5, 1941, in the State Employees' Retirement Board and under the professional licensing boards in the Department of State.

(xi) Each position existing on or created after August 5, 1941, in a department or agency under the Governor's jurisdiction which:

(A) Is required to be under a merit system in order to qualify the agency or department for the receipt of money from the Federal Government or an agency or instrumentality of the Federal Government.

(B) Was designated as professional or technical by the board on or before October 1, 1962.

(C) Was covered by civil service under the terms of an agreement entered into between the department or agency and the commission after October 1, 1962, other than agreements arising out of the board resolution of September 10, 1956, as amended and supplemented.

(xii) The positions of engineer, geologist, chemist, planning specialist, statistician, economist, photogrammetrist, architect, landscape architect, cartographer, draftsmen and surveyor in the Department of Transportation.

(xiii) Each position in a local civil defense organization which a political subdivision may bring under the provisions of 35 Pa.C.S. § 7312(f) (relating to organization), upon the exercise of the authority.

(xiv) Each position existing on or created after December 3, 1975, in the Pennsylvania Labor Relations Board. The term shall not include an executive director, secretary, regional director, attorney and attorney examiner.

(2) The term shall not include a position included in the unclassified service.

"Commission." The State Civil Service Commission.

"Demotion." The voluntary or involuntary movement of an employee to a class assigned to a pay range with a lower maximum salary.

"Director." The Executive Director of the State Civil Service Commission.

"Eligible." An individual whose name is on an eligible list.

"Eligible list." An employment list, promotion list or reemployment list.

"Employee." Except as provided in section 2705(g) (relating to political activity), an individual legally occupying a position in the classified service.

"Employment list." A list of individuals who have been found qualified by an entrance examination for appointment to a position in a particular class.

"Entrance examination." An examination for a position in a particular class, admission to which is not limited to an individual employed in the classified service.

"Furlough." The termination of employment because of lack of work or lack of funds. "Job," "job title," "class" or "class of positions." A group of positions in the classified service which are sufficiently similar in respect to the duties and responsibilities of the positions that the same:

(1) descriptive title may be used for each position;

(2) requirements as to experience, knowledge and ability are demanded of incumbents;

(3) assessments may be used to choose qualified appointees; and

(4) schedule of compensation may be made to apply with fairness under like working conditions.

"Permanent position." A position in the classified service which does not have an expiration date.

"Position." A group of current duties and responsibilities assigned or delegated by competent authority requiring the full-time or part-time employment of one individual.

"Probationary period." A preliminary period of employment, the purpose of which is to determine the fitness of an employee for regular status.

"Promotion." The movement of an employee to another class in a pay range with a higher maximum salary.

"Promotion examination." An examination for a position in a particular class, admission to which is limited to an employee in the classified service who has held a position in another class.

"Promotion list." A list of individuals determined to be qualified by a promotion examination for appointment to a position in a particular class.

"Regular employee." An employee who has been appointed to a position in the classified service in accordance with this part after completion of the employee's probationary period.

"Removal." The permanent separation from the classified service of an employee who has been permanently appointed.

"Temporary position." A position in the classified service resulting from temporary pressure of extra work which is likely to continue for a period of 12 months or less.

"Unclassified service." Each position existing on or created after August 5, 1941, in a department and agency included in the definition of classified service which are held by any of the following:

(1) A head and deputy head of a department of the Commonwealth, bureau director, division chief and all other supervisory personnel whose duties include participation in policy decisions.

(2) A member of a board or commission.

(3) One secretary or one confidential clerk and not more than five other personal assistants or aides to each State appointing authority or each member of the State appointing authority, except the commission and the director.

(4) An individual appointed for the duration of a special study, project or internship which is scheduled to be completed after a fixed or limited period of time and which should not be performed by an individual in the classified service.

(5) An attorney that the appointing authority appoints.

(6) Unskilled labor.

(7) Each professional position attached to the department head's office which functions in press, public relations, legislative liaison or development of executive policy.

"Unskilled labor." An individual occupying or assigned to a position for which the principal job function is manual labor or work requiring limited or no prior education or training.

"Veteran." An individual who served in the United States Armed Forces, including a reserve component or National Guard, and who was honorably discharged or released from service. Special Provisions in Appendix. See section 3 of Act 71 of 2018 in the appendix to this title for special provisions relating to continuation of prior law and applicability. References in Text. The Pennsylvania Board of Probation and Parole, referred to in the def. of "classified service," was renamed the Pennsylvania Parole Board by the act of June 30, 2021 (P.L.260, No.59).
71 Pa.C.S. § 2101 — PA Code / Title 71 / Chapter 21 / Section 2101
Scope of part.
Status: in_force

This part relates to civil service reform.
71 Pa.C.S. § 5508 — PA Code / Title 71 / Chapter 55 / Section 5508
Actuarial cost method.
Status: in_force

(a) Employer contribution rate on behalf of active members.--For each fiscal year, the amount of the Commonwealth and other employer contributions on behalf of all active members shall be computed by the actuary as a percentage of the total compensation of all active members during the period for which the amount is determined and shall be so certified by the board. The actuarially required contribution rate on behalf of all active members shall consist of the employer normal contribution rate, as defined in subsection (b), and the accrued liability contribution rate as defined in subsection (c). The actuarially required contribution rate on behalf of all active members shall be modified by the experience adjustment factor as calculated in subsection (f).

(b) Employer normal contribution rate.--The employer normal contribution rate shall be determined after each actuarial valuation on the basis of an annual interest rate and such mortality and other tables as shall be adopted by the board in accordance with generally accepted actuarial principles. The employer normal contribution rate shall be determined as follows:

(1) From the effective date of this paragraph through fiscal year 2021-2022, as a level percentage of the compensation of the average new active member, which percentage, if contributed on the basis of his prospective compensation through his entire period of active State service, would be sufficient to fund the liability for any prospective benefit payable to him in excess of that portion funded by his prospective member contributions, excluding shared-risk member contributions and shared-gain adjustments to regular member contributions. In no case shall the employer normal contribution rate in the aggregate or for each class of service separately be less than zero.

(2) For fiscal year 2022-2023 and each fiscal year thereafter, as a level percentage of the compensation of all active members, which percentage, if contributed from the start of their employment on the basis of their prospective compensation through their entire period of active State service, would be sufficient to fund the liability for any prospective benefit payable to them in excess of that portion funded by their prospective member contributions, excluding shared-risk member contributions and shared-gain adjustments to regular member contributions. In no case shall the employer normal contribution rate in the aggregate or for each class of service separately be less than zero.

(c) Accrued liability contribution rate.--

(1) For the fiscal years beginning July 1, 2002, and July 1, 2003, the accrued liability contribution rate shall be computed as the rate of total compensation of all active

members which shall be certified by the actuary as sufficient to fund over a period of ten years from July 1, 2002, the present value of the liabilities for all prospective benefits, except for the supplemental benefits as provided in sections 5708 (relating to supplemental annuities), 5708.1 (relating to additional supplemental annuities), 5708.2 (relating to further additional supplemental annuities), 5708.3 (relating to supplemental annuities commencing 1994), 5708.4 (relating to special supplemental postretirement adjustment), 5708.5 (relating to supplemental annuities commencing 1998), 5708.6 (relating to supplemental annuities commencing 2002), 5708.7 (relating to supplemental annuities commencing 2003) and 5708.8 (relating to special supplemental postretirement adjustment of 2002), in excess of the total assets in the fund (calculated recognizing all investment gains and losses over a five-year period), excluding the balance in the supplemental annuity account, and the present value of employer normal contributions and of member contributions payable with respect to all active members on December 31, 2001, and excluding contributions to be transferred by county retirement systems or pension plans pursuant to section 5507(c) (relating to contributions to the system by the Commonwealth and other employers). The amount of each annual accrued liability contribution shall be equal to the amount of such contribution for the fiscal year beginning July 1, 2002, except that, if the accrued liability is increased by legislation enacted subsequent to June 30, 2002, but before July 1, 2003, such additional liability shall be funded over a period of ten years from the first day of July, coincident with or next following the effective date of the increase. The amount of each annual accrued liability contribution for such additional legislative liabilities shall be equal to the amount of such contribution for the first annual payment.

(2) Notwithstanding any other provision of law, beginning July 1, 2004, and ending June 30, 2010, the outstanding balance of the increase in accrued liability due to the change in benefits enacted in 2001 shall be amortized in equal dollar annual contributions over a period that ends 30 years after July 1, 2002, and the outstanding balance of the net actuarial loss incurred in calendar year 2002 shall be amortized in equal dollar annual contributions over a period that ends 30 years after July 1, 2003. For fiscal years beginning on or after July 1, 2004, and ending June 30, 2010, if the accrued liability is increased by legislation enacted subsequent to June 30, 2003, but before January 1, 2009, such additional liability shall be funded in equal dollar annual contributions over a period of ten years from the first day of July coincident with or next following the effective date of the increase.

