71 Pa.C.S. Ch. 4

in effect

71 Pa.C.S. § 4 Applicability.

The following shall apply: (1) The amendment of 71 Pa.C.S. §§ 5803, 5804(c), 5806(c), 5809(a) and (b), 5812(2), 5814(b), 5815, 5902(c)(3) and 5953(a)(2)(ii): (i) shall not be construed to mean that a method of funding or paying the administrative fees, costs and expenses of the State Employees' Defined Contribution Plan was not in accordance with the provisions of 71 Pa.C.S. Pt. XXV, other applicable law or any trust or plan document established under 71 Pa.C.S. Pt. XXV prior to the effective date of this section; and (ii) in relation to the requirements for providing for the funding or payment of the administrative fees, costs and expenses of the State Employees' Defined Contribution Plan, any construction of 71 Pa.C.S. Pt. XXV as amended by the amendment of sections 5803, 5804(c), 5806(c), 5809(a) and (b), 5812(2), 5814(b), 5815, 5902(c)(3), 5953(a)(2)(ii) or any rule, regulation, trust or plan document adopted or established under 71 Pa.C.S. Pt. XXV, shall not create in any participant of the State Employees' Defined Contribution Plan or in any other person claiming an interest in the account of any participant a contractual right, either express or implied, in method or amount of funding or payment of the fees, costs and expenses of the State Employees' Defined Contribution Plan. (2) The amendment of 71 Pa.C.S. § 5809(b)(3) shall only apply to forfeitures after June 30, 2020. (3) The addition of 71 Pa.C.S. § 5902(r) shall apply beginning with the first period of July 1 through June 30 that commences after the effective date of this section. Explanatory Note. Act 94 amended sections 5803, 5804, 5806, 5809, 5812, 5814, 5815, 5902 and 5953 of Title 71.

