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PA Bulletin, Doc. No. 10-1249



[4 PA. CODE CH. 249]

Exemption from Execution; Assignment of Rights

[40 Pa.B. 3859]
[Saturday, July 10, 2010]

 The State Employees' Retirement Board (Board) proposes to rescind § 249.53 (relating to exemption from execution; assignment of rights) to read as set forth in Annex A. This section pertains to the exemption from execution and assignment of rights when a member becomes indebted to the State Employees' Credit Union.

A. Effective Date

 The proposed rulemaking will go into effect upon final-form publication in the Pennsylvania Bulletin.

B. Contact Person

 For further information, contact Robert Gentzel, Director of Communications and Policy, State Employees' Retirement System, 30 North Third Street, Suite 150, Harrisburg, PA 17101-1716, (717) 787-9657; or Brian E. McDonough, Deputy Chief Counsel, State Employees' Retirement System, 30 North Third Street, Suite 150, Harrisburg, PA 17101-1716, (717) 783-7317. Information regarding submitting comments on this proposed rulemaking appears in Section H of this preamble.

C. Statutory Authority

 This proposed rulemaking is being made under the authority of 71 Pa.C.S. §§ 5902(h) and 5953 (relating to administrative duties of the board; and taxation, attachment and assignment of funds).

D. Background and Purpose

 This proposed rulemaking rescinds State Employees Credit Union payment language in § 249.53. The language is obsolete. Currently, credit unions do not meet the statutory requirements and it is unlikely that any new ones will. A corresponding statutory amendment is also being considered. The language concerning payment priority in the event of member indebtedness to the Commonwealth is included in the proposed comprehensive regulation on priority of payments from member benefits in § 247.11 (relating to priority of taxation, attachments and assignments of funds). See 38 Pa.B. 2062 (May 3, 2008).

E. Benefits, Costs and Compliance

 Executive Order 1996-1 requires a cost/benefit analysis of the proposed rulemaking.


 The rescission of § 249.53 will alleviate any confusion and prevent possible disputes with regard to conflicting demands on members' retirement benefits.


 There are no costs to the Commonwealth, its citizens or State employees associated with this proposed rulemaking.

Compliance costs

 The proposed rulemaking is not expected to impose additional compliance costs on State employees.

F. Sunset Review

 A sunset review is not applicable.

G. Regulatory Review

 Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on April 14, 2010, the Board submitted a copy of this proposed rulemaking and a copy of a Regulatory Analysis Form to the Independent Regulatory Review Commission (IRRC) and to the House State Government Committee and the Senate Finance Committee. A copy of this material is available to the public upon request.

 Under section 5(g) of the Regulatory Review Act, IRRC may convey any comments, recommendations or objections to the proposed rulemaking within 30 days of the close of the public comment period. The comments, recommendations or objections must specify the regulatory review criteria which have not been met. The Regulatory Review Act specifies detailed procedures for review, prior to final publication of the rulemaking, by the Board, the General Assembly and the Governor of comments, recommendations or objections raised.

H. Public Comments

Written comments. Interested persons are invited to submit comments, suggestions or objections regarding the proposed rulemaking to Robert Gentzel, Director of Communications and Policy, State Employees' Retirement System, 30 North Third Street, Suite 150, Harrisburg, PA 17101-1716. Comments submitted by facsimile will not be accepted. The Board must receive comments, suggestions or objections within 30 days of publication in the Pennsylvania Bulletin.

Electronic comments. Comments may be submitted electronically to the Board at and must be received by the Board within 30 days of publication in the Pennsylvania Bulletin. A subject heading of the proposal and a return name and address must be included in each transmission. If an acknowledgment of electronic comments is not received by the sender within 2 working days, the comments should be retransmitted to ensure receipt.


Fiscal Note: 31-13. No fiscal impact; (8) recommends adoption.

Annex A





§ 249.53. [Exemption from execution; assignment of rights] (Reserved).

[(a) General. In the event any member, entitled to a benefit, has been determined, at the time this benefit becomes payable, to be obligated to the Commonwealth for the repayment of money for any employment related reason, or to be obligated to the State Employees' Credit Union for the repayment of a loan not to exceed $750 with interest, as provided in section 5953 of the code (relating to taxation, attachment and assignment of funds), the Board will cause to be paid from the member's account, upon his authorization, or upon certification of his agencies legal representative, the amount of indebtedness. The member, or his designated beneficiary, in the case of a deceased member, shall have the privilege of restoring the set off amount to his account within 30 days thereafter in a lump sum. Failing that, any benefit to which he would otherwise be entitled shall be withheld until an amount sufficient to satisfy the obligation has been accumulated, whereupon the annuity shall be payable to the member.

(b) Debt priorities. In the event a member is indebted, not only to the Commonwealth, but also the State Employees' Credit Union, under section 5953 of the code, payments to satisfy indebtedness to the Commonwealth shall be made in full before the Credit Union indebtedness is satisfied.

(c) Effect of credit union payment. In the event the Board is required to satisfy a credit union loan on behalf of an active member, as provided in section 5953(b)(2) of the code, the amount of the satisfaction will be automatically converted into an arrears liability of the member, which shall be restored in full by the defaulting member by lump sum or payroll deductions over a period not exceeding 1 year with statutory interest charged during the repayment period.]

[Pa.B. Doc. No. 10-1249. Filed for public inspection July 9, 2010, 9:00 a.m.]

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