(3) For the fiscal year beginning July 1, 2010, the accrued liability contribution rate shall be computed as the rate of total compensation of all active members which shall be certified by the actuary as sufficient to fund in equal dollar installments over a period of 30 years from July 1, 2010, the present value of the liabilities for all prospective benefits calculated as of the immediately prior valuation date, including the supplemental benefits as provided in sections 5708, 5708.1, 5708.2, 5708.3, 5708.4, 5708.5, 5708.6, 5708.7 and 5708.8, but excluding the benefits payable from the retirement benefit plan established pursuant to section 5941 (relating to benefits completion plan), in

excess of the actuarially calculated assets in the fund (calculated recognizing all realized and unrealized investment gains and losses each year in level annual installments over five years), including the balance in the supplemental annuity account, and the present value of employer normal contributions determined without regard to any setoff the Commonwealth or any eligible employer will receive for advance payment of accrued liability contributions under section 5507(h), and of member contributions payable with respect to all active members, inactive members on leave without pay, vestees and special vestees on December 31, 2009. If the accrued liability is changed by legislation enacted subsequent to December 31, 2009, such change in liability shall be funded in equal dollar installments over a period of ten years from the first day of July following the valuation date coincident with or next following the date such legislation is enacted.

(4) For fiscal years beginning on or after July 1, 2018, the accrued liability contribution rate shall be computed as provided for under this section, except that the rate shall be computed as a rate of total compensation of all active members and active participants for the applicable period and the accrued liability shall be determined and the rate shall be computed without regard to the portion of any advance payment of accrued liability contributions made by the Commonwealth or any eligible employer under section 5507(h) for which an annual setoff has not been credited or recognized in a prior fiscal year. If the accrued liability is changed by legislation enacted subsequent to December 31, 2016, such change in liability shall be funded in equal dollar installments as a percentage of compensation of all active members and active participants over a period of ten years from the first day of July following the valuation date coincident with or next following the date such legislation is enacted. In addition to any employer defined contributions made to the trust, the Commonwealth and other employers of participants shall make the accrued liability contributions to the fund certified by the board.

(d) Special provisions on calculating contributions.--In calculating the contributions required by subsections (a), (b) and (c), the active members of Class C shall be considered to be members of Class A. In addition, the actuary shall determine the Commonwealth or other employer contributions required for active members of Class C and officers of the Pennsylvania State Police and enforcement officers and investigators of the Pennsylvania Liquor Control Board who are members of Class A to finance their benefits in excess of those to which other members of Class A are entitled. Such additional contributions shall be determined separately for officers and employees of the Pennsylvania State Police and for enforcement officers and investigators of the Pennsylvania Liquor Control Board. Such contributions payable on behalf of officers and employees of the Pennsylvania State Police shall include the amounts received by the system under the provisions of the act of May 12, 1943 (P.L.259, No.120), referred to as the Foreign Casualty Insurance Premium Tax Allocation Law, and on behalf of enforcement officers or investigators of the Pennsylvania Liquor Control Board, the amounts received by the system under the provisions of the act of April 12, 1951 (P.L.90, No.21), known as the Liquor Code.

(e) Supplemental annuity contribution rate.--

(1) For the period July 1, 2002, to June 30, 2010, contributions from the Commonwealth and other employers whose employees are members of the system required to provide for the payment of supplemental annuities as provided in sections 5708, 5708.1, 5708.2, 5708.3, 5708.4 and 5708.5 shall be paid over a period of ten years from July 1, 2002. The funding for the supplemental annuities commencing 2002 provided for in section 5708.6 shall be as provided in section 5708.6(f). The funding for the supplemental annuities commencing 2003 provided for in section 5708.7 shall be as provided in section 5708.7(f). The funding for the special supplemental postretirement adjustment of 2002 under section 5708.8 shall be as provided in section 5708.8(g). The amount of each annual supplemental annuities contribution shall be equal to the amount of such contribution for the fiscal year beginning July 1, 2002.

(2) For fiscal years beginning on or after July 1, 2010, contributions from the Commonwealth and other employers whose employees are members of the system required to provide for the payment of supplemental annuities as provided in sections 5708, 5708.1, 5708.2, 5708.3, 5708.4, 5708.5, 5708.6, 5708.7 and 5708.8 shall be paid as part of the accrued liability contribution rate as provided for in subsection (c)(3), and there shall not be a separate supplemental annuity contribution rate attributable to those supplemental annuities. In the event that supplemental annuities are increased by legislation enacted subsequent to December 31, 2009, the additional liability for the increase in benefits shall be funded in equal dollar installments as a percentage of compensation of all active members and active participants over a period of ten years from the first day of July following the valuation date coincident with or next following the date such legislation is enacted.

(f) Experience adjustment factor.--

(1) For each fiscal year after the establishment of the accrued liability contribution rate and the supplemental annuity contribution rate for the fiscal year beginning July 1, 2010, any increase or decrease in the unfunded accrued liability and any increase or decrease in the liabilities and funding for supplemental annuities, due to actual experience differing from assumed experience (recognizing all realized and unrealized investment gains and losses over a five-year period), changes in contributions caused by the final contribution rate being different from the actuarially required contribution rate, State employees making shared-risk member contributions or having shared-gain adjustments to their regular member contributions, payment of additional accrued liability contributions under section 5507(g), changes in actuarial assumptions or changes in the terms and conditions of the benefits provided by the system by judicial, administrative or other processes other than legislation, including, but not limited to, reinterpretation of the provisions of this part, shall be amortized in equal dollar annual contributions as a percentage of compensation of all active members and active participants over a period of 30 years beginning with the July 1 succeeding the actuarial valuation determining said increases or decreases. The experience adjustment factor calculated under this paragraph shall be determined without regard to any advance payment of accrued liability contributions made by the Commonwealth or any eligible employer under section 5507(h).

(2) The actuarially required contribution rate shall be the sum of the normal contribution rate, the accrued liability contribution rate and the supplemental annuity contribution rate, modified by the experience adjustment factor as calculated in paragraph (1).

(g) Determination of liability for special vestee.--Notwithstanding any other provision of this part or other law, the total additional accrued actuarial liability resulting from eligibility of special vestees for benefits upon the attainment of superannuation age shall be determined by the actuary as part of the first annual valuation made after June 30, 1997. The resulting additional accrued actuarial liability shall be paid by The Pennsylvania State University to the board in one lump sum payment within 90 days of the board's certification of the amount to The Pennsylvania State University.

(h) Temporary application of collared contribution rate.--The collared contribution rate for each fiscal year shall be determined by comparing the actuarially required contribution rate calculated without regard for costs added by legislation to the prior year's final contribution rate. If, for any of the fiscal years beginning July 1, 2011, July 1, 2012, and on or after July 1, 2013, the actuarially required contribution rate calculated without regard for costs added by legislation is more than 3%, 3.5% and 4.5%, respectively, of the total compensation of all active members greater than the prior year's final contribution rate, then the collared contribution rate shall be applied and be equal to the prior year's final contribution rate increased by the respective percentage above of total compensation of all active members. Otherwise, and for all subsequent fiscal years, the collared contribution rate shall not apply. In no case shall the collared contribution rate be less than 4% of total compensation of all active members.

(i) Final contribution rate.--For the fiscal year beginning July 1, 2010, the final contribution rate shall be 5% of total compensation of all active members. For each subsequent fiscal year for which the collared contribution rate is applicable, the final contribution rate shall be the collared contribution rate plus the costs added by legislation. For all other fiscal years, the final contribution rate shall be the actuarially required contribution rate, provided that the final contribution rate shall not be less than the employer normal contribution rate, as defined in subsection (b). (June 29, 1984, P.L.450, No.95, eff. imd.; Oct. 21, 1988, P.L.844, No.112, eff. Jan. 1, 1989; Aug. 5, 1991, P.L.183, No.23, eff. imd.; Apr. 29, 1994, P.L.159, No.29, eff. 60 days; June 25, 1997, P.L.369, No.41, eff. imd.; May 17, 2001, P.L.26, No.9, eff. July 1, 2002; Apr. 23, 2002, P.L.272, No.38, eff. imd.; Dec. 10, 2003, P.L.228, No.40, eff. imd.; June 27, 2007, P.L.32, No.8, eff. imd.; Nov. 23, 2010, P.L.1269, No.120, eff. imd.; June 12, 2017, P.L.11, No.5, eff. imd.; Nov. 27, 2019, P.L.723, No.105, eff. imd.) 2019 Amendment. Act 105 amended subsecs. (c)(3) and (4) and

(f)(1). See section 9 of Act 105 in the appendix to this title for special provisions relating to applicability. 2017 Amendment. Act 5 amended subsecs. (a), (b), (c)(1),

(e)(2), (f) and (h) and added subsec. (c)(4). See section 404 of Act 5 in the appendix to this title for special provisions relating to accrued liability funding.

2010 Amendment. See section 27 of Act 120 in the appendix to this title for special provisions relating to changes in accrued liability of State Employees' Retirement System. 2007 Amendment. See section 2 of Act 8 in the appendix to this title for special provisions relating to recertification of employer contribution rates. 1997 Amendment. See section 6 of Act 41 in the appendix to this title for special provisions relating to limitation of special vestee status. Special Provisions in Appendix. See section 6.1 of Act 72 of 2019 in the appendix to this title for special provisions relating to accrued liability. Cross References. Section 5508 is referred to in sections 5301, 5303.2, 5501.1, 5501.2, 5505.1, 5507, 5508.1, 5705, 5706, 5708.1, 5708.2, 5708.3, 5708.5, 5708.6, 5708.7, 5708.8, 5902 of this title.
71 Pa.C.S. § 2505 — PA Code / Title 71 / Chapter 25 / Section 2505
Effect of reclassifications.
Status: in_force

(a) Reclassification.--When an employee's job changes or the board changes a classification and a reallocation of the position becomes necessary, the employee shall be reclassified to the new classification, provided the employee meets the established requirements for the new classification.

