PUBLIC SCHOOL EMPLOYES' RETIREMENT BOARD
[22 PA. CODE CHS. 201, 211, 213 AND 215]
General Revisions; Contributions; Credited Service
[28 Pa.B. 1543]
Purpose of the Proposed Amendments
Under Executive Order 1996-1 the Public School Employes' Retirement Board (Board) has undertaken a review of its existing rules and regulations. Based on that review, the Board proposes a number of technical and several substantive amendments to its rules and regulations to read as set forth in Annex A.
1. Gender neutral language. The proposed amendments have not been comprehensively updated since 1975, and generally use the masculine tense. The proposed changes rewrite, where applicable, to gender neutral language.
2. Deletions of language in the Code. Generally, where the regulatory provisions merely repeat or restate language already contained in 24 Pa.C.S. §§ 8101--8534 (relating to Public School Employes' Retirement Code) (code), the language was deleted as unnecessary.
Section by Section Analysis
§ 201.1 The proposed amendments add some provisions which may streamline an administrative hearing, and which differ from the General Rules of Administrative Practice and Procedure.
§ 201.2 New section, providing for an expedited hearing and decision when there are no factual disputes. This expedited hearing must be agreed to by both sides, and would allow the case to go directly to the Board for adjudication.
§ 201.3 New section, adopting preliminary objections and motions practice as provided in the Rules of Civil Procedure. These sections would allow more flexibility in dealing with cases which have no factual disputes.
§ 201.4 New section, requiring hearing examiner to dismiss case when claimant does not appear at hearing without good cause. Currently, the hearing examiners usually dismiss the case after a motion filed by the Public School Employes' Retirement System (System). These amendments would simplify the procedure.
§ 201.5 New section, allowing letter briefs instead of formal briefs, when the argument is no more than 3 pages. This procedure will simplify the argument process.
§ 211.1 Technical corrections
§ 211.2 Definitions
A. General Comment--deleted definitions merely repeat the code definitions.
B. Active Member--adds language to conform to Act No. 31 of 1983, which added the concept of pickup contributions, and to conform to Act No. 112 of 1992, adding service as a collective bargaining organization as an approved leave of absence. Deletes reference to workers' compensation as required by Rowan v. SERS, Pa.Cmwlth., No. 3377 C. D. 1995, filed 11/15/96, a decision equally applicable to the System.
C. Basic Contribution Rate--change to conform to Act No. 31 of 1983, amending the rate.
D. Beneficiary--technical corrections
E. Compensation--technical corrections
F. Date of Termination of Service--clarifies that an inactive member can remain so only for 2 years after the last date service was performed, as required by Act No. 31 of 1983.
G. Government Service--added because of Federal act known as USERRA (Uniformed Services Employment and Reemployment Act), which establishes various conditions for the purchase of military service.
I. Inactive Member--clarifies that the inactive member period is 2 school years rather than 2 calendar years.
J. Valuation Interest--deleted because this is no longer used by the system.
§ 211.3 No change.
§ 211.4 No change.
§ 213.1 Deletion of outdated previsions
A. Computation--deletion of 1,100 hour standard for full time employes, as required by Commonwealth of Pennsylvania, Public School Employes' Retirement System v. Pennsylvania School Boards Association, Inc., 682 A.2d 291 (Pa. 1996).
B. Approved Leave of Absence--proposed change to conform to Act No. 112 of 1992.
§ 213.3 Technical corrections
A. Purchase limitations for Military Service--clarifies that a member may not double dip on military and System benefits.
B. Nonschool Service--clarifies that credit may be obtained for fractional periods beyond 1 year.
C. Service as Cadet Nurse--proposed addition to conform to Act No. 23 of 1991.
D. Service as County Nurse--proposed addition to conform to Act No. 226 of 1985.
§ 213.5 Deletes language repetitive of code
§ 213.5 Technical corrections
§ 213.6 Technical corrections
§ 213.7 Clarifies that a member must have at least one eligibility point, rather than a year of school service, to qualify for an annuity. The clarification is more consistent with the code's use of eligibility points in section 8306 of the code (relating to eligibility points).
§ 213.8 Deletes language repetitive of code
§ 213.9 Technical corrections
§ 213.10 Technical corrections
§ 213.21 Deletes outdated language
§ 213.22 Technical corrections
§ 213.23 Adds activated military service as an item of purchasable credit, to conform to Act No. 23 of 1991.
A. Nonintervening Military Service--adds proposed language allowing purchase over a 5 year period without interest, as required by USERRA.
