Pennsylvania Code › Title 4 - ADMINISTRATION › Part X - STATE EMPLOYEES' RETIREMENT BOARD › Chapter 241 - PRELIMINARY PROVISIONS › Section 241.1 - Definitions

Current through Register Vol. 54, No. 28, July 13, 2024
The following words and terms, when used in this part, have
				  the following meanings, unless the context clearly indicates otherwise:
Active member
- Employees on intervening
				  military service or studying under a Federal grant as defined in section
				  5302(b) of the code (relating to credited State service) provided the member,
				  in all cases, makes contributions while in the service.
Actuarially equivalent
- Annuities of equal
				  present value determined by multiplying the annual amount of the annuity by the
				  appropriate cost factor for an annuity of $1 based on mortality tables
				  currently adopted and used by the Board.
Annuitant
- A member on or after the
				  effective date of retirement who was formerly a State employee, excluding a
				  beneficiary or survivor annuitant.
Basic contribution rate
- The rate shall be
				  5%, except that in no case may a member be required to contribute, excluding
				  contributions for Social Security integration credit, at a rate greater than
				  the member's contribution rate on March 1, 1974. This rate may not be
				  applicable to those who became members of the System prior to June 1, 1948, at
				  age 26 or younger who did not, under prior law, elect additional coverage
				  (SSI). It shall be applicable to those in the joint coverage group except that
				  the appropriate offset factor shall be deducted on earnings covered by Federal
				  Social Security.
Beneficiary
- The person or persons, as
				  defined in
				  1
				  Pa.C.S. §
										1991 (relating to
				  definitions), last designated in writing to the Board by a member to receive
				  the member's accumulated deductions or a lump sum benefit upon the death of the
				  member.
Board
- The State Employees' Retirement Board
				  required under the code to administer the System.
Code
-
				  71 Pa.C.S. §
										§
										5101-5956 (relating to State Employees'
				  Retirement Code).
Compensation
- Limited to salary or wages
				  received for services performed as an employee, but excluding monies received
				  for bonuses, cash awards or similar emoluments.
Date of termination of service
- The last day
				  of service for which an active member makes contributions; or in the case of an
				  inactive member on leave without pay, the date of resignation or the date
				  employment is formally discontinued by the employer; or the date a member is
				  placed on furlough.
Effective date of disability retirement
- The
				  date following the last day for which compensation was paid or the date on
				  which the member filed an effective application for disability benefits,
				  whichever is later.
Final average salary
- In the case of a
				  part-time employee, the salary shall be annualized by multiplying the
				  employee's actual earnings by the reciprocal of the fractional portion of full
				  time compensation or the percentage of service credit earned, whichever is
				  higher, during nonoverlapping periods of 4 consecutive calendar quarters during
				  which the member was a State employee.
Inactive member
- A member who is on furlough
				  and has elected to leave his accumulated deductions in the fund at statutory
				  interest during the furlough period. The furlough period may not exceed 1
				  year.
Member's annuity
- Determined by dividing the
				  member's regular accumulated deductions and Social Security integration
				  accumulated deductions by the cost of a $1 annuity factor based on the member's
				  nearest age and sex at the effective date of retirement and computed on the
				  basis of statutory interest and the mortality tables adopted and used by the
				  Board.
Optional alternate retirement program
- An
				  independent retirement program limited to certain designated employees and
				  officers of the Pennsylvania State University, Indiana University, the State
				  Colleges and the Department of Education, as shall be approved by the governing
				  body of the institution or the Secretary of Education, as the case may
				  be.
Statutory interest
- As applied to a member's
				  contributions, means interest at 4% per annum compounded annually which shall
				  be calculated as follows: the sum of the balance of the accumulated deductions
				  at the conclusion of the previous year and the mean balance of the current
				  year's contributions multiplied by 4% times the fractional part of year for
				  which the contributor was a member, including one on leave without pay
				  subsequent to July 1, 1974.
System
- The State Employees' Retirement
				  System of Pennsylvania as established by the act of June 27, 1923 (
				  P. L.
				  858, No. 331), and codified by the act of June 1,
				  1959 ( P. L.
				  392, No. 78), and this title.
Vestee
- A member with ten or more
				  eligibility points who has terminated State service and has elected to leave
				  his total accumulated deductions in the fund and to defer receipt of an
				  annuity, provided the election is made within 90 days after the effective date
				  of termination of service. In absence of an election, a terminated State
				  employee is not entitled to vest. The employee shall, however, be eligible to
				  file for an annuity benefit or return of accumulated contributions as they
				  stood at termination of service, at a later date, but is not eligible for death
				  benefits beyond 90 days after termination of service or the accumulation of
				  interest beyond the date of termination of service. In the event the employee
				  applies for an annuity, it shall take effect upon filing of the
				  application.
The provisions of this § 241.1 amended under
					 71 Pa.C.S. §
												5902(h), unless otherwise
					 noted.
This section cited in 4 Pa. Code §
											243.6 (relating to creditable
					 nonstate service).