Current through Pa Acts 2024-53, 2024-56 through 2024-111
Section 5302 - Credited state service(a)Computation of credited service.--In computing credited state service of a member for the determination of benefits, a full-time salaried state employee, including any member of the general assembly, shall receive credit for service in each period for which contributions as required are made to the fund, or for which contributions otherwise required for such service were not made to the fund solely by reason of section 5502.1 (relating to waiver of regular member contributions and social security integration member contributions) or any provision of this part relating to the limitations under IRC § 401(A)(17) or 415, except as otherwise provided in this part, but in no case shall he receive more than one year's credit for any 12 consecutive months or 26 consecutive biweekly pay periods. A per diem or hourly state employee shall receive one year of credited service for each nonoverlapping period of 12 consecutive months or 26 consecutive biweekly pay periods in which he is employed and for which contributions are made to the fund or would have been made to the fund but for such waiver under section 5502.1 or limitations under the IRC for at least 220 days or 1,650 hours of employment. If the member was employed and contributions were made to the fund for less than 220 days or 1,650 hours, he shall be credited with a fractional portion of a year determined by the ratio of the number of days or hours of service actually rendered and for which contributions are or would have been made to the fund except for the waiver under section 5502.1 or limitations under the IRC to 220 days or 1,650 hours, as the case may be. A part-time salaried employee shall be credited with the fractional portion of the year which corresponds to the number of hours or days of service actually rendered in relation to 1,650 hours or 220 days, as the case may be. In no case shall a member who has elected multiple service receive an aggregate in the two systems of more than one year of credited service for any 12 consecutive months.(b)Creditable leaves of absence.-- (1) A member on leave without pay who is studying under a federal grant approved by the head of his department or who is engaged up to a maximum of two years of temporary service with the united states government, another state or a local government under the intergovernmental personnel act of 1970 ( 5 U.S.C. §§ 1304, 3371 - 3376; 42 U.S.C. §§ 4701 - 4772 ) shall be eligible for credit for such service: provided, that contributions are made in accordance with sections 5501 (relating to regular member contributions for current service), 5501.1 (relating to shared-risk member contributions and shared-gain adjustments to regular member contributions), 5505.1 (relating to additional member contributions) and 5507 (relating to contributions to the system by the commonwealth and other employers), the member returns from leave without pay to active state service as a member of the system for a period of at least one year, and he is not entitled to retirement benefits for such service under a retirement system administered by any other governmental agency.(2) An active member or active participant on paid leave granted by an employer for purposes of serving as an elected full-time officer for a Statewide employee organization which is a collective bargaining representative under the act of June 24, 1968 ( P.L. 237, No.111), referred to as the Policemen and Firemen Collective Bargaining Act, or the act of July 23, 1970 ( P.L. 563, No.195), known as the Public Employe Relations Act, and up to 14 full-time business agents appointed by an employee organization that represents correction officers employed at State correctional institutions: Provided, That for elected full-time officers such leave shall not be for more than three consecutive terms of the same office and for up to 14 full-time business agents appointed by an employee organization that represents correction officers employed at State correctional institutions no more than three consecutive terms of the same office; that the employer shall fully compensate the member or participant, including, but not limited to, salary, wages, pension and retirement contributions and benefits, other benefits and seniority, as if he were in full-time active service; and that the Statewide employee organization shall fully reimburse the employer for all expenses and costs of such paid leave, including, but not limited to, contributions and payment in accordance with sections 5501, 5501.1, 5505.1, 5507, 5804 (relating to participant contributions), 5805 (relating to mandatory pickup participant contributions) and 5806 (relating to employer defined contributions), if the employee organization either directly pays, or reimburses the Commonwealth or other employer for, contributions made in accordance with sections 5507, 5804, 5805 and 5806. The determination of the contributions that an employee organization pays or reimburses the Commonwealth or other eligible employer under this paragraph shall be made without regard to any setoff the Commonwealth or any eligible employer receives for advance payment of accrued liability contributions under section 5507(h).(c) Credited service as retirement incentive.-- Notwithstanding any provisions of this title to the contrary, for the period February 1, 1991, to December 31, 1991, a member who was not an annuitant on February 1, 1991, who terminates State service between February 1, 1991, and December 31, 1991, inclusive, who is, during such period, 55 years of age or older or will attain 55 years of age between January 1, 1992, and January 31, 1992, inclusive, with ten or more eligibility points, and who files an application for retirement prior to January 1, 1992, shall be credited with an additional 10% of his Class A and Class C service. This provision shall not apply in the case of active members who are justices, judges or district justices, legislators, other elected officials and officers of the Pennsylvania State Police.(d) Enlargement of coverage of Military Code.--[Repealed by 2012 amendment.](d.1) Effect of converting county service to State service.