(b) Reclassification to lower level.--Reclassification to a lower level shall not be construed as a demotion.
71 Pa.C.S. § 5806 — PA Code / Title 71 / Chapter 58 / Section 5806
Employer defined contributions.
Status: in_force

(a) Contributions for service.--The Commonwealth or other employer of an active participant shall make employer defined contributions for service of an active participant that shall be credited to the active participant's individual investment account. Employer defined contributions shall be recorded and accounted for separately from participant contributions.

(b) Contributions resulting from participants reemployed from USERRA leave.--When a State employee reemployed from USERRA

leave makes the mandatory pickup participant contributions permitted to be made for the USERRA leave, the Commonwealth or other employer by whom the State employee is employed at the time the participant contributions are made shall make whatever employer defined contributions would have been made under this section had the employee making the participant contributions continued to be employed in the participant's State office or position instead of performing USERRA leave. The employer defined contributions shall be placed in the participant's individual investment account as otherwise provided by this part.

(c) Limitations on contributions.--No contributions may be allowed that would cause a violation of the limitations related to contributions applicable to governmental plans contained in IRC § 415 or in other provisions of law. In the event that any disallowed contributions are made, any employer defined contributions in excess of the limitations and investment earnings on the contributions, but minus investment fees and administrative charges applied against those contributions, shall be refunded to the employer by the board. (Oct. 29, 2020, P.L.775, No.94, eff. imd.) 2020 Amendment. Act 94 amended subsec. (c). See section 4 of Act 94 in the appendix to this title for special provisions relating to applicability. Cross References. Section 5806 is referred to in sections 5102, 5302 of this title.
71 Pa.C.S. § 5705 — PA Code / Title 71 / Chapter 57 / Section 5705
Member's options.
Status: in_force

(a) General rule.--Any special vestee, vestee or any other member upon termination of State service who is eligible to receive an annuity as provided in section 5308(a) or (b) (relating to eligibility for annuities) may apply for and elect to receive either a maximum single life annuity, as calculated in accordance with the provisions of section 5702 (relating to maximum single life annuity), or a reduced annuity certified by the actuary to be actuarially equivalent to the maximum single life annuity payable after reduction under subsection

(a.1) and in accordance with one of the following options; except that no member shall elect an annuity payable to one or more survivor annuitants other than his spouse or alternate payee of such a magnitude that the present value of the annuity payable to him for life plus any lump sum payment under this subsection and subsection (a.1) he may have elected to receive

is less than 50% of the present value of his maximum single life annuity and no member may elect a payment option that would provide benefits that do not satisfy the minimum distribution requirements or would violate the incidental death benefit rules of IRC § 401(a)(9):

(1) Option 1.--A life annuity to the member with a guaranteed total payment equal to the present value of the maximum single life annuity on the effective date of retirement with the provision that, if, at his death, he has received less than such present value, the unpaid balance shall be payable to his beneficiary.

(2) Option 2.--A joint and survivor annuity payable during the lifetime of the member with the full amount of such annuity payable thereafter to his survivor annuitant, if living at his death.

(3) Option 3.--A joint and fifty percent (50%) survivor annuity payable during the lifetime of the member with one-half of such annuity payable thereafter to his survivor annuitant, if living at his death.

(4) Option 4.--Some other benefit which shall be certified by the actuary to be actuarially equivalent to the maximum single life annuity, subject to the following restrictions:

(i) any annuity shall be payable without reduction during the lifetime of the member;

(ii) the sum of all annuities payable to the designated survivor annuitants shall not be greater than the annuity payable to the member; and

(iii) a portion of the benefit may be payable as a lump sum, except that such lump sum payment shall not exceed an amount equal to the total accumulated deductions standing to the credit of the member that are not the result of contributions and statutory interest made or credited as a result of Class A-3, Class A-4, Class A-5 or Class A-6 service. The balance of the present value of the maximum single life annuity adjusted in accordance with section 5702(b) shall be paid in the form of an annuity with a guaranteed total payment, a single life annuity, or a joint and survivor annuity or any combination thereof but subject to the restrictions of subparagraphs (i) and (ii) under this option.

(a.1) Additional lump sum withdrawal.--The following shall apply:

(1) If a member has an effective date of retirement after December 31, 2018, and has elected to have the full amount allowed under subsection (a)(4)(iii) paid in a lump sum, or is not eligible to have any money paid under subsection (a)(4)(iii), then the member may elect to receive an additional amount payable in a lump sum at the same time as the payment elected under subsection (a)(4)(iii), if any.

(2) The additional amount payable in a lump sum may not exceed an amount equal to total accumulated deductions standing to the credit of the member on the effective date of retirement related to service credited as Class A-3, Class A-4, Class A-5 or Class A-6.

(3) If a member elects to be paid an additional lump sum amount under this subsection, then the maximum single life annuity calculated under section 5702 and payable under subsection (a) shall be reduced by the additional amount withdrawn divided by the cost of a dollar annuity on the effective date of retirement computed on the basis of the annual interest rate adopted for that fiscal year by the

board for the calculation of the employer normal contribution rate under section 5508(b) (relating to actuarial cost method) and the mortality tables adopted by the board for the determination of actuarially equivalent benefits under this part. The reduction in the maximum single life annuity under this paragraph shall apply before the election and calculation of any reduced annuities payable under subsection

(a).

(b) Present value of joint coverage annuity.--In calculating an annuity payable to a member of the joint coverage group, the present value of such adjusted annuity shall be determined by taking into account prospectively the reduction applicable upon the attainment of the age at which full social security benefits are payable. (Oct. 7, 1975, P.L.348, No.101, eff. imd.; June 13, 1985, P.L.40, No.19, eff. imd.; Apr. 29, 1994, P.L.159, No.29, eff. Jan. 1, 1995; June 25, 1997, P.L.369, No.41, eff. imd.; June 22, 1999, P.L.75, No.12, eff. imd.; May 17, 2001, P.L.26, No.9, eff. July 1, 2001; Nov. 23, 2010, P.L.1269, No.120, eff. imd.; Dec. 28, 2015, P.L.529, No.93, eff. imd.; June 12, 2017, P.L.11, No.5, eff. imd.) 2017 Amendment. Act 5 amended subsec. (a) and added subsec.

(a.1). 2001 Amendment. See section 37 of Act 9 in the appendix to this title for special provisions relating to applicability of amendment to State Employees' Retirement System members. 1999 Amendment. See section 27 of Act 12 in the appendix to this title for special provisions relating to eligibility for superannuation benefits. 1997 Amendment. See section 6 of Act 41 in the appendix to this title for special provisions relating to limitation of special vestee status. Cross References. Section 5705 is referred to in sections 5302, 5307, 5702, 5706, 5709, 5902, 5905, 5905.1, 5907, 5955 of this title.
71 Pa.C.S. § 5701.1 — PA Code / Title 71 / Chapter 57 / Section 5701.1
Transfer of accumulated deductions.
Status: in_force

When an employee of the Juvenile Court Judges' Commission elects membership in an independent retirement program pursuant to section 5301(f) (relating to mandatory and optional membership in the system and participation in the plan), the board shall transfer directly to the trustee or administrator of the independent retirement program all accumulated deductions resulting from service credited while an employee of the Juvenile Court Judges' Commission. (Apr. 23, 2002, P.L.272, No.38, eff. imd.; June 12, 2017, P.L.11, No.5, eff. imd.) Cross References. Section 5701.1 is referred to in section 5933 of this title.
71 Pa.C.S. § 2703 — PA Code / Title 71 / Chapter 27 / Section 2703
Misdemeanors.
Status: in_force

An individual who, alone or in collusion with one or more other individuals, willfully performs any of the following commits a misdemeanor and shall, upon conviction, be sentenced to pay a fine of not less than $100 nor more than $3,000 for each offense or to imprisonment for not more than three years, or both:

(1) Defeats, deceives or obstructs an individual with respect to the individual's right of examination, appointment or employment in accordance with this part.

(2) Corruptly or falsely marks, rates, grades, estimates or reports upon the tests or proper standing of an individual tested or certified under this part, or aids in doing so.

(3) Willfully makes false representations concerning tests, standings or individuals tested.

(4) Willfully furnishes to an individual special or secret information for the purpose of improving or injuring the prospects or chances of an individual examined or certified or of an individual who will be examined or certified.

(5) Impersonates an individual or permits or aids in any manner another individual to impersonate him or her in connection with an examination or request to be examined, certified or appointed.

(6) Furnishes false information about the individual or another individual in connection with a request to be examined, certified or appointed.

(7) Makes an appointment to office or selects an individual for employment contrary to this part.

(8) Refuses to comply with the provisions of this part.

(9) Willfully or through culpable negligence violates the provisions of this part or rules made under this part.
71 Pa.C.S. § 5704 — PA Code / Title 71 / Chapter 57 / Section 5704
Disability annuities.
Status: in_force

(a) Amount of annuity.--A member who has made application for a disability annuity and has been found to be eligible in accordance with the provisions of section 5905(c)(1) (relating to duties of the board regarding applications and elections of members and participants) shall receive a disability annuity payable from the effective date of disability as determined by the board and continued until a subsequent determination by the board that the annuitant is no longer entitled to a disability annuity. If the sum of the products of the number of years and fractional part of a year of credited service in each class and the appropriate class of service multiplier is greater than 16.667, the disability annuity shall be a single life annuity that is equal to the sum of the standard single life annuities determined separately for each class of service multiplied by the appropriate class of service multiplier, otherwise each standard single life annuity shall be multiplied by the lesser of the following ratios: MY*/Y or 16.667/Y Where Y = total number of years of credited service; Y* = total years of credited service if the member were to continue as a State employee until attaining superannuation age as applicable to that class of service at the time of disability, or if the member has attained superannuation age, as applicable to that class of service at the time of disability, then the number of years of credited service and M = the class of service multiplier as applicable to that class of service at the effective date of disability. A member of Class C shall receive, in addition, any annuity to which he may be eligible under section 5702(a)(3) (relating to maximum single life annuity). The member shall be entitled to the election of a joint and survivor annuity on that portion of the disability annuity to which he is entitled under section 5702.

