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Definitions - 24 Pa. Cons. Stat. § 8102Legal Research Home > Pennsylvania Statutes
§ 8102. Definitions.
The following words and phrases when used in this part shall
have, unless the context clearly indicates otherwise, the
meanings given to them in this section:
"Accumulated deductions." The total of pickup contributions
and the contributions paid into the fund by the member on
account of current school service, previous school service, or
creditable nonschool service and the statutory interest credited
on all such contributions.
"Activated military service." Military service by a member
of a reserve component of the armed forces, pursuant to an order
on or after July 1, 1990, to enter into active military service,
other than an order to enter into active duty to meet periodic
training requirements, who was an active member of the system
immediately preceding the order into active military service and
to whom the military leave provisions of 51 Pa.C.S. Ch. 73
(relating to military leave of absence) do not apply.
"Active member." A school employee for whom pickup
contributions are being made to the fund or for whom such
contributions otherwise required for current school service are
not being made solely by reason of any provision of this part
relating to the limitations under section 401(a)(17) or 415(b)
of the Internal Revenue Code of 1986 (Public Law 99-514, 26
U.S.C. § 401(a)(17) or 415(b)).
"Actuarially equivalent." Equal present values, computed on
the basis of statutory interest and the mortality tables adopted
by the board.
"Actuary." The consultant to the board who shall be:
(1) a member of the American Academy of Actuaries;
(2) an individual who has demonstrated to the
satisfaction of the Insurance Commissioner of Pennsylvania
that he has the educational background necessary for the
practice of actuarial science and has had at least seven
years of actuarial experience; or
(3) a firm, partnership, or corporation of which at
least one member meets the requirements of paragraph (1) or
(2).
"Alternate payee." Any spouse, former spouse, child or
dependent of a member who is recognized by a domestic relations
order as having a right to receive all or a portion of the
moneys payable to that member under this part.
"Alternative investment." An investment in a private equity
fund, private debt fund, venture fund, real estate fund, hedge
fund or absolute return fund.
"Alternative investment vehicle." A limited partnership,
limited liability company or any other legal vehicle for
authorized investments under section 8521(i) (relating to
management of fund and accounts) through which the system makes
an alternative investment.
"Annuitant." Any member on or after the effective date of
retirement until his annuity is terminated.
"Approved domestic relations order." Any domestic relations
order which has been determined to be approved in accordance
with section 8533.1 (relating to approval of domestic relations
orders).
"Approved leave of absence." A leave of absence for
activated military service or which has been approved by the
employer for sabbatical leave, service as an exchange teacher,
service with a collective bargaining organization or
professional study.
"Basic contribution rate." For Class T-A, T-B and T-C
service, the rate of 6 1/4%. For Class T-D service, the rate of
7 1/2%. For all active members on the effective date of this
provision who are currently paying 5 1/4% and elect Class T-D
service, the rate of 6 1/2%.
"Beneficiary." The person or persons last designated in
writing to the board by a member to receive his accumulated
deductions or a lump sum benefit upon the death of such member.
"Board." The Public School Employees' Retirement Board or
the Public School Employes' Retirement Board.
"Class of service multiplier."
Class of service Multiplier
T-A .714
T-B .625
T-C 1.000
T-D 1.000
"Commissioner." The Commissioner of the Internal Revenue
Service.
"Compensation." Pickup contributions plus any remuneration
received as a school employee excluding reimbursements for
expenses incidental to employment and excluding any bonus,
severance payments, any other remuneration or other emolument
received by a school employee during his school service which is
not based on the standard salary schedule under which he is
rendering service, payments for unused sick leave or vacation
leave, bonuses or other compensation for attending school
seminars and conventions, payments under health and welfare
plans based on hours of employment or any other payment or
emolument which may be provided for in a collective bargaining
agreement which may be determined by the Public School
Employees' Retirement Board to be for the purpose of enhancing
compensation as a factor in the determination of final average
salary, provided, however, that the limitation under section
401(a)(17) of the Internal Revenue Code of 1986 (Public Law 99-
514, 26 U.S.C. § 401(a)(17)) taken into account for the purpose
of member contributions, including regular or joint coverage
member contributions, regardless of class of service, shall
apply to each member who first became a member of the Public
School Employes' Retirement System on or after July 1, 1996, and
who by reason of such fact is a noneligible member subject to
the application of the provisions of section 8325.1 (relating to
annual compensation limit under IRC § 401(a)(17)).
