71 Pa.C.S. § 11

Except as may be otherwise specifically provided, references in this act to provisions of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.), including for this purpose administrative regulations promulgated thereunder, are intended to include such laws and regulations as in effect on the effective date of this section and as they may hereafter be amended or supplemented or supplanted by successor provisions.

§ 13. Qualified pension plans and termination of annuities. * * *

(b) State employees.--Nothing in this act which amends or supplements provisions of 71 Pa.C.S. Pt. XXV in relation to requirements for qualification of the State Employees' Retirement System as a qualified pension plan under 26 U.S.C. § 401(a), nor any construction of such provisions as so amended or supplemented or any rules or regulations adopted under such part, shall create in any member of the system or in any other person claiming an interest in the account of any such member a contractual right, either express or implied, in such provisions. Such provisions shall remain subject to the Internal Revenue Code of 1986, as amended, and regulations thereunder as the same may hereafter be amended, 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 qualification of such system as a qualified pension plan under 26 U.S.C. § 401(a).

(c) Applicability of provisions relating to termination of annuities.--In relation to the amendments of 24 Pa.C.S. § 8346 and 71 Pa.C.S. § 5706 the following shall apply:

(1) Nothing in the amendments of 24 Pa.C.S. § 8346 and 71 Pa.C.S. § 5706 shall be deemed to permit the restoration of service credit or retirement benefits which were the subject of an order of forfeiture pursuant to the act of July 8, 1978 (P.L.752, No.140), known as the Public Employee Pension Forfeiture Act.

(2) Former annuitants who have the effect of frozen present value eliminated pursuant to 24 Pa.C.S. § 8346(d)(2) and 71 Pa.C.S. § 5706(c)(2) do so with the specific understanding that they accept the terms and conditions of 24 Pa.C.S. Pt. IV and 71 Pa.C.S. Pt. XXV as they are upon their most recent return to school service or State service as the case may be and do not retain any contractual rights to terms and conditions of 24 Pa.C.S. Pt. IV and 71 Pa.C.S. Pt. XXV, including, but not limited to, benefit formulas, accrual rates and eligibility, contribution rates, definitions, purchase of creditable school, nonschool, State and non-State provisions and actuarial and funding assumptions or provisions arising from any period of employment prior to their final period of employment.

(3) The amendments of 24 Pa.C.S. § 8346 and 71 Pa.C.S. § 5706 shall apply to former annuitants of the State Employees' Retirement System, and former annuitants of the Public School Employees' Retirement System, who have elected multiple service and who are:
ovisions and actuarial and funding assumptions or provisions arising from any period of employment prior to their final period of employment.

(3) The amendments of 24 Pa.C.S. § 8346 and 71 Pa.C.S. § 5706 shall apply to former annuitants of the State Employees' Retirement System, and former annuitants of the Public School Employees' Retirement System, who have elected multiple service and who are:

(i) inactive members on leave or active members of the State Employees' Retirement System;

(ii) annuitants who were inactive members on leave or active members of the State Employees' Retirement System on or after July 1, 1994, who terminated State service before the effective date of this act; or

(iii) who terminated their most recent period of State service prior to the effective date of this act but have not yet elected to apply for an annuity; and who have earned at least three eligibility points due to the performance of State service, or if a member who has elected multiple service at least three eligibility points due to the performance of State service or school service, since the most recent period of annuity.

(4) The amendments of 24 Pa.C.S. § 8346 and 71 Pa.C.S. § 5706 shall apply to former annuitants of the Public School Employees' Retirement System, and former annuitants of the State Employees' Retirement System, who have elected multiple service and who are:

(i) inactive members on leave or active members of the Public School Employees' Retirement System;

(ii) annuitants who were inactive members on leave or active members of the Public School Employees' Retirement System on or after July 1, 1994, who terminated school service before the effective date of this act; or