(b) Benefit attributable to social security integration credit.--If the member has been found to be eligible for a disability annuity and has social security integration credits as provided in section 5305 (relating to social security integration credits), he may elect to withdraw his social security integration accumulated deductions or if he has five or more eligibility points to his credit and does not withdraw his social security integration accumulated deductions he may execute an application to be filed with the board to receive, in addition to his disability annuity, an annuity calculated in accordance with section 5702(a)(2).

(c) Reduction on account of earned income.--Subsequent to January 1, 1972, payments on account of disability shall be reduced by that amount by which the earned income of the annuitant, as reported in accordance with section 5908(b) (relating to rights and duties of annuitants), for the preceding calendar year together with the disability annuity payments provided in this section other than subsection (b), for the year, exceeds the product of:

(1) the last year's salary of the annuitant as a member of the system; and

(2) the ratio of the current monthly payment to the monthly payment at the effective date of disability; Provided, That the annuitant shall not receive less than his member's annuity or the amount to which he may be entitled under section 5702 whichever is greater.

(d) Reduction on account of ineligibility.--Payment of that portion of the disability annuity in excess of the annuity to which the annuitant was entitled at the effective date of disability calculated in accordance with section 5702 shall cease if the annuitant is no longer eligible under the provisions of sections 5905(c)(2) or 5908(b) or (c).

(e) Termination of State service.--Upon termination of disability annuity payments in excess of an annuity calculated in accordance with section 5702, a disability annuitant who does not return to State service may file an application with the board for an amount equal to the excess, if any, of the sum of the shared-risk accumulated deductions plus the regular and additional accumulated deductions standing to his credit at the effective date of disability over one-third of the total disability annuity payments received. If the annuitant on the date of termination of service was eligible for an annuity as provided in section 5308(a) or (b) (relating to eligibility for annuities), he may file an application with the board for an election of an optional modification of his annuity.

(1) (Deleted by amendment).

(2) (Deleted by amendment).

(f) Supplement for service connected disability.--

(1) If a member has been found to be eligible for a disability annuity and if the disability has been found to be a service connected disability and if the member is receiving workers' compensation payments for other than medical benefits, such member shall receive a supplement equal to the amount determined under paragraph (2) less the sum of the annuity as determined under subsection (a) and any payments paid or payable on account of such disability under the act of June 2, 1915 (P.L.736, No.338), known as the Workers' Compensation Act, the act of June 21, 1939 (P.L.566, No.284), known as The Pennsylvania Occupational Disease Act, and the Social Security Act (49 Stat. 620, 42 U.S.C. § 301 et seq.). Such supplement shall continue as long as he is determined to be disabled and is receiving workers' compensation payments for other than medical benefits on account of his service connected disability in accordance with the Workers' Compensation Act or The Pennsylvania Occupational Disease Act. If the member has received a lump sum workers' compensation payment in lieu of future weekly compensation payments, the length in weeks and calculation of the service connected disability supplement shall be determined by dividing the lump sum payment by the average weekly wage as determined by the Workers' Compensation Board.

(2) For a member who does not have Class A-5 or Class A-6 service, the amount to be used to determine eligibility for the supplement under paragraph (1) shall be 70% of the member's final average salary. For a member who has Class A-5 or Class A-6 service, the amount to be used to determine eligibility for the supplement under paragraph (1) shall be calculated according to the following formula: A = .7[(YW MULTIPLIED BY FASW)+(YP MULTIPLIED BY FASP)] YT YT

(3) The following apply to the formula in paragraph

(2):

(i) A equals the amount used to determine the supplement;

(ii) YT equals total years of credited service;

(iii) YW equals years of credited service that are not Class A-5 or Class A-6 service;

(iv) FASW equals final average salary calculated for credited service other than Class A-5 or Class A-6 service;

(v) YP equals years of service credited as Class A-5 or Class A-6 service; and

(vi) FASP equals final average salary calculated for service credited as Class A-5 or Class A-6 service.

(g) Limitation regarding annual benefit under IRC § 415.--Notwithstanding any provisions of this part to the contrary, no benefit shall be payable to the extent that such benefit exceeds any limitation under IRC § 415 as in effect with respect to governmental plans as such term is defined in IRC § 414(d) on the date the benefit payment becomes effective, provided however, that any increase in any limitation under IRC § 415 shall be applicable to all current and future annuitants and survivor annuitants.

(h) Coordination of benefits.--The determination and payment of a disability annuity under this section is in addition to any payments a member may be entitled to receive, has received or is receiving as a result of being a participant in the plan. (Oct. 7, 1975, P.L.348, No.101, eff. imd.; July 22, 1983, P.L.104, No.31, eff. imd.; June 13, 1985, P.L.40, No.19, eff. imd.; Apr. 29, 1994, P.L.159, No.29, eff. 60 days; May 17, 2001, P.L.26, No.9; Apr. 23, 2002, P.L.272, No.38; Nov. 23, 2010, P.L.1269, No.120, eff. imd.; Dec. 28, 2015, P.L.529, No.93, eff. imd.; June 12, 2017, P.L.11, No.5, eff. imd.) 2017 Amendment. Act 5 amended subsecs. (a), (c), (e) and

(f) and added subsec. (h). 2015 Amendment. Act 93 amended subsec. (g). 2001 Amendment. Act 9 amended subsecs. (b) and (f) and added subsec. (g), effective immediately as to subsecs. (f) and (g) and July 1, 2001, as to the remainder of the section. See section 37 of Act 9 in the appendix to this title for special provisions relating to applicability of amendment of subsec.

(b) to State Employees' Retirement System members. Effective Date. Section 4(3) of Act 31 of 1974 provided that, as applicable to officers of the Pennsylvania State Police, the provisions of section 5704(f) relating to service connected disability shall be effective July 1, 1973. Cross References. Section 5704 is referred to in sections 5307, 5703, 5905 of this title.
71 Pa.C.S. § 5955.2 — PA Code / Title 71 / Chapter 59 / Section 5955.2
Construction of part with respect to the Internal Revenue Code.
Status: in_force

(a) Limitation regarding annual benefit under IRC § 415.--

(1)

(i) Notwithstanding any provisions of this part to the contrary, no benefit shall be payable to the extent that such benefit exceeds any limitation under

IRC § 415 in effect with respect to governmental plans as the term is defined in IRC § 414(d) on the date the benefit payment becomes effective, provided, however, that any increase in any limitation under IRC § 415 shall be applicable to all current and future annuitants. No act of the General Assembly enacted after the effective date of this section that increases benefits under this part either for active members, inactive members, vestees or annuitants shall be deemed by the rules of statutory construction or otherwise to provide for benefits in excess of any limitation, as adjusted or subsequently increased, provided for under IRC § 415 unless specifically so provided by act of the General Assembly.

(ii) Notwithstanding subparagraph (i), any increase in benefits for any members of the system after the effective date of this section are intended to be applicable to the fullest extent allowed by law and this section authorizes any such increases in limitations or allowable benefits.

(2) In the event that annuities payable to a member from both the system and the Public School Employees' Retirement System are combined for purposes of determining whether annuities from the system and the Public School Employees' Retirement System are in excess of the limitations under IRC § 415(b), then:

(i) to the extent that the combined benefits exceed such limitations, but neither of the annuities from either the system or the Public School Employees' Retirement System would individually exceed such limitations, or the annuities payable under this part individually exceed such limitations and the annuity payable from the Public School Employees' Retirement System does not, then the limitations shall be applied to the annuities payable under this part to the extent required for such combined benefits to be within the limitations; or

(ii) to the extent that the annuity payable from the Public School Employees' Retirement System exceeds such limitation and the annuity from this part does not, or the annuities payable from the system and the Public School Employees' Retirement System individually exceed the limitations, then the limitation shall be applied first to the annuity payable from the Public School Employees' Retirement System so that the annuity from the Public School Employees' Retirement System is not in excess of such limitations and any remaining limitation will be applied to the benefits payable under this part.

(b) Vesting in event of plan termination.--

(1) In the event of termination of the system or upon complete discontinuance of contributions under this part, the rights of all members of the system to benefits accrued under this part to the date of such termination or discontinuance, to the extent then funded, and the amounts credited to the members' savings account are vested and nonforfeitable, except as allowed under the act of July 8, 1978 (P.L.752, No.140), known as the Public Employee Pension Forfeiture Act, and by or pursuant to section 16(b) of
71 Pa.C.S. § 21 — PA Code / Title 71 / Chapter 21 / Section 21
References to Internal Revenue Code of 1986 or 38 U.S.C.
Status: in_force

Ch. 43. References in this act to the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.) or 38 U.S.C. Ch. 43 (relating to employment and reemployment rights of members of the uniformed services), including for this purpose administrative regulations promulgated under those acts, are intended to include laws and regulations in effect on the effective date of this section and as they may be amended or supplemented or supplanted by successor provisions after the effective date of this section. 2015, DECEMBER 28, P.L.529, NO.93
71 Pa.C.S. § 5306.3 — PA Code / Title 71 / Chapter 53 / Section 5306.3
Election to become a Class A-4 member.
Status: in_force

(a) General rule.--A person who otherwise is eligible for Class A-3 membership who has not previously elected or declined to elect Class A-4 membership may elect to become a member of Class A-4.

