reglab/statecodes huggingface dataset:
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 71 - STATE GOVERNMENT › Chapter 53 - Membership, Credited Service, Classes of Service, and Eligibility for Benefits › Section 5309 - Eligibility for vesting

§ 5309. Eligibility for vesting.
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.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 71 - STATE GOVERNMENT › Chapter 53 - Membership, Credited Service, Classes of Service, and Eligibility for Benefits › Section 5309.1 - Eligibility for special vesting

§ 5309.1. Eligibility for special vesting.
Any employee of The Pennsylvania State University who is a member of the system with five or more but less than ten eligibility points and who has a date of termination of service from The Pennsylvania State University of June 30, 1997, because of the transfer of his job position or duties to a controlled organization of the Penn State Geisinger Health System or because of the elimination of his job position or duties due to the transfer of other job positions or duties to a controlled organization of the Penn State Geisinger Health System shall be eligible until the attainment of superannuation age or his required beginning date to vest his retirement benefits according to the terms and conditions of this part.
(June 25, 1997, P.L.369, No.41, eff. imd.; Dec. 28, 2015, P.L.529, No.93, eff. imd.)
1997 Amendment.
See section 6 of Act 41 in the appendix to this title for special provisions relating to limitation of special vestee status.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 71 - STATE GOVERNMENT › Chapter 53 - Membership, Credited Service, Classes of Service, and Eligibility for Benefits › Section 5310 - Eligibility for death benefits

§ 5310. Eligibility for death benefits.
In the event of the death of a member who is eligible for an annuity in accordance with section 5308(a) or (b) (relating to eligibility for annuities), his beneficiary shall be entitled to a death benefit.
(June 12, 2017, P.L.11, No.5, eff. imd.; July 2, 2019, P.L.434, No.72, eff. 60 days)
2019 Amendment.
See section 6.2 of Act 72 in the appendix to this title for special provisions relating to severability.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 71 - STATE GOVERNMENT › Chapter 53 - Membership, Credited Service, Classes of Service, and Eligibility for Benefits › Section 5311 - Eligibility for refunds

§ 5311. Eligibility for refunds.
(a) Total accumulated deductions.--
Any active member, regardless of eligibility for benefits, may elect to receive his total accumulated deductions by his required beginning date upon termination of service in lieu of any benefit from the system to which he is entitled.
(b) Social security integration accumulated deductions.--
Any active member at any time after the attainment of normal retirement age may elect to receive his social security integration accumulated deductions and thereby to have all his social security integration credits and benefits therefor cancelled, and shall not be entitled to accrue any further social security integration credits or benefits; except that a disability annuitant who returns to State service shall have the right to reinstate his social security integration accumulated deductions and credits therefor.
(Oct. 7, 1975, P.L.348, No.101, 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).
Cross References.
Section 5311 is referred to in sections 5303, 5306, 5905.1 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 71 - STATE GOVERNMENT › Chapter 55 - Contributions › Section 5501 - Regular member contributions for current service

§ 5501. Regular member contributions for current service.
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.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 71 - STATE GOVERNMENT › Chapter 55 - Contributions › Section 5501.2 - Definitions

§ 5501.2. Definitions.
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.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 71 - STATE GOVERNMENT › Chapter 55 - Contributions › Section 5502 - Social Security integration member contributions

§ 5502. Social Security integration member contributions.
Except for any period of current service in which the making of regular member 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 limitations under IRC § 401(a)(17) or 415, contributions shall be made on behalf of an active member of any class who prior to March 1, 1974, has elected Social Security integration coverage. The amount of such contributions shall be 6 1/4% of that portion of his compensation as an active member in excess of the maximum wages taxable under the provisions of the Social Security Act (49 Stat. 620, 42 U.S.C. § 301 et seq.), in addition to the regular member contributions which, after such election, shall be determined on the basis of the basic contribution rate of 5% and the additional member contribution of 1 1/4%: Provided, That a member may elect to discontinue Social Security integration coverage and shall thereafter be ineligible to accrue any further Social Security integration credits or any additional benefits on account of Social Security integration membership.
(Oct. 7, 1975, P.L.348, No.101, eff. imd.; Dec. 14, 1982, P.L.1249, No.284, eff. imd.; July 22, 1983, P.L.104, No.31, 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.; June 12, 2017, P.L.11, No.5, eff. imd.)
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.
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 5502 is referred to in sections 5305, 5503.1, 5933 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 71 - STATE GOVERNMENT › Chapter 55 - Contributions › Section 5502.1 - Waiver of regular member contributions and Social Security integration member contributions (Expired)