--A county employee transferred to State employment pursuant to 42 Pa.C.S. § 1905 (relating to county-level court administrators) who elects to convert county service to State service pursuant to section 5303.1 (relating to election to convert county service to State service) shall receive one year or fractional part of a year of State service credit for each year or fractional part of a year, as the case may be, of county service credited in the county retirement system or pension plan, provided, however, that no more than one year of State service of all classes will be credited in any one calendar year and that no State service credit shall be received for county service that is already credited in the system or in the Public School Employees' Retirement System.(d.2) Effect of converting school service.--A State employee who converts school service from the Public School Employees' Retirement System pursuant to section 5303.2 (relating to election to convert school service to State service) shall receive one year or fractional part of a year of State service credit for each year or fractional part of a year, as the case may be, of school service credited in the Public School Employees' Retirement System, provided, however, that no more than one year of State service of all classes will be credited for any one calendar year. (e)Cancellation of credited service.-- (1) All credited service in the system shall be cancelled if a member withdraws his total accumulated deductions, except that a member with Class A-3 , Class A-4, Class A-5 or Class A-6 service credit and one or more other classes of service credit shall not have his service credit as a member of any classes of service other than as a member of Class A-3 , Class A-4, Class A-5 or Class A-6 cancelled when the member receives a lump sum payment of accumulated deductions resulting from Class A-3 , Class A-4, Class A-5 or Class A-6 service pursuant to section 5705.1 (relating to payment of accumulated deductions resulting from more than one class of service).(2) A partial or total distribution of accumulated total defined contributions to a participant who also is a member shall not cancel service credited in the system.(f)Credit for military service.--A state employee who has performed userra leave may receive credit in the system or participate in the plan as follows: (1) For purposes of determining whether a member is eligible to receive credited service in the system for a period of active military service, other than active duty service to meet periodic training requirements, rendered after August 5, 1991, and that began before the effective date of this paragraph, the provisions of 51 Pa.C.S. Ch. 73 (relating to military leave of absence) shall apply to all individuals who were active members of the system when the period of military service began, even if not defined as an employee pursuant to 51 Pa.C.S. § 7301 (relating to definitions).(1.1) State employees may not receive service credit in the system or exercise the options under 51 Pa.C.S. § 7306 (relating to retirement rights) for military leaves that begin on or after the effective date of this subsection, except as otherwise provided by this subsection.(1.2) State employees may not participate in the plan or exercise the options under 51 Pa.C.S. § 7306 for military leaves that begin on or after the effective date of this paragraph, except as otherwise provided by this subsection.(2) A state employee who has performed userra leave may receive credit in the system as provided by this paragraph. The following shall apply:(i) A state employee who is reemployed from userra leave as an active member of the system shall be treated as not having incurred a break in state service by reason of the userra leave and shall be granted eligibility points as if the state employee had not been on the userra leave. If a state employee who is reemployed from userra leave as an active member of the system subsequently makes regular member contributions, additional member contributions, social security integration member contributions, shared-risk member contributions and any other member contributions in the amounts and in the time periods required by 38 U.S.C. Ch. 43 (relating to employment and reemployment rights of members of the uniformed services) and IRC § 414(U) As if the state employee had continued in state office or employment and performed state service and was compensated during the period of userra leave, then the state employee shall be granted state service credit for the period of userra leave. The state employee shall have the state employee's benefits, rights and obligations determined under this part as if the state employee was an active member who performed creditable state service during the userra leave in the job position that the state employee would have held had the state employee not been on userra leave and received the compensation on which the member contributions to receive state service credit for the userra leave were determined.(ii) For purposes of determining whether a state employee has made the required employee contributions for state service credit for userra leave, if an employee who is reemployed from userra leave as an active member of the system terminates state service or dies in state service before the expiration of the allowed payment period, then state service credit for the userra leave will be granted as if the required member contributions were paid the day before termination or death. The amount of the required member contributions will be treated as an incomplete payment subject to the provisions of section 5506 (relating to incomplete payments). Upon a subsequent return to state service or to school service as a multiple service member, the required member contributions treated as incomplete payments shall be treated as member contributions that were either withdrawn in a lump sum at termination or paid as a lump sum pursuant to section 5705(A)(4) or (A.1) (relating to member's options), as the case may be.(iii) A state employee who is reemployed from userra leave as an active member of the system who does not make the required member contributions or makes only part of the required member contributions within the allowed payment period shall not be granted credited service for the period of userra leave for which the required member contributions were not timely made, shall not be eligible to subsequently make contributions and shall not be granted either state service credit or nonstate service credit for the period of userra leave for which the required member contributions were not timely made.