(b) Time for making election.--The election to become a Class A-4 member must be made by the member filing written notice with the board in a form and manner determined by the board no later than 45 days after notice from the board of the member's eligibility to elect Class A-4 membership. A State employee who is eligible to elect to become a Class A-4 member who begins USERRA leave during the election period without having elected Class A-4 membership shall have the election period extended by the number of days on USERRA leave.

(c) Effect of election.--An election to become a Class A-4 member shall be irrevocable and shall become effective on the effective date of membership in the system and shall remain in effect for all future State service creditable to the system, other than service performed as a member of the judiciary, but shall not apply to service performed as a member who elected to become a member of Class A-5 or Class A-6 or solely a participant in the plan under section 5306.5 (relating to election by active members to become a Class A-5 member, Class A-6 member or plan participant) to service not performed as a Class A-5 exempt employee if the State employee first becomes a member of the system on or after January 1, 2019. Payment of regular member contributions and shared-risk member contributions for Class A-4 State service performed prior to the election of Class A-4 membership shall be made in a form, manner and time determined by the board. Upon termination of State service and subsequent reemployment, a member who elected Class A-4 membership shall be credited as a Class A-4 member for creditable State service performed after reemployment, except as a member of the judiciary, or unless the reemployment is as a member who elected to become a member of Class A-5 or Class A-6 or solely a participant in the plan under section 5306.5, provided that if the State employee first becomes a member of the system on or after January 1, 2019, the reemployment is as a Class A-5 exempt employee, regardless of termination of employment, termination of membership by withdrawal of accumulated deductions or status as an annuitant, vestee or inactive member after the termination of service.

(d) Effect of failure to make election.--Failure to elect to become a Class A-4 member within the election period set forth in subsection (b) shall result in all of the member's State service, other than service performed as a member of the judiciary, or if the State employee first becomes a member of the system on or after January 1, 2019, all service as a Class A-5 exempt employee, being credited as Class A-3 service and not subject to further election or crediting as Class A-4 service, unless the State employee elects to become a member of Class A-5 or Class A-6 or solely a participant in the plan under section 5306.5. Upon termination and subsequent employment, a member who failed to elect to become a Class A-4 member shall not be eligible to make another election to become a Class A-4 member for either past or future State service. (Nov. 23, 2010, P.L.1269, No.120, eff. imd.; Oct. 24, 2012, P.L.1436, No.181, eff. Dec. 31, 2012; June 12, 2017, P.L.11, No.5, eff. imd.) 2017 Amendment. Act 5 amended subsecs. (b), (c) and (d). 2010 Amendment. Act 120 added section 5306.3.

Cross References. Section 5306.3 is referred to in section 5306 of this title.
71 Pa.C.S. § 34 — PA Code / Title 71 / Chapter 34 / Section 34
Applicability of limitations on benefits.
Status: in_force

* * *

(b) State employees.--Nothing in this act shall be construed or deemed to imply that, but for the expressed applications of the limitations on benefits under section 401(a) or 415 of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 401 or 415), those limitations would not otherwise apply to members of the State Employees' Retirement System and the benefits payable pursuant to 71 Pa.C.S. Pt. XXV.
71 Pa.C.S. § 5952 — PA Code / Title 71 / Chapter 59 / Section 5952
State supervision.
Status: in_force

The fund and ledger accounts provided for by this part shall be subject to the supervision of the State Insurance Department.
71 Pa.C.S. § 5933 — PA Code / Title 71 / Chapter 59 / Section 5933
Members' savings account.
Status: in_force

(a) Credits to account.--The members' savings account shall be the ledger account to which shall be credited the amounts of the pickup contributions made by the Commonwealth or other employer and contributions or lump sum payments made by active members in accordance with the provisions of sections 5501 (relating to regular member contributions for current service), 5501.1 (relating to shared-risk member contributions and shared-gain adjustments to regular member contributions), 5502 (relating to social security integration member contributions), 5503 (relating to joint coverage member contributions), 5504 (relating to member contributions for the purchase of credit for previous State service or to become a full coverage member), 5505.1 (relating to additional member contributions) and 5505 (relating to contributions for the purchase of credit for creditable nonstate service) and transferred from the members' savings account of the Public School Employees' Retirement System in accordance with the provisions of section 5303.2 (relating to election to convert school service to State service).

(b) Interest and transfers from account.--The members' savings account in total and the individual member accounts shall be credited with statutory interest. The total accumulated deductions credited to a member whose application for an annuity has been approved shall be transferred from the members' savings account to the annuity reserve account provided for in section 5935 (relating to annuity reserve account), except in the case of a member who is an officer of the Pennsylvania State Police or an enforcement officer the total accumulated deductions to his credit shall be transferred from the members' savings account to the State Police benefit account provided for in section 5936 (relating to State Police benefit account) or to the enforcement officers benefit account provided for in section 5937 (relating to enforcement officers' benefit account), as the case may be.

(c) Charges to account.--Upon the election of a member to withdraw his total accumulated deductions or upon the transfer of accumulated deductions pursuant to section 5701.1 (relating to transfer of accumulated deductions), the payment of such amount shall be charged to the members' savings account. (Dec. 14, 1982, P.L.1249, No.284, eff. imd.; July 22, 1983, P.L.104, No.31, eff. imd.; Apr. 23, 2002, P.L.272, No.38, eff. imd.; Nov. 23, 2010, P.L.1269, No.120, eff. imd.; June 12, 2017, P.L.11, No.5, eff. imd.) 2017 Amendment. Act 5 amended subsec. (a). 2002 Amendment. Act 38 amended subsecs. (a) and (c). 1983 Amendment. See section 10 of Act 31 in the appendix to this title for special provisions relating to waiver of actuarial note requirement for retirement bills. Cross References. Section 5933 is referred to in sections 5932, 5935 of this title.
71 Pa.C.S. § 5708.7 — PA Code / Title 71 / Chapter 57 / Section 5708.7
Supplemental annuities commencing 2003.
Status: in_force

(a) Benefits.--Commencing with the first monthly annuity payment after July 1, 2003, any eligible benefit recipient shall be entitled to receive an additional monthly supplemental annuity from the system. This shall be in addition to the supplemental annuities provided for in sections 5708 (relating

to supplemental annuities), 5708.1 (relating to additional supplemental annuities), 5708.2 (relating to further additional supplemental annuities), 5708.3 (relating to supplemental annuities commencing 1994) and section 5708.5 (relating to supplemental annuities commencing 1998) and the special supplemental postretirement adjustments provided for in sections 5708.4 (relating to special supplemental postretirement adjustment) and 5708.8 (relating to special supplemental postretirement adjustment of 2002).

(b) Amount of supplemental annuity.--The amount of the supplemental annuity payable pursuant to this section shall be a percentage of the amount of the monthly annuity payment on July 1, 2003, determined on the basis of the most recent effective date of retirement, as follows: Most recent effective date Percentage factor of retirement July 2, 2001, through July 1, 2002 2.27% July 2, 2000, through July 1, 2001 3.08% July 2, 1999, through July 1, 2000 4.87% July 2, 1998, through July 1, 1999 6.35% July 2, 1994, through July 1, 1998 7.50% July 2, 1990, through July 1, 1994 9.00% Prior to July 2, 1990 0.00%

(c) Payment.--The supplemental annuity provided under this section shall be paid automatically unless the annuitant files a written notice with the board requesting that the additional monthly supplemental annuity not be paid.

(d) Conditions.--The supplemental annuity provided under this section shall be payable under the same terms and conditions as provided under the option plan in effect as of July 1, 2003.

(e) Benefits to beneficiaries or survivors.--No supplemental annuity provided under this section shall be payable to the beneficiary or survivor annuitant of a member who dies before July 1, 2003.

(f) Funding.--For the period beginning July 1, 2004, and ending June 30, 2010, the additional liability for the increase in benefits provided in this section shall be funded in equal dollar annual installments over a period of ten years beginning July 1, 2004. For fiscal years beginning on or after July 1, 2010, the additional liability for the increase in benefits provided in this section shall be funded as part of the actuarial accrued liability as provided in section 5508 (relating to actuarial cost method).

(g) Eligible benefit recipient.--As used in this section, the term "eligible benefit recipient" means a person:

(1) who is receiving a superannuation, withdrawal or disability annuity on July 1, 2003;

(2) whose most recent effective date of retirement is prior to July 2, 2002; and

(3) whose credited service does not include any service credited as either Class AA, Class D-4 or Class T-D service. Notwithstanding the above, the supplemental annuities provided under this section shall not be payable to an annuitant receiving a superannuation or withdrawal annuity prior to the first day of July coincident with or following the annuitant's attainment of superannuation age. (Apr. 23, 2002, P.L.272, No.38, eff. imd.; Dec. 30, 2002, P.L.2082, No.234, eff. imd.; Nov. 23, 2010, P.L.1269, No.120, eff. imd.)

Amendment. Act 120 amended subsec. (f).

