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Administrative duties of board - 24 Pa. Cons. Stat. § 8502Legal Research Home > Pennsylvania Statutes Sponsored Links
§ 8502. Administrative duties of board.
(a) Employees.--
(1) Effective 30 days after the effective date of this
paragraph, the positions of secretary, assistant secretary
and investment professional shall be placed under the
unclassified service provisions of the act of August 5, 1941
(P.L.752, No.286), known as the Civil Service Act, as those
positions are vacated. All other positions of the board shall
be placed in either the classified or unclassified service
according to the definition of the terms under the Civil
Service Act.
(2) Notwithstanding any other provision of law, the
compensation of investment professionals shall be established
by the board. The compensation of all other officers and
employees of the board who are not covered by a collective
bargaining agreement shall be established by the board
consistent with the standards of compensation established by
the Executive Board of the Commonwealth.
(b) Professional personnel.--The board shall contract for
the services of a chief medical examiner, an actuary, investment
advisors, counselors, an investment coordinator, and such other
professional personnel as it deems advisable.
(c) Expenses.--The board shall, through the Governor, submit
to the General Assembly annually a budget covering the
administrative expenses of this part. Such expenses as approved
by the General Assembly in an appropriation bill shall be paid
from investment earnings of the fund. Concurrently with its
administrative budget, the board shall also submit to the
General Assembly annually a list of proposed expenditures which
the board intends to pay through the use of directed
commissions, together with a list of the actual expenditures
from the past year actually paid by the board through the use of
directed commissions. All such directed commission expenditures
shall be made by the board for the exclusive benefit of the
system and its members.
(d) Meetings.--The board shall hold at least six regular
meetings annually and such other meetings as it may deem
necessary.
(e) Records.--
(1) The board shall keep a record of all its proceedings
which shall be open to inspection by the public, except as
otherwise provided in this part or by other law.
(2) Any record, material or data received, prepared,
used or retained by the board or its employees, investment
professionals or agents relating to an investment shall not
constitute a public record subject to public inspection under
the act of June 21, 1957 (P.L.390, No.212), referred to as
the Right-to-Know Law, if, in the reasonable judgment of the
board, the inspection would:
(i) in the case of an alternative investment or
alternative investment vehicle involve the release of
sensitive investment or financial information relating to
the alternative investment or alternative investment
vehicle which the fund was able to obtain only upon
agreeing to maintain its confidentiality;
(ii) cause substantial competitive harm to the
person from whom sensitive investment or financial
information relating to the investment was received; or
(iii) have a substantial detrimental impact on the
value of an investment to be acquired, held or disposed
of by the fund, or would cause a breach of the standard
of care or fiduciary duty set forth in this part.
(3) (i) The sensitive investment or financial
information excluded from inspection under paragraph
(2)(i), to the extent not otherwise excluded from
inspection, shall constitute a public record subject to
public inspection under the Right-to-Know Law once the
board is no longer required by its agreement to maintain
confidentiality.
(ii) The sensitive investment or financial
information excluded from inspection under paragraph
(2)(ii), to the extent not otherwise excluded from
inspection, shall constitute a public record subject to
public inspection under the Right-to-Know Law once:
(A) the inspection no longer causes substantial
competitive harm to the person from whom the
information was received; or
(B) the entity in which the investment was made
is liquidated;
whichever is later.
(iii) The sensitive investment or financial
information excluded from inspection under paragraph
(2)(iii), to the extent not otherwise excluded from
inspection, shall constitute a public record subject to
public inspection under the Right-to-Know Law once:
(A) the inspection no longer has a substantial
detrimental impact on the value of an investment of
the fund and would not cause a breach of the standard
of care or fiduciary duty set forth in this part; or
(B) the entity in which the investment was made
is liquidated;
whichever is later.
(4) Except for the provisions of paragraph (3), nothing
in this subsection shall be construed to designate any
record, material or data received, prepared, used or retained
by the board or its employees, investment professionals or
agents relating to an investment as a public record subject
to public inspection under the Right-to-Know Law.
(5) Notwithstanding the provisions of this subsection,
the following information regarding an alternative investment
vehicle shall be subject to public inspection under the
Right-to-Know Law:
(i) The name, address and vintage year of the
alternative investment vehicle.
(ii) The identity of the manager of the alternative
investment vehicle.
(iii) The dollar amount of the commitment made by
the system to the alternative investment vehicle.