B. Activated Military Service--adds proposed language allowing purchase, as required by USERRA.
§ 213.25 Clarifies that a member's estate may complete payments of purchasable service by either lump sum or actuarial reduction of the benefit.
§ 213.26 Deletes outdated language
§ 213.27 Technical corrections
§ 213.28. No change
§ 213.29 No change
§ 213.30 Deletes outdated language
§ 213.41 Technical corrections
§ 213.42 Deletes outdated language
§ 213.43 No change
§ 213.44 Clarifies that a member whose disability is terminated can either receive an annuity or vest the benefit.
§ 213.46 Technical corrections
§ 213.47 Technical corrections
§ 213.48 No change
§ 213.49 Technical corrections
§ 215.1 No change
§ 215.2 Technical corrections
§ 215.3 Deletes language repetitive of the code
§ 215.4 Deletes language repetitive of the code
§ 215.5 Deletes language repetitive of the code, as well as makes technical corrections
§ 215.6 Deletes language repetitive of the code, as well as makes technical corrections
§ 215.7 Deletes language repetitive of the code, as well as makes technical corrections
§ 215.8 Deletes language repetitive of the code
§ 215.21 Deletes language repetitive of the code
§ 215.22 No change
§ 215.23 Technical corrections
§ 215.24 No change
§ 215.31 Deletes language repetitive of the code
§ 215.32 No change
§ 215.33 Technical corrections
§ 215.34 Deletes language repetitive of the code
§ 215.35 Deletes language repetitive of the code, as well as makes technical corrections
§ 215.36 Technical corrections
The Board's authority to promulgate rules and regulations for the uniform administration of the system is set forth in section 8502(h) of the code (relating to administrative duties of board). The Board has promulgated rules and regulations in Chapters 201, 211, 213 and 215. The proposed rulemaking consists of technical and substantive amendments to the Board's existing rules and regulations.
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on March 18, 1998, the Board submitted a copy of the notice of proposed rulemaking to the Independent Regulatory Review Commission (IRRC) and the Chairpersons of the House Education Committee and the Senate Finance Committee. In addition to submitting the proposed amendments, the Board has provided IRRC and the Committees with a copy of a detailed regulatory analysis form prepared by the Board in compliance with Executive Order 1996-1. A copy of this material is available to the public upon request.
Under section 5(g) of the Regulatory Review Act, if IRRC has objections to any portion of the proposed amendments, it will notify the Board within 10 days of the close of the Committees' review period. The notification shall specify the regulatory review criteria that have not been met by portion. The Regulatory Review Act specifies detailed procedures for the Board, the Governor and the General Assembly to review these objections before final publication of the amendments.
Fiscal Impact and Paperwork Requirements
The proposed amendments do not impose increased costs or increased paperwork requirements on the Commonwealth, local governments, the private sector or the general public.
The proposed amendments affect all active and inactive System members, public school employers and retirees.
The amended rules will be effective upon publication of the final-form regulations in the Pennsylvania Bulletin.
A sunset date is not being established for these amendments because they are necessary for the administration of the substantive provisions of the code. The Board will closely monitor these regulations for their effectiveness.
Interested parties are invited to submit written comments, suggestions or objections regarding the proposed amendments to Frank Ryder, Director, Government Rela-tions, Public School Employes' Retirement System, 5 North Fifth Street, P. O. Box 125, Harrisburg, PA 17101, within 30 days following the publication of the proposed amendments in the Pennsylvania Bulletin.
JAMES A. PERRY,
Fiscal Note: 43-7. No fiscal impact; (8) recommends adoption.
TITLE 22. EDUCATION
PART XIII. PUBLIC SCHOOL EMPLOLYES' RETIREMENT BOARD
CHAPTER 201. SPECIAL RULES OF ADMINISTRATIVE PRACTICE AND PROCEDURE
§ 201.1. Applicability of [general rules] the General Rules of Administrative Practice and Procedure.
Under 1 Pa. Code § 31.1 (relating to scope of part), 1 Pa. Code Part II (relating to general rules of administrative practice and procedure) [are] is applicable to the activities of and proceedings before the [Public School Employes Retirement Board] Board except as provided in this chapter.
§ 201.2. Expedited disposition process.
When the claimant and System agree that no facts are in dispute, they may agree to submit the case directly to the Board for adjudication. Under these circumstances, only the claimant will file a brief in support of claimant's position. The Board will issue a proposed adjudication, to which the claimant may file exceptions. If no exceptions are timely filed, the Board will issue a final adjudication adopting the proposed adjudication. If exceptions are filed, the Board will consider the exceptions when rendering its final adjudication.