"Concurrent service." Simultaneously credited school and
State service.
"Creditable nonschool service." Service other than service
as a school employee for which an active member may obtain
credit.
"Credited service." School or creditable nonschool service
for which the required contributions have been made, or for
which the contributions otherwise required for such service were
not made solely by reason of any provision of this part relating
to the limitations under section 401(a)(17) or 415(b) of the
Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §
401(a)(17) or 415(b)), or for which salary deductions or lump
sum payments have been agreed upon in writing.
"Date of termination of service." The last date of service
for which pickup contributions are made for an active member or,
in the case of an inactive member, the effective date of his
resignation or the date his employment is formally discontinued
by his employer or two years following the last day of service
for which contributions were made, whichever is earliest.
"Disability annuitant." A member on or after the effective
date of disability until his disability annuity or the portion
of his disability annuity payments in excess of any annuity to
which he may otherwise be entitled is terminated.
"Distribution." Payment of all or any portion of a person's
interest in the Public School Employees' Retirement Fund which
is payable under this part.
"Domestic relations order." Any judgment, decree or order,
including approval of a property settlement agreement, entered
on or after the effective date of this definition by a court of
competent jurisdiction pursuant to a domestic relations law
which relates to the marital property rights of the spouse or
former spouse of a member, including the right to receive all or
a portion of the moneys payable to that member under this part
in furtherance of the equitable distribution of marital assets.
The term includes orders of support as that term is defined by
23 Pa.C.S. § 4302 (relating to definitions) and orders for the
enforcement of arrearages as provided in 23 Pa.C.S. § 3703
(relating to enforcement of arrearages).
"Effective date of retirement." The first day following the
date of termination of service of a member if he has properly
filed an application for an annuity within 90 days of such date
or:
(1) In the case of a member who applies for an annuity
subsequent to 90 days after termination of service, the date
of filing such application or the date specified on the
application, whichever is later.
(2) In the case of a vestee who files an application for
an annuity within 90 days of his superannuation age, the
attainment of such age.
(3) In the case of a vestee who defers the filing of an
application for an annuity to a date later than 90 days
following attainment of superannuation age, the date of
filing or the date specified on the application, whichever is
later.
(4) In the case of a finding of disability, the date
certified by the board as the effective date of disability.
"Eligible annuitants." All current and prospective
annuitants with 24 1/2 or more eligibility points and all
current and prospective disability annuitants. Beginning January
1, 1995, "eligible annuitants" shall include members with 15 or
more eligibility points who terminated or who terminate school
service on or after attaining superannuation retirement age and
who are annuitants with an effective date of retirement after
superannuation age.
"Eligibility points." Points which are accrued by an active
member or a multiple service member who is an active member of
the State Employees' Retirement System for credited service and
are used in the determination of eligibility for benefits as
provided in section 8306 (relating to eligibility points).
"Employer." Any governmental entity directly responsible for
the employment and payment of the school employee and charged
with the responsibility of providing public education within
this Commonwealth, including but not limited to: State-owned
colleges and universities, the Pennsylvania State University,
community colleges, area vocational-technical schools,
intermediate units, the State Board of Education, Scotland
School for Veterans' Children, Thaddeus Stevens State School of
Technology, and the Pennsylvania State Oral School for the Deaf.
