Pennsylvania SB 782: An Act amending Titles 24 (Education) and 71 (State Government) of the Pennsylvania Consolidated Statutes, in membership, contributions and benefits, further providing for termination of annuities; in membership, credited service, classes of service, and eligibility for benefits relating to retirement for State employees and officers, further providing for mandatory and optional membership in the system and participation in the plan; and, in benefits, further providing for termination of annuities.

Bill Text

PRINTER'S NO. 844
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 782
Session of
2025
INTRODUCED BY J. WARD, FONTANA, BROWN, COSTA, BAKER, MILLER,
YAW, STEFANO, DUSH, CULVER AND FARRY, MAY 27, 2025
REFERRED TO STATE GOVERNMENT, MAY 27, 2025
AN ACT
Amending Titles 24 (Education) and 71 (State Government) of the
Pennsylvania Consolidated Statutes, in membership,
contributions and benefits, further providing for termination
of annuities; in membership, credited service, classes of
service, and eligibility for benefits relating to retirement
for State employees and officers, further providing for
mandatory and optional membership in the system and
participation in the plan; and, in benefits, further
providing for termination of annuities.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 8346(b.2) heading, (1) and (2) of Title
24 of the Pennsylvania Consolidated Statutes are amended and the
section is amended by adding a subsection to read:
§ 8346. Termination of annuities.
* * *
(b.2) Limitation on return to school service by an annuitant
[during emergency or in an extracurricular position].--
(1) An annuitant may return to school service under
subsection (b) [or], (b.1) or (b.3), provided the annuitant
otherwise meets the requirements of subsection (b) [or],
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(b.1) or (b.3) and has attained the age set forth in IRC §
401(a)(36) or the applicable "normal retirement age" in 26
C.F.R. § 1.401(a)-1(b)(2) (relating to post-ERISA qualified
plans and qualified trusts; in general).
(2) An annuitant who has not reached the age as set
forth in IRC § 401(a)(36), or the applicable "normal
retirement age" under 26 C.F.R. § 1.401(a)-1(b)(2), may
return to service under subsection (b) [or], (b.1) or (b.3)
provided the annuitant otherwise meets the requirements of
subsection (b) [or], (b.1) or (b.3) and has had a break in
service, as set forth in paragraph (3).
* * *
(b.3) Return to school service as a police instructor or
emergency medical services instructor.--
(1) An annuitant or participant receiving distributions
may be employed in the following capacity for a school
employer without loss of annuity:
(i) a part-time instructor teaching a basic police
training course or an in-service police training course
that is approved by the Municipal Police Officers'
Education and Training Commission for any school
employer; or
(ii) a part-time emergency medical services
instructor under 35 Pa.C.S. § 8124 (relating to emergency
medical services instructors) for any school employer.
(2) The annuitant or the participant receiving
distributions under paragraph (1) and the school employer of
the annuitant or participant shall not make contributions to
the member's savings account, individual investment account
or State accumulation account, respectively, for service
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under this subsection. Service under paragraph (1) shall not
be subject to member or participant contributions or be
eligible for qualification as creditable school service or
for participation in the plan, mandatory pickup participant
contributions or employer defined contributions.
* * *
Section 2. Sections 5301(d) and 5706(a)(2) and (a.5) of
Title 71 are amended to read:
§ 5301. Mandatory and optional membership in the system and
participation in the plan.
* * *
(d) Return to service.--
(1) An annuitant who returns to service as a State
employee before January 1, 2019, or returns to State service
as a Class A-5 exempt employee after December 31, 2018, shall
resume active membership in the system as of the effective
date of employment, except as otherwise provided in section
5706(a) and (a.1) (relating to termination of annuities),
regardless of the optional membership category of the
position.
(2) An annuitant or a participant receiving
distributions who returns to service as a State employee on
or after January 1, 2019, shall resume active membership in
the system and, if an active member of Class A-5 or Class A-
6, shall be an active participant in the plan as of the
effective date of employment, except as otherwise provided in
section 5706(a) and (a.1), regardless of the optional
membership or participation category of the position:
Provided, however, That a participant or former participant
who previously elected to be solely a participant under
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section 5306.4 or 5306.5 shall be a participant in the plan
and not an active member of the system, except for service as
a Class A-5 exempt employee.
* * *
§ 5706. Termination of annuities.
(a) General rule.--
* * *
(2) This subsection shall not apply in the case of any
annuitant who:
(i) may render services to the Commonwealth in the
capacity of an independent contractor; or
(ii) is over normal retirement a