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Retention and reinstatement of service credits - 71 Pa. Cons. Stat. § 5303Legal Research Home > Pennsylvania Statutes Sponsored Links
§ 5303. Retention and reinstatement of service credits.
(a) Eligibility points for accrued credited service.--
Eligibility points shall be computed in accordance with section
5307 (relating to eligibility points) with respect to all
credited service accrued as of the effective date of this part.
(b) Eligibility points for prospective credited service.--
(1) Every active member of the system or a multiple
service member who is a school employee and a member of the
Public School Employees' Retirement System on or after the
effective date of this part shall receive eligibility points
in accordance with section 5307 for current State service,
previous State service, or creditable nonstate service upon
compliance with sections 5501 (relating to regular member
contributions for current service), 5504 (relating to member
contributions for the purchase of credit for previous State
service or to become a full coverage member), 5505 (relating
to contributions for the purchase of credit for creditable
nonstate service), 5505.1 (relating to additional member
contributions) or 5506 (relating to incomplete payments).
Subject to the limitations in sections 5306.1 (relating to
election to become a Class AA member) and 5306.2 (relating to
elections by members of the General Assembly), the class or
classes of service in which the member may be credited for
previous State service prior to the effective date of this
part shall be the class or classes in which he was or could
have at any time elected to be credited for such service. The
class of service in which a member shall be credited for
service subsequent to the effective date of this part shall
be determined in accordance with section 5306 (relating to
classes of service).
(1.1) Every active member of the system who elects to
convert county service to State service pursuant to section
5303.1 (relating to election to convert county service to
State service) shall receive eligibility points in accordance
with section 5307 for converted county service upon
compliance with section 5303.1(b). The class or classes of
service in which the member may be credited for converted
county service shall be determined in accordance with section
5306(c).
(1.2) Every member of the system who elects to convert
school service to State service pursuant to section 5303.2
(relating to election to convert school service to State
service) shall receive eligibility points in accordance with
section 5307 for converted school service. The class or
classes of service in which the member may be credited for
converted school service shall be determined in accordance
with section 5306(d).
(2) A special vestee or person otherwise eligible to be
a special vestee who returns to State service or withdraws
his accumulated deductions pursuant to section 5311 (relating
to eligibility for refunds) or 5701 (relating to return of
total accumulated deductions) shall receive or retain
eligibility points in accordance with paragraph (1) but upon
subsequent termination of State service shall only be
eligible to be an annuitant vestee or inactive member without
regard to previous status as a special vestee and without
regard to the provisions of this part providing for special
vestees.
(3) A special vestee or person otherwise eligible to be
a special vestee who becomes an active member of the Public
School Employees' Retirement System and elects multiple
service shall receive or retain eligibility points as
otherwise provided for in this part and 24 Pa.C.S. Pt. IV
(relating to retirement for school employees) but upon
subsequent termination of school service shall only be
eligible to be an annuitant, vestee or inactive member as
otherwise eligible as a multiple service member without
regard to previous status as a special vestee and without
regard to the provisions of this part providing for special
vestees.
(c) Election for purchase of certain creditable service.--
Every active member of the system or a multiple service member
who is a school employee and a member of the Public School
Employees' Retirement System who was employed by the Applied
Research Laboratory of The Pennsylvania State University prior
to June 3, 1984, and did not receive or is not receiving a
retirement or pension benefit as a result of that service may
elect to have the period of employment with the Applied Research
Laboratory treated as previous State service upon compliance
with sections 5504 and 5506 upon waiver in writing of any
benefit that he is entitled to under any other pension or
retirement plan by virtue of that service. If a member elects to
receive this previous State service credit, The Pennsylvania
State University shall make employer contributions equal to the
amount that would have been contributed had employer
contributions been made to the system concurrently with the
rendering of the service, plus valuation interest to the day of
the crediting of the service. Notwithstanding the provisions of
section 5504, the amount due as member contributions and
interest for an employee who is employed by the Applied Research
Laboratory on June 3, 1984, who elects to purchase this credit
with the State Employees' Retirement System shall not exceed the
amount of contributions and interest certified as having been
made to the pension plan administered by the Applied Research
Laboratory during his employment with the Applied Research
Laboratory. The Pennsylvania State University shall pay as
member contributions the difference between this amount and the
amount otherwise due under sections 5504 and 5506. The
additional contributions paid by The Pennsylvania State
University shall not be considered compensation for purposes of
this part.
