The following words and phrases as used in this part, unless a different meaning is plainly required by the context, shall have the following meanings:

"Academic administrator." A management employee in the field of public education whose work is directly related to academic instruction, excluding any employee in a position that is nonacademic in nature, such as, without limitation, a position that relates to admissions, financial aid, counseling, secretarial and clerical services, records management, housing, food service, maintenance and security.

"Accumulated employer defined contributions." The total of the employer defined contributions paid into the trust on account of a participant's State service together with any investment earnings and losses and adjustment for fees, costs and expenses credited or charged thereon and reduced by any distributions.

"Accumulated mandatory participant contributions." The total of the mandatory pickup participant contributions paid into the trust on account of a participant's State service together with any investment earnings and losses and adjustments for fees, costs and expenses credited or charged thereon and reduced by any distributions.

"Accumulated total defined contributions." The total of the accumulated mandatory participant contributions, accumulated employer defined contributions and accumulated voluntary contributions standing to the credit of a participant in an individual investment account in the trust.

"Accumulated voluntary contributions." The total of voluntary contributions paid into the trust by a participant and any amounts rolled over by a participant or transferred by a direct trustee-to-trustee transfer into the trust together with any investment earnings and losses and adjustment for fees, costs and expenses credited or charged thereon and reduced by any distributions.

"Active member." A State employee, or a member on leave without pay, for whom pickup contributions are being made to the fund or for whom such contributions otherwise required for current State service are not being made 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 section 401(a)(17) or 415 of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 401(a)(17) or 415).

"Active participant." A State employee for whom mandatory pickup participant contributions are being made to the trust or for whom contributions otherwise required for State service required to be credited in the plan are not being made solely by reason of any provision of this part relating to the limitations under section 401(a)(17) or 415 of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 401(a)(17) or 415).

"Actuarial increase factor." A factor calculated at the member's birthday by dividing the cost of a dollar annuity based on the age of the member on the member's immediately previous birthday by the cost of a one-year deferred dollar annuity calculated at that same age. Unless the member terminates State or school service on the member's birthday, the actuarial increase factor for the year of termination shall be adjusted by:

(1) subtracting one from the calculated factor; then

(2) dividing the difference by twelve; then

(3) multiplying the resulting quotient by the number of whole months between the member's immediately previous birthday and the date of termination of service; then

(4) adding one to the resulting product.

"Actuarially equivalent." Equal present values, computed on the basis of statutory interest and the mortality tables adopted by the board.

"Actuary." The consultant to the board who shall be:

(1) a member of the American Academy of Actuaries; or

(2) an individual who has demonstrated to the satisfaction of the Insurance Commissioner of Pennsylvania that he has the educational background necessary for the practice of actuarial science and has had at least seven years of actuarial experience; or

(3) a firm, partnership, or corporation of which at least one member meets the requirements of (1) or (2).

"Additional accumulated deductions." The total of the additional member contributions paid into the fund on account of current service or previous State or creditable nonstate service, together with the statutory interest credited thereon until the date of termination of service. In the case of a vestee, statutory interest shall be credited until the effective date of retirement. A member's account shall not be credited with statutory interest for more than two years during a leave without pay.

"Alternative investment." An investment in a private equity fund, private debt fund, venture fund, real estate fund, hedge fund or absolute return fund.

"Alternative investment vehicle." A limited partnership, limited liability company or any other legal vehicle for authorized investments under section 5931(i) (relating to management of fund and accounts) through which the system makes an alternative investment.

"Alternate payee." Any spouse, former spouse, child or dependent of a member or participant who is recognized by a domestic relations order as having a right to receive all or a portion of the moneys payable to that member or participant under this part.

"Annuitant." Any member on or after the effective date of retirement until his annuity is terminated.

"Approved domestic relations order." Any domestic relations order which has been determined to be approved in accordance with section 5953.1 (relating to approval of domestic relations orders).

"Average noncovered salary." The average of the amounts of compensation received as an active member each calendar year since January 1, 1956, exclusive of the amount which was or could have been covered by the Federal Social Security Act (42 U.S.C. § 301 et seq.), during that portion of the member's service since January 1, 1956, for which he has received social security integration credit.

"Basic contribution rate." Five percent (5%), except that in no case shall any member's rate, excluding the rate for social security integration credit, be greater than his contribution rate on the effective date of this part so long as he does not elect additional coverage or membership in another class of service.

"Beneficiary." In the case of the system, the person or persons last designated in writing to the board by a member to receive his accumulated deductions or a lump sum benefit upon the death of such member. In the case of the plan, the person or persons last designated in writing to the board by the participant to receive the participant's vested accumulated total defined contributions or a lump sum benefit upon the death of the participant.

"Board." The State Employees' Retirement Board or the State Employes' Retirement Board.

"Class A-5 exempt employee." Any of the following:

(1) A sworn police officer.

(2) An enforcement officer.

(3) A wildlife conservation officer or other commissioned law enforcement personnel employed by the Pennsylvania Game Commission who has and exercises the same law enforcement powers as a wildlife conservation officer. The term shall not include a deputy wildlife conservation officer.

(4) A Delaware River Port Authority policeman.

(5) A park ranger.

(6) A Capitol Police officer.

(7) A campus police officer employed by a State-owned educational institution, community college or The Pennsylvania State University.

(8) An installation police officer at Fort Indiantown Gap or other designated Commonwealth military installation or facility commissioned under 51 Pa.C.S. § 711 (relating to installation of police officers for Fort Indiantown Gap and other designated Commonwealth military installations and facilities).