§ 201.3. Motions practice.
(a) Preliminary objections. The System may, before filing an answer, file preliminary objections directly with the Board. The preliminary objections shall conform to Pa.R.C.P. No. 1028 (relating to preliminary objections).
(b) Summary judgment. Either the System or the claimant may file a motion for summary judgment directly with the Board. The motion shall conform to Pa.R.C.P. Nos. 1035.1--1035.4.
§ 201.4. Dismissal for nonappearance.
Whenever a claimant fails to appear, either in person or through counsel, for a scheduled hearing without good cause, the hearing examiner will issue a recommendation to dismiss the case, without considering the merits of the claim.
§ 201.5. Letter briefs.
Both the claimant and the System shall be entitled to file letter briefs to the hearing examiner. The letter briefs need not conform to 1 Pa. Code §§ 35.191 and 35.192 (relating to proceedings in which briefs are to be filed; and content and form of briefs), but the letter briefs may not be more than 3 pages in length.
CHAPTER 211. PRELIMINARY PROVISIONS
§ 211.2. Definitions.
The following words and terms, when used in this part, have, consistent with the code definitions, the following meanings, unless the context clearly indicates otherwise:
Accumulated deductions--The total of pickup contributions paid into the fund by the member, on his [own] account [and for the share of the employer, to the extent applicable, for] of previous school service, current school service, or creditable nonschool service, as well as the statutory interest credited on those contributions.
Active member--A school employe [who is contributing to the fund or for whom authorized] for whom pickup contributions are being made [thereto] to the fund, including those granted a sabbatical leave of absence, or who are on an approved leave of absence for professional study [or], as an exchange teacher, or service with a collective bargaining organization, under the applicable provisions of the code. [It shall also include those receiving workman's compensation.] It shall exclude employes who are on leave of absence without pay, although the leave may entitle the employe to statutory interest as elsewhere provided under law.
* * * * *
Annuitant--A member on or after the effective date of retirement, until [his] the annuity is terminated, but excludes a beneficiary or survivor annuitant.
Basic contribution rate--A rate of [5.5%] 6.25% on compensation received by the member during school employment. The rate shall be inapplicable for an active member of Class T-A or T-B, who shall pay at the rate based on sex and age upon entry into [such] that class of service. All other members shall pay the basic contribution rate of [5.5%] 6.25% of compensation received, except for purchase of previous service. It shall be applicable to those in the joint coverage group, except that the appropriate offset factor shall be deducted on earnings covered by Federal Social Security. [From and after July 1, 1976, the basic contribution rate shall be 5.25% of compensation received.]
Beneficiary--The person last designated by a member in writing to the Board on forms [it supplies,] supplied by the Board to receive [his] accumulated deductions or a lump sum benefit upon [his] death. If [one] a beneficiary is not so designated, or if the beneficiary predeceased the member, the recipient shall be the estate of the member or those persons listed as next of kin eligible to receive employe benefits from an employer, under 20 Pa.C.S. § 3101 (relating to payments to family and funeral directors), to the extent applicable.
* * * * *
Compensation--[Excludes] Pickup contributions plus any remuneration received as a school employe, excluding a bonus, severance payment or other remuneration or similar emoluments received by a school employe during [his] school service not based on the standard salary schedule for which [he] the employe is rendering service. It shall exclude payments for unused sick leave, unused vacation leave, bonuses for attending school seminars and conventions, special payments for health and welfare plans based on the hours employed or any other payment or similar emoluments which may be negotiated in a collective bargaining agreement for the express purpose of enhancing the compensation factor for retirement benefits.
Date of termination of service--The last day of service for which [a member makes] pickup contributions are made for an active member, or in the case of an inactive member [on leave without pay], the date of [his] resignation or the date the employer formally discontinues [his] employment or 2 years following the last date of service for which contributions were made, whichever is earliest.
Effective date of retirement--The first day following the date of termination of service, if application[,] for an annuity is timely filed[,]; but, if not timely filed, the date of actual filing or date specified on the application, whichever is later. In the case of a vestee, it shall mean the attainment of superannuation age, if filed within 90 days thereof, otherwise the date of actual filing, and, in the case of a disability benefit, the date certified by the Board.
Employer--[Governmental] A governmental entity directly responsible for the employment and payment of the school employe and charged with the responsibility of providing public education within this Commonwealth. The term includes entities whose employes under prior law and regulations[,] are members of the System as of the effective date of the code.