(d) Transfer of certain pension service credit.--
(1) Any person who was an employee of any county in this
Commonwealth on the personal staff of an appellate court
judge prior to September 9, 1985, and who had that employment
transferred to the Commonwealth pursuant to 42 Pa.C.S. § 3703
(relating to local chamber facilities) shall be a member of
the system for all service rendered as an employee of the
Commonwealth on the personal staff of an appellate court
judge subsequent to the date of the transfer unless
specifically prohibited pursuant to section 5301(c) (relating
to mandatory and optional membership). The employee shall be
entitled to have any prior service credit in that county or
other municipal pension plan or retirement system transferred
to the system and deemed to be State service for all purposes
under this part. However, for those employees who were in
continuous county employment which commenced prior to July
22, 1983, section 5505.1 shall not apply. The transfer of
prior service credit to the system shall occur upon the
transfer, by the member, county or other municipal pension
plan or retirement system, to the system of the amount of
accumulated member contributions, pick-up contributions and
credited interest standing in the employee's county or
municipal pension plan or retirement system account as of the
date that these funds are transferred to the system. In the
event that these funds have been refunded to the member, the
transfer of service credit shall occur when the member
transfers an amount equal to either the refund which the
member received from the county or municipal pension plan or
retirement system or the amount due under section 5504, if
less. In the case of a transfer by the member, the transfer
shall occur by December 31, 1987, in order for the member to
receive credit for the prior service. In the case of a
transfer by the county or other municipal pension plan or
retirement system, the transfer shall also occur by December
31, 1987. If the amount transferred to the system by the
member of a county or municipal pension plan or retirement
system is greater than the amount that would have accumulated
in the member's account if the employee had been a member of
the system, all excess funds shall be returned to the
employee within 90 days of the date on which such funds are
credited to the member's account in the system. Within 60
days of receipt of written notice that an employee has
elected to transfer credits under the provisions of this
subsection, the county or other municipal pension plans or
retirement systems shall be required to transfer to the
system an amount, excluding contributions due under section
5504(a), equal to the liability of the prior service in
accordance with county or other municipal pension plan or
retirement system benefit provisions, multiplied by the ratio
of system actuarial value of assets for active members to the
system actuarial accrued liability for active members. The
Public Employee Retirement Study Commission shall determine
the appropriate amount of employer contributions to be
transferred to the system by the county or other municipal
pension plans or retirement systems.
(2) If the member died prior to the effective date of
this subsection, the personal representative for the estate
of the member may make any transfer or request that the
county or other municipal pension or retirement system make
any transfer necessary to receive credit for the prior
service authorized in paragraph (1). In order to receive
credit for the prior service, the transfer must be made by
December 31, 1987. If the member dies on or after the
effective date of this subsection and before January 1, 1988,
without making the transfer or requesting the transfer
necessary to receive credit for the prior service authorized
in paragraph (1), the personal representative for the estate
of the member may make any transfer or request that the
county or other municipal pension or retirement system make
any transfer necessary to receive credit for the prior
service. In order to receive credit for the prior service,
the transfer must be made by March 31, 1988. If the member
dies after December 31, 1987, without making the transfer or
requesting the transfer necessary to receive credit for the
prior service authorized in paragraph (1), neither the member
or his estate shall receive credit for the prior service.
(e) Transfer and purchase of certain pension service credit;
Philadelphia Regional Port Authority.--
(1) Any employee of the Philadelphia Regional Port
Authority who becomes a State employee, as defined in section
5102 (relating to definitions), shall be eligible to obtain
retirement credit for prior uncredited service with the
Philadelphia Port Corporation, a Pennsylvania not-for-profit
corporation ("predecessor corporation"), provided that the
Commonwealth does not incur any liability for the funding of
the annuities attributable to the prior, uncredited
"predecessor corporation" service, the cost of which shall be
determined according to paragraph (2).
