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Duties of the board regarding applications and elections of members - 71 Pa. Cons. Stat. § 5905

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     § 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            service, plus the amount withdrawn in a lump sum payment,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