Final average salary--In the case of a part-time employe, [his] compensation shall be annualized by multiplying [his] actual earnings by the reciprocal of the fractional portion of time worked during nonoverlapping periods of 12 consecutive months or equivalent consecutive pay periods during which compensation is received; and, in the case of a member with multiple service credit, the salary shall be determined by reference to include compensation received [by him] as a school employe or a State employe or both.
* * * * *
Government service--Service as an administrator, teacher or instructor in the field of public school education for an agency or department of the government of the United States.
Inactive member--A member for whom no pickup contributions are being made, who has accumulated deductions standing to the member's credit in the fund and for whom no pickup contributions have been made within the last 2 school years or a multiple service member who is active in the System. The term also includes [A] a member who is on furlough and has elected to leave [his] the accumulated deductions in the fund at statutory interest during the furlough period, which period [shall] may not exceed 2 school years; or a member who is on leave of absence without pay.
Member's annuity--An amount determined by dividing the accumulated deductions of the member by the cost of a $1 annuity based on the [sex and] nearest age of the Member at the effective date of retirement and computed on the basis of statutory interest and mortality tables adopted and used by the Board.
Nonprofessional members--School employes who are not professional members and who also qualify for [the] membership in the System under section 8301 of the code (relating to mandatory and optional membership).
* * * * *
Public school--All classes or schools within this Commonwealth conducted under the order and superintendence of the Department of Education, including: educational classes of an employer charged with the responsibility of public education within this Commonwealth as well as those classes financed wholly or in part by the Federal Government, State-owned colleges and universities, the Pennsylvania State University, community colleges, area vocational-technical schools, intermediate units, the State Board of Education, Scotland School for Veterans' Children, Thaddeus Stevens State School of Technology and the Pennsylvania State Oral School for the Deaf. In all cases of doubt, the Board will determine whether any particular governmental entity is eligible as an employer within the meaning of the code.
Salary deductions--The amounts certified by the Board to be deducted from the compensation, as determined for retirement purposes, of an active member and paid into the fund for the purposes of purchasing current service, previous school service, pickup contributions and creditable nonschool service, as the case may be.
School employe--A person engaged in work relating to a public school for any governmental entity and for which work the person is receiving regular remuneration as an officer, administrator or employe. The term does not include an independent contractor or a person compensated on a fee basis. In all cases of doubt, the Board will determine whether a person is a school employe within the meaning of the code. It may also determine whether a person is an independent contractor or a person compensated on a fee basis upon review of all the circumstances surrounding the employment of the person seeking membership in the program. A person who is rendering services to the school district on a commission or fee basis, whether an elected official or not, is not a school employe for retirement purposes.
School year--[In no event shall a] The 12-month period which the governmental entity uses for purposes of administration, regardless of the actual time during which a member renders service. A member will not be credited, during a school year, with credited service in excess of [one] 1 year.
* * * * *
[Valuation interest--Interest at 5.5% per annum compounded annually to be used for purposes of determining employer liabilities and contribution rates.]
Vestee--[A member with ten or more eligibility points who has terminated school service and has left his total accumulated deductions in the fund to defer receipt of an annuity. In the event the] A member with ten or more elibigility points who has terminated school service, left accumulated deductions in the fund and is deferring the filing of an application for receipt of an annuity. When a vestee applies for an annuity, [it] the annuity shall take effect upon filing of the application, or the date specified on the application, whichever is later.
CHAPTER 213. CONTRIBUTIONS AND BENEFITS
§ 213.1. Mandatory and optional membership.
Membership shall be mandatory, as of the effective date of school employment, for all school employes, except the following categories:
* * * * *
(2) A person employed on a per diem or hourly basis for less than 80 full-day sessions or 500 hours in any fiscal year. In all cases, a school district shall report to the Board whether a school employe annually qualifies under this section based on the service rendered during any school year[, commencing with the 1975-76 school year, that is July 1, 1975, and every school year annually commencing thereafter.] Any per diem or hourly school employe employed for less than the minimum eligibility requirements established in this paragraph [shall] is not [be] eligible for membership for that fiscal year period, but shall, if [he] the employe exceeds the minimums stated in this paragraph, be a mandatory member for that fiscal year period only.
(3) Employes in Federal programs shall conform with the following:
* * * * *
(ii) [School employes in such programs, who have not joined the System, may elect to join the System and obtain credit for all service rendered from December 22, 1965, and prior to July 1, 1975, provided they elect to join within 120 days after the effective date of the code, which election shall require the employe to commence membership and pay for such service from the original date of eligibility. Such original date of eligibility and membership in the system shall continue until the termination of school service. The contributions required to purchase such service shall be as provided in §§ 213.21--213.30 (relating to contributions).