"Final average salary." The highest average compensation
received as an active member during any three nonoverlapping
periods of 12 consecutive months with the compensation for part-
time service being annualized on the basis of the fractional
portion of the school year for which credit is received; except,
if the employee was not a member for three such periods, the
total compensation received as an active member annualized in
the case of part-time service divided by the number of such
periods of membership; in the case of a member with multiple
service credit, the final average salary shall be determined by
reference to compensation received by him as a school employee
or a State employee or both; and, in the case of a noneligible
member, subject to the application of the provisions of section
8325.1 (relating to annual compensation limit under IRC §
401(a)(17)).
"Full coverage member." Any member for whom regular member
pickup contributions are being picked up or who has paid or has
agreed to pay to the fund the actuarial equivalent of regular
member contributions due on account of service prior to January
1, 1983.
"Fund." The Public School Employees' Retirement Fund.
"Governmental entity." Board of school directors, board of
public education, intermediate unit board of directors, area
vocational-technical board, any governing board of any agency or
authority created by them, and the Commonwealth.
"Inactive member." A member for whom no pickup contributions
are being made, except in the case of an active member for whom
such contributions otherwise required for current school service
are not being made solely by reason of any provision of this
part relating to the limitations under section 401(a)(17) or
415(b) of the Internal Revenue Code of 1986 (Public Law 99-514,
26 U.S.C. § 401(a)(17) or 415(b)), who has accumulated
deductions standing to his credit in the fund and for whom
contributions have been made within the last two school years or
a multiple service member who is active in the State Employees'
Retirement System.
"Intervening military service." Active military service of a
member who was a school employee immediately preceding his
induction into the armed services or forces of the United States
in order to meet a draft obligation excluding any voluntary
extension of such obligational service and who becomes a school
employee within 90 days of the expiration of such service.
"IRC." The Internal Revenue Code of 1986, as designated and
referred to in section 2 of the Tax Reform Act of 1986 (Public
Law 99-514, 100 Stat. 2085, 2095). A reference in this part to
"IRC § " shall be deemed to refer to the identically numbered
section and subsection or other subdivision of such section in
26 United States Code (relating to Internal Revenue Code).
"Irrevocable beneficiary." The person or persons permanently
designated by a member in writing to the board pursuant to an
approved domestic relations order to receive all or a portion of
the accumulated deductions or lump sum benefit payable upon the
death of such member.
"Irrevocable survivor annuitant." The person permanently
designated by a member in writing to the board pursuant to an
approved domestic relations order to receive an annuity upon the
death of such member.
"Joint coverage member." Any member who agreed prior to
January 1, 1966 to make joint coverage member contributions to
the fund and has not elected to become a full coverage member.
"Joint coverage member contributions." Regular member
contributions reduced for a joint coverage member.
"Leave for service with a collective bargaining
organization." Paid leave granted to an active member by an
employer for purposes of working full time for or serving full
time as an officer of a Statewide employee organization or a
local collective bargaining representative under the act of July
23, 1970 (P.L.563, No.195), known as the Public Employe
Relations Act: Provided, That greater than one-half of the
members of the employee organization are active members of the
system; that the employer shall fully compensate the member,
including, but not limited to, salary, wages, pension and
retirement contributions and benefits, other benefits and
seniority, as if he were in full-time active service; and that
the employee organization shall fully reimburse the employer for
such salary, wages, pension and retirement contributions and
benefits and other benefits and seniority.
"Maternity leave of absence." An involuntary leave of
absence required by the employer because of the pregnancy of the
member and commencing prior to May 17, 1975.
"Member." Active member, inactive member, annuitant, or
vestee.
"Member's annuity." The single life annuity which is
actuarially equivalent on the effective date of retirement to
the accumulated deductions standing to the member's credit in
the members' savings account.
"Military service." All active military service for which a
member has received a discharge other than an undesirable, bad
conduct, or dishonorable discharge.
"Multiple service." Credited service of a member who has
elected to combine his credited service in both the Public
School Employees' Retirement System and the State Employees'
Retirement System.
"Noneligible member." For the purposes of section 8325.1
(relating to annual compensation limit under IRC § 401(a)(17)),
a member who first became a member on or after July 1, 1996.