(iii) who terminated their most recent period of school service prior to the effective date of this act but have not yet elected to apply for an annuity; and who have earned at least three eligibility points due to the performance of school service, or if a member who has elected multiple service at least three eligibility points due to the performance of State service or school service, since their most recent period of annuity. 1997, JUNE 25, P.L.369, NO.41 § 6. Limitation of special vestee status. It is expressly declared to be the intention of the General Assembly to limit the benefits granted to special vestees to those employees of The Pennsylvania State University who are members of the State Employees' Retirement System and who are being terminated from State service with The Pennsylvania State University because of the creation of the Penn State Geisinger Health System. It is further the expressed intention of the General Assembly that the actuarial cost of granting superannuation benefits to special vestees be borne by The Pennsylvania State University. The provisions of this act are declared to be nonseverable. Should a court of competent jurisdiction finally rule that limitation of special vestee status to those employees of The Pennsylvania State University who are terminated from State service with The Pennsylvania State University because of the creation of the Penn State Geisinger Health System or the imposition of the actuarial cost resulting from the creation of the class of membership known as special vestees is violative of the laws or constitutions of this Commonwealth or the United States, then this entire act is null and void as if never enacted, except that if the total of any payments actually made to any special vestee who has attained superannuation age is greater than the total accumulated deductions credited to the member's savings account of the special vestee at the effective date of retirement, the excess may be retained by the member and except that any statutory interest credited to the member's savings account prior to the invalidation of this act may be paid to the member as part of the member's accumulated deductions. Explanatory Note
e is greater than the total accumulated deductions credited to the member's savings account of the special vestee at the effective date of retirement, the excess may be retained by the member and except that any statutory interest credited to the member's savings account prior to the invalidation of this act may be paid to the member as part of the member's accumulated deductions. Explanatory Note. Act 41 amended or added sections 5102, 5303, 5309.1, 5508, 5705, 5707, 5905, 5905.1, 5906 and 5907 of Title 71. 1999, JUNE 22, P.L.75, NO.12

§ 19. Required membership in State Employees' Retirement System. County employees transferred to State employment pursuant to 42 Pa.C.S. § 1905 who are annuitants of the State Employees' Retirement System shall be required to be active members of the State Employees' Retirement System and shall have their annuities stopped pursuant to 71 Pa.C.S. §§ 5301(d) and 5706, governing annuitants of the State Employees' Retirement System who return to State service. Upon subsequent termination and application for annuity, the transferred State Employees' Retirement System annuitants shall have their benefits calculated according to the provisions of 71 Pa.C.S. Pt. XXV, regarding annuities after subsequent termination. For purposes of calculating eligibility points for the application of 71 Pa.C.S. § 5706(c)(1), only eligibility points earned after the date of transfer may be included unless the member has converted county service to State service pursuant to 71 Pa.C.S. § 5303.1. If a former annuitant has converted county service to State service, the eligibility points subsequent to the most recent receipt of an annuity that is not returned to the State Employees' Retirement System as a result of the converted service shall also be included in calculating the eligibility points under 71 Pa.C.S. § 5706(c)(1). Explanatory Note. Act 12 added section 1905 and Subchapters B through I (Reserved) and J of Chapter 23 of Title 42 and amended or added sections 5102, 5301, 5302, 5303, 5303.1, 5304, 5306, 5308, 5309, 5504, 5505, 5507, 5705, 5903, 5905, 5905.1, 5906, 5907, 5934 and 5953.5 of Title 71 (State Government). § 20. Membership terms and conditions. Except as otherwise set forth in this act, county employees who are transferred to State employment pursuant to 42 Pa.C.S. § 1905 shall be subject to the terms and conditions of 71 Pa.C.S. Pt. XXV in the same manner and extent as any other individual commencing State employment who is eligible for the benefits and obligations of Class A membership with a superannuation age of 60 years. § 21. Notification of transfer and certification of credited service. Upon the filing by a county employee transferred to State employment pursuant to 42 Pa.C.S. § 1905 of an election to convert county service to State service, the State Employees' Retirement Board shall notify the appropriate county retirement system or pension plan administrator. Within 30 days of notification, the county retirement system or pension plan administrator shall certify to the State Employees' Retirement Board the total amount of service credited to the electing member's account, and such information on how it was earned or acquired, in the county retirement system or pension plan, including, but not limited to, the nature of the underlying service or legal authority on which the credit was based and the dates covered by the credit as requested by the State Employees' Retirement Board. The administrators, employees, trustees and fiduciaries of all retirement systems or pension plans operated for the transferred employees shall provide whatever information and records are requested by the State Employees' Retirement System within 30 days of the request for the transferred employees. If a county retirement system or pension plan fails to provide the information required by this section, the county shall be subject to a penalty of $100 per
all retirement systems or pension plans operated for the transferred employees shall provide whatever information and records are requested by the State Employees' Retirement System within 30 days of the request for the transferred employees. If a county retirement system or pension plan fails to provide the information required by this section, the county shall be subject to a penalty of $100 per

day for each of the transferred employees until the information is provided. § 22. Termination of employment and continuation of contributions in county retirement system.