2002 Amendments. Act 38 added section 5708.7 and Act 234 amended subsec. (g). Cross References. Section 5708.7 is referred to in sections 5507, 5508, 5708.8, 5938 of this title.
71 Pa.C.S. § 2606 — PA Code / Title 71 / Chapter 26 / Section 2606
Resignation.
Status: in_force

(a) Form and reinstatement.--

(1) An employee may resign from the classified service either verbally or in writing.

(2) Upon the request of an appointing authority, an employee may be reinstated in the classification from which the employee resigned.

(b) Acceptance of resignation.--Resignation of an individual in the classified service shall not be effective unless accepted by the appointing authority in writing within 15 calendar days after the date the individual tenders resignation.

(c) Resignation prohibited.--No individual about to be appointed to a position in the classified service shall, in advance of or at the time of the appointment, sign or execute a resignation, whether dated or undated.
71 Pa.C.S. § 18 — PA Code / Title 71 / Chapter 18 / Section 18
Construction of law.
Status: in_force

Nothing in this act shall be construed or deemed to imply that any interpretation or application of the provisions of 71 Pa.C.S. Pt. XXV or benefits available to members of the State Employees' Retirement System was not in accordance with the provisions of 71 Pa.C.S. Pt. XXV or other applicable law, including the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.) prior to the effective date of this section. It is the express intent of the General Assembly that nothing in this act shall be construed to grant to or be deemed to imply that this act expands, contracts or otherwise affects any contractual rights, either expressed or implied, or any other constitutionally protected rights, in the terms and conditions of the State Employees' Retirement System or other pension or retirement benefits as a State employee, including, but not limited to, benefits, options, rights or privileges established by 71 Pa.C.S. Pt. XXV for any current or former State employees.
71 Pa.C.S. § 15 — PA Code / Title 71 / Chapter 15 / Section 15
Obligation to make payments within specified time periods.
Status: in_force

Notwithstanding the provisions of 71 Pa.C.S. Pt. XXV, the obligation of the State Employees' Retirement Board to make payments to any individual whose rights, benefits and obligations are affected by this act within specified time periods of the receipt of applications for benefits or other information shall not apply from the effective date of this section to June 30, 2013.
71 Pa.C.S. § 2602 — PA Code / Title 71 / Chapter 26 / Section 2602
Furlough.
Status: in_force

(a) General rule.--

(1) If a reduction in force is necessary in the classified service:

(i) no employee may be furloughed while a probationary or provisional employee is employed in the same class in the same department or agency; and

(ii) no probationary employee may be furloughed while a provisional employee is employed in the same class in the same department or agency.

(2) The following apply:

(i) An employee shall be furloughed only if, at the time of furlough, the employee is within the lowest quarter among all employees of the employer in the same class on the basis of the employee's last regular service ratings. Within the quarter, the employee shall be furloughed in the order of seniority, unless a labor agreement covering the employees to be furloughed exists in which case the terms of the labor agreement regarding a furlough procedure shall be controlling.

(ii) The appointing authority may limit the application of this subparagraph in any particular instance to employees who are in:

(A) the same class, classification series or other grouping of employees as referred to in an applicable labor agreement; and

(B) the same department or agency within the same bureau or division with headquarters at a particular municipality, county or district of the Commonwealth.

(b) Rights of furloughed employees.--

(1) A furloughed employee shall have the right of return to a class and civil service status which was held prior to the furlough, provided the class is contained in the current classification plan of the agency.

(2) A furloughed employee shall have the right of return to a class and civil service status in the same or lower grade held prior to the furlough, provided the employee meets the minimum qualifications given in the classification plan of the agency.

(c) Report of furloughed employees.--The following apply:

(1) The appointing authority shall promptly report to the Office of Administration the names of employees furloughed, together with the date the furlough of each employee is effective, and the character of the employee's service.

(2) A regular employee furloughed shall, for a period of one year, be given preference for reemployment in the same class of positions from which furloughed and shall be eligible for appointment to a position of a similar class in other agencies under this part unless the terms of an existing labor agreement preclude the employee from receiving the preferential treatment contained in this paragraph, in which event the terms of the labor agreement shall control.
71 Pa.C.S. § 5306.5 — PA Code / Title 71 / Chapter 53 / Section 5306.5
Election by active members to become a Class A-5 member, Class A-6 member or plan participant.
Status: in_force

(a) General rule.--A State employee, except for a Class A-5 exempt employee, who is an active member or inactive member on leave without pay on December 31, 2018, and January 1, 2019, may elect to become a member of Class A-5, a member of Class A-6 or solely a participant in the plan. A State employee who was previously a member of the system before January 1, 2019, and who returns to State service on or after January 1, 2019, or who is a Class A-5 exempt employee on December 31, 2018, and January 1, 2019, is not eligible to elect Class A-5 membership, Class A-6 membership or participation in the plan.

(b) Time for making election.--The election to become a Class A-5 member, Class A-6 member or solely a participant in the plan must be made by the employee filing written notice with the board before the termination of State service or by March 31, 2019, whichever occurs first, but may not be made before January 1, 2019. A State employee who is eligible to elect to become a Class A-5 member, Class A-6 member or solely a participant in the plan who begins USERRA leave during the election period without having elected Class A-5 membership, Class A-6 membership or participation in the plan will have the election period extended by the number of days the employee is on USERRA leave.

(c) Effect of election.--An election to become a Class A-5 member, a Class A-6 member or solely a participant in the plan shall be irrevocable as of the earlier of the date of termination of State service or the day after the election period expires. The election shall apply to all service performed on or after July 1, 2019, and shall remain in effect for all future creditable State service, other than service performed as a Class A-5 exempt employee. A member who elects Class A-5 membership shall be subject to all provisions of this part applicable to Class A-5 membership and participation in the plan as a Class A-5 member for all service other than service as a Class A-5 exempt employee performed on and after July 1, 2019. A member who elects Class A-6 membership shall be subject to all provisions of this part applicable to Class A-6 membership and participation in the plan as a Class A-6

member for all service other than service as a Class A-5 exempt employee performed on and after July 1, 2019. A member who elects to be solely a participant in the plan shall be subject to all provisions of this part applicable to participation in the plan for all service other than service as a Class A-5 exempt employee performed on and after July 1, 2019. Upon termination and subsequent reemployment, a member who elected Class A-5 membership, Class A-6 membership or to be solely a participant in the plan shall be credited as a Class A-5 member, a Class A-6 member or solely as a participant in the plan, as the case may be, for creditable State service performed after reemployment, except as a Class A-5 exempt employee, regardless of termination of employment, termination of membership by withdrawal of accumulated deductions, termination of participation by a distribution of vested total defined contributions or status as an annuitant, vestee, inactive member or participant receiving distributions after the termination of service.

(d) Effect of failure to make election.--If the employee fails to file timely an election to become a Class A-5 member, a Class A-6 member or solely a participant in the plan, the employee shall continue to be enrolled in the applicable class of service and shall never be able to elect Class A-5 membership, Class A-6 membership or participation in the plan, regardless of whether the employee terminates service or has a break in service.

(e) Mandatory pickup participant contributions.--An individual who has made the election under subsection (a) shall make the following mandatory pickup participant contributions for service:

(1) If the participant elected to be a member of Class A-5, then:

(i) If the participant would have been a member of Class A if the election had not been made, no mandatory pickup participant contributions shall be made.

(ii) If the participant would have been a member of Class AA if the election had not been made, at a rate of 1.25% of compensation.

(iii) If the participant would have been a member of Class A-3 if the election had not been made, at a rate of 1.25% of compensation.

(iv) If the participant would have been a member of Class A-4 if the election had not been made, at a rate of 4.3% of compensation.

(v) If the participant would have been a member of Class D-4 if the election had not been made, at a rate of 2.5% of compensation.

(vi) If the participant would have been a member of Class E-1 if the election had not been made, at a rate of 5% of compensation for service for which the regular member contributions would have been 10% of compensation or at a rate of 2.5% for service for which the regular member contributions would have been 7.5% of compensation.

(vii) If the participant would have been a member of Class E-2 if the election had not been made, at a rate of 2.5% of compensation.

(2) If the participant elected to be a member of Class A-6, then:

(i) If the participant would have been a member of Class A if the election had not been made, at a rate of 1% of compensation.

(ii) If the participant would have been a member of Class AA if the election had not been made, at a rate of 2.25% of compensation.

(iii) If the participant would have been a member of Class A-3 if the election had not been made, at a rate of 2.25% of compensation.

(iv) If the participant would have been a member of Class A-4 if the election had not been made, at a rate of 5.3% of compensation.

(v) If the participant would have been a member of Class D-4 if the election had not been made, at a rate of 3.5% of compensation.

(vi) If the participant would have been a member of Class E-1 if the election had not been made, at a rate of 6% of compensation for service for which the regular member contributions would have been 10% of compensation or at a rate of 3.5% for service for which the regular member contributions would have been 7.5% of compensation.

(vii) If the participant would have been a member of Class E-2 if the election had not been made, at a rate of 3.5% of compensation.

(3) If the participant elected to be solely a participant in the plan, then:

(i) If the participant would have been a member of Class A if the election had not been made, at a rate of 5% of compensation.

(ii) If the participant would have been a member of Class AA if the election had not been made, at a rate of 6.25% of compensation.

(iii) If the participant would have been a member of Class A-3 if the election had not been made, at a rate of 6.25% of compensation.

(iv) If the participant would have been a member of Class A-4 if the election had not been made, at a rate of 9.3% of compensation.

