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Maximum single life annuity - 71 Pa. Cons. Stat. § 5702Legal Research Home > Pennsylvania Statutes Sponsored Links
§ 5702. Maximum single life annuity.
(a) General rule.--Any full coverage member who is eligible
to receive an annuity pursuant to the provisions of section
5308(a) or (b) (relating to eligibility for annuities) who
terminates State service, or if a multiple service member who is
a school employee who is an active member of the Public School
Employees' Retirement System who terminates school service,
before attaining age 70 shall be entitled to receive a maximum
single life annuity attributable to his credited service and
equal to the sum of the following single life annuities
beginning at the effective date of retirement:
(1) A standard single life annuity multiplied by the sum
of the products, determined separately for each class of
service, obtained by multiplying the appropriate class of
service multiplier by the ratio of years of service credited
in that class to the total credited service. In case the
member on the effective date of retirement is under
superannuation age for any service, a reduction factor
calculated to provide benefits actuarially equivalent to an
annuity starting at superannuation age shall be applied to
the product determined for that service. The class of service
multiplier for any period of concurrent service shall be
multiplied by the proportion of total State and school
compensation during such period attributable to State
service. In the event a member has two multipliers for one
class of service the class of service multiplier to be used
for calculating benefits for that class shall be the average
of the two multipliers weighted by the proportion of
compensation attributable to each multiplier during the three
years of highest annual compensation in that class of
service: Provided, That in the case of a member of Class E-1,
a portion but not all of whose three years of highest annual
judicial compensation is prior to January 1, 1973, two class
of service multipliers shall be calculated on the basis of
his entire judicial service, the one applying the judicial
class of service multipliers effective prior to January 1,
1973 and the second applying the class of service multipliers
effective subsequent to January 1, 1973. The average class of
service multiplier to be used for calculating benefits for
his judicial service shall be the average of the two
calculated multipliers weighted by the proportion of
compensation attributable to each of the calculated
multipliers during the three years of highest annual
compensation in that class of service.
(2) If eligible, a single life annuity of 2% of his
average noncovered salary for each year of social security
integration credit as provided for in section 5305 (relating
to social security integration credits) multiplied, if on the
effective date of retirement the member is under
superannuation age for any service, by the actuarially
determined reduction factor for that service.
(3) If eligible, a single life annuity which is
actuarially equivalent to the regular and additional
accumulated deductions attributable to contributions as a
member of Class C, but not less than such annuity determined
as if the member were age 60 on the effective date of
retirement, actuarially reduced in the event the member is
under superannuation age on the effective date of retirement.
(4) If eligible, a single life annuity which is
actuarially equivalent to the amount by which his regular and
additional accumulated deductions attributable to any
credited service other than as a member of Class C are
greater than one-half of the actuarially equivalent value on
the effective date of retirement of the annuity as provided
in paragraph (1) attributable to service other than Class C
for which regular or joint coverage member contributions were
made.
(5) If eligible, a single life annuity which is
actuarially equivalent to the amount by which his social
security integration accumulated deductions are greater than
one-half of the actuarially equivalent value on the effective
date of retirement of the annuity provided for under
paragraph (2).
(6) If eligible, a single life annuity sufficient
together with the annuity provided for in paragraph (1) as a
Class A and Class AA member and the highest annuity provided
for in paragraph (2) to which he is entitled, or at his
option could have been entitled, to produce that percentage
of a standard single life annuity on the effective date of
retirement as determined by his total years of credited
service as a member of Class A and Class AA and by the
following table:
Total Years of Percentage of
Credited Service Standard
as a Member of Single Life
Class A and Annuity
Class AA
35-40 100%
41 102%
42 104%
43 106%
44 108%
45 or more 110%
(a.1) Rule for terminations after attaining age 70.--
(1) Any full coverage member who is eligible to receive
an annuity pursuant to the provisions of section 5308(a) who
terminates State service, or if a multiple service member who
is a school employee and an active member of the Public
School Employees' Retirement System who terminates school
service, on or after attaining age 70 and who applies for a
superannuation annuity to be effective the day after the
termination of State service or school service, as the case
may be, shall be entitled to receive a maximum single life
annuity as of a determination date that is equal to the
greater of subparagraph (i) or (ii):
(i) the sum of the annuities provided in subsection
(a)(1) through (6) calculated as of the determination
date; and
(ii) the greater of clause (A) or (B):
(A) the sum of the annuities provided in
subsection (a)(1), (3), (4) and (6) as of the
preceding determination date adjusted by the
actuarial increase factor, plus the annuities
provided in subsection (a)(2) and (5) as of the
determination date; and
(B) the maximum single life annuity as of the
preceding determination date adjusted by the
actuarial increase factor.