(iv) The dollar amount of cash contributions made by
the system to the alternative investment vehicle since
inception.
(v) The dollar amount of cash distributions received
by the system from the alternative investment vehicle
since inception.
(vi) The net internal rate of return of the
alternative investment vehicle since inception, provided
that the system shall not be required to disclose the net
internal rate of return under circumstances in which,
because of the limited number of portfolio assets
remaining in the alternative investment vehicle, the
disclosure could reveal the values of specifically
identifiable remaining portfolio assets to the detriment
of the alternative investment.
(vii) The aggregate value of the remaining portfolio
assets attributable to the system's investment in the
alternative investment vehicle, provided that the system
shall not be required to disclose the value under
circumstances in which, because of the limited number of
portfolio assets remaining in the alternative investment
vehicle, the disclosure could reveal the values of
specifically identifiable remaining portfolio assets to
the detriment of the alternative investment.
(viii) The dollar amount of total management fees
and costs paid to the alternative investment vehicle by
the system on an annual fiscal year-end basis.
(f) Functions.--The board shall perform such other functions
as are required for the execution of this part and shall have
the right to inspect the employment records of employers.
(g) Performance of employer duties.--In the event the
employer fails to comply with the procedures as mandated in
section 8506 (relating to duties of employers), the board shall
perform such duties and bill the employer who shall pay for the
cost of same. In the event the employer is delinquent in payment
of contributions in accordance with section 8327 (relating to
payments by employers), the board shall notify the Secretary of
Education and the State Treasurer of such delinquency.
(h) Regulations and procedures.--The board shall, with the
advice of the Attorney General and the actuary, adopt and
promulgate rules and regulations for the uniform administration
of the system. The actuary shall approve in writing all
computational procedures used in the calculation of
contributions and benefits, and the board shall by resolution
adopt such computational procedures, prior to their application
by the board. Such rules, regulations and computational
procedures as so adopted from time to time and as in force and
effect at any time, together with such tables as are adopted and
published pursuant to subsection (j) as necessary for the
calculation of annuities and other benefits, shall be as
effective as if fully set forth in this part. Any actuarial
assumption specified in or underlying any such rule, regulation
or computational procedure and utilized as a basis for
determining any benefit shall be applied in a uniform manner.
(i) Data.--The board shall keep in convenient form such data
as are stipulated by the actuary in order that an annual
actuarial valuation of the various accounts can be completed
within six months of the close of each fiscal year. The board
shall have final authority over the means by which data is
collected, maintained and stored and in so doing shall protect
the rights of its membership as to privacy and confidentiality.
(j) Actuarial investigation and valuation.--The board shall
have the actuary make an annual valuation of the various
accounts within six months of the close of each fiscal year. In
the fiscal year 1975 and in every fifth year thereafter, the
board shall have the actuary conduct an actuarial investigation
and evaluation of the system based on data including the
mortality, service, and compensation experience provided by the
board annually during the preceding five years concerning the
members and beneficiaries. The board shall by resolution adopt
such tables as are necessary for the actuarial valuation of the
fund and calculation of contributions, annuities, and other
benefits based on the reports and recommendations of the
actuary. Within 30 days of their adoption, the secretary of the
board shall cause those tables which relate to the calculation
of annuities and other benefits to be published in the
Pennsylvania Bulletin in accordance with the provisions of 45
Pa.C.S. § 725(a) (relating to additional contents of
Pennsylvania Bulletin) and, unless the board specifies therein a
later effective date, such tables shall become effective on such
publication. The board shall include a report on the significant
facts, recommendations and data developed in each five-year
actuarial investigation and evaluation of the system in the
annual financial statement published pursuant to the
requirements of subsection (n) for the fiscal year in which such
investigation and evaluation were concluded.
(k) Certification of employer contributions.--The board
shall, each year in addition to the itemized budget required
under section 8330 (relating to appropriations by the
Commonwealth), certify to the employers and the Commonwealth the
employer contribution rate expressed as a percentage of members'
payroll necessary for the funding of prospective annuities for
active members and the annuities of annuitants, and certify the
rates and amounts of the normal contributions as determined
pursuant to section 8328(b) (relating to actuarial cost method),
accrued liability contributions as determined pursuant to
section 8328(c), supplemental annuities contribution rate as
determined pursuant to section 8328(d) and the experience
adjustment factor as determined pursuant to section 8328(e) and
premium assistance contributions as determined pursuant to
section 8328(f), which shall be paid to the fund and credited to
the appropriate accounts. These certifications shall be regarded
as final and not subject to modification by the Budget
Secretary.