(iii)] From and after July 1, 1975, [any] an employe entering school service shall be required to join the System until termination of service, although the program in which he is employed is financed, in whole or in part, by the Federal government.
§ 213.2. Credited school service.
(a) Computation. For the purposes of computing credited school service, the following conditions [shall be applicable] apply:
(1) A full-time salaried employe shall receive 1 year of credited service for each nonoverlapping period of 12 consecutive employable months for which [he] the employe contributes for at least 180 full-day sessions [or 1100 hours] of employment. A full-time salaried employe may not be eligible to earn more than 1 year of credited service during any period of 12 consecutive months although [he] the employe may be employed for full-day sessions or for hours in excess of the limitations [set forth] in this section.
(2) A part-time salaried employe, that is, one who is compensated [on a part-time basis] as a percentage of annual salary, shall receive credited service based on the proportion of full-time service for which [he] the employe is employed during a school year.
* * * * *
(5) Any member with credit for multiple service or with credit in [either] the School Employes' Retirement program [or the State Employes' Retirement program], who is employed on a concurrent basis, in one or more districts or with this Commonwealth, [shall] is not [be] entitled to more than [one] 1 year of credited service for any consecutive 12-month period.
* * * * *
(b) Approved leaves of absence. Credited service shall be granted to an active member for an approved leave of absence [for either sabbatical leave or for professional study and growth or as an exchange teacher] as authorized under the applicable provisions of the code. Members may be granted other types of leaves of absence[, not within the aforementioned categories] authorized by the code, but [such] these leaves [shall] do not entitle the member to any credited service during the period of the leave. Credited service for the approved leaves of absence shall be granted under the following conditions only:
* * * * *
(2) Proper current contributions, based on the salary as if [he] the member had been in regular full-time employment during the period of the leave are made by the member and by the employer if required. An employer [shall] is not [be] permitted to suspend the requirement of making its required contributions during the period of the leave. Current contributions made by the member during the period of the leave shall be transmitted through the school district on a monthly basis in the same manner as active members.
(c) Cancellation. In all cases [where] when a member withdraws [his] accumulated deductions, all [of his] credited service shall be cancelled. Any member who has so withdrawn [his] accumulated deductions and has [his] credited service cancelled shall, upon a re-entry into the system, be eligible to purchase [such] the service under [the provisions of] section 8303 of the code (relating to eligibility points for retention and reinstatement of service credits).
(d) Improperly credited service. If the Board finds that any school service has been improperly credited, it will [cause such] cancel the credit [to be cancelled] and refund to the member any accumulated deductions attributable thereto [refunded to the member].
§ 213.3. Eligibility points for retention and reinstatement of service credits.
* * * * *
(b) Every active member or multiple service member who is active in the State system, on or subsequent to March 1, 1974, may purchase credit upon which eligibility points shall be applied, as a member of Class T-C for any periods of previous school service or permissible creditable nonschool service, as provided in this part, on the condition that the member pay for [such] the service as provided in this part. Any active member or multiple service member seeking to reinstate previous service shall be required to purchase and pay for all [such] the service previously credited [and pay for same]. [Such] The member [may] is not [be] permitted to purchase only a portion of previously credited service to be reinstated.
(c) In all instances [where] when creditable school or nonschool service may be purchased, [any] an active member, [by application, electing] having elected to purchase [such] the service, [may] is not [be] permitted to cancel the purchase [thereof] once payment has been made by lump sum, or once the member has agreed, in writing, to payroll deductions upon [such] the terms and conditions as provided in this part.
§ 213.4. Creditable nonschool service.
(a) Creditable nonschool service may be purchased only by an active member or a multiple service active member of the State Employes' Retirement System [or one who had been an active member on or subsequent to March 1, 1974, provided that those members in the latter class, or who elect to purchase this service shall be required to make payment only by lump sum within 90 days after certification of amount due, whereupon the appropriate benefit adjustments shall be made. Members of this class will not be permitted to make payment by salary deductions].
* * * * *
(c) Intervening military service shall be service of an active nature rendered to the armed forces of the United States for which an active member had [his] school service interrupted so that [he] the member could serve voluntarily or otherwise to fulfill a draft obligation in time of war or armed conflict. Intervening military service will be disallowed or cancelled when the required military tour of duty has been voluntarily extended beyond the time of military obligation, with or without the implied or express consent of the employer.