"Participating eligible annuitants." All eligible annuitants
who are enrolled or elect to enroll in a health insurance
program approved by the Public School Employees' Retirement
Board.
"Pickup contributions." Regular or joint coverage member
contributions which are made by the employer for active members
for current service on and after January 1, 1983.
"Previous school service." Service rendered as a school
employee including service in any summer school conducted by a
school district of the Commonwealth prior to the member's most
recent entrance in the system.
"Public school." Any or all classes or schools within this
Commonwealth conducted under the order and superintendence of
the Department of Education including, but not limited to: all
educational classes of any employer charged with the
responsibility of public education within this Commonwealth as
well as those classes financed wholly or in part by the Federal
Government, State-owned colleges and universities, the
Pennsylvania State University, community colleges, area
vocational-technical schools, intermediate units, the State
Board of Education, Scotland School for Veterans' Children,
Thaddeus Stevens State School of Technology, and the
Pennsylvania State Oral School for the Deaf.
"Public School Code." The act of March 10, 1949 (P.L.30,
No.14), known as the Public School Code of 1949.
"Regular member contributions." The product of the basic
contribution rate and the compensation of the member.
"Reserve component of the armed forces." The United States
Army Reserve, United States Navy Reserve, United States Marine
Corps Reserve, United States Coast Guard Reserve, United States
Air Force Reserve, Pennsylvania Army National Guard and
Pennsylvania Air National Guard.
"Salaried employee." A school employee who is compensated on
the basis of an annual salary.
"Salary deductions." The amounts certified by the board,
deducted from the compensation of an active member or the State
service compensation of a multiple service member who is an
active member of the State Employees' Retirement System and paid
into the fund.
"School employee." Any person engaged in work relating to a
public school for any governmental entity and for which work he
is receiving regular remuneration as an officer, administrator
or employee excluding, however, any independent contractor or a
person compensated on a fee basis.
"School entity." A school district of any class,
intermediate unit or an area vocational-technical school, as
provided for under the act of March 10, 1949 (P.L.30, No.14),
known as the Public School Code of 1949.
"School service." Service rendered as a school employee.
"School year." The 12-month period which the governmental
entity uses for purposes of administration regardless of the
actual time during which a member renders service.
"Severance payments." Any payments for unused vacation or
sick leave and any additional compensation contingent upon
retirement including payments in excess of the scheduled or
customary salaries provided for members within the same
governmental entity with the same educational and experience
qualifications who are not terminating service.
"Standard single life annuity." For Class T-A, T-B and T-C
credited service of a member, an annuity equal to 2% of the
final average salary, multiplied by the total number of years
and fractional part of a year of credited service of a member.
For Class T-D credited service of a member, an annuity equal to
2.5% of the final average salary, multiplied by the total number
of years and fractional part of a year of credited service.
"State Employees' Retirement System." The retirement system
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 by Part
XXV of Title 71 (relating to retirement for State employees and
officers), added March 1, 1974 (P.L.125, No.31).
"State service." Service rendered as a State employee and
credited as service in the State Employees' Retirement System.
"Statutory interest." Interest at 4% per annum, compounded
annually.
"Superannuation annuitant." An annuitant whose annuity first
became payable on or after the attainment of superannuation age
and who is not a disability annuitant.
"Superannuation or normal retirement age."
Class of service Age
T-A 62 or any age upon accrual
of 35 eligibility points
T-B 62
T-C and T-D 62 or age 60 provided the
member has at least 30
eligibility points or
any age upon accrual of
35 eligibility points
"Survivor annuitant." The person or persons last designated
by a member under a joint and survivor annuity option to receive
an annuity upon the death of such member.
"System." The Public School Employes' Retirement System of
Pennsylvania as established by the act of July 18, 1917
(P.L.1043, No.343), and codified by the act of June 1, 1959
(P.L.350, No.77).