(a) Termination of employment by transferred employee.--County employees who are transferred to State employment pursuant to 42 Pa.C.S. § 1905 shall have their county employment by virtue of judicial system employment terminated effective the day before the transfer. No further rights in any county retirement system by virtue of employment with the State shall accrue, but such transferred member shall have the rights, privileges and obligations in the retirement system of the county enjoyed by any other involuntarily terminated employee who is a member of that plan of the same gender and with the same age, years of service, compensation, contributions and other factors that enter into the calculation of benefits.

(b) Contributions left in county retirement system.--Notwithstanding subsection (a) or any other provision of this act, including, but not limited to, the addition of 71 Pa.C.S. §§ 5301(e) and 5303.1(d) and section 23 of this act, and notwithstanding any other provision of law, ordinance, collective bargaining agreement, arbitration award, contract or term or condition of any retirement system or pension plan, any transferred member who elects to convert county service to State service may elect to leave in the county retirement system or pension plan any contributions of whatever nature made by the employee, including, but not limited to, pickup contributions, and any interest paid on those contributions. Upon making such an election, the retirement system or pension plan shall treat the contributions and interest as if the member had remained in full-time active service as an employee of the county for the period the transferred employee is a State employee, including the crediting of interest if and as otherwise provided for by the retirement system or pension plan. Upon termination of State service, the transferred employee may make application to the county pension plan or retirement system as if the transferred employee was terminating county service and shall be granted whatever rights and benefits, including an immediate lump sum distribution or an annuity from the county pension plan or retirement system equal to the contributions and interest in the member's account with the county, provided to a terminating member with the age and service the member would have possessed had the member remained a full-time employee of the county. Such election must be in writing filed with the administrator of the county pension plan or retirement system from which the county service is being converted and must be made within 30 days after the election to convert county service to State service. § 23. Cancellation of previously credited county service. County service that is converted to State service pursuant to 71 Pa.C.S. § 5303.1 shall be canceled in all retirement systems in which it was previously credited and shall lose all characteristics of county service. § 25. Determination of final average salary. Notwithstanding the definition of "final average salary" contained in 71 Pa.C.S. § 5102, if a member who elects to convert county service to State service pursuant to 71 Pa.C.S § 5303.1 terminates State service before having been a member of the State Employees' Retirement System for three
y credited and shall lose all characteristics of county service. § 25. Determination of final average salary. Notwithstanding the definition of "final average salary" contained in 71 Pa.C.S. § 5102, if a member who elects to convert county service to State service pursuant to 71 Pa.C.S § 5303.1 terminates State service before having been a member of the State Employees' Retirement System for three

nonoverlapping periods of four consecutive calendar quarters, the final average salary shall be determined on the basis of the compensation received as a State employee and as a county employee before the transfer to State employment and shall be calculated over any three nonoverlapping periods of four consecutive calendar quarters during which the member was a State employee or a county employee, with the compensation for part-time service being annualized on the basis of the fractional portion of the year for which credit is received. § 26. Federal, State and local tax laws. Contributions and other money transferred from the county retirement systems and pension plans to the State Employees' Retirement System shall retain the same attributes for Federal, State and local tax laws to the extent allowed by law. § 27. Eligibility for superannuation benefits. Notwithstanding any regulation promulgated by the State Employees' Retirement Board, eligibility for superannuation benefits at 55 years of age shall require the actual accrual of 20 eligibility points. Consistent with 71 Pa.C.S. Pt. XXV, known as the State Employees' Retirement Code, and its application by the board, members who have Class G, Class H, Class I, Class J, Class K, Class L, Class M or Class N service have a superannuation age upon the attainment of age 55 with 20 or more eligibility points only for service in those classes of service. § 29. Calculation of contributions. The calculation of the contributions to be transferred by county retirement systems or pension plans pursuant to 71 Pa.C.S. § 5507(c) shall include interest at the annual rate adopted for that fiscal year by the board for the calculation of the normal contribution rate pursuant to 71 Pa.C.S. § 5508(b) from the effective date of the transfer of the former county employees to State employment to the date of the transfer of the funds to the State Employees' Retirement System. 2001, MAY 17, P.L.26, NO.9