The maximum single life annuity shall be calculated for each
determination date.
(2) For purposes of this subsection, the determination
date shall be:
(i) the member's birthday, provided that as of such
date the member qualifies for a maximum single life
annuity under this subsection; or
(ii) if the member's maximum single life annuity is
being determined as of the member's effective date of
retirement, then the determination date shall be the
member's effective date of retirement.
(3) In the event an active member, an inactive member on
leave without pay or a multiple service member who is a
school employee and an active member of the Public School
Employees' Retirement System has attained age 70 before the
effective date of this subsection, or enters State service or
school service, as the case may be, after attaining age 70,
then section 5305.1 (relating to eligibility for actuarial
increase factor) and subsections (a) and (a.1) shall be
effective prospectively with respect to such member at the
member's next birthday after the effective date of this
subsection, entry into State service, or school service.
Nothing in this subsection shall be construed to provide an
actuarial increase factor for any period of service prior to the
effective date of this subsection.
(b) Present value of annuity.--The present value of the
maximum single life annuity as calculated in accordance with
subsection (a) of this section shall be determined by
multiplying the maximum single life annuity by the cost of a
dollar annuity on the effective date of retirement. Such present
value shall be decreased only as required under the provisions
of section 5506 (relating to incomplete payments), 5509(c)
(relating to appropriations and assessments by the Commonwealth)
or 5703 (relating to reduction of annuities on account of social
security old-age insurance benefits).
(c) Limitation on amount of annuity.--The annuity paid to a
member under subsection (a) and reduced in accordance with the
option elected under section 5705 (relating to member's options)
shall not exceed the highest compensation received during any
period of twelve consecutive months of credited service. No
limit on the total annuity paid to a member with Class D-3
service shall be applied in the case of a member who served as a
constitutional officer of the General Assembly.
(d) Limitation regarding annual benefit under IRC § 415.--
Notwithstanding any provision of this part to the contrary,
including, but not limited to, subsection (c), no benefit shall
be payable to the extent that such benefit exceeds any
limitations under IRC § 415(b) in effect with respect to
governmental plans as such term is defined in IRC § 414(d) on
the date the benefit payment becomes effective.
(Oct. 7, 1975, P.L.348, No.101, eff. imd.; July 22, 1983,
P.L.104, No.31, eff. imd.; May 17, 2001, P.L.26, No.9)
2001 Amendment. Act 9 amended subsecs. (a) and (c) and added
subsecs. (a.1) and (d), effective immediately as to subsecs. (c)
and (d), September 1, 2001, as to subsecs. (a) intro. par. and
(a.1) and July 1, 2001, as to the remainder of the section.
1983 Amendment. See section 10 of Act 31 in the appendix to
this title for special provisions relating to waiver of
actuarial note requirement for retirement bills.
1975 Amendment. Act 101 amended subsecs. (a) and (b).
Special Provisions in Appendix. See sections 2(c) and 3(1),
(3) and (4) of Act 31 of 1974 in the appendix to this title for
special provisions relating to limitations on salaries of
members for retirement purposes and additional retirement
benefits for judges and legislative officers.
Cross References. Section 5702 is referred to in sections
5305.1, 5308.1, 5308.2, 5703, 5704, 5705, 5707, 5905 of this
title.
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Last modified: November 27, 2007 |