(2) The employee shall be entitled to have any prior
service in the "predecessor corporation" transferred to the
system and deemed to be State service for all purposes under
this part. However, for those employees who were in
continuous employment which commenced prior to July 22, 1983,
the provisions of section 5505.1 shall not apply. The
transfer of prior service credit to the system shall occur
upon the transfer by the member or the "predecessor
corporation" to the system of the amount of accumulated
member contributions, pick-up contributions and credited
interest standing in the employee's pension plan or
retirement system account as of the date that these funds are
transferred to the system. In the event that these funds have
been refunded to the member, the transfer of service credit
shall occur when the member transfers an amount equal to
either the refund which the member received from the member's
pension plan or retirement system or the amount due under
section 5504, if less. In the case of a transfer by the
member, the transfer shall occur by June 30, 1992, in order
for the member to receive credit for the prior service. In
the case of a transfer by the "predecessor corporation"
pension plan or retirement system, the transfer shall also
occur by June 30, 1992. Notwithstanding the provisions of
section 5504, the Philadelphia Regional Port Authority shall
pay as pick-up contributions the difference between the
amount credited to the member's account and the amount
otherwise due under section 5504. Such additional
contributions paid by the Philadelphia Regional Port
Authority shall not be considered compensation for the
purposes of this part. If the amount transferred to the
system by the member is greater than the amount that would
have accumulated in the member's account if the employee had
been a member of the system, all excess funds shall be
returned to the employee within 90 days of the date on which
such funds are credited to the member's account in the
system. Within 60 days of receipt of written notice that an
employee has elected to transfer credits under the provisions
of this subsection, the pension plan or retirement system in
which the employee was enrolled prior to the creation of the
Philadelphia Regional Port Authority shall be required to
transfer to the system an amount, excluding contributions due
under section 5504(a), equal to the liability of the prior
service multiplied by the ratio of system actuarial value of
assets for active members to the system actuarial accrued
liability for active members so long as the amount to be
transferred is equal to or less than the total employer
contributions made on behalf of the employee. In the event
that the amount required to be transferred is greater than
the total employer contributions made on behalf of the
employee, the total employer contributions made on behalf of
the employee shall be transferred to the system, and the
Philadelphia Regional Port Authority shall be required to
transfer to the system the additional funds needed to satisfy
the requirements of the calculation in this paragraph. If the
amount required to be transferred is less than the total
employer contributions made on behalf of the employee, the
pension plan or retirement system in which the employee was
enrolled prior to the creation of the Philadelphia Regional
Port Authority may retain the amount not needed for transfer.
(3) If the member dies on or after the effective date of
this subsection and before July 1, 1992, without making the
transfer or requesting the transfer necessary to receive
credit for the prior service authorized in paragraph (2), the
personal representative for the estate of the member may make
any transfer or may request that the Philadelphia Regional
Port Authority make any transfer necessary to receive credit
for the prior service. In order to receive credit for the
prior service, the transfer must be made by September 30,
1992. If the member dies after June 30, 1992, without making
the transfer or without requesting the transfer necessary to
receive credit for the prior service authorized in paragraph
(2), neither the member nor his estate shall receive credit
for the prior service.
(4) Any person who became employed by the Philadelphia
Regional Port Authority between July 10, 1989, and passage of
this act and who becomes a State employee, as defined in
section 5102, shall be eligible to obtain retirement credit
for service from the date of employment with the Philadelphia
Regional Port Authority, provided that the contributions are
made in accordance with sections 5501, 5504, 5505.1 and 5506.
(f) Transfer of certain pension service credit; Middle
Atlantic-Great Lakes Organized Crime Law Enforcement Network.--
(1) An active member who is an employee of the Office of
Attorney General and the Middle Atlantic-Great Lakes
Organized Crime Law Enforcement Network on December 31, 1992,
shall be eligible to obtain State service credit for service
with the New Jersey State Police and the Middle Atlantic-
Great Lakes Organized Crime Law Enforcement Network for the
period December 1, 1988, to July 31, 1991, upon payment of
the required contributions by the member and Office of
Attorney General and the Middle Atlantic-Great Lakes
Organized Crime Law Enforcement Network if the provisions of
this subsection are satisfied.
(2) The employee shall elect to receive the credit by
filing an application with the board while an active member
no later than 90 days after the enactment of this act.
(3) Contributions to be paid by an active member for
credit for New Jersey State Police and the Middle Atlantic-
Great Lakes Crime Law Enforcement Network service shall be
sufficient to provide an amount equal to the regular and
additional accumulated deductions which would have been
standing to the credit of the member for such service had
regular and additional member contributions been made to the
board with full coverage as a Class A member during the
period of New Jersey State Police and Middle Atlantic-Great
Lakes Organized Crime Law Enforcement Network service and had
these regular and additional accumulated deductions been
credited with statutory interest up to the date of purchase.