(9) A correction officer.

"Class of service multiplier."

Class of Service

Multiplier

A

1

AA

for all purposes except calculating regular member contributions on compensation paid prior to January 1, 2002

1.25

AA

for purposes of calculating regular member contributions on compensation paid prior to January 1, 2002

1

A-3

for all purposes except the calculation of regular member contributions and contributions for creditable nonstate service

1

A-3

for purposes of calculating regular member contributions and contributions for creditable nonstate service

1.25

A-4

for all purposes except the calculation of regular member contributions

1.25

A-4

for purposes of calculating regular member contributions

1.86

A-5

for all purposes except the calculation of regular member contributions

.625

A-5

for purposes of calculating regular member contributions

1

A-6

for all purposes except the calculation of regular member contributions

.5

A-6

for purposes of calculating regular member contributions

.8

B

.625

C

1

D

1.25

D-1

prior to January 1, 1973

1.875

D-1

on and subsequent to January 1, 1973

1.731

D-2

prior to January 1, 1973

2.5

D-2

on and subsequent to January 1, 1973

1.731

D-3

prior to January 1, 1973

3.75

D-3

on and subsequent to January 1, 1973

1.731

except prior to December 1, 1974

as applied to any additional legislative compensation as an officer of the General Assembly

3.75

D-4

for all purposes except calculating regular member contributions on compensation paid prior to July 1, 2001

1.5

D-4

for purposes of calculating regular member contributions on compensation paid prior to July 1, 2001

1

E, E-1

prior to January 1, 1973

2

for each of the first ten years of judicial service, and

1.5

for each subsequent year of judicial service

E, E-1

on and subsequent to January 1, 1973

1.50

for each of the first ten years of judicial service and

1.125

for each subsequent year of judicial service

E-2

prior to September 1, 1973

1.5

E-2

on and subsequent to September 1, 1973

1.125

G

0.417

H

0.500

I

0.625

J

0.714

K

0.834

L

1.000

M

1.100

N

1.250

T-C (Public School

Employees'

Retirement Code)

1

T-E (Public School

Employees'

Retirement Code)

1

T-F (Public School

Employees'

Retirement Code)

1

T-G (Public School

Employees'

Retirement Code)

1

T-H (Public School Employees'

Retirement Code)

1

"Commissioner." The Commissioner of the Internal Revenue Service.

"Compensation." Pickup contributions and mandatory pickup participant contributions plus remuneration actually received as a State employee excluding refunds for expenses, contingency and accountable expense allowances; excluding any severance payments or payments for unused vacation or sick leave; and excluding payments for military leave and any other payments made by an employer while on USERRA leave, leave of absence granted under 51 Pa.C.S. § 4102 (relating to leaves of absence for certain government employees), military leave of absence granted under 51 Pa.C.S. § 7302 (relating to granting military leaves of absence) or other types of military leave, including other types of leave payments, stipends, differential wage payments as defined in IRC § 414(u)(12) and any other payments: Provided, however, That for purposes of determining member and employer contributions to the system and for calculating annuities and benefits from the system resulting from service performed as a Class A-5 exempt employee who first became a member on or after January 1, 2019, compensation shall not include remuneration received in any pay period for voluntary overtime service or duty that exceeds 10% of a Class A-5 exempt employee's base salary or wages in that pay period, notwithstanding the provisions of a binding arbitration award issued before July 1, 1989, under the act of June 24, 1968 (P.L.237, No.111), referred to as the Policemen and Firemen Collective Bargaining Act, and implemented by the board: Provided further, That compensation received prior to January 1, 1973, shall be subject to the limitations for retirement purposes in effect December 31, 1972, if any: Provided further, That the limitation under section 401(a)(17) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 401(a)(17)) taken into account for the purpose of member contributions, including any additional member contributions in addition to regular or joint coverage member contributions and Social Security integration contributions, regardless of class of service, shall apply to each member who first became a member of the State Employees' Retirement System on or after January 1, 1996, and who by reason of such fact is a noneligible member subject to the application of the provisions of section 5506.1(a) (relating to annual compensation limit under IRC § 401(a)(17)) and shall apply to each participant pertaining to his participation in the plan.

"Concurrent service." Service credited in more than one class of service during the same period of time.

"Correction officer." Any full-time employee assigned to the Department of Corrections or the Department of Public Welfare whose principal duty is the care, custody and control of inmates or direct therapeutic treatment, care, custody and control of inmates of a penal or correctional institution, community treatment center, forensic unit in a State hospital or secure unit of a youth development center operated by the Department of Corrections or by the Department of Public Welfare.

"County service." Service credited in a retirement system or pension plan established or maintained by a county to provide retirement benefits for its employees to the account of county employees who are transferred to State employment and become State employees pursuant to 42 Pa.C.S. § 1905 (relating to county-level court administrators) regardless of whether the service was performed for the county or another employer or allowed to be purchased in the county retirement system or pension plan.

"Creditable nonstate service." Service for which an active member may obtain credit in the system, other than:

(1) service as a State employee;

(2) service converted to State service pursuant to section 5303.1 (relating to election to convert county service to State service); or

(3) school service converted to State service pursuant to section 5303.2 (relating to election to convert school service to State service).

"Credited service." State or creditable nonstate service for which the required contributions have been made to the fund or for which the contributions otherwise required for such service were not made 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 section 401(a)(17) or 415 of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 401(a)(17) or 415), except as otherwise provided in this part, or for which salary deductions or lump sum payments to the system have been agreed upon in writing.

