2010 Pennsylvania Code
Title 24 - EDUCATION
Chapter 85 - Administration and Miscellaneous Provisions
8505 - Duties of board regarding applications and elections of members.

     § 8505.  Duties of board regarding applications and elections of
                members.
        (a)  Statement to new members.--As soon as practicable after
     each member shall have joined the system, the board shall issue
     to him a statement as to the aggregate length of total previous
     school service and creditable nonschool service for which he may
     receive credit.
        (b)  State employees electing multiple service status.--Upon
     receipt of notification from the State Employees' Retirement
     Board that a former school employee has become an active member
     in the State Employees' Retirement System and has elected to
     become a member with multiple service status, the board shall:
            (1)  In case of a member who is receiving an annuity from
        the system:
                (i)  Discontinue payments, transfer the present value
            of the member's annuity at the time of entering State
            service, plus the amount withdrawn in a lump sum payment,
            on or after the date of entering State service, pursuant
            to section 8345 (relating to member's options), with
            statutory interest to date of transfer, minus the amount
            to be returned to the board on account of return to
            service that the board has determined is to be credited
            in the members' savings account, from the annuity reserve
            account to the members' savings account and resume
            crediting of statutory interest on the amount restored to
            his credit.
                (ii)  Transfer the balance of the present value of
            the total annuity, minus the amount to be returned to the
            board on account of return to service that the board has
            determined is to be credited in the State accumulation
            account, from the annuity reserve account to the State
            accumulation account.
                (iii)  Certify to the member the amount of lump sum
            and annuity payments with statutory interest the member
            is to return to the board and, of those amounts, which
            amount shall be credited to the members' savings account
            and credited with statutory interest as such payments are
            returned and which amount shall be credited to the State
            accumulation account.
            (2)  In case of a member who is not receiving an annuity
        from the system and who has not withdrawn his accumulated
        deductions, continue or resume the crediting of statutory
        interest on his accumulated deductions.
            (3)  In case of a member who is not receiving an annuity
        from the system and his accumulated deductions were
        withdrawn, certify to the member the accumulated deductions
        as they would have been at the time of his separation had he
        been a full coverage member together with statutory interest
        for all periods of subsequent State and school service to the
        date of repayment. Such amount shall be restored by him and
        shall be credited with statutory interest as such payments
        are restored.
        (c)  Disability annuities.--In every case where the board has
     received an application duly executed by the member or by a
     person legally authorized to act in his behalf for a disability
     annuity based upon the member's physical or mental incapacity
     for the performance of the job for which he is employed, the
     board shall:
            (1)  Through the medical examiner, have the application
        and any supporting medical records and other documentation
        submitted with the application reviewed and, on the basis of
        said review and the subsequent recommendation by the medical
        examiner regarding the applicant's medical qualification for
        a disability annuity along with such other recommendations
        which he may make with respect to the permanency of
        disability or the need for subsequent reviews, make a finding
        of disability or nondisability and, in the case of
        disability, establish an effective date of disability and the
        terms and conditions regarding subsequent reviews.
            (2)  Upon the recommendation of the medical examiner on
        the basis of a review of subsequent medical reports submitted
        with an application for continuance of disability, make a
        finding of disability or nondisability and, in the case of a
        finding of nondisability, establish the date of termination
        of disability and at that time discontinue any annuity
        payments in excess of any annuity to which he may be
        otherwise entitled under section 8342 (relating to maximum
        single life annuity).
            (3)  Upon receipt of a written statement from a
        disability annuitant of his earned income of the previous
        year, adjust the payments of the disability annuity for the
        following year in accordance with the provisions for a
        reduction of disability payments of section 8344 (relating to
        disability annuities).
        (d)  Withdrawal of accumulated deductions.--(Deleted by
     amendment).
        (e)  Certification to vestees terminating service.--The board
     shall certify to a vestee within one year of termination of
     service of such member:
            (1)  The accumulated deductions standing to his credit at
        the date of termination of service.
            (2)  The number of years and fractional part of a year of
        credit in each class of service.
            (3)  The maximum single life annuity to which the vestee
        shall become entitled upon the attainment of superannuation
        age and the filing of an application for such annuity.
        (f)  Notification to vestees approaching superannuation
     age.--The board shall notify each vestee in writing 90 days
     prior to his attainment of superannuation age that he shall
     apply for his annuity within 90 days of attainment of
     superannuation age; that, if he does so apply, his effective
     date of retirement will be the date of attainment of
     superannuation age; that, if he does not so apply but defers his
     application to a later date, his effective date of retirement
     will be the date of filing the application or the date specified
     on the application, whichever is later; and that, if he does not
     file an application within seven years after attaining
     superannuation age, he shall be deemed to have elected to
     receive his accumulated deductions upon attainment of
     superannuation age.
