|
|
Court OpinionsState LawsUS CodeUS Constitution |
Administrative duties of the board - 71 Pa. Cons. Stat. § 5902Legal Research Home > Pennsylvania Statutes Sponsored Links
§ 5902. Administrative duties of the 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 provisions 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.
(a.1) Secretary.--The secretary shall act as chief
administrative officer for the board. In addition to other
powers and duties conferred upon and delegated to the secretary
by the board, the secretary shall:
(1) Serve as the administrative agent of the board.
(2) Serve as liaison between the board and applicable
legislative committees, the Treasury Department, the
Department of the Auditor General, and between the board and
the investment counsel and the mortgage supervisor in
arranging for investments to secure maximum returns to the
fund.
(3) Review and analyze proposed legislation and
legislative developments affecting the system and present
findings to the board, legislative committees, and other
interested groups or individuals.
(4) Direct the maintenance of files and records and
preparation of periodic reports required for actuarial
evaluation studies.
(5) Receive inquiries and requests for information
concerning the system from the press, Commonwealth officials,
State employees, the general public, research organizations,
and officials and organizations from other states, and
provide information as authorized by the board.
(6) Supervise a staff of administrative, technical, and
clerical employees engaged in record-keeping and clerical
processing activities in maintaining files of members,
accounting for contributions, processing payments to
annuitants, preparing required reports, and retirement
counseling.
(b) Professional personnel.--The board shall contract for
the services of a chief medical examiner, an actuary, investment
advisors and counselors, and such other professional personnel
as it deems advisable. The board may, with the approval of the
Attorney General, contract for legal services.
(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.
(f) Functions.--The board shall perform such other functions
as are required for the execution of the provisions of this
part.
(g) Performance of departmental duties.--In the event the
head of the department fails to comply with the procedures as
mandated in section 5906 (relating to duties of heads of
departments), the board shall perform such duties and bill the
department for the cost of same.
(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
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 calendar year.
(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 calendar year.
In the 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 (m) 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 5509 (relating to appropriations and assessments
by the Commonwealth), certify, as a percentage of the members'
payroll, the employers' contributions as determined pursuant to
section 5508 (relating to actuarial cost method) necessary for
the funding of prospective annuities for active members and the
annuities of annuitants and certify the rates and amounts of the
employers' normal contributions as determined pursuant to
section 5508(b), accrued liability contributions as determined
pursuant to section 5508(c), supplemental annuities contribution
rate as determined pursuant to section 5508(e) and the
experience adjustment factor as determined pursuant to section
5508(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) Member contributions.--The board shall cause all pickup
contributions made on behalf of a member to be credited to the
account of the member and credit to his account any other
payment made by such member, including, but not limited to,
amounts collected by the Public School Employees' Retirement
System for the reinstatement of previous State service or
creditable nonstate service and amounts paid to return benefits
paid after the date of return to State service or entering
school service representing lump sum payments made pursuant to
section 5705(a)(4)(iii) (relating to member's options) and
member's annuity payments, but not including other benefits
returned pursuant to section 5706(a.2) (relating to termination
of annuities), and shall pay all such amounts into the fund.
(m) Annual financial statement.--The board shall prepare and
have published, on or before July 1 of each year, a financial
statement as of the calendar year ending December 31 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 file copies with the head of
each department for the use of the State employees and the
public.
(n) Independent audit.--The board shall provide for an
annual audit of the system by an independent certified public
accountant, which audit shall include the board's accrual and
expenditure of directed commissions.
(Oct. 7, 1975, P.L.348, No.101, eff. imd.; Mar. 4, 1982,
P.L.141, No.45, eff. imd.; Dec. 14, 1982, P.L.1249, No.284, eff.
imd.; Aug. 5, 1991, P.L.183, No.23; 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;
Oct. 27, 2006, P.L.1177, No.120, eff. imd.)
2006 Amendment. Act 120 amended subsec. (e). See sections 3,
4, 5 and 6 of Act 120 in the appendix to this title for special
provisions relating to authority of Auditor General,
construction of law for release of records, etc., applicability
and fees collected by State Employees' Retirement System.
2001 Amendment. Act 9 amended subsec. (l).
1998 Amendments. Act 41 amended subsec. (a) and Act 88
amended subsec. (a) and added subsec. (a.1).
1995 Amendment. Act 77 amended subsecs. (h) and (j).
Transfer of Functions. The powers and duties of the Attorney
General and/or the Department of Justice contained in section
5902(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.
Section: Previous 5705 5706 5707 5708 5709 5710 5901 5902 5903 5904 5905 5906 5907 5908 5931 Next
Last modified: November 27, 2007 |