The amount payable shall be certified in each case by the
board in accordance with methods approved by the actuary and
shall be paid in a lump sum within 30 days or, in the case of
an active member, may be amortized with statutory interest
through salary deductions in amounts agreed upon by the
member and the board and shall be credited to the members'
savings account. The amount of members' contributions so
determined by the board shall be the obligation of the member
who requested credit for New Jersey State Police and Middle
Atlantic-Great Lakes Organized Crime Law Enforcement Network
service and in no event shall such amount be an obligation of
the Office of Attorney General and Middle Atlantic-Great
Lakes Organized Crime Law Enforcement Network or the State of
New Jersey Retirement System.
(4) Contributions to be paid by either the Office of
Attorney General or the Middle Atlantic-Great Lakes Organized
Crime Law Enforcement Network on account of credit for
service as an employee of the New Jersey State Police and the
Middle Atlantic-Great Lakes Organized Crime Law Enforcement
Network during the period of December 1, 1988, through July
31, 1991, shall be equal to the full actuarial cost of the
increased benefit obtained by virtue of the service, reduced
by the member's contribution payable in a lump sum as
calculated under paragraph (3). Contributions paid by the
Office of Attorney General shall be made out of Regional
Information Sharing Systems Program grants and Federal funds
received from the Bureau of Justice Assistance, United States
Department of Justice, and in no event shall the
contributions be the obligation of any other fund of the
Commonwealth. The contributions shall not be considered
compensation for purposes of this part. The full actuarial
cost of the increased benefit attributable to the New Jersey
State Police and the Middle Atlantic-Great Lakes Organized
Crime Law Enforcement Network service shall be the difference
between subparagraphs (i) and (ii) less the member's
contribution:
(i) the present value of a standard single life
annuity, beginning at the earliest possible
superannuation age, calculated assuming a 6.5% future
salary increase, a 9% interest rate and standard
postretirement mortality, assuming credit for the New
Jersey State Police and the Middle Atlantic-Great Lakes
Organized Crime Law Enforcement Network service to be
purchased; and
(ii) the present value of a standard single life
annuity, beginning at the earliest possible
superannuation age, calculated assuming a 6.5% future
salary increase, a 9% interest rate, standard
postretirement mortality, excluding credit for the New
Jersey State Police and the Middle Atlantic-Great Lakes
Organized Crime Law Enforcement Network service to be
purchased.
(5) The earliest possible superannuation age shall be
the age at which the member becomes first eligible for
superannuation retirement assuming continued full-time
service and credit for the amount of service which the member
has elected to purchase or the current attained age of the
member, whichever is later.
(6) The payment shall be made in lump sum by either the
Office of Attorney General or the Middle Atlantic-Great Lakes
Organized Crime Law Enforcement Network within 90 days of
certification by the board of the required contribution
amount and shall be credited to the State accumulation
account.
(7) In the event neither the Office of Attorney General
nor the Middle Atlantic-Great Lakes Organized Crime Law
Enforcement Network makes the required contributions within
the specified time, the State service credited shall be
canceled, and any member contributions made pursuant to
paragraph (3) shall be refunded to the member.
(8) In no event shall New Jersey State Police and Middle
Atlantic-Great Lakes Organized Crime Law Enforcement Network
service be creditable if the member has received, is entitled
to receive, eligible to receive now or in the future or is
receiving retirement benefits for such service or has
retirement credit or has now or acquires in the future
retirement credit under a retirement system administered and
wholly or partially paid for by any other governmental agency
or by any private employer or a retirement program approved
by the employer in accordance with section 5301(a)(12). In
the event that State service credit is granted for New Jersey
State Police and Middle Atlantic-Great Lakes Organized Crime
Law Enforcement Network service and the member subsequently
receives credit for such service that is prohibited by this
paragraph, the State service credited shall be canceled and
any member contributions made pursuant to paragraph (3) shall
be refunded to the member.