"Date of termination of service." The latest of the following dates:

(1) the last day of service for which pickup contributions are made for an active member or for which the contributions otherwise required for such service are not made solely by reason of any provision of this part relating to the limitations under section 401(a)(17) or 415 of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 401(a)(17) or 415);

(2) in the case of an inactive member on leave without pay or an inactive participant on leave without pay, the date of his resignation or the date his employment is formally discontinued by his employer; or

(3) the last day of service for which mandatory pickup participant contributions are made for an active participant.

"Disability annuitant." A member on and after the effective date of disability until his annuity or the portion of his annuity payments in excess of any annuity to which he may otherwise be entitled is terminated.

"Distribution." Payment of all or any portion of a person's interest in either the State Employees' Retirement Fund or the State Employees' Defined Contribution Trust, or both, which is payable under this part.

"Domestic relations order." Any judgment, decree or order, including approval of a property settlement agreement, entered on or after the effective date of this definition by a court of competent jurisdiction pursuant to a domestic relations law which relates to the marital property rights of the spouse or former spouse of a member or participant, including the right to receive all or a portion of the moneys payable to that member or participant under this part in furtherance of the equitable distribution of marital assets. The term includes orders of support as that term is defined by 23 Pa.C.S. § 4302 (relating to definitions) and orders for the enforcement of arrearages as provided in 23 Pa.C.S. § 3703 (relating to enforcement of arrearages).

"Effective date of retirement." The first day following the date of termination of service of a member if he has properly filed an application for an annuity within 90 days of such date; in the case of a vestee or a member who does not apply for an annuity within 90 days after termination of service, the date of filing an application for an annuity or the date specified on the application, whichever is later. In the case of a finding of disability, the date certified by the board as the effective date of disability.

"Eligibility points." Points which are accrued by an active member, active participant or a multiple service member who is an active member in the Public School Employees' Retirement System for credited service or a member who has been reemployed from USERRA leave or a member who dies while performing USERRA leave and are used in the determination of eligibility for benefits.

"Eligible employer." Any employing unit, agency or department that employs State employees, other than the Pennsylvania Turnpike Commission, the Delaware River Port Authority, the Port Authority Transit Corporation, the Philadelphia Regional Port Authority, the Delaware River Joint Toll Bridge Commission, the State Public School Building Authority, the Department of General Services, the State Highway and Bridge Authority, the Delaware Valley Regional Planning Commission, the Delaware River Basin Commission, the Susquehanna River Basin Commission and any separate independent public corporation created by statute, not including any municipal or quasi-municipal corporation.

"Employer defined contributions." Contributions equal to a percentage of an active participant's compensation that are made by the Commonwealth or other employer to the trust to be credited in an active participant's individual investment account as follows:

(1) 2.25% of compensation for service credited as a Class A-5 member;

(2) 2% of compensation for service credited as a Class A-6 member; and

(3) 3.5% of compensation for service performed solely as a participant.

"Enforcement officer."

(1) Any enforcement officer or investigator of the Pennsylvania Liquor Control Board who is a peace officer vested with police power and authority throughout the Commonwealth and any administrative or supervisory employee of the Pennsylvania Liquor Control Board vested with police power who is charged with the administration or enforcement of the liquor laws of the Commonwealth.

(2) Special agents, narcotics agents, asset forfeiture agents, medicaid fraud agents and senior investigators hazardous waste prosecutions unit, classified as such and employed by the Office of Attorney General who have within the scope of their employment as law enforcement officers the power to enforce the law and make arrests under the authority of the act of October 15, 1980 (P.L.950, No.164), known as the Commonwealth Attorneys Act.

(3) Parole agents, classified as such by the Executive Board and employed by the Pennsylvania Board of Probation and Parole.

(4) Waterways conservation officers and other commissioned law enforcement personnel employed by the Pennsylvania Fish and Boat Commission who have and exercise the same law enforcement powers as waterways conservation officers. This paragraph shall not apply to deputy waterways conservation officers.

(5) Game Commission officers and any other commissioned law enforcement personnel under the employment of the Pennsylvania Game Commission who have and exercise the same law enforcement powers as Game Commission officers. This paragraph does not include deputy Game Commission officers.

(6) Individuals who are employed by the Office of State Inspector General on or after the effective date of this paragraph as investigators, agents and their immediate supervisors, who are charged with the enforcement of laws and who have, within the scope of their employment, the police power to enforce the laws under the authority of Article V-A of the act of April 9, 1929 (P.L.177, No.175), known as The Administrative Code of 1929.

"Final average salary." As follows:

(1) For members with an effective date of retirement before January 1, 2019, and for purposes of calculating standard single life annuities and benefits resulting from credited service other than Class A-5 service and Class A-6 service regardless of the effective date of retirement, the highest average compensation received as a member during any three nonoverlapping periods of four consecutive calendar quarters during which the member was a State employee, with the compensation for part-time service being annualized on the basis of the fractional portion of the year for which credit is received; except if the employee was not a member for three nonoverlapping periods of four consecutive calendar quarters, the total compensation received as a member, annualized in the case of part-time service, divided by the number of nonoverlapping periods of four consecutive calendar quarters of membership.

(2) For purposes of calculating standard single life annuities and benefits from the system attributable to service as a member of Class A-5 or Class A-6, the highest average compensation received as a member during any five calendar years during which the member was a State employee, with the compensation for part-time service or for any partial year of credit annualized on the basis of the fractional portion of the year for which credit is received; except if the employee was not a member during five calendar years, the average of the number of calendar years during which the employee was an active member.

