Signed by Governor Ed Rendell

Vote Smart's Synopsis:

Vote to concur with Senate amendments and pass a bill that amends the pension benefits of state and school employees hired after January 1, 2011.

Highlights:

• Specifies that the annuity percentage for certain classes of service includes, but is not limited to, the following (Sec. 1):
• The annuity percentage of Class T-E is 2 percent of the final salary multiplied by the number of years of service;
• The annuity percentage of Class T-F is 2.5 percent of the final salary multiplied by the number of years of service; and
• The age of retirement for Class T-E and T-F is 65 with 3 eligibility points or any age with 35 eligibility points.

• Establishes Class T-E membership as a person who becomes a school employee or a state employee with a State Employee's Retirement System membership (Sec. 3).

• Specifies that contributions from the commonwealth will be paid as the accrued liability contribution rate (Sec. 5).

• Establishes that the collared contribution rate will be determined by comparing the normal contribution rate without regard to the costs added on by legislation, to the prior year's final contribution rate (Sec. 5).

• Establishes that any additional liability will be funded as the actuarial accrued liability beginning July 1, 2011 (Sec. 5).

• Specifies that if a person from Class A-3 or Class A-4 falls into another class then the final average of compensation will be determined on the basis of the total salary from all classes of service (Sec. 7).

• Establishes that Class A-4 membership is acquired if a person who has A-3 membership elects to enter into A-4 membership (Sec. 7).

• Requires a person who is eligible for A-4 membership to file for election within 45 days of notification of eligibility with the election of a member being irrevocable (Sec. 7).

• Establishes that any person who is an inactive member on leave without pay of the membership Class A-3, A-4, T-E, or T-F who falls between 5 and 10 eligibility points is eligible to receive an annuity calculated into his or her service credit (Sec. 7).

• Requires Classes A-3 and A-4 to make contributions and receive credit to their respective classes (Sec. 7).

• Requires the commonwealth and employers that have member employees to make contributions (Sec. 7).

• Specifies that if the annuities are increased by legislation then it will be by a level percentage over the next 10 years (Sec. 7).

• Specifies that if a person who is a Class A-3 or A-4 member has between 5 and 10 eligibility points, such person will receive a lump sum upon retirement in addition to any other annuity (Sec. 10).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that amends the pension benefits of state and school employees hired after January 1, 2011.

Highlights:

• Specifies that the annuity percentage for certain classes of service includes, but is not limited to, the following (Sec. 1):
• The annuity percentage of Class T-E is 2 percent of the final salary multiplied by the number of years of service;
• The annuity percentage of Class T-F is 2.5 percent of the final salary multiplied by the number of years of service; and
• The age of retirement for Class T-E and T-F is 65 with 3 eligibility points or any age with 35 eligibility points.

• Establishes Class T-E membership as a person who becomes a school employee or a state employee with a State Employee's Retirement System membership (Sec. 3).

• Specifies that contributions from the commonwealth will be paid as the accrued liability contribution rate (Sec. 5).

• Establishes that the collared contribution rate will be determined by comparing the normal contribution rate without regard to the costs added on by legislation, to the prior year's final contribution rate (Sec. 5).

• Establishes that any additional liability will be funded as the actuarial accrued liability beginning July 1, 2011 (Sec. 5).

• Specifies that if a person from Class A-3 or Class A-4 falls into another class then the final average of compensation will be determined on the basis of the total salary from all classes of service (Sec. 7).

• Establishes that Class A-4 membership is acquired if a person who has A-3 membership elects to enter into A-4 membership (Sec. 7).

• Requires a person who is eligible for A-4 membership to file for election within 45 days of notification of eligibility with the election of a member being irrevocable (Sec. 7).

• Establishes that any person who is an inactive member on leave without pay of the membership Class A-3, A-4, T-E, or T-F who falls between 5 and 10 eligibility points is eligible to receive an annuity calculated into his or her service credit (Sec. 7).

• Requires Classes A-3 and A-4 to make contributions and receive credit to their respective classes (Sec. 7).

• Requires the commonwealth and employers that have member employees to make contributions (Sec. 7).

• Specifies that if the annuities are increased by legislation then it will be by a level percentage over the next 10 years (Sec. 7).

• Specifies that if a person who is a Class A-3 or A-4 member has between 5 and 10 eligibility points, such person will receive a lump sum upon retirement in addition to any other annuity (Sec. 10).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that amends the pension benefits of state and school employees hired after January 1, 2011.

Highlights:

• Specifies the annuity percentage for certain classes of service includes, but is not limited to, the following (Sec. 1):
• The annuity percentage of Class T-E is 2 percent of the final salary multiplied by the number of years of service;
• The annuity percentage of Class T-F is 2.5 percent of the final salary multiplied by the number of years of service; and
• The age of retirement for Class T-E and T-F is 65 with 3 eligibility points or any age with 35 eligibility points.

• Establishes Class T-E membership as a person who becomes a school employee or a state employee with a State Employee's Retirement System membership (Sec. 3).

• Establishes Class T-F membership as a person who has T-E membership and elects into T-F membership (Sec. 3).

• Requires a person who is eligible for T-F membership to file for election within 45 days of notification of eligibility (Sec. 4).

• Specifies that if a person who is a T-E member purchases military credit, the service will be credited as a T-E service and accordingly, for any T-F member (Sec. 5).

• Requires the total contribution rate to be the sum from subsection h plus the premium assistance contribution rate calculated in subsection f (Sec. 5).

• Requires contributions from the commonwealth to be paid at the accrued liability contribution rate (Sec. 5).

• Requires the collared contribution rate to be determined by comparing the normal contribution rate without regard to the costs added on by legislation, to the prior year's final contribution rate (Sec. 5).

• Requires any additional liability to be funded at the actuarial accrued liability beginning July 1, 2011 (Sec. 5).

• Requires the board to inform any person eligible for a Class T-F membership (Sec. 6).

• Requires schools to make Public School Employees Retirement Fund payments if the Commonwealth's payment is delayed (Sec. 7).

• Specifies that if a person from Class A-3 or Class A-4 falls into another class then the final average of compensation will be determined on the basis of the total salary from all classes of service (Sec. 7).

• Specifies Class A-4 membership is acquired if a person who has A-3 membership elects to enter into A-4 membership (Sec. 7).

• Requires a person who is eligible for A-4 membership to file for election within 45 days of notification of eligibility with the election of a member being irrevocable (Sec. 7).

• Establishes that any person who is an inactive member on leave without pay of the membership Class A-3, A-4, T-E, or T-F who falls between 5 and 10 eligibility points is eligible to receive an annuity calculated into his or her service credit (Sec. 7).

• Specifies that Classes A-3 and A-4 make contributions and receive credit to their respective classes (Sec. 7).

• Requires the commonwealth and employers that have member employees to make contributions (Sec. 7).

• Specifies that if the annuities are increased by legislation then it will be by a level percentage over the next 10 years (Sec. 7).

• Specifies that if a person who is a Class A-3 or A-4 member has between 5 and 10 eligibility points, such person will receive a lump sum upon retirement in addition to any other annuity (Sec. 10).

Full Bill Text