(9) In the event the member is or was an annuitant, any
annuity paid or payable during the period of such service
with the New Jersey State Police and the Middle Atlantic-
Great Lakes Organized Crime Law Enforcement Network shall be
canceled retroactive to the date the member began service
with the New Jersey State Police and Middle Atlantic-Great
Lakes Organized Crime Law Enforcement Network, any such
annuity payments made to the member shall be repaid by the
member, and the provisions of section 5706 (relating to
termination of annuities) shall apply if applicable. The
amount payable shall be certified in each case by the board
and shall be paid in a lump sum within 30 days or, in the
case of an active member, may be amortized with statutory
interest through salary deductions in amounts agreed upon by
the member and the board and shall be credited to the
members' savings account. The amount of annuity repayments so
determined by the board shall be the obligation of the member
who requested credit for New Jersey State Police and Middle
Atlantic-Great Lakes Organized Crime Law Enforcement Network
service, and in no event shall such amount be an obligation
of the Office of Attorney General and the Middle Atlantic-
Great Lakes Organized Crime Law Enforcement Network.
(10) In no event shall a member be eligible to receive
credit for service to the State of New Jersey or service
credited in the New Jersey Retirement System other than
service rendered to the New Jersey State Police and the
Middle Atlantic-Great Lakes Organized Crime Law Enforcement
Network.
(g) Credit for employees of Juvenile Court Judges'
Commission.--An employee of the Juvenile Court Judges'
Commission who elects membership in an independent retirement
program approved by the employer under section 5301(f) shall
have all service credited pursuant to section 5302(a) (relating
to credited State service) for State service with the Juvenile
Court Judges' Commission on or after the effective date of the
interagency transfer canceled and thereafter ineligible to be
credited as State service. Additionally, all creditable State
service and nonstate service reinstated or purchased while an
employee of the Juvenile Court Judges' Commission shall be
canceled. Such employees shall be prohibited from receiving
credited service for State service performed while a member of
an alternate retirement system approved by an employer.
(h) Purchase of certain service credit; Delaware River Joint
Free Bridge Commission.--
(1) An active member who is an employee of the Delaware
River Joint Toll Bridge Commission on the effective date of
this subsection shall be eligible to obtain State service
credit for the other one-half of the member's service as an
employee of the former Delaware River Joint Free Bridge
Commission after September 1, 1973, and before July 1, 1987,
for which the member has received one-half year of State
service credit for each year of service upon payment of the
required contribution by the member.
(2) In order to elect the service credit, an active
member shall file an application with the board no later than
three years after the effective date of this subsection.
(3) The contribution to be paid by a member for the
service credit shall be determined by the board to be equal
to the amount paid as employee contributions to the fund by
the member as an employee of the former Delaware River Joint
Free Bridge Commission during the time period for which
service credit is being purchased together with statutory
interest to date of purchase.
(4) Upon application for the service credit, the member
shall pay the contribution to the board in a lump sum within
30 days or the contribution may be amortized with statutory
interest through salary deductions over a period not to
exceed three years as agreed upon by the member and the
board.
(5) In no event shall the service be creditable if the
member has received, is entitled to receive, eligible to
receive now or in the future or is receiving retirement
benefits for such service or has retirement credit or has now
or acquires in the future retirement credit under a
retirement system administered and wholly or partially paid
for by any other governmental agency or by any private
employer or a retirement program approved by the employer in
accordance with section 5301(a)(12). In the event that State
service credit is granted for the service and the member
subsequently receives credit for the service that is
prohibited by this paragraph, the State service credited
shall be canceled and any member contributions and interest
paid by the member under paragraphs (3) and (4) shall be
refunded to the member by the board.
(June 13, 1985, P.L.40, No.19, eff. imd.; July 13, 1987,
P.L.296, No.53, eff. imd.; Aug. 5, 1991, P.L.183, No.23, eff.
imd.; Oct. 5, 1994, P.L.518, No.76, eff. imd.; June 25, 1997,
P.L.369, No.41, eff. imd.; June 22, 1999, P.L.75, No.12, eff.
imd.; May 17, 2001, P.L.26, No.9, eff. July 1, 2001; Apr. 23,
2002, P.L.272, No.38, eff. imd.; Dec. 30, 2002, P.L.2082,
No.234, eff. 60 days)
2002 Amendments. Act 38 added subsecs. (b)(1.2) and (g) and
Act 234 added subsec. (h).
2001 Amendment. Act 9 amended subsec. (b).
1997 Amendment. See section 6 of Act 41 in the appendix to
this title for special provisions relating to limitation of
special vestee status.
1994 Amendment. Act 76 added subsec. (f).
1991 Amendment. Act 23 added subsec. (e).
1987 Amendment. Act 53 added subsec. (d), retroactive to
September 9, 1985.
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