(3) For all members and for the calculation of all standard single life annuities without regard to class of membership and credited service, in the case of a member with multiple service, the final average salary shall be determined on the basis of the compensation received by him as a member of the system or as a member of the Public School Employees' Retirement System, or both, and, in the case of a member with service in more than one class of service, the final average salary for purposes of calculating annuities and benefits from all classes of service shall be determined on the basis of the compensation received by him in all classes of State service credited in the system; and, in the case of a member who first became a member on or after January 1, 1996, the final average salary shall be determined as hereinabove provided but subject to the application of the provisions of section 5506.1(a) (relating to annual compensation limit under IRC § 401(a)(17)). Final average salary shall be determined by including in compensation payments deemed to have been made to a member reemployed from USERRA leave to the extent member contributions have been made as provided in section 5302(f)(2) (relating to credited State service) and payments made to a member on leave of absence under 51 Pa.C.S. § 4102 (relating to leaves of absence for certain government employees) as provided in section 5302(f)(6).

"Full coverage member." Any member for whom member pickup contributions are being picked up or who has paid or has agreed to pay to the fund the actuarial equivalent of regular member contributions due on account of service prior to January 1, 1982.

"Fund." The State Employees' Retirement Fund.

"Head of department." The chief administrative officer of the department, the chairman or executive director of the agency, authority, or independent board or commission, the Court Administrator of Pennsylvania, and the Chief Clerk of the Senate, or the Chief Clerk of the House of Representatives.

"Inactive member." A member for whom no pickup contributions are being made to the fund, except in the case of an active member for whom such contributions otherwise required for current State service are not being made 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 section 401(a)(17) or 415 of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 401(a)(17) or 415), but who has accumulated deductions standing to his credit in the fund and who is not eligible to become or has not elected to become a vestee or has not filed an application for an annuity.

"Inactive member on leave without pay." The term does not include a State employee who is performing service solely as a participant in the plan unless the participant concurrently is employed as a Class A-5 exempt employee and on leave without pay.

"Inactive participant." A participant for whom no mandatory pickup participant contributions are being made to the trust, except in the case of an active participant for whom such contributions otherwise required for current State service are not being made solely by reason of any provision of this part relating to limitations under section 401(a)(17) or 415 of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 401(a)(17) or 415), but who has vested accumulated total defined contributions standing to his credit in the trust and who has not filed an application for a distribution.

"Inactive participant on leave without pay." The term does not include a Class A-5 exempt employee who is an active member on leave without pay unless the Class A-5 exempt employee concurrently is employed in an office or position in which the Class A-5 exempt employee is a participant in the plan and on leave without pay.

"Individual investment account." The account in the trust to which are credited the amounts of the contributions made by a participant and the participant's employer in accordance with the provisions of this part, together with all interest and investment earnings after deduction for fees, costs, expenses and investment losses and charges for distributions.

"Intervening military service." Active military service of a member who was a State employee and active member of the system immediately preceding his induction into the armed services or forces of the United States in order to meet a military obligation excluding any voluntary extension of such service and who becomes a State employee within 90 days of the expiration of such service.

"IRC." The Internal Revenue Code of 1986, as designated and referred to in section 2 of the Tax Reform Act of 1986 (Public Law 99-514, 100 Stat. 2085, 2095). A reference in this part to "IRC § " shall be deemed to refer to the identically numbered section and subsection or other subdivision of such section in 26 United States Code (relating to Internal Revenue Code).

"Irrevocable beneficiary." The person or persons permanently designated by a member or participant in writing to the State Employees' Retirement Board pursuant to an approved domestic relations order to receive all or a portion of the accumulated deductions, vested accumulated total defined contributions or lump sum benefit payable upon the death of such member or participant.

"Irrevocable successor payee." The person permanently designated by a participant receiving distributions in writing to the board pursuant to an approved domestic relations order to receive one or more distributions from the plan upon the death of the participant.

"Irrevocable survivor annuitant." The person permanently designated by a member in writing to the State Employees' Retirement Board pursuant to an approved domestic relations order to receive an annuity upon the death of such member.

"Joint coverage member." Any member who agreed prior to January 1, 1966 to make joint coverage member contributions to the fund and has not elected to become a full coverage member.

"Joint coverage member contributions." Regular member contributions reduced for a joint coverage member.

"Mandatory pickup participant contributions." Contributions equal to a percentage of compensation that are made by the Commonwealth or other employer for an active participant for current State service that are picked up by the employer and credited in the plan as follows:

(1) for a participant who did not make the election under section 5306.5 (relating to election by active members to become a Class A-5 member, Class A-6 member or plan participant):

(i) 3.25% of compensation for service credited as a Class A-5 member;

(ii) 3.5% of compensation for service credited as a Class A-6 member;

(iii) 7.5% of compensation for service performed solely as a participant; or

(2) for a participant who makes the election under section 5306.5, the percentage of compensation otherwise provided under section 5306.5(e).

"Member." Active member, inactive member, annuitant, vestee or special vestee.

"Member of the judiciary." Any justice of the Supreme Court, any judge of the Superior Court, the Commonwealth Court, any court of common pleas, the Municipal Court and the Traffic Court of Philadelphia, or any community court.