71 Pa.C.S. § 401 Applicability.

The following shall apply: (1) The following provisions shall not create in a member of the Public School Employees' Retirement System, a participant in the School Employees' Defined Contribution Plan or another person claiming an interest in the account of a member or participant an express or implied contractual right in the provisions nor in a construction of 24 Pa.C.S. Pt. IV, 51 Pa.C.S. or rules or regulations adopted under 24 Pa.C.S. Pt. IV or 51 Pa.C.S.: (i) A provision of this act which amends 51 Pa.C.S. or 24 Pa.C.S. Pt. IV in relation to requirements for any of the following: (A) (Reserved). (B) Qualification of the School Employees' Defined Contribution Plan as a qualified pension plan under the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §§ 401(a) and 415(b)), or compliance with the Uniformed Services Employment and Reemployment Rights Act of 1994 (Public Law 103-353, 108 Stat. 3149). (C) Domestic relations orders regarding alternate payees of participants in the School Employees' Defined Contribution Plan. (ii) A construction of 24 Pa.C.S. Pt. IV or 51 Pa.C.S. or rules or regulations adopted under 24 Pa.C.S. Pt. IV or 51 Pa.C.S. or a term or provision of the School Employees' Defined Contribution Plan or School Employees' Defined Contribution Trust, established by statute or in the plan document or trust declaration or by contract with providers of investment and administrative services to the School Employees' Defined Contribution Plan or the School Employees' Defined Contribution Trust. (2) The provisions of 24 Pa.C.S. Pt. IV shall remain subject to the Internal Revenue Code of 1986 and the Uniformed Services Employment and Reemployment Rights Act, and regulations under those statutes, and the General Assembly reserves to itself the further exercise of its legislative power to amend or supplement the provisions as may be required in order to maintain the qualification of the Public School Employees' Retirement System and the School Employees' Defined Contribution Plan as a qualified pension plan under section 401(a) and other applicable provisions of the Internal Revenue Code of 1986 and the Uniformed Services Employment and Reemployment Rights Act. (3) The following provisions shall not create in a member of the State Employees' Retirement System, a participant in the State Employees' Defined Contribution Plan or another person claiming an interest in the account of a member or participant an expressed or implied contractual right in the provisions nor in a construction of 51 Pa.C.S. § 7306, 71 Pa.C.S. Pt. XXV, or rules or regulations adopted under 51 Pa.C.S. § 7306 or 71 Pa.C.S. Pt. XXV: (i) A provision of this act which amends 51 Pa.C.S. § 7306 or 71 Pa.C.S. Pt. XXV, in relation to requirements for any of the following: (A) Qualification of the State Employees' Defined Contribution Plan as a qualified pension plan under the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 401(a)). (B) Compliance with the Uniformed Services Employment and Reemployment Rights Act of 1994 (Public Law 103-353). (C) Domestic relations orders regarding alternate payees of participants in the State Employees' Defined Contribution Plan. (ii) A construction of 51 Pa.C.S. or 71 Pa.C.S. Pt. XXV, or rules or regulation promulgated under 51 Pa.C.S. or 71 Pa.C.S. Pt. XXV, or a term or provision of the State Employees' Defined Contribution Plan or State Employees' Defined Contribution Trust established by statute or in the plan document or trust declaration or by contract with providers of investment and administrative services to the State Employees' Defined Contribution Plan or State Employees' Defined Contribution Trust. (4) The provisions of 71 Pa.C.S. Pt. XXV shall remain subject to the Internal Revenue Code of 1986 and the Uniformed Services Employment and Reemployment Rights Act, and regulations promulgated under those statutes. (5) The General Assembly reserves to itself the further exercise of its legislative power to amend or supplement the provisions of 71 Pa.C.S. Pt. XXV in order to maintain the qualification of the State Employees' Retirement System and the State Employees' Defined Contribution Plan as qualified pension plans under section 401(a) and other applicable provisions of the Internal Revenue Code of 1986 and the Uniformed Services Employment and Reemployment Rights Act. Explanatory Note. Act 5 amended or added sections 8102, 8103, 8103.2, 8301, 8302, 8303, 8304, 8305, 8305.3, 8305.4, 8305.5, 8306, 8307, 8308, 8310, 8321, 8322.1, 8323, 8324, 8325.1, 8326, 8327, 8328, 8330, 8341, 8342, 8344, 8345, 8346, 8347 and 8349, Chapter 84 and sections 8501, 8502, 8502.2, 8503, 8505, 8506, 8507, 8521, 8522, 8524, 8525, 8531, 8533, 8533.1, 8533.2, 8533.3, 8533.4, 8533.5, 8534, 8535, 8535.1, 8537, 8538, 8702 of Title 24, section 7306 of Title 51 and sections 5102, 5103, 5104, 5301, 5302, 5303, 5303.2, 5304, 5305, 5305.1, 5306, 5306.1, 5306.2, 5306.3, 5306.4, 5306.5, 5307, 5308, 5308.1, 5309, 5310, 5311, 5501.1, 5502, 5503.1, 5504, 5505, 5506.1, 5507, 5508, 5509, 5701, 5701.1, 5702, 5704, 5705, 5705.1, 5706, 5707 and 5709, Chapter 58 and sections 5901, 5902, 5903, 5904, 5905, 5905.1, 5906, 5907, 5931, 5932, 5933, 5934, 5935, 5936, 5937, 5938, 5939, 5951, 5953, 5953.1, 5953.2, 5953.3, 5953.4, 5953.6, 5954, 5955, 5955.2, 5957 and 5958 of Title 71.

71 Pa.C.S. § 402 Construction of calculation or actuarial method.

The following shall apply: (1) Nothing in this act shall be construed to mean that a calculation or actuarial method used by the Public School Employees' Retirement Board, its actuaries or the Public School Employees' Retirement System was not in accordance with the provisions of 24 Pa.C.S. Pt. IV or other applicable law prior to the effective date of this paragraph. (2) Nothing in this act shall be construed to mean that a calculation or actuarial method used by the State Employees' Retirement Board, its actuaries or the State Employees' Retirement System was not in accordance with the provisions of 71 Pa.C.S. Pt. XXV or other applicable law prior to the effective date of this section.