* * * * *
(e) Purchase limitations for intervening and nonintervening military service and conditional credit shall be as follows:
(1) An active member may not purchase intervening or nonintervening military service, [although he may be] if the member has obtained credit and is eligible effective as of ____(Editor's Note: The blank refers to the date of adoption of this proposal) or in the future to receive a pension for this service from another employer or governmental agency[, on a conditional basis. If an active member purchases this conditional service, he] Upon application to purchase this service, the member shall[, upon eligibility to receive a benefit from this system,] be required to submit proof as to [his] eligibility or ineligibility for [any] pension benefits from the other employer or governmental agency, as the Board may require. If the Board determines that [the member purchasing this conditional credit] this service is [eligible to receive the other benefit,] ineligible, the application will be denied. If the Board later determines that the purchased service should have been ineligible, it will cancel the service purchased and refund to the member the accumulated deductions attributable to this service at the time of retirement or termination of service, unless cancellation and refund is requested prior thereto. [A conditional purchase of service member may be required to sign documents the Board may require to insure that he is not receiving an annuity benefit contrary to the prohibitions of the code. The Board may also require from the member or the employer or agency from which he may be entitled to receive a benefit, documentation to determine whether the member is entitled to the service credit or to a refund of his accumulated deductions.] If subsequent to retirement, the Board learns that a member has falsified [his] a record, it may take action as is otherwise provided in the code.
(2) [An active member is not eligible for credit for nonintervening military service if this service entitles him to receive now or in the future, or if he is receiving, a governmental pension based on this nonintervening military service, irrespective of the fact that the member may have actual service in excess of the minimum amount necessary to quality him for a Federal pension.
(3)] Conditional credit for nonintervening military service shall be available for all active military service actually rendered for which purchase shall be requested but, may not exceed 5 years of [such] service, if the member has 3 years of credited school service subsequent to the military service for which credit is requested.
(f) Nonschool service may be purchased by an active member who was a teacher or instructor in a public school or public educational institution in a state other than this Commonwealth or in a territory or area under the jurisdiction of the United States and this service may also be purchased by any active member who was an administrator, teacher or instructor in the field of public school education for any agency or department of the United States Government whether under its jurisdiction or not. The nonschool service rendered shall be at least 1 full year. The total service purchased may not exceed 12 years or the number of years of school service credited in the system, whichever is less.
(g) Nonschool service in the Cadet Nurse Corps may be purchased by an active member for any period of training as a student or graduate nurse under a plan approved under section 2 of the act of June 15, 1943 (Pub. L. No. 78-73, 57 Stat. 153), if the total period of training under the plan was at least 2 years, and the credit for the service does not exceed 3 years.
(h) Previous nonschool service as a nurse in the employ of a county may be purchased by an active member as follows: For every 3 years or major fraction thereof in previous work experience, an individual may buy 1 year of creditable service, not to exceed a total of 5 years. The purchase of this service shall begin within 3 years of the employe's eligibility to purchase this creditable service.
[(g)] (i) * * *
[(h) The nonschool service listed in subsection (f) shall be for a period of at least 1 school year provided that the total credit for this service shall be the lesser of 12 years or the number of years of school service credited in the system. The service sought to be purchased under this section shall be in no less increments than 1 year, based on each year of school service credited in the school system up to a maximum of 12 years.]
[(i)] (j) The total credit for nonschool service, identified in subsections (a)--[(f)] (i), may not exceed the actual number of years of school service in the System, rendered within this Commonwealth, plus, in the case of an active multiple service member, any additional years of State service rendered the Commonwealth and credited in the [State Employes' Retirement] System. This limitation on total permissible nonschool service credit does not apply to the service provided in subsection [(g)] (i).
§ 213.5. Classes of service.
[(a) Class T-C membership shall be available to any school employe on the effective date of the code or who becomes a member of the System subsequent thereto.
(b)] Members of Class T-B or T-A may, at any time prior to retirement, elect to convert [such] the membership into Class T-C, [provided] if they make the appropriate contributions as a member of this latter class. Any member of Class T-B or Class T-A may elect to become a full coverage member or elect to purchase credit for previous school or nonschool service [provided he] if the member converts [such] the membership to Class T-C and makes the appropriate contributions.
§ 213.7. Eligibility for annuities.
[In order to] To be eligible for any annuity payable under [the provisions of] the [law] code and [the rules and regulations promulgated thereunder] this part, a member [must] shall have at least [one full year of creditable school service] one eligibility point.
§ 213.8. [Eligibility for vesting] (Reserved).
[Any member terminating school service with ten or more eligibility points shall be entitled to vest his benefits until attainment of superannuation age.]