"Member's annuity." The single life annuity which is actuarially equivalent, at the effective date of retirement and taking into account any delay in the receipt of the portion of the annuity based on Class A-5 service or Class A-6 service, if the effective date of retirement is under the age at which the member can receive a withdrawal annuity based on Class A-5 service or Class A-6 service, to the sum of the regular accumulated deductions, shared-risk accumulated deductions, the additional accumulated deductions and the social security integration accumulated deductions standing to the member's credit in the members' savings account.

"Military service." All active military service for which a member has received a discharge other than an undesirable, bad conduct, or dishonorable discharge.

"Multiple service." Credited service of a member who has elected to combine his credited service in both the State Employees' Retirement System and the Public School Employees' Retirement System.

"Noneligible member." For the purposes of section 5506.1 (relating to annual compensation limit under IRC § 401(a)(17)), a member who first became a member on or after January 1, 1996.

"Nonstudent service." Employment in an educational institution that is not contingent on the employee's enrollment as a student or maintenance of student status at such institution and for which only monetary compensation is received, excluding tuition waivers or reimbursement, academic credit, housing, meals and other in-kind compensation.

"Normal retirement age." The normal retirement age of a member is the age set forth in section 401(a)(36) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 401(a)(36)) and in 26 C.F.R. § 1.401(a)-1(b)(2) (relating to post-ERISA qualified plans and qualified trusts; in general).

"Participant." An active participant, inactive participant or participant receiving distributions.

"Participant receiving distributions." A participant in the plan who has commenced receiving distributions from his individual investment account but who has not received a total distribution of his vested interest in the individual investment account.

"Pickup contributions." Regular or joint coverage member contributions, shared risk member contributions, social security integration contributions and additional member contributions which are made by the Commonwealth or other employer for active members for current service on and after January 1, 1982.

"Plan." The State Employees' Defined Contribution Plan as established under the provisions of this part and the board.

"Plan document." The documents created by the board under section 5802 (relating to plan document) that contain the terms and provisions of the plan and trust as established by the board regarding the establishment, administration and investment of the plan and trust.

"Previous State service." Service rendered as a State employee prior to his most recent entrance in the system.

"Psychiatric security aide." Any employee whose principal duty is the care, custody and control of the criminally insane inmates of a maximum security institution for the criminally insane or detention facility operated by the Department of Public Welfare.

"Public School Employees' Retirement System." The retirement system established by the act of July 18, 1917 (P.L.1043, No.343), and codified by the act of June 1, 1959 (P.L.350, No.77).

"Reemployed from USERRA leave." Resumption of active membership or active participation as a State employee after a period of USERRA leave, provided, however, that the resumption of active membership or active participation was within the time period and under conditions and circumstances such that the State employee was entitled to reemployment rights under 38 U.S.C. Ch. 43 (relating to employment and reemployment rights of members of the uniformed services).

"Regular accumulated deductions." The total of the regular or joint coverage member contributions paid into the fund on account of current service or previous State or creditable nonstate service, together with the statutory interest credited thereon until the date of termination of service. In the case of a vestee or a special vestee, statutory interest shall be credited until the effective date of retirement. A member's account shall not be credited with statutory interest for more than two years during a leave without pay.

"Regular member contributions." The product of the basic contribution rate, the class of service multiplier and the compensation of the member, subject to any adjustment under section 5501.1(c) (relating to shared-risk member contributions and shared-gain adjustments to regular member contributions).

"Required beginning date." The latest date by which distributions of a member's interest or a participant's interest in his individual investment account must commence under section 401(a)(9) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 401(a)(9)).

"Retirement counselor." The State Employees' Retirement Board employee whose duty it shall be to advise each employee of his rights and duties as a member of the system or as a participant of the plan.

"Salary deductions." The amounts certified by the board, deducted from the compensation of an active member or active participant, or the school service compensation of a multiple service member who is an active member of the Public School Employees' Retirement System, and paid into the fund or trust.

"School Employees' Defined Contribution Plan." The defined contribution plan for school employees established under 24 Pa.C.S. Pt. IV (relating to retirement for school employees).

"School service." Service rendered as a public school employee and credited as service in the Public School Employees' Retirement System.

"Service connected disability." A disability resulting from an injury arising in the course of State employment, and which is compensable under the applicable provisions of the act of June 2, 1915 (P.L.736, No.338), known as "The Pennsylvania Workmen's Compensation Act," or the act of June 21, 1939 (P.L.566, No.284), known as "The Pennsylvania Occupational Disease Act."

"Shared-risk accumulated deductions." The total of the shared-risk member contributions paid into the fund on account of current service or previous State service or creditable nonstate service, together with the statutory interest credited on the contributions until the date of termination of service. In the case of a vestee, statutory interest shall be credited until the effective date of retirement. A member's account shall not be credited with statutory interest for more than two years during a leave without pay.

"Shared-risk member contributions." The product of the applicable shared-risk contribution rate and the compensation of a member who is required to make shared-risk member contributions.

"Social security integration accumulated deductions." The total of the member contributions paid into the fund on account of social security integration credit, together with the statutory interest credited thereon until the date of termination of service or until the date of withdrawal thereof, whichever is earlier. In the case of a vestee statutory interest shall be credited until the effective date of retirement. A member's account shall not be credited with statutory interest for more than two years during a leave without pay.