§ 5502.1. Waiver of regular member contributions and Social Security integration member contributions (Expired).
2015 Expiration.
Section 5502.1 expired December 31, 2015, in accordance with subsection (c): "This section shall expire December 31 of the year coincident with or next following the effective date of this subsection." See Act 93 of 2015.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 71 - STATE GOVERNMENT › Chapter 55 - Contributions › Section 5503 - Joint coverage member contributions

§ 5503. Joint coverage member contributions.
The regular member contributions for current service of a joint coverage member in any class shall be reduced by 40% of the tax on taxable wages prescribed by the Federal Insurance Contributions Act, IRC § 3101 et seq., exclusive of that portion of such tax attributable to coverage for hospital insurance benefits.
(Dec. 20, 1995, P.L.689, No.77, eff. Jan. 1, 1996)
Cross References.
Section 5503 is referred to in sections 5503.1, 5933 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 71 - STATE GOVERNMENT › Chapter 55 - Contributions › Section 5503.1 - Pickup contributions

§ 5503.1. Pickup contributions.
(a) Treatment for purposes of IRC § 414(h).--
All contributions to the fund required to be made under 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) and 5505.1 (relating to additional member contributions), with respect to current State service rendered by an active member on or after January 1, 1982, 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).
(b) Treatment for other purposes.--
For all other purposes, under this part and otherwise, such pickup contributions shall be treated as contributions made by a member in the same manner and to the same extent as contributions made by a member prior to January 1, 1982.
(Dec. 14, 1982, P.L.1249, No.284, eff. imd.; July 22, 1983, P.L.104, No.31, eff. imd.; Dec. 20, 1995, P.L.689, No.77, 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).
1995 Amendment.
Section 15(6) of Act 77 provided that the amendment shall be retroactive to January 1, 1982, but shall be deemed a clarifying amendment and declaratory of original intent.
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.
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.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 71 - STATE GOVERNMENT › Chapter 55 - Contributions › Section 5505.1 - Additional member contributions

§ 5505.1. Additional member contributions.
In addition to regular or joint coverage member contributions and social security integration contributions, contributions shall be made on behalf of each active member, regardless of class of service, at the rate of 1 1/4% of compensation until such time as the actuary certifies that all accrued liability contributions have been completed in accordance with the actuarial cost method provided in section 5508(b) (relating to actuarial cost method).
(July 22, 1983, P.L.104, No.31, eff. imd.)
1983 Amendment.
Act 31 added section 5505.1. 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 5505.1 is referred to in sections 5302, 5303, 5503.1, 5933 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 71 - STATE GOVERNMENT › Chapter 55 - Contributions › Section 5506 - Incomplete payments

§ 5506. Incomplete payments.
(a) General rule.--
In the event that a member terminates State service or a multiple service member who is an active member of the Public School Employees' Retirement System terminates school service before the agreed upon payments for credit for previous State service, USERRA leave, creditable nonstate service, social security integration, full coverage membership or return of benefits on account of returning to State service or entering school service and electing multiple service have been completed, the member or multiple service member who is an active member of the Public School Employees' Retirement System shall have the right to pay within 30 days of termination of State service or school service the balance due, including interest, in a lump sum and the annuity shall be calculated including full credit for the previous State service, creditable nonstate service, social security integration, or full coverage membership. In the event a member does not pay the balance due within 30 days of termination of State service or in the event a member dies in State service or within 30 days of termination of State service or in the case of a multiple service member who is an active member of the Public School Employees' Retirement System does not pay the balance due within 30 days of termination of school service or dies in school service or within 30 days of termination of school service and before the agreed upon payments have been completed, the present value of the benefit otherwise payable shall be reduced by the balance due, including interest, and the benefit payable shall be calculated as the actuarial equivalent of such reduced present value.
(b) Disallowed contributions.--
No payments for service or coverage shall be allowed for which the required contributions would cause a violation of the limitation related to contributions applicable to governmental plans contained in IRC § 415. In the event that any service credit or coverage based on such disallowed contributions is granted after the effective date of this subsection, then such service credit or coverage shall be canceled and benefits calculated without regard to such service, coverage or contributions and any member contributions in excess of the limitations and statutory interest credited on those contributions shall be refunded to the member by the board.
(Oct. 7, 1975, P.L.348, No.101, eff. imd.; May 17, 2001, P.L.26, No.9, eff. July 1, 2001; Oct. 24, 2012, P.L.1436, No.181, eff. Dec. 31, 2012; Dec. 28, 2015, P.L.529, No.93, eff. imd.)
Cross References.
Section 5506 is referred to in sections 5302, 5303, 5507, 5702 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 71 - STATE GOVERNMENT › Chapter 55 - Contributions › Section 5506.1 - Annual compensation limit under IRC § 401(a)(17)