§ 213.9. Eligibility for death benefits.
In the event of the death of a member, [his] the member's beneficiary, or [the] estate, shall be entitled to death benefits if the member was eligible for an annuity in accordance with section 8307(a) or (b) of the code (relating to eligibility for annuities). If the deceased member is not eligible for an annuity, [his] the member's beneficiary or [his] estate, [as the case may be,] shall only be entitled to receive the accumulated deductions standing to [his] the member's credit in the fund. The Board may pay the next of kin, in the absence of a beneficiary, under the special circumstances provided in [section 3101 of the Probate, Estates and Fiduciaries Code] 20 Pa.C.S. § 3101 (relating to payments to family and funder directors).
§ 213.10. Eligibility for refunds.
[Any] An active member, upon termination of service, may elect to receive [his] the member's accumulated deductions in lieu of any benefit to which [he] the member would otherwise be entitled and [such] the election shall constitute an irrevocable waiver of [such] this entitlement unless there is a subsequent return to and reinstatement of service.
§ 213.21. [Regular member contributions for current service] (Reserved).
[Every active T-C member shall make regular member contributions at the rate of 5.5% of his compensation for current service by salary deductions, provided that such contributions shall not be made by anyone other than the active T-C member except for authorized leaves of absence otherwise herein provided. Effective July 1, 1976, the contribution rate at 5.25% shall be imposed upon the compensation of every active T-C member.]
§ 213.23. Member contributions for creditable school service.
(a) An active member may purchase previous school service, sabbatical leave service, activated military service and full coverage membership. A State employe and a member of the [State Employes' Retirement] System may, if [he] the member elects multiple service, apply for and receive credit for total previous school ser- vice, [provided such] if the service is certified and [he] the member makes the required member contributions for the purchase of [such] the service, regardless of the amount of school service previously credited, if any.
(b) [The amount required for the purchase of creditable school service as defined in subsection (a) shall be sufficient to provide an amount equal to the accumulated deductions standing to the credit of the member, had he made regular member contributions with full coverage and had those contributions been credited with statutory interest during all subsequent periods of State and school service up to the date of purchase of such aforementioned service.
(c)] Those Active Members wishing to convert from either Class T-B or Class T-A membership to Class T-C shall pay an amount equal to the additional contributions, if any, which would have been made together with statutory interest thereon during all periods of subsequent school and State service up to the date of purchase, from and after July 1, 1950, in the case of members of Class T-B, and from and after July 1, 1967, in the case of members of Class T-A.
[(d)] (c) Those active members desiring to purchase credit for an approved leave of absence, other than sabbatical and activated military service leave, shall make contributions sufficient to transfer membership to [class] Class T-C, and to provide an annuity as a member of [such] that class for [such] that additional credited service, provided that the amount which shall be paid, shall be the sum of the amount required in subsection [(c)] (b), depending upon the class from which the transfer is made, and the amount determined as the sum of the member's basic contribution rate and normal contribution rate as provided in section 8328 of the code (relating to actuarial cost method) during [such] the period, multiplied by the compensation which was or would have been received during [such] the period, together with statutory interest during all subsequent periods of school and State service up to the date of purchase.
[(e)] (d) The payment for the purchase of all credit authorized by this chapter, except that for sabbatical leave and activated military service leave, shall be payable in a lump sum within 90 days after certification of the amount due or, in the case of an active member, may be authorized through payroll deductions over a period of years not in excess of 6 years, [provided] if statutory interest at 4% annually is charged through the repayment period. The amount certified by the Board for the purchase of the aforementioned credit shall be in accordance with methods approved by the actuary. [This subsection shall apply and be effective only for applications for the purchase of credit received in the offices of the Board on or after May 1, 1978.]
§ 213.24. Contributions for purchase of credit for creditable school and nonschool service.
(a) Source of contributions. As provided in sections 8303 and 8304 of the code (relating to elibitility points for retention and reinstatement of service credits; and creditable nonschool service), creditable school and nonschool service shall be purchased entirely by the member, except in the following cases:
(1) In the case of former uncredited school service, [where] when a school district has failed to credit service through administrative error, the employing school district, as [such] the employer, [shall be] is required to pay its share of the contributions for [such] the service, although the active member shall be responsible for [his] the member's share.
(2) In the case of service rendered by an active member to a county board of school directors, now designated an intermediate unit, the member shall only be responsible for the purchase of [his own] the member's share for [such] previous service rendered to the county board of directors.