(v) If the participant would have been a member of Class D-4 if the election had not been made, at a rate of 7.5% of compensation.

(vi) If the participant would have been a member of Class E-1 if the election had not been made, at a rate of 10% of compensation for service for which the regular member contributions would have been 10% of compensation or at a rate of 7.5% for service for which the regular member contributions would have been 7.5% of compensation.

(vii) If the participant would have been a member of Class E-2 if the election had not been made, at a rate of 7.5% of compensation.

(viii) If the participant would have been making shared-risk member contributions if the election had not been made, then the mandatory pickup participant contributions shall be a percentage of compensation greater than the amounts listed in this subsection equal to the shared-risk member contribution rate that would have been applicable. This percentage rate shall be subject to any subsequent changes in the shared-risk member contributions.

(ix) If the participant would have had regular member contributions adjusted by the shared-gain adjustment if the election had not been made, then the mandatory pickup participant contributions shall be

reduced by the same percentage of compensation regular member contributions would have been reduced by the shared-gain adjustment. This percentage rate shall be subject to any subsequent changes in the shared-gain adjustment to regular member contributions.

(4) If the participant would have been making Social Security Integration contributions if the election had not been made, then the mandatory pickup participant contributions on compensation for which Social Security Integration contributions would have been made shall be 5% of compensation greater than the amounts listed in this subsection. (June 12, 2017, P.L.11, No.5, eff. imd.) 2017 Amendment. Act 5 added section 5306.5. See section 411 of Act 5 in the appendix to this title for special provisions relating to Class A-5 or Class A-6 membership limited. Cross References. Section 5306.5 is referred to in sections 5102, 5301, 5306, 5306.1, 5306.2, 5306.3, 5306.4, 5501.1, 5804 of this title.
71 Pa.C.S. § 28 — PA Code / Title 71 / Chapter 28 / Section 28
Requirements for qualification as qualified pension plan.
Status: in_force

Nothing in this act which amends or supplements provisions of 71 Pa.C.S. Pt. XXV in relation to requirements for qualification of State Employees' Retirement System as a qualified pension plan under sections 401(a) and 415(b) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §§ 401(a) and 415(b)) nor any construction of 71 Pa.C.S. Pt. XXV, as so amended or supplemented, or any rules or regulations adopted under 71 Pa.C.S. Pt. XXV shall create in any member of the State Employees' Retirement System or in any other person claiming an interest in the account of any such member a contractual right, either express or implied nor in any construction of 71 Pa.C.S. Pt. XXV, as so amended or supplemented, or any rules or regulations adopted under 71 Pa.C.S. Pt. XXV. The provisions of 71 Pa.C.S. Pt. XXV shall remain subject to the Internal Revenue Code of 1986, and regulations thereunder as the same may be amended after the effective date of this section, and the General Assembly reserves to itself such further exercise of its legislative power to amend or supplement such provisions as may from time to time be required in order to maintain the qualifications of the State Employees' Retirement System as a qualified pension

plan under section 401(a) and other applicable provisions of the Internal Revenue Code of 1986.
71 Pa.C.S. § 3104 — PA Code / Title 71 / Chapter 31 / Section 3104
False statements made under oath constitute perjury.
Status: in_force

(a) Offense defined.--A false statement made under oath in an application or other paper filed with the commission, in an investigation conducted by or under the direction of the commission or in proceedings arising under this part, shall be perjury and punishable under the provisions of 18 Pa.C.S. Ch. 49 (relating to falsification and intimidation).

(b) Penalty.--An individual intentionally failing to disclose a material fact or in any manner concealing information in order to obtain employment or promotion under this part shall, in addition to any other penalty provided in this chapter, be removed from all eligible lists for a period of time to be determined by the Office of Administration and, if appointed or promoted, be summarily removed.
71 Pa.C.S. § 3004 — PA Code / Title 71 / Chapter 30 / Section 3004
Legal counsel.
Status: in_force

In accordance with the act of October 15, 1980 (P.L.950, No.164), known as the Commonwealth Attorneys Act, the commission shall appoint and direct attorneys as needed in the performance of the commission's duties required under this part.

Cross References. Section 3004 is referred to in section 3006 of this title.
71 Pa.C.S. § 6 — PA Code / Title 71 / Chapter 6 / Section 6
Fees collected by State Employees' Retirement System.
Status: in_force

In the event that the State Employees' Retirement System has collected a fee or other monetary charge for the preparation, duplication, production, redaction or other expenses associated with the inspection or provision of a record, material or data that as a result of the amendment of 71 Pa.C.S. § 5902(e) will not be made available for inspection by and will not be provided to the requester who made the payment, the State Employees' Retirement System shall return the fee or money to the requester. 2006, NOVEMBER 29, P.L.1628, NO.188 § 2. Liability for additional benefits. Notwithstanding any other provision of law, the liability for any additional benefits established by the amendment of 71 Pa.C.S. § 5306(b) shall be funded in equal dollar annual payments over a period of ten years commencing July 1, 2007. Explanatory Note. Act 188 amended sections 5302 and 5306 of Title 71.

§ 3. Applicability. This act shall apply as follows:

(1) The amendment of 71 Pa.C.S. § 5302(b)(2), insofar as it relates to business agents appointed by an employee organization representing correction officers at State correctional institutions, shall apply only to leaves of absence approved after December 31, 2006, for active members who are appointed as the business agents identified in section 5302(b)(2).

(2) The amendment of 71 Pa.C.S. § 5306(b) shall apply retroactively to January 26, 2004. 2007, JUNE 27, P.L.32, NO.8 § 2. Recertification of employer contribution rates. If, prior to the effective date of this section, the board certifies employer contribution rates for the fiscal year beginning July 1, 2007, the board shall, notwithstanding any other provision of law to the contrary, recertify to the Secretary of the Budget the contributions, rates, factors and amounts set forth in 71 Pa.C.S. § 5902(k). The board's recertification shall reflect all changes in the contributions, rates, factors and amounts previously certified by the board prior to the effective date of this act for the fiscal year beginning July 1, 2007, which are required to comply with 71 Pa.C.S. § 5508. Such recertification shall occur within 15 days of the effective date of this section and shall supersede the prior certification for all purposes. Explanatory Note. Act 8 amended section 5508 of Title 71. 2010, NOVEMBER 23, P.L.1269, NO.120 § 12. Continuation of contribution rates. Contribution rates shall remain in effect until June 30, 2010, as follows:

(1) Notwithstanding the provisions of this act, the employer contribution rates certified by the Public School Employees' Retirement Board for fiscal year 2009-2010 shall remain in effect until June 30, 2010.

(2) Notwithstanding the provisions of this act, the employer contribution rates certified by the State Employees' Retirement Board for fiscal year 2009-2010 shall remain in effect until June 30, 2010. Explanatory Note. Act 120 amended or added sections 8102, 8301, 8303, 8304, 8305, 8305.2, 8307, 8308, 8321, 8323, 8324, 8326, 8327, 8328, 8342, 8344, 8345, 8348.1, 8348.2, 8348.3, 8348.5, 8348.6, 8348.7, 8502, 8505, 8507, 8535 and 8536 of Title 24 and Part V and sections 5102, 5302, 5303, 5304, 5306, 5306.3, 5308, 5309, 5501.1, 5501.2, 5502.1, 5503.1, 5504, 5505, 5507, 5508, 5702, 5704, 5705, 5705.1, 5708.1, 5708.2, 5708.3, 5708.5, 5708.6, 5708.7, 5708.8, 5902, 5903, 5905, 5905.1, 5907, 5933, 5934, 5936, 5937, 5938, 5955 and 5957 of Title 71.
71 Pa.C.S. § 5708.5 — PA Code / Title 71 / Chapter 57 / Section 5708.5
Supplemental annuities commencing 1998.
Status: in_force

(a) Benefits.--Commencing with the first monthly annuity payment after June 30, 1998, any eligible benefit recipient shall be entitled to receive a supplemental monthly annuity from the system. This shall be in addition to the supplemental annuities provided for in sections 5708 (relating to supplemental annuities), 5708.1 (relating to additional supplemental annuities), 5708.2 (relating to further additional

supplemental annuities), 5708.3 (relating to supplemental annuities commencing 1994) and the special supplemental postretirement adjustment provided for in section 5708.4 (relating to special supplemental postretirement adjustment).

(b) Amount of supplemental annuity.--The amount of the supplemental annuity payable pursuant to this section shall be a percentage of the amount of the monthly annuity payment on July 1, 1998, determined on the basis of the most recent effective date of retirement, as follows: Most recent effective date Percentage factor of retirement July 1, 1996, through June 30, 1997 1.86% July 1, 1995, through June 30, 1996 3.59% July 1, 1994, through June 30, 1995 4.95% July 1, 1993, through June 30, 1994 6.42% July 1, 1992, through June 30, 1993 7.97% July 1, 1979, through June 30, 1992 10% July 1, 1969, through June 30, 1979 20% On or prior to June 30, 1969 25%

(c) Payment.--The supplemental annuity provided under this section shall be paid automatically unless the annuitant files a written notice with the board requesting that the additional monthly supplemental annuity not be paid.

(d) Conditions.--The supplemental annuity provided under this section shall be payable under the same terms and conditions as provided under the option plan in effect as of July 1, 1998.

(e) Benefits paid to beneficiaries or survivors.--No supplemental annuity provided under this section shall be payable to the beneficiary or survivor annuitant of a member who dies before July 1, 1998.