§ 5506.1. Annual compensation limit under IRC § 401(a)(17).
(a) General rule.--
In addition to other applicable limitations set forth in this part, and notwithstanding any provision of this part to the contrary, the annual compensation of each noneligible member and each participant, both before and after any annualization, taken into account for benefit purposes under this part shall not exceed the limitation under IRC § 401(a)(17). On and after January 1, 1996, any reference in this part to the limitation under IRC § 401(a)(17) shall mean the Omnibus Budget Reconciliation Act of 1993 (OBRA '93) (Public Law 103-66, 107 Stat. 312) annual compensation limit set forth in this subsection. The OBRA '93 annual compensation limit is $150,000, as adjusted by the commissioner for increases in the cost of living in accordance with IRC § 401(a)(17)(B). The cost-of-living adjustment in effect for a calendar year applies to any determination period which is a period, not exceeding 12 months, over which compensation is determined, beginning in such calendar year. If a determination period consists of fewer than 12 months, the OBRA '93 compensation limit will be multiplied by a fraction, the numerator of which is the number of months in the determination period and the denominator of which is 12.
(b) Grandfather exception.--
The limitation under IRC § 401(a)(17) shall not apply to a member who first became a member prior to January 1, 1996, to the extent that the application of such limitation to such member would reduce the amount of compensation that is allowed to be taken into account for benefit purposes under this chapter below the amount that was allowed to be taken into account under this chapter as in effect on July 1, 1993.
(Dec. 20, 1995, P.L.689, No.77, eff. Jan. 1, 1996; June 12, 2017, P.L.11, No.5, eff. imd.)
2017 Amendment.
Act 5 amended subsec. (a).
1995 Amendment.
Act 77 added section 5506.1.
Cross References.
Section 5506.1 is referred to in section 5102 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 71 - STATE GOVERNMENT › Chapter 57 - Benefits › Section 5701 - Return of total accumulated deductions

§ 5701. Return of total accumulated deductions.
Any member upon termination of service may, in lieu of all benefits payable from the system under this chapter to which he may be entitled, elect to receive his total accumulated deductions by his required beginning date.
(Dec. 28, 2015, P.L.529, No.93, eff. imd.; June 12, 2017, P.L.11, No.5, eff. imd.)
Cross References.
Section 5701 is referred to in sections 5303, 5306, 5905.1 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 71 - STATE GOVERNMENT › Chapter 57 - Benefits › Section 5701.1 - Transfer of accumulated deductions

§ 5701.1. Transfer of accumulated deductions.
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.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 71 - STATE GOVERNMENT › Chapter 57 - Benefits › Section 5703 - Reduction of annuities on account of social security old-age insurance benefits

§ 5703. Reduction of annuities on account of social security old-age insurance benefits.
(a) General rule.--
A joint coverage member who is eligible to receive an annuity under section 5308(a) or (b) (relating to eligibility for annuities) shall be entitled to receive the annuity provided for in sections 5702 (relating to maximum single life annuity) and 5708 (relating to supplemental annuities) which shall be reduced at the time at which the member would be entitled to receive full social security old-age insurance benefits whether or not he has applied for such benefits. The reduction shall be an amount equal to 40% of the primary insurance amount paid or payable to him and subject to the following provisions:
(1) The eligibility of such member for the old-age insurance benefit and the amount of such benefit upon which the reduction in his annuity shall be based shall be determined by the board in accordance with the provisions of the Federal Social Security Act, 42 U.S.C.A. § 301 et seq., in effect on the effective date of retirement, except that in determining such eligibility and such amount only wages or compensation for services covered by the system shall be included.
(2) The reduction shall not be more than one-half of the standard single life annuity multiplied by the ratio of the sum of the three years of highest taxable wages to an amount equal to three times the final average salary and by the ratio of the years of credited service after December 31, 1955 to total years of credited service.
(3) Whenever the amount of the reduction from the annuity shall have been once determined, it shall remain fixed for the duration of the annuity except that any decrease in the old-age insurance benefit under the Federal Social Security Act, 42 U.S.C.A. § 301 et seq., shall result in a corresponding decrease in the amount of the reduction from the annuity.
(b) Exception.--
The reduction provided for in subsection (a) shall not apply to annuities payable under the provisions of section 5704(a) (relating to disability annuities).
(Oct. 7, 1975, P.L.348, No.101, eff. imd.)
Cross References.
Section 5703 is referred to in sections 5702, 5905 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 71 - STATE GOVERNMENT › Chapter 57 - Benefits › Section 5705.1 - Payment of accumulated deductions resulting from more than one class of service

