LEGISLATIVE ADVISORY
July 10, 2008
For additional information,
Contact Kevin Kodish 800-932-0587, ext. 3020
SENATOR GORDNER, OTHERS INTRODUCE
RETIREMENT SWITCH LEGISLATION
HARRISBURG – Senator John Gordner and 10 co-sponsors have introduced legislation that would permit faculty members to terminate membership in an independent retirement program and transfer their membership to SERS.
Senate Bill 1526, which amends Title 71 (State Government), was introduced on July 8 and referred to the Senate Finance Committee. APSCUF urges all members to contact members of the Senate Finance Committee and encourage them to support the legislation and vote it out of committee.
“Act 9 of 2001 created enhancements in SERS that these state employees would have opted into when hired if they had been aware these changes were to occur,” said Laura Statler, APSCUF’s assistant director for governmental relations. “The most significant change was the decline in the vesting period from ten years to five years. Before the changes of Act 9, many faculty members in Pennsylvania felt it necessary to choose an ARP because of its portability.”
The bill allows all state employees who are school employees and who have elected membership in an independent retirement program approved by the employer to terminate membership in that program and elect membership in Class AA of the system within 180 days of the effective date of January 1, 2009. The legislation further provides these state employees either who are employed in a tenure track position on the effective date or who become employed in a tenure track position after the effective date would have the right to terminate membership in an independent retirement program and elect membership in Class AA of the system within 180 days of receiving tenure. In the PASSHE, tenure is earned by faculty members after five successful years.
Also, the bill stipulates that once such election is exercised, membership would become effective on the earlier of the first day of July or first day of February next following the filing of the election with the board and would continue until the termination of State service.