(f) Funding.--For the period beginning July 1, 2002, and ending June 30, 2010, the additional liability for the increase in benefits provided in this section shall be funded in equal dollar annual installments over a period of ten years beginning July 1, 2002. For fiscal years beginning on or after July 1, 2010, the additional liability for the increase in benefits provided in this section shall be funded as part of the actuarial accrued liability as provided in section 5508 (relating to actuarial cost method).

(g) Eligible benefit recipient.--As used in this section, the term "eligible benefit recipient" means a person who is receiving a superannuation, withdrawal or disability annuity on July 1, 1998, and whose most recent effective date of retirement is prior to July 1, 1997, but the supplemental annuities provided under this section shall not be payable to an annuitant receiving a withdrawal annuity prior to the first day of July coincident with or following the annuitant's attainment of superannuation age. (June 18, 1998, P.L.685, No.88, eff. imd.; May 17, 2001, P.L.26, No.9, eff. July 1, 2002; Nov. 23, 2010, P.L.1269, No.120, eff. imd.) 2010 Amendment. Act 120 amended subsec. (f). 1998 Amendment. Act 88 added section 5708.5. Cross References. Section 5708.5 is referred to in sections 5507, 5508, 5708.6, 5708.7, 5708.8, 5938 of this title.
71 Pa.C.S. § 5941 — PA Code / Title 71 / Chapter 59 / Section 5941
Benefits completion plan.
Status: in_force

Notwithstanding any other law to the contrary, the board shall establish and serve as trustee of a retirement benefit plan within the meaning of, in conformity with and then only to the extent and so long as permitted by IRC § 415(m) for the purpose of providing such retirement benefits as would otherwise

have been payable under this part to annuitants of the system on or after July 2, 2001, but for the application of the limitations on benefits of IRC § 415. The board may, in its sole discretion and within the limits of IRC § 415(m) and this section, determine all terms and provisions of the plan, including, but not limited to, the cost of and procedures for funding the plan as provided in this section. The Commonwealth and other employers whose employees are members of the system shall make contributions to the plan on behalf of all members in such amounts as shall be certified by the board. (Dec. 30, 2002, P.L.2082, No.234, eff. imd.) 2002 Amendment. Act 234 added section 5941. See section 6 of Act 234 in the appendix to this title for special provisions relating to payments under benefits completion plan. Cross References. Section 5941 is referred to in sections 5507, 5508 of this title.
71 Pa.C.S. § 5938 — PA Code / Title 71 / Chapter 59 / Section 5938
Supplemental annuity account.
Status: in_force

The supplemental annuity account shall be the ledger account to which shall be credited all contributions from the Commonwealth and other employers in accordance with section 5507(b) (relating to contributions to the system by the Commonwealth and other employers) for the payment of the supplemental annuities provided in sections 5708 (relating to supplemental annuities), 5708.1 (relating to additional supplemental annuities), 5708.2 (relating to further additional supplemental annuities), 5708.3 (relating to supplemental annuities commencing 1994), 5708.4 (relating to special supplemental postretirement adjustment), 5708.5 (relating to supplemental annuities commencing 1998), 5708.6 (relating to supplemental annuities commencing 2002), 5708.7 (relating to supplemental annuities commencing 2003) and 5708.8 (relating to special supplemental postretirement adjustment of 2002) made before July 1, 2010, the amount transferred from the State accumulation account to provide all additional reserves necessary as of June 30, 2010, to pay such supplemental annuities and adjustments, and the amounts transferred from the State accumulation account to provide all additional reserves necessary as a result of supplemental annuities enacted after December 31, 2009. The supplemental annuity account shall be credited with valuation interest. The reserves necessary for the payment of such supplemental annuities shall be transferred from the supplemental annuity account to the annuity reserve account as provided in section 5935 (relating to annuity reserve account). (Aug. 5, 1991, P.L.183, No.23, eff. imd.; June 18, 1998, P.L.685, No.88, eff. imd.; May 17, 2001, P.L.26, No.9, eff. July 1, 2002; Apr. 23, 2002, P.L.272, No.38, eff. imd.; Nov. 23, 2010, P.L.1269, No.120, eff. imd.; June 12, 2017, P.L.11, No.5, eff. imd.) Cross References. Section 5938 is referred to in sections 5932, 5935 of this title.
71 Pa.C.S. § 2607 — PA Code / Title 71 / Chapter 26 / Section 2607
Removal.
Status: in_force

No regular employee in the classified service may be removed, except for just cause.
71 Pa.C.S. § 3005 — PA Code / Title 71 / Chapter 30 / Section 3005
Qualifications, appointment and compensation of director.
Status: in_force

(a) General rule.--The director shall be an individual who is familiar with the principles and methods of personnel administration and the application of merit principles and scientific methods to public employment.

(b) Appointment.--The director shall be appointed by the commission and serve at the pleasure of the commissioners.

(c) Salary.--The director's salary shall be fixed by the commission with the approval of the Governor. The director shall hold no other paid public position.
71 Pa.C.S. § 5803 — PA Code / Title 71 / Chapter 58 / Section 5803
Individual investment accounts.
Status: in_force

The board shall establish in the trust an individual investment account for each participant in the plan. All contributions by a participant or an employer for or on behalf of a participant shall be credited to the participant's individual investment account, together with all interest and investment earnings and losses. Investment and administrative fees, costs and expenses shall be charged to the participants' individual investment accounts except as otherwise provided under this part or as the General Assembly otherwise provides by appropriations from the General Fund. Employer defined contributions shall be recorded and accounted for separately from participant contributions, but all interest, investment earnings and losses, and investment and administrative fees, costs and expenses charged against individual investment accounts shall be allocated proportionately. (Oct. 29, 2020, P.L.775, No.94, eff. imd.) Applicability. See section 4 of Act 94 of 2020 in the appendix to this title for special provisions relating to applicability. Cross References. Section 5804 is referred to in sections 5302, 5805 of this title.
71 Pa.C.S. § 26 — PA Code / Title 71 / Chapter 26 / Section 26
Class A-3 or Class A-4 membership limited.
Status: in_force

No State employee otherwise a member of, eligible to be a member of or having State or nonstate service credited in a class of service other than Class A-3 or Class A-4 may cancel, decline or waive membership in such other class of service in order to obtain Class A-3 or Class A-4 service credit, become a member of Class A-3 or Class A-4 or elect Class A-3 or Class A-4 membership.
71 Pa.C.S. § 14 — PA Code / Title 71 / Chapter 14 / Section 14
Member statements.
Status: in_force

Notwithstanding the provisions of 71 Pa.C.S. § 5903(b), the statement for each member prepared by the State Employees' Retirement Board for the period ending December 31, 2012, and any other statements or estimates of benefits prepared by the board pursuant to the provisions of 71 Pa.C.S. Pt. XXV from the effective date of this section to June 30, 2013, need not reflect the provisions of this act.
71 Pa.C.S. § 6.2 — PA Code / Title 71 / Chapter 6 / Section 6.2
Severability.
Status: in_force

The provisions of this act are severable. If any provision of this act or its application to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of this act which can be given effect without the invalid provision or application.
71 Pa.C.S. § 5953.6 — PA Code / Title 71 / Chapter 59 / Section 5953.6
Irrevocable successor payee.
Status: in_force

(a) Condition.--Notwithstanding any other provision of this part, a domestic relations order pertaining to a participant may provide for an irrevocable successor payee if the participant is receiving a payment under a payment option provided by the board that allows for a successor payee.

(b) Determination.--A domestic relations order requiring the designation of an irrevocable successor payee is an order which:

(1) requires a participant who is receiving payments from an annuity or other distribution option to designate an alternate payee as a successor payee; and

(2) except by operation of law, prohibits the removal or change of the successor payee without approval of a court of competent jurisdiction.

(c) Certification.--A domestic relations order under subsection (b) may be certified as an approved domestic

relations order by the secretary of the board or his designated representative. If a domestic relations order is certified under this subsection, the irrevocable successor payee ordered by the court shall not be changed by the participant without approval by the court.

(d) Ineligibility.--A person ineligible to be designated as a successor payee shall not be designated as an irrevocable successor payee. A court shall not name an irrevocable successor payee if the alternate payee is eligible to receive a lump sum distribution of the alternate payee's portion of the marital portion of the pension benefit. (June 12, 2017, P.L.11, No.5, eff. imd.) 2017 Amendment. Act 5 added section 5953.6. Cross References. Section 5953.6 is referred to in section 5812 of this title.
71 Pa.C.S. § 5501 — PA Code / Title 71 / Chapter 55 / Section 5501
Regular member contributions for current service.
Status: in_force

Regular member contributions shall be made to the fund on behalf of each active member for current service except for any period of current service in which the making of such contributions has ceased solely by reason of section 5502.1 (relating to waiver of regular member contributions and Social Security integration member contributions) or any provision of this part relating to the limitations under IRC § 401(a)(17) or 415. (Dec. 14, 1982, P.L.1249, No.284, eff. imd.; Dec. 20, 1995, P.L.689, No.77, eff. Jan. 1, 1996; May 17, 2001, P.L.26, No.9, eff. imd.; Dec. 28, 2015, P.L.529, No.93, eff. imd.) 1982 Amendment. See sections 2, 3 and 4 of Act 284 in the appendix to this title for special provisions relating to required contributions by head of department, nonseverability and retroactivity. References in Text. Section 5502.1, referred to in this section, expired December 31, 2015. Cross References. Section 5501 is referred to in sections 5302, 5303, 5503.1, 5933 of this title.