2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 71 - STATE GOVERNMENT › Chapter 55 - Contributions › Section 5507 - Contributions to the system by the Commonwealth and other employers

§ 5507. Contributions to the system by the Commonwealth and other employers.
(a) Contributions on behalf of active members.--
The Commonwealth and other employers whose employees are members of the system or participants in the plan shall make contributions to the fund on behalf of all active members in such amounts as shall be certified by the board as necessary to provide, together with the members' total accumulated deductions, annuity reserves on account of prospective annuities other than those 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 accordance with the actuarial cost method provided in section 5508(a), (b), (c), (d) and (f) (relating to actuarial cost method).
(b) Contributions on behalf of annuitants.--
The Commonwealth and other employers whose employees are members of the system or participants in the plan shall make contributions on behalf of annuitants in such amounts as shall be certified by the board as necessary to fund the liabilities for supplemental annuities in accordance with the actuarial cost method provided in section 5508(e).
(b.1) Payment of employer contributions to the system.--
(1) Payment of employer normal contributions shall be as a percentage of compensation of active members.
(2) Payment of accrued liability contributions as modified by the experience adjustment factor and supplemental annuity contributions shall be as a percentage of compensation of active members and active participants.
(3) The amount of employer contributions determined and payable as a percentage of compensation under this subsection may be offset by a dollar amount as established in an agreement between the board and the head of department that is an eligible employer as a result of advance payment of accrued liability contributions under subsection (h).
(c) Contributions transferred by county retirement systems.--
(1) Each county retirement system or pension plan which is notified by certification from the board that a former contributor who was transferred to State employment pursuant to 42 Pa.C.S. § 1905 (relating to county-level court administrators) has elected to convert county service to State service in accordance with section 5303.1 (relating to election to convert county service to State service) shall transfer to the board an amount equal to the actuarial liability for the additional benefits that result in the system as a result of the conversion as certified by the board. This amount shall be calculated in such a manner and using such actuarial factors and assumptions as the board, after obtaining the advice of its actuary, shall determine and shall be calculated by determining the present value of the future benefits for the former county contributors and subtracting from that present value the present value of future employee contributions and future employer normal cost contributions.
(2) The transfer shall occur no later than 180 days after the certification by the board of the actuarial liability for the additional benefits or 30 days following the date of termination of service if the member terminates State service after making the election to convert service, whichever occurs first.
(3) If any county retirement system or pension plan fails to transfer, within the required time, the money certified by the board under this subsection, then the service of such members for the period of converted service shall be credited, and the board shall notify the county which employed the employee who is converting the county service and the State Treasurer of the amount due. The State Treasurer shall withhold out of any grants, subsidies or other payments from the State General Fund appropriation or appropriations next due such county an amount equal to the amount which the county retirement system or pension plan failed to pay and shall pay the amount so withheld to the board for the payment of the amount due from that county's retirement system or pension plan for the converted service.
(d) Payment of final contribution rate.--
Notwithstanding the calculation of the actuarially required contribution rate and the provisions of subsections (a) and (b), the Commonwealth and other employers whose employees are members of the system or participants in the plan shall make contributions to the fund on behalf of all active members and annuitants in such amounts as shall be certified by the board in accordance with section 5508(i). The certified amount and actual contributions may include any setoff for advance payment of accrued liability contributions.
(e) Benefits completion plan contributions.--
In addition to all other contributions required under this section and section 5508, the Commonwealth and other employers whose employees are members of the system shall make contributions as certified by the board pursuant to section 5941 (relating to benefits completion plan).
(f) Contributions resulting from members reemployed from USERRA leave.--
When a State employee reemployed from USERRA leave makes the member contributions required to be granted State service credit for the USERRA leave, either by actual payment or by actuarial debt under section 5506 (relating to incomplete payments), then the Commonwealth employer or other employer by whom the State employee is employed at the time the member contributions are made, or the last employer before termination in the case of payment under section 5506, shall make whatever employer contributions would have been made under this section had the employee making the member contributions after being reemployed from USERRA leave continued to be employed in his State office or position instead of performing USERRA leave.
(g) Payment of additional accrued liability contributions.--
In addition to all other contributions required or made under this section and section 5508, 5508.1 (relating to advance payment of accrued liability contributions) or 5941, the Commonwealth and other employers whose employees are members of the system or participants in the plan shall make contributions as certified by the board as a percentage of the compensation of each active member and each active participant as provided in this subsection, unless the actuary certifies that the accrued liability contribution rate determined under section 5508(c) is zero or less for that fiscal year. Additional accrued liability contributions received by the board as a result of this subsection shall be recognized as part of the experience adjustment factor under section 5508(f).
Fiscal year
beginning date
Additional accrued liability contribution rate
July 1, 2018
0.00%
July 1, 2019
0.71%
July 1, 2020
0.66%
July 1, 2021
0.62%
July 1, 2022
0.00%
July 1, 2023
0.00%
July 1, 2024
0.00%
July 1, 2025
0.00%
July 1, 2026
0.00%
July 1, 2027
0.00%
July 1, 2028
0.00%
July 1, 2029
0.00%
July 1, 2030
0.00%
July 1, 2031
0.00%
July 1, 2032
0.10%
July 1, 2033
0.22%
July 1, 2034
0.33%
July 1, 2035
0.43%
July 1, 2036
0.53%
July 1, 2037
0.62%
July 1, 2038
0.71%
July 1, 2039
0.79%
July 1, 2040
0.86%
July 1, 2041
0.93%
(h) Advance payment of accrued liability contributions.--
In addition to all other contributions required under this section and sections 5508 and 5941, the Commonwealth and other eligible employers whose employees are members of the system may make, and the board may accept, advance payment of accrued liability contributions in a lump sum as agreed by the board and the head of department as provided under section 5508.1. Advance payment of accrued liability contributions received by the board as a result of this subsection shall be recognized as a setoff against future accrued liability contributions as provided under section 5508.1.
(Aug. 5, 1991, P.L.183, No.23, eff. imd.; June 18, 1998, P.L.685, No.88, eff. imd.; June 22, 1999, P.L.75, No.12, eff. imd.; May 17, 2001, P.L.26, No.9, eff. July 1, 2002; 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.)
2019 Amendment. Act 105 amended subsecs. (d) and (g) and added subsecs. (b.1)(3) and (h). See section 9 of Act 105 in the appendix to this title for special provisions relating to applicability.
2017 Amendment.
Act 5 amended the section heading and subsecs. (a), (b) and (d) and added subsecs. (b.1) and (g).
2012
Amendment
.
Act 181 added subsec. (f).
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.
1999 Amendment.
See sections 26 and 29 of Act 12 in the appendix to this title for special provisions relating to Federal, State and local tax laws and calculation of contributions.
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 5507 is referred to in sections 5102, 5302, 5501.1, 5508, 5508.1, 5902, 5934, 5936, 5937, 5938 of this title.