§ 5705.1. Payment of accumulated deductions resulting from more than one class of service.
Any superannuation or withdrawal annuitant who:
(1) has Class A-3, Class A-4, Class A-5 or Class A-6 service credit;
(2) has service credited in one or more classes of service; and
(3) because he has five or more, but fewer than ten, eligibility points is not eligible to receive an annuity on his Class A-3, Class A-4, Class A-5 or Class A-6 service
shall receive in a lump sum at the time of his retirement, in addition to any other annuity or lump sum payment which he may elect, his accumulated deductions resulting from his Class A-3, Class A-4, Class A-5 or Class A-6 service credit. Payment of these accumulated deductions resulting from Class A-3, Class A-4, Class A-5 or Class A-6 service credit shall not be eligible for installment payments pursuant to section 5905.1 (relating to installment payments of accumulated deductions) but shall be considered a lump sum payment for purposes of section 5905.1(d).
(Nov. 23, 2010, P.L.1269, No.120, eff. imd.; June 12, 2017, P.L.11, No.5, eff. imd.)
Cross References.
Section 5705.1 is referred to in sections 5302, 5905.1 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 71 - STATE GOVERNMENT › Chapter 57 - Benefits › Section 5709 - Payment of benefits from the system

§ 5709. Payment of benefits from the system.
(a) Annuities.--
Any annuity granted under the provisions of this part and paid from the fund shall be paid in equal monthly installments.
(b) Death benefits.--
If the amount of a death benefit payable from the fund to a beneficiary of a member under section 5707 (relating to death benefits) or under the provisions of Option 1 of section 5705(a)(1) (relating to member's options) is $10,000 or more, such beneficiary may elect to receive payment according to one of the following options:
(1) a lump sum payment;
(2) an annuity actuarially equivalent to the amount payable; or
(3) a lump sum payment and an annuity such that the annuity is actuarially equivalent to the amount payable less the lump sum payment specified by the beneficiary.
(c) Death or absence of beneficiary.--
If the beneficiary designated by a member should predecease him or die within 30 days of his death, or if a valid nomination of a beneficiary is not in effect at his death, any money payable to a beneficiary shall be payable to the estate of the member.
(d) Required distributions.--
All payments pursuant to this section shall start and be made in compliance with the required beginning date, minimum distribution requirements and incidental death benefit rules of IRC § 401(a)(9).
(Apr. 23, 2002, P.L.272, No.38, 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 the section heading and subsecs. (a) and (b).
2015 Amendment.
Act 93 added subsec. (d).
Cross References.
Section 5709 is referred to in section 5707 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 71 - STATE GOVERNMENT › Chapter 57 - Benefits › Section 5710 - Payments under other laws

§ 5710. Payments under other laws.
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.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 71 - STATE GOVERNMENT › Chapter 58 - State Employees' Defined Contribution Plan › Section 5801 - Establishment

§ 5801. Establishment.
(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.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 71 - STATE GOVERNMENT › Chapter 58 - State Employees' Defined Contribution Plan › Section 5802 - Plan document

§ 5802. Plan document.
The board shall set forth the terms and provisions of the plan and trust in a document containing the terms and conditions of the plan and in a trust declaration that shall be published in the Pennsylvania Bulletin. Any amendments to the plan and trust declaration also shall be published. The creation of the document containing the terms and conditions of the plan and the trust declaration and the establishment of the terms and provisions of the plan and the trust need not be promulgated by regulation or formal rulemaking and shall not be subject to the act of July 31, 1968 (P.L.769, No.240), referred to as the Commonwealth Documents Law. A reference in this part or other law to the plan shall include the plan document unless the context clearly indicates otherwise.
Cross References.
Section 5802 is referred to in section 5102 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 71 - STATE GOVERNMENT › Chapter 58 - State Employees' Defined Contribution Plan › Section 5803 - Individual investment accounts

§ 5803. Individual investment accounts.
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.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 71 - STATE GOVERNMENT › Chapter 58 - State Employees' Defined Contribution Plan › Section 5804 - Participant contributions