71 Pa.C.S. § 404 Accrued liability funding.

The following shall apply: (1) Notwithstanding any other provision of law: (i) A change in accrued liability of the State Employees' Retirement System created under this act shall be funded in equal dollar installments over a period of 30 years beginning July 1, 2019. (ii) A change in accrued liability of the State Employees' Retirement System created under this act by the amendment of 71 Pa.C.S. § 5508(b) shall be funded in equal dollar installments over a period of 30 years beginning July 1, 2022. (2) (Reserved).

71 Pa.C.S. § 406 Construction related to Federal law.

The following shall apply to construction related to Federal law as to the State Employees' Retirement System: (1) This act shall be construed and administered in a manner that the State Employees' Retirement System and the State Employees' Defined Contribution Plan shall satisfy the requirements necessary to qualify as a qualified pension plan under section 401(a) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 401(a)), other applicable provisions of the Internal Revenue Code of 1986 and the Uniformed Services Employment and Reemployment Rights Act of 1994 (Public Law 103-353, 108 Stat. 3149). The rules, regulations and procedures adopted and promulgated by the State Employees' Retirement Board and the terms and conditions of the plan document and trust declaration adopted by the State Employees' Retirement Board may include provisions necessary to accomplish the purpose of this section. (2) Nothing in this act shall be construed or deemed to imply that any member shall be required to make contributions to the State Employees' Retirement System in excess of the limits established by section 415(n)(3)(A)(iii) of the Internal Revenue Code of 1986. A contribution made by a member that is determined to be in excess of the limits shall be refunded to the member in a lump sum subject to withholding for all applicable taxes and penalties as soon as administratively possible after the determination is made. A refund under this subparagraph shall not affect the benefit payable to the member and shall not be treated as or deemed to be a withdrawal of the member's accumulated deductions. (3) Nothing in this act shall be construed to mean that an interpretation or application of 71 Pa.C.S. Pt. XXV or benefits available to members of the State Employees' Retirement System was not in accordance with 71 Pa.C.S. Pt. XXV or other applicable law, including the Internal Revenue Code of 1986 and the Uniformed Services Employment and Reemployment Rights Act before the effective date of this section.

71 Pa.C.S. § 408 Restoration of service credit or retirement benefits.

Nothing in this act shall be deemed to permit the restoration of service credit or retirement benefits that: (1) were or are subject to section 16 of Article V of the Constitution of Pennsylvania or 42 Pa.C.S. § 3352; or (2) were or are the subject of an order of forfeiture under the act of July 8, 1978 (P.L.752, No.140), known as the Public Employee Pension Forfeiture Act.

71 Pa.C.S. § 409 Authority of Governor's Office of General Counsel.

Notwithstanding the amendment of 24 Pa.C.S. § 8501(e) and 71 Pa.C.S. § 5901(e), the Governor's Office of General Counsel shall continue to provide legal counsel and legal services to the Public School Employees' Retirement Board and the State Employees' Retirement Board until such time as each board appoints a chief counsel and such other counsel as it deems necessary to provide it with legal services and through its secretary gives such notice to the General Counsel.

71 Pa.C.S. § 411 Class A-5 or Class A-6 membership limited.

Except as provided under 71 Pa.C.S. § 5306.5, no State employee otherwise a member of, eligible to be a member of or having State or nonstate service credited in a class of service other than Class A-5 or Class A-6 may cancel, decline or waive membership in such other class of service in order to obtain Class A-5 or Class A-6 service credit, become a member of Class A-5 or Class A-6 or elect Class A-5 or Class A-6 membership or to be solely a participant in the plan.

71 Pa.C.S. § 412.1 Determination of Class A-5 or Class A-6 service credit.

Notwithstanding any regulation promulgated by the State Employees' Retirement Board, application or interpretation of 71 Pa.C.S. Pt. XXV, or administrative practice to the contrary, the eligibility of a member of the State Employees' Retirement System deriving from Class A-5 or Class A-6 service credit for a superannuation annuity, withdrawal annuity or other rights and benefits based on attaining a specific age or number of eligibility points or a combination of age and eligibility points shall be determined by including only those eligibility points actually accrued.

