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Duties of the board regarding applications and elections of members - 71 Pa. Cons. Stat. § 5905Legal Research Home > Pennsylvania Statutes Sponsored Links
§ 5905. Duties of the board regarding applications and
elections of members.
(a) Statement to new members.--As soon as practicable after
each member shall have become an active member in the system,
the board shall issue to the member a statement certifying his
class of service, his member contribution rate, and the
aggregate length of total previous State service and creditable
nonstate service for which he may receive credit.
(b) School employees electing multiple service status.--Upon
receipt of notification from the Public School Employees'
Retirement Board that a former State employee has become an
active member in the Public School Employees' Retirement System
and has elected to become a member with multiple service status
the board shall:
(1) in case of a member receiving an annuity from the
system:
(i) discontinue payments, transfer the present value
of the member's annuity at the time of entering school
service, plus the amount withdrawn in a lump sum payment,
on or after the date of entering school service, pursuant
to section 5705 (relating to member's options), with
statutory interest to date of transfer, minus the amount
to be returned to the board on account of return to
service, that the board has determined is to be credited
in the members' savings account, from the annuity reserve
account to the members' savings account and resume
crediting of statutory interest on the amount restored to
his credit;
(ii) transfer the balance of the present value of
the total annuity, minus the amount to be returned to the
board on account of return to service that the board has
determined is to be credited in the State accumulation
account, from the annuity reserve account to the State
accumulation account; and
(iii) certify to the member the amount of lump sum
and annuity payments with statutory interest the member
is to return to the board and, of those amounts, which
amount shall be credited to the members' savings account
and credited with statutory interest as such payments are
returned and which amount shall be credited to the State
accumulation account; or
(2) in case of a member who is not receiving an annuity
and has not withdrawn his total accumulated deductions,
continue or resume the crediting of statutory interest on his
total accumulated deductions during the period his total
accumulated deductions remain in the fund; or
(3) in case of a former State employee who is not
receiving an annuity from the system and his total
accumulated deductions were withdrawn, certify to the former
State employee the accumulated deductions as they would have
been at the time of his separation had he been a full
coverage member together with statutory interest for all
periods of subsequent State and school service to the date of
repayment. Such amount shall be restored by him and shall be
credited with statutory interest as such payments are
restored.
(c) Disability annuities.--In every case where the board has
received an application duly executed by the member or by a
person legally authorized to act in his behalf for a disability
annuity based upon the member's physical or mental incapacity
for the performance of the job for which he is employed, with or
without a supplement for a service-connected disability, taking
into account relevant decisions by The Pennsylvania Workmen's
Compensation Board, the board shall:
(1) through the medical examiner, have the application
and any supporting medical records and other documentation
submitted with the application reviewed and on the basis of
said review, and the subsequent recommendation by the medical
examiner regarding the applicant's medical qualification for
a disability annuity along with such other recommendations
which he may make with respect to the permanency of
disability or the need for subsequent reviews, make a finding
of disability and whether or not the disability is service
connected or nondisability and in the case of disability
establish an effective date of disability and the terms and
conditions regarding subsequent reviews;
(2) upon the recommendation of the medical examiner on
the basis of a review of subsequent medical reports submitted
with an application for continuance of disability, make a
finding of continued disability and whether or not the
disability continues to be service connected, or a finding of
nondisability; and in the case of a finding that the
disability is no longer service connected, discontinue any
supplemental payments on account of such service connected
disability as of the date of the finding; and in the case of
a finding of nondisability establish the date of termination
of disability and at that time discontinue any annuity
payments in excess of an annuity calculated in accordance
with section 5702 (relating to maximum single life annuity);
and
(3) upon receipt of a written statement from a
disability annuitant of his earned income of the previous
quarter, adjust the payments of the disability annuity for
the following quarter in accordance with the provisions of
section 5704(c) (relating to disability annuities).
(c.1) Termination of service.--In the case of any member
terminating State service who is entitled to an annuity and who
is not then a disability annuitant, the board shall advise such
member in writing of any benefits to which he may be entitled
under the provisions of this part and shall have the member
prepare, on or before the date of termination of State service,
one of the following three forms, a copy of which shall be given
to the member and the original of which shall be filed with the
board:
(1) an application for the return of total accumulated
deductions;
(2) an election to vest his retirement rights and, if he
is a joint coverage member and so desires, elect to become a
full coverage member and agree to pay within 30 days of the
date of termination of service the lump sum required; or
(3) an application for an immediate annuity and, if he
desires:
(i) an election to convert his medical, major
medical and hospitalization insurance coverage to the
plan for State annuitants; and
(ii) if he is a joint coverage member, an election
to become a full coverage member and an agreement to pay
within 30 days of date of termination of service the lump
sum required.
(d) Withdrawal of accumulated deductions.--(Deleted by
amendment).
(e) Certification to vestees and special vestees terminating
service.--The board shall certify to a vestee or to a special
vestee within one year of termination of State service of such
member:
(1) the total accumulated deductions standing to his
credit at the date of termination of service;
(2) the number of years and fractional part of a year of
credit in each class of service; and
(3) the maximum single life annuity to which the vestee
or special vestee shall become entitled upon the attainment
of superannuation age and the filing of an application for
such annuity.