(3) Except for sabbatical leaves of absence, in the case of approved leaves of absence [for professional study and growth and as an exchange teacher], the employe shall be required to pay, for the purchase of creditable nonschool service, both the member's share and the employer's share if it is purchased after the leave of absence has expired. If the employer reports [such] the leaves currently based on the employe's salary as if [he] the employe had been in full-time employment during the leave period, [then] the employe [shall] is only [be] required to pay [his] the employe share, whereupon the employer shall have a corresponding liability based on normal contribution rate.
(b) Contributions for purchase of nonintervening military service. The amount due for the purchase of nonintervening military service shall be calculated in the following manner: The average of the first 3 years' salaries subsequent to [such] the military service, multiplied by the sum of the member's basic contribution rate and the normal contribution rate as determined by section 8328 of the code (relating to actuarial cost method) relating to Commonwealth and district shares, and multiplied by the number of years or fractional years of military service[, and, finally, multiplying this product by compounded statutory interest during all periods of school and State service rendered subsequent to the time of such military service to the date of total purchase.] The amount due for the purchase of [such] the military service, as calculated [above] under this subsection, may be paid in a lump sum within 90 days after certification of the amount due, or in the case of an active member, may be amortized through payroll deductions over a [one, two, but not more than 3 year period provided statutory interest at 4% is charged through the repayment period] period of years not in excess of five years without interest. All amounts certified by the Board for the purchase of [such] the service shall be in accordance with methods approved by the actuary. In no event may nonintervening military service be purchased unless the active member has completed no less than [three] 3 years of subsequent credited school service as a Class T-C member.
(c) Contributions for purchase of intervening military service. An active member eligible to purchase credit for intervening military service shall pay the amount due in accordance with the following formula: The member's basic contribution rate at the time of entry into [such] the active military service multiplied by [his] the member's then compensation and by years of [such] the military service together with statutory interest during all periods of subsequent school and State service to the date of purchase, provided that all [such] the amounts due shall be in accordance with methods certified and approved by the actuary. The amounts due for the purchase of [such] the service may be paid under any one of the following methods:
(1) Regular monthly payments submitted through the school district based on the compensation of the member which [he] the member would have received at the time of entry into active military service without statutory interest since [such] the payments are made on a current contributing basis.
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(3) Through amortized salary deductions over a [one, two, but not more than 3-year period, provided statutory interest at 4% annually is charged through the repayment period] period of years not in excess of 5.
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§ 213.25. Incomplete payments.
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(d) Death of a member. [In the event] If a member applies for the purchase of service and dies prior to certification of the amount due for [such] the service, [then his] the member's legally constituted representative may purchase [such] the service either by payment of a lump sum, within 30 days after [such] the certification is made, or by reducing the annuity benefit by the actuarial equivalent of the debt, including statutory interest.
§ 213.26. [Contributions by the Commonwealth] (Reserved).
[(a) The Commonwealth obligation to make contributions, on behalf of active members based on total member payroll, shall be equal to 1/2 the rate certified by the Board, as determined by the actuary, necessary to provide the payment of prospective annuities in accordance with section 8328(a), (b), and (c) of the code (relating to actuarial cost method) except that, in those instances where an eligible school employe has elected membership in an optional alternate retirement plan, as provided in § 215.36 (relating to optional alternate retirement programs), the Board only certifies to the Commonwealth 1/2 the normal contribution rate and accrued liability rate which must be contributed to that optional alternate plan. The Commonwealth shall not be obligated to make any payment to the Board on behalf of that alternate plan, but the amount due, based on the normal contribution rate and accrued liability rate shall be paid directly to these plans.
(b) In the case of minimum and supplemental annuities provided in accordance with section 8328(d) of the code the Commonwealth shall contribute, on behalf of such annuitants, an amount equal to 1/2 the rate certified by the Board, as determined by the actuary based on total member payroll.]
§ 213.30. Appropriations by the Commonwealth.
The Board will prepare and, through the Governor, submit annually to the General Assembly, an itemized budget consisting of the amounts necessary to be appropriated based on the actuarial cost method as certified by the actuary and presented to the Board. The sum of the various contribution rates established by the actuary, as certified by the Board, shall be applied to the total projected member payroll for the succeeding fiscal year. [One-half of such amount shall be appropriated by the General Assembly so that the Commonwealth shall meet the obligations accruing during that fiscal year period for which the appropriation shall be made. The Commonwealth shall pay the amounts due on a quarterly basis through the Department of Revenue within 30 days of the receipt of the Board's requisition, and such amounts shall be paid by the State Treasurer.]
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