(l) Commonwealth payments.--The board shall within 30 days
following the end of each quarter determine the amount due to
the fund from the Commonwealth during that quarter and submit at
that time a requisition for the amount determined to be due from
the Commonwealth to the State Treasurer.
(m) Member contributions and interest.--The board shall
cause each member's contributions, including payroll deductions,
pickup contributions and all other payments, including, but not
limited to, amounts collected by the State Employees' Retirement
System for the reinstatement of previous school service or
creditable nonschool service and amounts paid to return benefits
paid after the date of return to school service or entering
State service representing lump sum payments made pursuant to
section 8345(a)(4)(iii) (relating to member's options) and
member's annuity payments, but not including other benefits
returned pursuant to section 8346(a.1) (relating to termination
of annuities), to be credited to the account of such member and
shall pay all such amounts into the fund. Such contributions
shall be credited with statutory interest until date of
termination of service, except in the case of a vestee, who
shall have such interest credited until the effective date of
retirement or until the return of his accumulated deductions, if
he so elects; and in the case of a multiple service member who
shall have such interest credited until termination of service
in both the school and the State systems.
(n) Annual financial statement.--The board shall prepare and
have published, on or before January 1 of each year, a financial
statement as of the fiscal year ending June 30 of the previous
year showing the condition of the fund and the various accounts,
including, but not limited to, the board's accrual and
expenditure of directed commissions, and setting forth such
other facts, recommendations and data as may be of use in the
advancement of knowledge concerning annuities and other benefits
provided by this part. The board shall submit said financial
statement to the Governor and shall make copies available to the
employers for the use of the school employees and the public.
(o) Independent audit.--The board shall provide for an
annual audit of the system by an independent certified public
accounting firm, which audit shall include the board's accrual
and expenditure of directed commissions.
(p) Transfer of employer contributions.--The board shall,
upon receipt of a written request from a public employee
retirement system of a county of the third class and upon
receipt of written verification that a member of the fund who
withdrew contributions upon termination of employment will
deposit the employee's contributions with the retirement system
of a county of the third class, transfer, within 30 days, to the
retirement system of the county of the third class the full
amount of employer contributions and the accumulated interest on
such contributions credited to the former member's account. This
subsection shall apply only where the transfer of employment
from the public school district to the county was not voluntary
on the part of the employee.
(June 25, 1982, P.L.647, No.183, eff. 60 days; July 22, 1983,
P.L.104, No.31, eff. imd.; Feb. 9, 1984, P.L.25, No.10, eff.
imd.; Dec. 19, 1984, P.L.1191, No.226, eff. imd.; Aug. 5, 1991,
P.L.183, No.23, eff. imd.; Apr. 29, 1994, P.L.159, No.29, eff.
imd.; Dec. 20, 1995, P.L.689, No.77, eff. 60 days; Apr. 2, 1998,
P.L.229, No.41, eff. imd.; June 18, 1998, P.L.685, No.88, eff.
imd.; May 17, 2001, P.L.26, No.9, eff. July 1, 2001; Nov. 9,
2006, P.L.1371, No.148, eff. imd.)
2006 Amendment. Act 148 amended subsec. (e). See sections 3,
4, 5 and 6 of Act 148 in the appendix to this title for special
provisions relating to authority of Auditor General,
construction of law, application of law and fees.
2001 Amendment. Act 9 amended subsec. (m). See section 31 of
Act 9 in the appendix to this title for special provisions
relating to recertification to Budget Secretary and employers.
1998 Amendments. Act 41 amended subsec. (a) and Act 88
amended subsec. (a).
1995 Amendment. Act 77 amended subsecs. (h) and (j).
Transfer of Functions. The powers and duties of the Attorney
General and the Department of Justice contained in section
8502(h) were transferred to the Office of General Counsel by
section 502 of the act of October 15, 1980 (P.L.950, No.164),
known as the Commonwealth Attorneys Act, effective January 20,
1981.
Special Provisions in Appendix. See section 18 of Act 38 of
2002 in the appendix to this title for special provisions
relating to recertification to Budget Secretary and employers.
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Last modified: November 27, 2007 |