        (g)  Initial annuity payment and certification.--The board
     shall make the first monthly payment to a member who is eligible
     for an annuity within 60 days of the filing of his application
     for an annuity or, in the case of a vestee who has deferred the
     filing of his application to a date later than 90 days following
     attainment of superannuation age, within 60 days of his
     effective date of retirement, and receipt of the required data
     from the employer of the member. Concurrently the board shall
     certify to such member:
            (1)  The accumulated deductions standing to his credit
        showing separately the amount contributed by the member, the
        pickup contribution and the interest credited to the date of
        termination of service.
            (2)  The number of years and fractional part of a year
        credited in each class of service.
            (3)  The final average salary on which his annuity is
        based as well as any applicable reduction factors due to age
        or election of an option or both.
            (4)  The total annuity payable under the option elected
        and the amount and effective date of any future reduction on
        account of social security old-age insurance benefits.
        (h)  Death benefits.--Upon receipt of notification of the
     death of a member, the board shall notify the designated
     beneficiary or survivor annuitant of the benefits to which he is
     entitled and shall make the first payment to the beneficiary
     under the plan elected by the beneficiary within 60 days of
     receipt of certification of death and other necessary data. If
     no beneficiary designation is in effect at the date of the
     member's death or no notice has been filed with the board to pay
     the amount of such benefits to the member's estate, the board is
     authorized to pay such benefits to the executor, administrator,
     surviving spouse or next-of-kin of the deceased member, and
     payment pursuant hereto shall fully discharge the fund from any
     further liability to make payment of such benefits to any other
     person. If the surviving spouse or next-of-kin of the deceased
     member cannot be found for the purpose of paying such benefits
     for a period of seven years from the date of death of the
     member, then such benefits shall be escheated to the
     Commonwealth for the benefit of the fund.
        (i)  Medical insurance coverage.--Upon receipt of
     notification from an insurance carrier offering a health
     insurance program approved by the board that an annuitant who
     has attained age 65 has elected medical, major medical, and
     hospitalization insurance coverage or notification that
     annuitants with less than 24 1/2 eligibility points (other than
     disability annuitants), spouses of annuitants and survivor
     annuitants eligible to elect to enroll in the approved health
     insurance program have elected participation in such health
     insurance program, the board may deduct from the annuity
     payments the appropriate annual charges in equal monthly
     installments. Such deductions shall be transmitted to the
     insurance carrier.
        (j)  Joint coverage annuitants.--The board shall notify in
     writing each joint coverage annuitant who retired prior to July
     1, 1962 that he may elect any time prior to, but not later than,
     one year following the effective date of this part, to receive
     his annuity without reduction attributable to social security
     coverage. The board shall within 60 days of such election
     certify in writing to each annuitant who so elects the amount
     required to be paid. Upon receipt of a lump sum payment within
     60 days in the amount certified to such annuitant, the board
     shall recompute the annuity payable to such annuitant and the
     annuity and/or lump sum, if any, payable upon his death to his
     beneficiary or survivor annuitant as though he had been a full
     coverage member on the effective date of retirement. Such
     recomputed annuity shall be paid beginning with the second
     monthly payment next following the month in which the lump sum
     payment is received.
        (k)  School employees electing multiple service status.--Upon
     receipt of notification from the State Employees' Retirement
     Board that a member who has elected multiple service membership
     has elected to restore State service or purchase creditable
     nonstate service in the State Employees' Retirement System or is
     obligated to return benefits to the State Employees' Retirement
     Board on account of electing multiple service membership has
     elected to pay all or part of the amount due to the State
     Employees' Retirement Board by salary deductions, the board
     shall collect from the employee the amounts certified by the
     State Employees' Retirement Board as due and owing by the member
     and shall certify and transfer to the State Employees'
     Retirement Board the amounts so collected.
     (July 22, 1983, P.L.104, No.31, eff. imd.; Dec. 19, 1984,
     P.L.1191, No.226, eff. imd.; June 13, 1985, P.L.40, No.19, eff.
     imd.; Aug. 5, 1991, P.L.183, No.23, eff. imd.; Apr. 29, 1994,
     P.L.159, No.29, eff. 60 days; May 17, 2001, P.L.26, No.9, eff.
     July 1, 2001)

        2001 Amendment.  Act 9 amended subsec. (b) and added subsec.
     (k).
        1994 Amendment.  Act 29 amended subsecs. (c), (f), (g) and
     (h).
        1991 Amendment.  Act 23 amended subsec. (i).
        1985 Amendment.  Act 19 amended subsec. (c) and deleted
     subsec. (d).
        Cross References.  Section 8505 is referred to in sections
     8307, 8344, 8502.2, 8507, 9101 of this title.