2010 Pennsylvania Code
Title 24 - EDUCATION
Chapter 83 - Membership, Contributions and Benefits
8346 - Termination of annuities.

     § 8346.  Termination of annuities.
        (a)  General rule.--If an annuitant returns to school service
     or enters or has entered State service and elects multiple
     service membership, any annuity payable to him under this part
     shall cease effective upon the date of his return to school
     service or entering State service and in the case of an annuity
     other than a disability annuity the present value of such
     annuity, adjusted for full coverage in the case of a joint
     coverage member who makes the appropriate back contributions for
     full coverage, shall be frozen as of the date such annuity
     ceases. An annuitant who is credited with an additional 10% of
     membership service as provided in section 8302(b.2) (relating to
     credited school service) and who returns to school service,
     except as provided in subsection (b), shall forfeit such
     credited service and shall have his frozen present value
     adjusted as if his 10% retirement incentive had not been applied
     to his account. In the event that the cost-of-living increase
     enacted December 18, 1979, occurred during the period of such
     State or school employment, the frozen present value shall be
     increased, on or after the member attains superannuation age, by
     the percent applicable had he not returned to service.
        (a.1)  Return of benefits.--In the event an annuitant whose
     annuity ceases pursuant to this section receives any annuity
     payment, including a lump sum payment pursuant to section 8345
     (relating to member's options) on or after the date of his
     return to school service or entering State service, the
     annuitant shall return to the board the amount so received plus
     statutory interest. The amount payable shall be certified in
     each case by the board in accordance with methods approved by
     the actuary and shall be paid in a lump sum within 90 days or in
     the case of an active member or a State employee who is an
     active member of the State Employees' Retirement System may be
     amortized with statutory interest through salary deductions in
     amounts agreed upon by the member and the board. The salary
     deduction amortization plans agreed to by the member and the
     board may include a deferral of payment amounts and statutory
     interest until the termination of school service or State
     service as the board in its sole discretion decides to allow.
     The board may limit salary deduction amortization plans to such
     terms as the board in its sole discretion determines. In the
     case of a State employee who is an active member of the State
     Employees' Retirement System, the agreed upon salary deductions
     shall be remitted to the State Employees' Retirement Board,
     which shall certify and transfer to the board the amounts paid.
        (b)  Return to school service during emergency.--When, in the
     judgment of the employer, an emergency creates an increase in
     the work load such that there is serious impairment of service
     to the public or in the event of a shortage of appropriate
     subject certified teachers or other personnel, an annuitant may
     be returned to school service for a period not to extend beyond
     the school year during which the emergency or shortage occurs,
     without loss of his annuity. The annuitant shall not be entitled
     to earn any credited service, and no contributions may be made
     by the annuitant, the employer or the Commonwealth on account of
     such employment.
        (b.1)  Return to school service in an extracurricular
     position.--
            (1)  An annuitant may be employed under separate contract
        by a public school or charter school in an extracurricular
        position performed primarily outside regular instructional
        hours and not part of mandated curriculum without loss of
        annuity. Neither the annuitant nor the employer shall make
        contributions to the member's savings account or State
        accumulation account respectively for such service. Further,
        such contract shall contain a waiver whereby the annuitant
        waives any potential retirement benefits that could arise
        from the contract and releases the employer and the board
        from any liability for such benefits.
            (2)  Nothing in this subsection shall be construed to
        abridge or limit any rights provided under a collective
        bargaining agreement or any rights provided under the act of
        July 23, 1970 (P.L.563, No.195), known as the Public Employe
        Relations Act.
            (3)  For purposes of this subsection, the term
        "extracurricular position" means a contract position filled
        by an annuitant that is separate from the established
        academic course structure, including the position of athletic
        director.
        (c)  Subsequent discontinuance of service.--Upon subsequent
     discontinuance of service, such member other than a former
     annuitant who had the effect of his frozen present value
     eliminated in accordance with subsection (d) or a former
     disability annuitant shall be entitled to an annuity which is
     actuarially equivalent to the sum of the present value as
     determined under subsection (a) and the present value of a
     maximum single life annuity based on years of service credited
     subsequent to reentry in the system and his final average salary
     computed by reference to his compensation during his entire
     period of school and State service.