"Special vestee." An employee of The Pennsylvania State University who is a member of the State Employees' Retirement System with five or more but less than ten eligibility points and who has a date of termination of service from The Pennsylvania State University of June 30, 1997, because of the transfer of his job position or duties to a controlled organization of the Penn State Geisinger Health System or because of the elimination of his job position or duties due to the transfer of other job positions or duties to a controlled organization of the Penn State Geisinger Health System, provided that:

(1) subsequent to termination of State service as an employee of The Pennsylvania State University, the member has not returned to State service in any other capacity or position as a State employee;

(2) The Pennsylvania State University certifies to the board that the member is eligible to be a special vestee;

(3) the member files an application to vest the member's retirement rights under section 5907(f) (relating to rights and duties of State employees, members and participants) on or before September 30, 1997; and

(4) the member elects to leave the member's total accumulated deductions in the fund and to defer receipt of an annuity until attainment of superannuation age or the member's required beginning date.

"Standard single life annuity." An annuity equal to 2% of the final average salary, multiplied by the total number of years and fractional part of a year of credited service of a member in each class of service.

"State employee." Any person holding a State office or position under the Commonwealth, employed by the State Government of the Commonwealth, in any capacity whatsoever, except an independent contractor or any person compensated on a fee basis or any person paid directly by an entity other than a State Employees' Retirement System employer, and shall include members of the General Assembly, and any officer or employee of the following:

(1) (i) The Department of Education.

(ii) State-owned educational institutions.

(iii) Community colleges.

(iv) The Pennsylvania State University, except an employee in the College of Agriculture who is paid wholly from Federal funds or an employee who is participating in the Federal Civil Service Retirement System. The university shall be totally responsible for all employer contributions under section 5507 (relating to contributions to the system by the Commonwealth and other employers) and all employer defined contributions to the trust under section 5806 (relating to employer defined contributions).

(2) The Pennsylvania Turnpike Commission, the Delaware River Port Authority, the Port Authority Transit Corporation, the Philadelphia Regional Port Authority, the Delaware River Joint Toll Bridge Commission, the State Public School Building Authority, The General State Authority, the State Highway and Bridge Authority, the Delaware Valley Regional Planning Commission, the Interstate Commission of the Delaware River Basin, and the Susquehanna River Basin Commission any time subsequent to its creation, provided the commission or authority agrees to contribute and does contribute to the fund or trust, from time to time, the moneys required to build up the reserves necessary for the payment of the annuities or other benefits of such officers and employees without any liability on the part of the Commonwealth to make appropriations for such purposes, and provided in the case of employees of the Interstate Commission of the Delaware River Basin, that the employee shall have been a member of the system for at least ten years prior to January 1, 1963.

(3) Any separate independent public corporation created by statute, not including any municipal or quasi-municipal corporation, so long as he remains an officer or employee of such public corporation, and provided that such officer or employee of such public corporation was an employee of the Commonwealth immediately prior to his employment by such corporation, and further provided such public corporation shall agree to contribute and contributes to the fund or trust, from time to time, the moneys required to build up the reserves necessary for the payment of the annuities or other benefits of such officers and employees without any liability on the part of the Commonwealth to make appropriations for such purposes.

"State police officer." Any officer or member of the Pennsylvania State Police who, on or after July 1, 1989, shall have been subject to the terms of a collective bargaining agreement or binding interest arbitration award established pursuant to the act of June 24, 1968 (P.L.237, No.111), referred to as the Policemen and Firemen Collective Bargaining Act.

"State service." Service converted from county service pursuant to section 5303.1 (relating to election to convert county service to State service), converted from school service pursuant to section 5303.2 (relating to election to convert school service to State service) or rendered as a State employee.

"Statutory interest." Interest at 4% per annum, compounded annually.

"Successor payee." The person or persons last designated in writing to the board by a participant receiving distributions to receive one or more distributions upon the death of the participant.

"Superannuation age." For classes of service in the system other than Class A-3, Class A-4, Class A-5 and Class A-6, any age upon accrual of 35 eligibility points or age 60, except for a member of the General Assembly who has no service as a member of the General Assembly in Class A-3, Class A-4, Class A-5 or Class A-6, an enforcement officer, a correction officer, a psychiatric security aide, a Delaware River Port Authority policeman or an officer of the Pennsylvania State Police, age 50, and, except for a member with Class G, Class H, Class I, Class J, Class K, Class L, Class M or Class N service, age 55 upon accrual of 20 eligibility points. For Class A-3 and Class A-4 service, any age upon attainment of a superannuation score of 92, provided the member has accrued 35 eligibility points, or age 65, or for park rangers or capitol police officers, age 55 with 20 years of service as a park ranger or capitol police officer, except for a member of the General Assembly whose service as a member of the General Assembly is performed as a Class A-3 or Class A-4 member, an enforcement officer, a correction officer, a psychiatric security aide, a Delaware River Port Authority policeman or an officer of the Pennsylvania State Police, age 55. For Class A-5 and Class A-6 service, any age upon attainment of a superannuation score of 97, provided the member has accrued 35 eligibility points, or age 67. A vestee with Class A-3 or Class A-4 service credit attains superannuation age for the Class A-3 or Class A-4 service on the birthday the vestee attains the age resulting in a superannuation score of 92, and a vestee with Class A-5 or Class A-6 service credit attains superannuation age for the Class A-5 or Class A-6 service on the birthday the vestee attains the age resulting in a superannuation score of 97, provided that the vestee has at least 35 eligibility points, or attains another applicable superannuation age, whichever occurs first.

"Superannuation annuitant." An annuitant whose annuity first became payable on or after the attainment of superannuation age and who is not a disability annuitant.

"Superannuation score." The sum of the member's age in whole years on his last birthday and the amount of the member's total eligibility points on the member's effective date of retirement, expressed in whole years and whole eligibility points and disregarding fractions of a year and fractions of total eligibility points.

