(a) General rule.--A person who:
(1) is a Class T-C, Class T-D, Class T-E or Class T-F member of the system or a Class T-C, Class T-D, Class T-E or Class T-F multiple service member who is a State employee and a member of the State Employees' Retirement System; and
(2) on July 1, 2019, is an active member of the system or an active member of the State Employees' Retirement System if a multiple service member,
may elect to become a member of Class T-G, Class T-H or a participant of Class DC.
(b) Time for making election.--The member must elect to become a member of Class T-G or Class T-H or a participant of Class DC by filing a written notice with the board within 90 days of notification by the board that the member is eligible to make the election or before the termination of school service or State service, as applicable, whichever occurs first. A school employee who is eligible to elect to become a member of Class T-G or Class T-H or a participant of Class DC who begins USERRA leave during the election period without having elected the membership may make the election within 90 days after being reemployed from USERRA leave.
(c) Effect of election.--An election to become a member of Class T-G or Class T-H or a participant in Class DC shall be irrevocable. The election shall apply to all service performed on or after January 1, 2020.
(1) Total contribution rate. A member electing membership in Class T-G or Class T-H shall be deemed to have accepted the basic contribution rate for the class of membership as defined in section 8102 (relating to definitions) in effect at the time of the election, provided that the sum of the total contribution rate plus the mandatory pickup participant contributions of a member who elects membership in Class T-G or Class T-H shall not be more or less than the total contribution rate the member would have contributed had the member not elected such membership. Class T-C and Class T-D members electing membership in Class T-G or Class T-H shall not be subject to the shared-risk contribution rate as determined by section 8321 (relating to regular member contributions for current service).
(2) Mandatory pickup participant contributions. The mandatory pickup participant contribution of a member electing Class T-G or Class T-H shall be the difference between the total contribution rate of the member's prior class of service and the total contribution rate of the elected class of service. A member electing participation in Class DC shall be deemed to have accepted the mandatory pickup participant contribution rate for Class DC equal to the total contribution rate the member would have contributed had the member not elected participation.
(d) Effect of failure to make election.--If the member fails to timely file an election to become a member of Class T-G or Class T-H or a participant of Class DC, the member shall continue to be enrolled as a member of Class T-C, Class T-D, Class T-E or Class T-F as applicable and the member shall never be able to elect membership in Class T-G or Class T-H or participation in Class DC, regardless of whether the member terminates service, has a break in service or refunds and returns to service.
(e) Former members.--Class T-C, Class T-D, Class T-E and Class T-F members, or former Class T-C, Class T-D, Class T-E and Class T-F members who, on July 1, 2019, are not eligible to make an election, or who return to service on or after July 1, 2019, shall not be eligible to elect membership in Class T-G or Class T-H or participation in Class DC.
(f) Multiple classes of service.--A member with more than one class of service who vests the member's retirement benefits in any class of service may not receive distributions from other classes of service until the member's effective date of retirement, regardless of whether the member's benefits resulting from such other classes of service are vested or the member is eligible to receive an annuity. A member with service credited in more than one class of service may not separately vest the benefits and receive annuities from different classes of service with different effective dates.
(g) Eligibility points.--In determining whether a member, who elects membership in Class T-G or Class T-H or participation in Class DC, accrues the eligibility points required in sections 8102, 8305 (relating to classes of service), 8307 (relating to eligibility for annuities), 8308 (relating to eligibility for vesting), 8345 (relating to member's options) and 8346 (relating to termination of annuities), eligibility points earned by performing credited school service as a member of Class T-C, Class T-D, Class T-E, Class T-F, Class T-G and Class T-H shall be counted in the aggregate for eligibility purposes only. A member who elects participation in Class DC shall earn one eligibility point for each fiscal year in which the Class DC participant contributes to the trust.
(June 12, 2017, P.L.11, No.5, eff. imd.)
2017 Amendment. Act 5 added section 8305.5.
Cross References. Section 8305.5 is referred to in section 8345 of this title.
Structure Pennsylvania Consolidated & Unconsolidated Statutes
Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 83 - Membership, Contributions and Benefits
Section 8301 - Mandatory and optional membership in the system and participation in the plan
Section 8302 - Credited school service
Section 8303 - Eligibility points for retention and reinstatement of service credits
Section 8303.1 - Waiver of adjustments
Section 8304 - Creditable nonschool service
Section 8305 - Classes of service
Section 8305.1 - Election to become a Class T-D member
Section 8305.2 - Election to become a Class T-F member
Section 8305.3 - Election to become a Class T-H member
Section 8305.4 - Election to become a Class DC participant
Section 8305.5 - Election to become Class T-G, Class T-H or Class DC
Section 8306 - Eligibility points
Section 8307 - Eligibility for annuities
Section 8308 - Eligibility for vesting
Section 8309 - Eligibility for death benefits
Section 8310 - Eligibility for refunds
Section 8311 - Eligibility for early retirement
Section 8312 - Eligibility for special early retirement
Section 8313 - Eligibility for limited early retirement
Section 8321 - Regular member contributions for current service
Section 8322 - Joint coverage member contributions
Section 8322.1 - Pickup contributions
Section 8323 - Member contributions for creditable school service
Section 8325 - Incomplete payments
Section 8325.1 - Annual compensation limit under IRC ยง 401(a)(17)
Section 8326 - Contributions by the Commonwealth
Section 8327 - Payments by employers
Section 8327.1 - Nonparticipating employer withdrawal liablity
Section 8328 - Actuarial cost method
Section 8329 - Payments on account of social security deductions from appropriations
Section 8330 - Appropriations by the Commonwealth
Section 8341 - Return of accumulated deductions
Section 8342 - Maximum single life annuity
Section 8343 - Reduction of annuities on account of social security old-age insurance benefits
Section 8344 - Disability annuities
Section 8345 - Member's options
Section 8346 - Termination of annuities
Section 8348 - Supplemental annuities
Section 8348.1 - Additional supplemental annuities
Section 8348.2 - Further additional supplemental annuities
Section 8348.3 - Supplemental annuities commencing 1994
Section 8348.4 - Special supplemental postretirement adjustment
Section 8348.5 - Supplemental annuities commencing 1998
Section 8348.6 - Supplemental annuities commencing 2002