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Contributions for purchase of credit for creditable nonschool service - 24 Pa. Cons. Stat. § 8324

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     § 8324.  Contributions for purchase of credit for creditable
                nonschool service.
        (a)  Source of contributions.--The total contributions to
     purchase credit as a member of Class T-C for creditable
     nonschool service of an active member or an eligible State
     employee shall be paid either by the member, the member's
     previous employer, the Commonwealth, or a combination thereof,
     as provided by law.
        (b)  Nonintervening military service.--The amount due for the
     purchase of credit for military service other than intervening
     military service shall be determined by applying the member's
     basic contribution rate plus the normal contribution rate as
     provided in section 8328 (relating to actuarial cost method) at
     the time of entry of the member into school service subsequent
     to such military service to one-third of his total compensation
     received during the first three years of such subsequent
     credited school service and multiplying the product by the
     number of years and fractional part of a year of creditable
     nonintervening military service being purchased together with
     statutory interest during all periods of subsequent school and
     State service to date of purchase. Upon certification of the
     amount due, payment may be made in a lump sum within 90 days or
     in the case of an active member or an eligible State employee
     who is an active member of the State Employees' Retirement
     System it may be amortized with statutory interest through
     salary deductions in amounts agreed upon by the member and the
     board. The salary deduction amortization plans agreed to by
     members and the board may include a deferral of payment amounts
     and statutory interest until the termination of school service
     or State service as the board in its sole discretion decides to
     allow. The board may limit salary deduction amortization plans
     to such terms as the board in its sole discretion determines. In
     the case of an eligible State employee who is an active member
     of the State Employees' Retirement System, the agreed upon
     salary deductions shall be remitted to the State Employees'
     Retirement Board, which shall certify and transfer to the board
     the amounts paid. Application may be filed for all such military
     service credit upon completion of three years of subsequent
     credited school service and shall be credited as Class T-C
     service.
        (c)  Intervening military service.--Contributions on account
     of credit for intervening military service shall be determined
     by the member's basic contribution rate and compensation at the
     time of entry of the member into active military service,
     together with statutory interest during all periods of
     subsequent school and State service to date of purchase. Upon
     application for such credit the amount due shall be certified in
     the case of each member by the board, in accordance with methods
     approved by the actuary, and contributions may be made by one of
     the following methods:
            (1)  Regular monthly payments during active military
        service.
            (2)  A lump sum payment within 90 days of certification
        of the amount due.
            (3)  Salary deductions in amounts agreed upon by the
        member and the board. The salary deduction amortization plans
        agreed to by the members and the board may include a deferral
        of payment amounts and statutory interest until the
        termination of school service or State service as the board
        in its sole discretion decides to allow. The board may limit
        salary deduction amortization plans to such terms as the
        board in its sole discretion determines. In the case of an
        eligible State employee who is an active member of the State
        Employees' Retirement System, the agreed upon salary
        deductions shall be remitted to the State Employees'
        Retirement Board, which shall certify and transfer to the
        board the amounts paid.
        (d)  Other creditable nonschool service.--Contributions on
     account of Class T-C credit for creditable nonschool service
     other than military service shall be determined by applying the
     member's basic contribution rate plus the normal contribution
     rate as provided in section 8328 at the time of the member's
     entry into school service subsequent to such creditable
     nonschool service to his total compensation received during the
     first year of subsequent credited school service and multiplying
     the product by the number of years and fractional part of a year
     of creditable nonschool service being purchased together with
     statutory interest during all periods of subsequent school or
     State service to the date of purchase, except that in the case
     of purchase of credit for creditable nonschool service as set
     forth in section 8304(b)(5) (relating to creditable nonschool
     service) the member shall pay only the employee's share unless
     otherwise provided by law. Upon certification of the amount due,
     payment may be made in a lump sum within 90 days or in the case
     of an active member or an eligible State employee who is an
     active member of the State Employees' Retirement System it may
     be amortized with statutory interest through salary deductions
     in amounts agreed upon by the member and the board. The salary
     deduction amortization plans agreed to by the members and the
     board may include a deferral of payment amounts and statutory
     interest until the termination of school service or State
     service as the board in its sole discretion decides to allow.
     The board may limit salary deduction amortization plans to such
     terms as the board in its sole discretion determines. In the
     case of an eligible State employee who is an active member of
     the State Employees' Retirement System, the agreed upon salary
     deductions shall be remitted to the State Employees' Retirement
     Board, which shall certify and transfer to the board the amounts
     paid.
        (e)  Creditable work experience.--Contributions on account of
     T-C credit for creditable work experience pursuant to section
     8304(b)(6) shall be the present value of the full actuarial cost
     of the increase in the projected superannuation annuity caused
     by the additional service credited on account of the purchase of
     creditable work experience. The amount paid for the purchase of
     credit for creditable work experience shall not be payable as a
     lump sum under section 8345(a)(4)(iii) (relating to member's
     options). Any individual eligible to receive an annuity,
     excluding an annuity received under the Federal Social Security
     Act (42 U.S.C. § 301 et seq.), in another pension system, other
     than a military pension system, shall not be eligible to
     purchase this service.
        (f)  Creditable maternity leave.--Contributions on account of
     Class T-C credit for creditable maternity leave pursuant to
     section 8304(b)(7) shall be determined by applying the member's
     basic contribution rate plus the normal contribution rate as
     provided in section 8328 at the time of the member's return to
     school service to the total compensation received during the
     first year of subsequent school service and multiplying the
     product by the number of years and fractional part of a year of
     creditable service being purchased, together with statutory
     interest during all periods of subsequent school or State
     service to the date of purchase. The amount paid for the
     purchase of credit for creditable maternity leave shall not be
     eligible for withdrawal as a lump sum under section
     8345(a)(4)(iii).
     (Dec. 19, 1984, P.L.1191, No.226, eff. 60 days; Aug. 5, 1991,
     P.L.183, No.23, eff. imd.; May 17, 2001, P.L.26, No.9, eff. July
     1, 2001)

        2001 Amendment.  Act 9 amended subsecs. (b), (c) and (d).
        1991 Amendment.  Act 23 added subsec. (f).
        1984 Amendment.  Act 226 added subsec. (e).
        Special Provisions in Appendix.  See sections 3(2) and 4(1)
     of Act 96 of 1975 in the appendix to this title for special
     provisions relating to payment of interest on contributions for
     purchase of creditable service under former provisions of law
     and to the effective date of provisions relating to the purchase
     of credit for previous creditable service.
        Cross References.  Section 8324 is referred to in section
     8504 of this title.

Last modified: November 27, 2007