"Survivor annuitant." The person or persons last designated by a member under a joint and survivor annuity option to receive an annuity upon the death of such member.

"Sworn police officer." A State police officer who is employed and serving as an officer of the Pennsylvania State Police.

"System." The State Employees' Retirement System of Pennsylvania as established by the act of June 27, 1923 (P.L.858, No.331), and codified by the act of June 1, 1959 (P.L.392, No.78) and the provisions of this part.

"Total accumulated deductions." The sum of the regular accumulated deductions, additional accumulated deductions, the social security integration accumulated deductions, shared-risk member contributions and all other contributions paid into the fund for the purchase, transfer or conversion of credit for service or other coverage together with all statutory interest credited thereon until the date of termination of service. In the case of a vestee or a special vestee, statutory interest shall be credited until the effective date of retirement. A member's account shall not be credited with statutory interest for more than two years during a leave without pay.

"Trust." The State Employees' Defined Contribution Trust established under Chapter 58 (relating to State Employees' Defined Contribution Plan).

"USERRA leave." Any period of time for service in the uniformed services as defined in 38 U.S.C. Ch. 43 (relating to employment and reemployment rights of members of the uniformed services) by a State employee or former State employee who terminated State service to perform such service in the uniformed services, if the current or former State employee is entitled to reemployment rights under 38 U.S.C. Ch. 43 with respect to the uniformed service.

"Valuation interest." Interest at 5 1/2% per annum compounded annually and applied to all accounts of the fund other than the members' savings account.

"Vestee." A member with:

(1) five or more eligibility points in a class of service other than Class A-3, Class A-4, Class A-5 or Class A-6 or, if a multiple service member, Class T-E, Class T-F, Class T-G or Class T-H in the Public School Employees' Retirement System;

(2) Class G, Class H, Class I, Class J, Class K, Class L, Class M or Class N service with five or more eligibility points; or

(3) Class A-3, Class A-4, Class A-5 or Class A-6 service with ten or more eligibility points

and who has terminated State service and has elected to leave his total accumulated deductions in the fund and to defer receipt of an annuity.

"Voluntary contributions." Contributions made by a participant to the trust and credited to his individual investment account in excess of his mandatory pickup participant contributions, either by salary deductions paid through the Commonwealth or other employer, or through an eligible rollover or through a direct trustee-to-trustee transfer.

(Oct. 7, 1975, P.L.348, No.101, eff. imd.; July 9, 1976, P.L.586, No.142; Nov. 26, 1982, P.L.748, No.204, eff. imd.; Dec. 14, 1982, P.L.1249, No.284, eff. imd.; July 22, 1983, P.L.104, No.31, eff. imd.; Apr. 4, 1984, P.L.203, No.42, eff. 60 days; July 13, 1987, P.L.296, No.53, eff. imd.; Aug. 5, 1991, P.L.183, No.23; Apr. 29, 1994, P.L.159, No.29, eff. 60 days; Dec. 20, 1995, P.L.689, No.77; June 25, 1997, P.L.369, No.41, eff. imd.; June 22, 1999, P.L.75, No.12, eff. imd.; May 17, 2001, P.L.26, No.9; Apr. 23, 2002, P.L.272, No.38, eff. imd.; Oct. 27, 2006, P.L.1177, No.120, eff. imd.; Nov. 23, 2010, P.L.1269, No.120, eff. imd.; Oct. 24, 2012, P.L.1436, No.181, eff. Dec. 31, 2012; Dec. 28, 2015, P.L.529, No.93, eff. imd.; June 12, 2017, P.L.11, No.5, eff. imd.; July 2, 2019, P.L.356, No.52, eff. 60 days; July 2, 2019, P.L.434, No.72, eff. 60 days; Nov. 27, 2019, P.L.723, No.105, eff. imd.)

2019 Amendments. Act 52 added par. (5) to the def. of "enforcement officer," Act 72 added par. (6) to the def. of "enforcement officer" and Act 105 added the def. of "eligible employer." See section 2 of Act 52 in the appendix to this title for special provisions relating to accrued liability. See sections 6.1, 6.2 and 6.3 of Act 72 in the appendix to this title for special provisions relating to accrued liability, severability and applicability. See section 9 of Act 105 in the appendix to this title for special provisions relating to applicability.

2017 Amendment. Act 5 amended the defs. of "alternate payee," "average noncovered salary," "beneficiary," "class of service multiplier," "compensation," "creditable nonstate service," "credited service," "date of termination of service," "distribution," "domestic relations order," "eligibility points," "final average salary," "inactive member," "intervening military service," "irrevocable beneficiary," "member's annuity," "reemployed from USERRA leave," "regular member contributions," "required beginning date," "retirement counselor," "salary deductions," "shared-risk member contributions," "special vestee," "standard single life annuity," "State employee," "superannuation age," "valuation interest" and "vestee" and added the defs. of "accumulated employer defined contributions," "accumulated mandatory participant contributions," "accumulated total defined contributions," "accumulated voluntary contributions," "active participant," "Class A-5 exempt employee," "employer defined contributions," "inactive member on leave without pay," "inactive participant," "inactive participant on leave without pay," "individual investment account," "irrevocable successor payee," "mandatory pickup participant contributions," "participant," "participant receiving distributions," "plan," "plan document," "School Employees' Defined Contribution Plan," "successor payee," "sworn police officer," "trust" and "voluntary contributions."