71 Pa.C.S. § 413 Provisions held invalid.

The following shall apply: (1) Except as provided under paragraph (2), if a provision of this act or its application to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of this act that can be given effect without the invalid provision or application. (2) The following shall apply: (i) If the application of the shared-risk provisions of 71 Pa.C.S. Pt. XXV is declared inapplicable to any person by a court or administrative tribunal of competent jurisdiction, the provisions of Pt. XXV relating to shared-gain adjustments to regular member contributions shall be inapplicable to that person. (ii) The following shall apply: (A) If the application of any provision of this act relating to membership in Class A-5 or Class A-6 or participation in the State Employees' Defined Contribution Plan is declared invalid to any person for any period of State service, the invalidity shall not affect the application of this act to any other person. The provisions of this act relating to both membership in Class A-5 or Class A-6 and participation in the State Employees' Defined Contribution Plan shall be invalid as to the person for the period of State service for which part of the State service was invalid and that person shall be considered a Class A-5 exempt employee for the service at issue. If a State employee's participation in the State Employees' Defined Contribution Plan is declared invalid for any period of State service, the affected State employee shall return to the State Employees' Defined Contribution Trust any distributions related to the period of State service at issue, shall be granted the status and service credit in the State Employees' Retirement System as if he was a Class A-5 exempt employee and shall be required to make all contributions to the State Employees' Retirement Fund as if he was a Class A-5 exempt employee for the period of State service at issue. (B) The affected State employee's accumulated mandatory participant contributions and accumulated voluntary contributions shall be transferred to the affected employee's member savings account to the extent necessary to fund that account with the member contributions and interest that would have been standing to the member's account had the State employee been a Class A-5 exempt employee for the period of service at issue. Any remaining balance shall be refunded to the State employee, who also shall be responsible for paying to the fund in a manner and time determined by the State Employees' Retirement Board any additional funds required if the accumulated mandatory participant contributions and accumulated voluntary contributions were not sufficient. (C) The accumulated employer defined contributions shall be transferred to the State Accumulation Account and no further amount shall be due from the employer or refund paid.

71 Pa.C.S. § 414 Member statements.

Notwithstanding the provisions of 71 Pa.C.S. § 5903(b), the statement for each member prepared by the State Employees' Retirement Board for the periods ending December 31, 2017, December 31, 2018, and December 31, 2019, and any other statements or estimates of benefits prepared by the board pursuant to the State Employees' Retirement Code from the effective date of this section to December 31, 2019, need not reflect the provisions of this act and in the case of the statements for each member for the periods ending on or before December 31, 2019, need not include a projection of the benefit to which the member is entitled upon attainment of superannuation age.

71 Pa.C.S. § 415 Obligation to make payments within specified time periods.

Notwithstanding the provisions of 71 Pa.C.S. Pt. XXV, the obligation of the State Employees' Retirement Board to make payments within specified time periods of the receipt of applications for benefits or other information shall not apply from the effective date of this section to December 31, 2019.

71 Pa.C.S. § 416 Appointment of Secretary of Banking and Securities.

The following shall apply: (1) The appointment of the Secretary of Banking and Securities to the membership of the Public School Employees' Retirement Board in the amendment of 24 Pa.C.S. § 8501(a) shall take effect when the first of the two positions currently appointed by the Governor becomes vacant or an incumbent member's term expires. Notification of the expiration or vacancy shall be submitted by the Public School Employees' Retirement Board to the Legislative Reference Bureau for publication in the Pennsylvania Bulletin. (2) The appointment of the Secretary of Banking and Securities to the membership of the State Employees' Retirement Board and reduction of the number of members appointed by the Governor from six to five in 71 Pa.C.S. § 5901(a) shall take effect when the first of the six positions currently appointed by the Governor that is not held by an annuitant becomes vacant or an incumbent member's term expires. Notification of the expiration or vacancy shall be submitted by the State Employees' Retirement System to the Legislative Reference Bureau for publication in the Pennsylvania Bulletin. 2018, JUNE 28, P.L.460, NO.71

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.palegis.us/statutes/consolidated/view-statute?txtType=HTM&ttl=71Fetched: 10/16/2026