(2.1)(i) A participant who is reemployed from userra leave shall be treated as not having incurred a break in state service by reason of the userra leave and shall be granted eligibility points as if the participant had not been on userra leave. If a participant who is reemployed from userra leave subsequently makes mandatory pickup participant contributions in the amounts and in the time periods required by 38 U.S.C. Ch. 43 and IRC § 414(U) as if the participant had continued in his state office or employment and performed state service and been compensated during the period of userra leave, the participant's employer shall make the corresponding employer defined contributions. The employee shall have his contributions, benefits, rights and obligations determined under this part as if he were an active participant who performed state service during the userra leave in the job position that he would have held had he not been on userra leave and received the compensation on which the mandatory pickup participant contributions to receive state service credit for the userra leave were determined.(ii) A participant who is reemployed from userra leave who does not make the mandatory pickup participant contributions or makes only part of the mandatory pickup participant contributions within the allowed payment period shall not be eligible to make mandatory pickup participant contributions or voluntary contributions at a later date for the period of userra leave for which the mandatory pickup participant contributions were not timely made.(3) A state employee who is a member of the system and performs userra leave from which the employee could have been reemployed from userra leave had the state employee returned to state service in the time frames required by 38 U.S.C. Ch. 43 for reemployment rights, but did not do so, shall be able to receive creditable nonstate service as nonintervening military service for the period of userra leave should the employee later return to state service as an active member of the system and is otherwise eligible to purchase the service as nonintervening military service.(3.1) A state employee who is a participant in the plan and performs userra leave from which the employee could have been reemployed from userra leave had the employee returned to state service in the time frames required by 38 U.S.C. Ch. 43 for reemployment rights, but did not do so, shall not be eligible to make mandatory pickup participant contributions or voluntary contributions for the period of userra leave should the employee later return to state service and be a participant in the plan.(4) An active member or inactive member on leave without pay who on or after the effective date of this subsection is granted a leave of absence under 51 Pa.C.S. § 4102 (relating to leaves of absence for certain government employees) or a military leave under 51 Pa.C.S. Ch. 73, that is not userra leave shall be able to receive creditable nonstate service as nonintervening military service should the employee return to state service as an active member of the system and is otherwise eligible to purchase the service as nonintervening military service.(4.1) An active participant or inactive participant on leave without pay who on or after the effective date of this paragraph is granted a leave of absence under 51 Pa.C.S. § 4102 or a military leave under 51 Pa.C.S. Ch. 73 that is not userra leave shall not be able to make mandatory pickup participant contributions or voluntary contributions during or for the leave of absence or military leave and shall not have employer defined contributions made during such leave, without regard to whether or not the state employee received salary, wages, stipends, differential wage payments or other payments from his employer during the leave, notwithstanding any provision to the contrary under 51 Pa.C.S. § 4102 or 51 Pa.C.S. Ch. 73.(5) If a member dies while performing userra leave, then the beneficiaries or survivor annuitants, as the case may be, of the deceased member are entitled to any additional benefits, including eligibility points, other than benefit accruals relating to the period of qualified military service, provided under this part had the member resumed and then terminated employment on account of death.(5.1) If a participant dies while performing userra leave, the beneficiaries or successor payees of the deceased participant are entitled to any additional benefits, other than benefit accruals relating to the period of qualified military service, provided under this part had the participant resumed and then terminated employment on account of death.(6) A state employee who is on a leave of absence from his duties as a state employee for which 51 Pa.C.S. § 4102 provides that he is not to suffer a loss of pay, time or efficiency rating shall not be an active member, receive service credit or make member contributions for the leave of absence, except as provided for in this part. Notwithstanding this paragraph, any pay the member receives pursuant to 51 Pa.C.S. § 4102 shall be included in the determination of final average salary and other calculations in the system utilizing compensation as if the payments were compensation under this part.Amended by P.L. TBD 2019 No. 105, § 2, eff. 11/27/2019.Amended by P.L. TBD 2017 No. 5, § 306, eff. 6/12/2017.Amended by P.L. TBD 2015 No. 93, § 10, eff. 12/28/2015.Amended by P.L. 1436 2012 No. 181, § 3, eff. 12/31/2012.1974, March 1, P.L. 125, No. 31, § 1, imd. effective. Amended 1982, Dec. 14, P.L. 1249, No. 284, § 1, retroactive effective Jan. 1, 1982; 1983, July 22, P.L. 104, No. 31, § 6, imd. effective; 1991, Aug. 5, P.L. 183, No. 23, § 15, imd. effective; 1992, Nov. 30, P.L. 737, No. 112, § 2, imd. effective; 1995, Dec. 20, P.L. 689, No. 77, § 6, effective Jan. 1, 1996; 1999, June 22, P.L. 75, No. 12, § 4, imd. effective; 2001, May 17, P.L. 26, No. 9, § 9, imd. effective; 2002, April 23, P.L. 272, No. 38, § 7, imd. effective; 2006, Nov. 29, P.L. 1628, No. 188, § 1, effective Jan. 1, 2007; 2010, Nov. 23, P.L. 1269, No. 120, § 7.2, imd. effective.