        (d)  Elimination of the effect of frozen present value.--
            (1)  An annuitant who returns to school service and earns
        three eligibility points by performing credited school
        service following the most recent period of receipt of an
        annuity under this part, or an annuitant who enters State
        service and:
                (i)  is a multiple service member; or
                (ii)  who elects multiple service membership, and
        earns three eligibility points by performing credited State
        service or credited school service following the most recent
        period of receipt of an annuity under this part, and who had
        the present value of his annuity frozen in accordance with
        subsection (a), shall qualify to have the effect of the
        frozen present value resulting from all previous periods of
        retirement eliminated, provided that all payments under
        Option 4 and annuity payments payable during previous periods
        of retirement plus interest as set forth in paragraph (3)
        shall be returned to the fund in the form of an actuarial
        adjustment to his subsequent benefits or in such form as the
        board may otherwise direct.
            (2)  Upon subsequent discontinuance of service and the
        filing of an application for an annuity, a former annuitant
        who qualifies to have the effect of a frozen present value
        eliminated under this subsection shall be entitled to receive
        the higher of either:
                (i)  an annuity (prior to optional modification)
            calculated as if the freezing of the former annuitant's
            account pursuant to subsection (a) had not occurred,
            adjusted by crediting Class T-C school service as Class
            T-D service as provided for in section 8305(c) (relating
            to classes of service) and further adjusted according to
            paragraph (3), provided that a former annuitant of the
            system or a former annuitant of the State Employees'
            Retirement System who retired under a provision of law
            granting additional service credit if termination of
            school or State service or retirement occurred during a
            specific period of time shall not be permitted to retain
            the additional service credit under the prior law when
            the annuity is computed for his most recent retirement;
            or
                (ii)  an annuity (prior to optional modification)
            calculated as if the former annuitant did not qualify to
            have the effect on the frozen present value eliminated,
        unless the former annuitant notifies the board in writing by
        the later of the date the application for annuity is filed or
        the effective date of retirement that the former annuitant
        wishes to receive the lower annuity.
            (3)  In addition to any other adjustment to the present
        value of the maximum single life annuity that a member may be
        entitled to receive that occurs as a result of any other
        provision of law, the present value of the maximum single
        life annuity shall be reduced by all amounts paid or payable
        to him during all previous periods of retirement plus
        interest on these amounts until the date of subsequent
        retirement. The interest for each year shall be calculated
        based upon the annual interest rate adopted for that school
        year by the board for the calculation of the normal
        contribution rate pursuant to section 8328(b) (relating to
        actuarial cost method).
     (July 12, 1981, P.L.261, No.87, eff. imd.; Feb. 18, 1982,
     P.L.78, No.27, eff. 60 days; Aug. 5, 1991, P.L.183, No.23, eff.
     imd.; Dec. 22, 1992, P.L.1686, No.186, eff. imd.; Apr. 29, 1994,
     P.L.159, No.29, eff. July 1, 1994; Dec. 20, 1995, P.L.689,
     No.77, eff. 60 days; May 17, 2001, P.L.26, No.9, eff. July 1,
     2001; Apr. 23, 2002, P.L.272, No.38, eff. imd.; Dec. 30, 2002,
     P.L.2082, No.234, eff. imd.; July 4, 2004, P.L.504, No.63, eff.
     imd.)

        2004 Amendment.  Act 63 amended subsecs. (b) and (b.1).
        2002 Amendments.  Act 38 amended subsec. (a.1) and carried
     without amendment subsec. (b) and Act 234 added subsec. (b.1),
     retroactive to July 1, 2001.
        2001 Amendment.  Act 9 amended subsecs. (a) and (d) and added
     subsec. (a.1). See section 22(a) of Act 9 in the appendix to
     this title for special provisions relating to calculation of
     return to service days.
        1995 Amendment.  Section 15(3) of Act 77 provided that the
     amendment of section 8346 shall be retroactive to July 1, 1994,
     and provided that no annuities or other benefits greater than
     those payable shall be payable to the beneficiary or survivor
     annuitant of a deceased member of the Public School Employees'
     Retirement System if the death of the member is on or before 60
     days after the enactment of Act 77. See section 13(c) of Act 77
     in the appendix to this title for special provisions relating to
     applicability of provisions relating to termination of
     annuities.
        1994 Amendment.  See section 24 of Act 29 in the appendix to
     this title for special provisions relating to effective date and
     funding of accrued liability.
        Applicability of Provisions.  See section 3(1) of Act 96 of
     1975 in the appendix to this title for applicability of
     provisions relating to calculation of annuities for certain
     annuitants who return to school service and subsequently retire.
        Cross References.  Section 8346 is referred to in sections
     8301, 8502, 8506 of this title.