2015 Amendment. Act 93 amended the defs. of "active member," "credited service," "inactive member" and "special vestee" and added the defs. of "normal retirement age" and "required beginning date."

2012 Amendment. Act 181 amended the defs. of "compensation," "eligibility points" and "final average salary" and added the defs. of "reemployed from USERRA leave" and "USERRA leave."

2010 Amendment. Act 120 amended the defs. of "class of service multiplier," "final average salary," "member's annuity," "pickup contributions," "superannuation age," "total accumulated deductions" and "vestee" and added the defs. of "shared-risk accumulated deductions," "shared-risk member contributions" and "superannuation score."

2006 Amendment. Act 120 added the defs. of "alternative investment" and "alternative investment vehicle."

2002 Amendment. Act 38 amended the defs. of "creditable nonstate service," "State employee," "State service" and "total accumulated deductions."

2001 Amendment. Act 9 amended the defs. of "active member," "class of service multiplier," "credited service," "inactive member," "salary deductions" and "vestee" and added the defs. of "actuarial increase factor" and "State police officer," effective immediately as to the defs. of "active member," "credited service" and "inactive member," effective September 1, 2001, as to "actuarial increase factor" and effective July 1, 2001, as to the remainder of the section. See section 37 of Act 9 in the appendix to this title for special provisions relating to applicability of amendment to State Employees' Retirement System members.

1999 Amendment. Act 12 amended the defs. of "class of service multiplier," "creditable nonstate service," "State service," "superannuation age" and "vestee" and added the def. of "county service."

1997 Amendment. Act 41 amended the defs. of "member," "regular accumulated deductions" and "total accumulated deductions" and added the defs. of "enforcement officer" (4) and "special vestee."

1995 Amendment. Act 77 amended the defs. of "active member," "compensation," "credited service," "final average salary" and "inactive member," effective January 1, 1996, and added "commissioner," "distribution" and "IRC," effective immediately, and "noneligible member," effective January 1, 1996. Section 15(5) of Act 77 provided that the defs. of "commissioner," "distribution" and "IRC" shall be retroactive to October 22, 1986, the date of enactment of the Tax Reform Act of 1986 (Public Law 99-514, 100 Stat. 2085).

1994 Amendment. Act 29 amended the def. of "superannuation annuitant" and added the defs. of "alternate payee," "approved domestic relations order," "disability annuitant," "domestic relations order," "irrevocable beneficiary" and "irrevocable survivor annuitant."

1991 Amendment. Act 23 amended the defs. of "correction officer," "enforcement officer," "retirement counselor" and "State employee" and added the defs. of "academic administrator" and "nonstudent service," effective immediately except as to the amendment of the def. of "retirement counselor" which shall take effect on the date of publication in the Pennsylvania Bulletin of a certification by the State Employees' Retirement Board that the seven-office Statewide retirement counseling field office network is fully implemented. See section 26 of Act 23 in the appendix to this title for special provisions relating to credited service for enforcement officers.

1983 Amendment. Act 31 amended the defs. of "full coverage member," "member's annuity," "pickup contributions," "social security integration accumulated deductions" and "total accumulated deductions" and added the def. of "additional accumulated deductions." See section 10 of Act 31 in the appendix to this title for special provisions relating to waiver of actuarial note requirement for retirement bills.

1982 Amendments. Act 204 amended the definition of "State employee" and Act 284 amended the entire section. The amendments by Acts 204 and 284 overlooked each other but do not conflict in substance and have been given effect in setting forth the text of the section. See sections 2, 3 and 4 of Act 284 in the appendix to this title for special provisions relating to required contributions by head of department, nonseverability and retroactivity.

References in Text. The short title of the act of June 2, 1915, (P.L.736, No.338), known as The Pennsylvania Workmen's Compensation Act, referred to in the def. of "service connected disability," was amended by the act of July 2, 1993, P.L.190, No.44. The amended short title is now the Workers' Compensation Act. The subject matter is now contained in Part IV of Title 24 (Education).

The act of July 18, 1917, (P.L.1043, No.343), referred to in the def. of "Public School Employees' Retirement System," was repealed by the act of October 2, 1975, P.L.298, No.96. The subject matter is now covered in Part IV of Title 24 (Education).

The act of June 27, 1923, (P.L.858, No.331), referred to in the def. of "system," was repealed by the act of March 1, 1974, P.L.125, No.31. The subject matter is now contained in Part XXV of this title.

The act of June 1, 1959, (P.L.350, No.77), referred to in the def. of "Public School Employees' Retirement System," was repealed by the act of October 2, 1975, P.L.298, No.96. The subject matter is now contained in Part IV of Title 24 (Education).

The act of June 1, 1959, (P.L.392, No.78), referred to in the def. of "system," was repealed by the act of March 1, 1974, P.L.125, No.31. The subject matter is now contained in Part XXV of this title.

The Department of Public Welfare, referred to in this section, was redesignated as the Department of Human Services by Act 132 of 2014.

Section 5502.1, referred to in this section, expired December 31, 2015.

Special Provisions in Appendix. See sections 2(c), 3(2) and 4(1) and (3) of Act 31 of 1974 in the appendix to this title for special provisions relating to final average salary of executive officers, legislators, judges and officers of the Pennsylvania State Police and crediting of statutory interest to accounts of members on leave without pay and to the applicability of former provisions relating to contribution rates of members.

Cross References. Section 5102 is referred to in sections 5303, 5303.2, 5307, 5953.5 of this title; sections 8951, 8953.2 of Title 42 (Judiciary and Judicial Procedure).