"Valuation interest." Interest at 5 1/2% per annum,
compounded annually and applied to all accounts other than the
members' savings account.
"Vestee." A member with five or more eligibility points who
has terminated school service, has left his accumulated
deductions in the fund and is deferring filing of an application
for receipt of an annuity.
(July 22, 1983, P.L.104, No.31, eff. imd.; Dec. 19, 1984,
P.L.1191, No.226, eff. imd.; Aug. 5, 1991, P.L.183, No.23, eff.
imd.; Nov. 30, 1992, P.L.737, No.112, eff. imd.; Apr. 29, 1994,
P.L.159, No.29; Dec. 20, 1995, P.L.689, No.77; May 17, 2001,
P.L.26, No.9; Nov. 9, P.L.1371, No.148, eff. imd.)
2006 Amendment. Act 148 added the defs. of "alternative
investment" and "alternative investment vehicle."
2001 Amendment. Act 9 amended the defs. of "active member,"
"basic contribution rate," "class of service multiplier,"
"credited service," "inactive member," "salary deductions,"
"standard single life annuity," "superannuation or normal
retirement age" and "vestee," effective immediately as to the
defs. of "active member," "credited service" and "inactive
member," and effective July 1, 2001, as to the remainder of the
section. See section 36.1 of Act 9 in the appendix to this title
for special provisions relating to applicability of amendment to
Public School Employees' Retirement System members.
1995 Amendment. Act 77 amended the defs. of "active member,"
"compensation," "credited service," "final average salary" and
"inactive member," effective July 1, 1996, and added the defs.
of "commissioner," "distribution," "IRC," effective immediately,
and "noneligible member," effective July 1, 1996. Section 15(1)
of Act 77 provided that the addition of the defs. of
"commissioner," "distribution" and "IRC" shall be retroactive to
the date of enactment of the Tax Reform Act of 1986 (Public Law
99-514, 100 Stat. 2085), approved October 22, 1986.
1994 Amendment. Act 29 amended the defs. of "effective date
of retirement," "leave for service with a collective bargaining
organization" and "superannuation annuitant," effective in 60
days and "eligible annuitants," effective July 1, 1994, and
added the defs. of "alternate payee," "approved domestic
relations order," "disability annuitant," "domestic relations
order," "irrevocable beneficiary," "irrevocable survivor
annuitant," "Public School Code" and "school entity," effective
in 60 days.
1992 Amendment. Act 112 amended the def. of "approved leave
of absence" and added the def. of "leave for service with a
collective bargaining organization."
1991 Amendment. Act 23 amended the def. of "approved leave
of absence," and added the defs. of "activated military
service," "eligible annuitants," "maternity leave of absence,"
"participating eligible annuitants" and "reserve component of
the armed forces."
1984 Amendment. Act 226 reenacted the defs. of "accumulated
deductions," "active member," "compensation," "date of
termination of service," "full coverage member," "inactive
member," "pickup contributions" and "valuation interest,"
retroactive to January 1, 1983, as to "pickup contributions."
1983 Amendment. Act 31 amended section 8102, retroactive to
January 1, 1983, except as to the def. of "basic contribution
rate." See sections 10, 12, 13, 14 and 15 of Act 31 in the
appendix to this title for special provisions relating to waiver
of actuarial note requirement for retirement bills, treatment by
employer of school employee pickup contributions, use of
increased school employee contributions, appropriation for
increased school employee contributions and nonseverability.
Effective Date of Provisions. See section 4(2) and (3) of
Act 96 of 1975 in the appendix to this title for the effective
date of provisions relating to the crediting of statutory
interest to the accounts of members on leave without pay and the
basic contribution rates and employer contributions.
References in Text. Section 14 of Act 57 of 1997 provided
that a statutory reference to the Thaddeus Stevens State School
of Technology, referred to in the defs. of "employer" and
"public school," shall be deemed to be a reference to the
Thaddeus Stevens College of Technology.
Cross References. Section 8102 is referred to in section
8306 of this title.
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