§ 5804. Participant contributions.
(a) Mandatory contributions.--
A participant who did not make the 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) shall make mandatory pickup participant contributions through payroll deductions to the participant's individual investment account equal to 3.25% of compensation for current State service credited as a Class A-5 member or 3.5% of compensation for current State service credited as a Class A-6 member and 7.5% of compensation for current service performed solely as a participant. A participant who made the election under section 5306.5 shall make mandatory pickup participant contributions as provided under section 5306.5. The employer shall cause those contributions for current service to be made and deducted from each payroll or on such schedule as established by the board.
(b) Voluntary contributions.--
A participant may make voluntary contributions through payroll deductions, through direct trustee-to-trustee transfers, or through transfers of money received in an eligible rollover into the trust to the extent allowed by IRC § 402. The rollovers shall be made in a form and manner as determined by the board, shall be credited to the participant's individual investment account and shall be separately accounted for by the board.
(c) Prohibited 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 participant contributions in excess of the limitations and investment earnings on those contributions, but minus investment fees and administrative charges applied against those contributions, shall be refunded to the participant 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 5804 is referred to in sections 5302, 5805 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 71 - STATE GOVERNMENT › Chapter 58 - State Employees' Defined Contribution Plan › Section 5805 - Mandatory pickup participant contributions

§ 5805. Mandatory pickup participant contributions.
(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.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 71 - STATE GOVERNMENT › Chapter 58 - State Employees' Defined Contribution Plan › Section 5806 - Employer defined contributions

§ 5806. Employer defined contributions.
(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.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 71 - STATE GOVERNMENT › Chapter 58 - State Employees' Defined Contribution Plan › Section 5807 - Eligibility for benefits

§ 5807. Eligibility for benefits.
(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.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 71 - STATE GOVERNMENT › Chapter 58 - State Employees' Defined Contribution Plan › Section 5808 - Death benefits

§ 5808. Death benefits.
(a) General rule.--
In the event of the death of an active participant or inactive participant, the board shall pay to the participant's beneficiary the vested balance in the participant's individual investment account in a lump sum or in such other manner as the board may establish in the plan document.
(b) Death of participant receiving distributions.--
In the event of the death of a participant receiving distributions, the board shall pay to the participant's beneficiary the vested balance in the participant's individual investment account in a lump sum or in such other manner as the board may establish in the plan document or, if the board has established alternative methods of distribution in the plan document under which the participant was receiving distributions, to the participant's beneficiary or successor payee, as the case may be, as provided in the plan document.
(c) Contracts.--
The board shall contract with financial institutions, insurance companies or other types of third-party providers to allow a participant, beneficiary or successor payee who receives a lump sum distribution to receive payments and death benefits in a form and manner as provided by the contract. To the extent commercially available, any annuity option shall include an interest rate of at least 2.5% compounded annually.
Cross References.
Section 5808 is referred to in sections 5807, 5907 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 71 - STATE GOVERNMENT › Chapter 58 - State Employees' Defined Contribution Plan › Section 5809 - Vesting

§ 5809. Vesting.
(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.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 71 - STATE GOVERNMENT › Chapter 58 - State Employees' Defined Contribution Plan › Section 5810 - Termination of distributions

§ 5810. Termination of distributions.
(a) Return to State service.--
(1) A participant receiving distributions or an inactive participant who returns to State service shall cease receiving distributions and shall not be eligible to receive distributions until the participant subsequently terminates State service, without regard to whether the participant is a mandatory, optional or prohibited member of the system or participant in the plan.
(2) This subsection shall not apply to distributions that the participant has received or used to purchase an annuity from a provider contracted by the board.
(b) Return of benefits paid during USERRA leave.--
(1) If a former State employee is reemployed from USERRA leave and received any distributions from the plan during the USERRA leave, the employee shall return to the board the amount so received plus interest as provided in the plan document.
(2) The amount payable shall be certified in each case by the board in accordance with methods approved by the actuary and shall be paid in a lump sum within 30 days or in the case of an active participant may be amortized with interest as provided in the plan document through salary deductions to the trust in amounts agreed upon by the active participant and the board, but for not longer than a period that starts with the date of reemployment and continues for up to three times the length of the active participant's immediate past period of USERRA leave. The repayment period shall not exceed five years.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 71 - STATE GOVERNMENT › Chapter 58 - State Employees' Defined Contribution Plan › Section 5813 - Responsibility for investment loss

§ 5813. Responsibility for investment loss.
The board, the Commonwealth, an employer or other political subdivision shall not be responsible for any investment or other loss incurred under the plan or for the failure of any investment to earn any specific or expected return or to earn as much as any other investment opportunity or to cost less than any other investment opportunity, whether or not the other opportunity was offered to participants in the plan.