(e.1) Notification to vestees and special vestees
approaching superannuation age.--The board shall notify each
vestee and special vestee in writing 90 days prior to his
attainment of superannuation age that he shall apply for his
annuity within 90 days of attainment of superannuation age;
that, if he does so apply, his effective date of retirement will
be the date of attainment of superannuation age; that, if he
does not so apply but defers his application to a later date,
his effective date of retirement will be the date of filing such
application or the date specified on the application, whichever
is later; and that, if he does not file an application within
seven years after attaining superannuation age, he shall be
deemed to have elected to receive his total accumulated
deductions upon attainment of superannuation age.
(f) Initial annuity payment and certification.--The board
shall make the first monthly payment to a member who is eligible
for an annuity within 60 days of the filing of his application
for an annuity or, in the case of a vestee or special vestee who
has deferred the filing of his application to a date later than
90 days following attainment of superannuation age, within 60
days of the effective date of retirement, and receipt of the
required data from the head of the department and, if the member
has Class G, Class H, Class I, Class J, Class K, Class L, Class
M or Class N service, any data required from the county
retirement system or pension plan to which the member was a
contributor before being a State employee. Concurrently, the
board shall certify to such member:
(1) the total accumulated deductions standing to his
credit showing separately the amount contributed by the
member, the pickup contribution and the interest credited to
the date of termination of service;
(2) the number of years and fractional part of a year
credited in each class of service;
(3) the final average salary on which his annuity is
based as well as any applicable reduction factors due to age
and/or election of an option; and
(4) the total annuity payable under the option elected
and the amount and effective date of any future reduction
under section 5703 (relating to reduction of annuities on
account of social security old-age insurance benefits).
(g) Death benefits.--Upon receipt of notification from the
head of a department of the death of an active member or a
member on leave without pay, the board shall advise the
designated beneficiary of the benefits to which he is entitled,
and shall make the first payment to the beneficiary within 60
days of receipt of certification of death and other necessary
data. If no beneficiary designation is in effect at the date of
the member's death or no notice has been filed with the board to
pay the amount of the benefits to the member's estate, the board
is authorized to pay the benefits to the executor,
administrator, surviving spouse or next of kin of the deceased
member, and payment pursuant hereto shall fully discharge the
fund from any further liability to make payment of such benefits
to any other person. If the surviving spouse or next of kin of
the deceased member cannot be found for the purpose of paying
the benefits for a period of seven years from the date of death
of the member, then the benefits shall be escheated to the
Commonwealth for the benefit of the fund.
(h) Medical insurance coverage.--Upon receipt of the
election by an eligible member to convert his medical, major
medical, and hospitalization insurance coverage to the plan for
State annuitants, the board shall notify the insurance carrier
of such election and shall deduct the appropriate annual charges
in equal monthly installments. Such deductions shall be
transmitted to the designated fiscal officer of the Commonwealth
having jurisdiction over the payment of such group charges on
behalf of the annuitant.
(i) Joint coverage annuitants.--The board shall notify in
writing each joint coverage annuitant who retired prior to July
1, 1962 that he may elect any time prior to July 1, 1974 to
receive his annuity without reduction attributable to social
security coverage upon payment in a lump sum of the amount which
shall be certified by the board within 60 days of such election.
Upon receipt of such payment the board shall recompute the
annuity payable to such annuitant and the annuity and/or lump
sum, if any, payable upon his death to his beneficiary or
survivor annuitant as though he had been a full coverage member
on the effective date of retirement. Such recomputed annuity
shall be paid beginning with the second monthly payment next
following the month in which the lump sum payment is received.
(j) State employees electing multiple service status.--Upon
receipt of notification from the Public School Employees'
Retirement Board that a member who has elected multiple service
membership has elected to restore school service or purchase
creditable nonschool service in the Public School Employees'
Retirement System or is obligated to return benefits to the
Public School Employees' Retirement Board on account of electing
multiple service membership has elected to pay all or part of
the amount due to the Public School Employees' Retirement Board
by salary deductions, the board shall collect from the employee
the amounts certified by the Public School Employees' Retirement
Board as due and owing by the member and certify and transfer to
the Public School Employees' Retirement Board the amounts so
collected.
(Oct. 7, 1975, P.L.348, No.101, eff. imd.; Dec. 14, 1982,
P.L.1249, No.284, eff. imd.; June 13, 1985, P.L.40, No.19, eff.
imd.; Aug. 5, 1991, P.L.183, No.23; Apr. 29, 1994, P.L.159,
No.29, eff. 60 days; 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)
2001 Amendment. Act 9 amended subsec. (b) and added subsec.
(j).
1999 Amendment. Act 12 amended subsec. (f). See section 21
of Act 12 in the appendix to this title for special provisions
relating to notification of transfer and certification of
credited service.
1997 Amendment. Act 41 amended subsecs. (e), (e.1) and (f).
See section 6 of Act 41 in the appendix to this title for
special provisions relating to limitation of special vestee
status.
Cross References. Section 5905 is referred to in sections
5308, 5704, 5907 of this title.
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Last modified: November 27, 2007 |