RULES AND REGULATIONS
Title 4--ADMINISTRATION
STATE EMPLOYEES' RETIREMENT BOARD
[4 PA. CODE CH. 241]
Preliminary Provisions
[36 Pa.B. 2515] The State Employees' Retirement Board (Board) is deleting the definition of ''class of service multiplier'' in § 241.1 (relating to definitions). The definition is no longer needed, as it has been outmoded by changes in the benefit structure of the State Employees' Retirement System (System). Notice of proposed rulemaking was published at 35 Pa.B. 4923 (September 3, 2005).
A. Effective Date
This final-form rulemaking will go into effect upon publication in the Pennsylvania Bulletin.
B. Contact Person
For further information contact Robert Gentzel, Director of Communications and Policy, State Employees' Retirement System, 30 North Third Street, Harrisburg, PA 17101 (717) 787-9657 or Salvatore A. Darigo, Jr., Counsel, State Employees' Retirement System, 30 North Third Street, Harrisburg, PA 17101 (717) 787-7317.
C. Statutory Authority
This proposed rulemaking is being made under 71 Pa.C.S. § 5902(h) (relating to administrative duties of the board).
D. Background and Purpose
Prior to March 1, 1974, 71 Pa.C.S. Part XXV (relating to State Employees' Retirement Code) (Retirement Code) contained various benefit formulas which applied a benefit multiplier factor to a State employee's final average salary and total credited service to determine the amount of the employee's retirement benefit. The definition proposed to be deleted clarified the System's determination that persons who entered State service after March 1, 1974, would not be able to have their post-1974 retirement benefits calculated pursuant to earlier law. Subsequent amendments to the Retirement Code removed the various class of service multipliers and substituted a Class ''A'' retirement benefit formula.
The definition is unnecessary, outmoded and irrelevant. Deleting this definition will avoid confusion on the part of members of the System and its personnel, reduce paperwork and potentially reduce the number of administrative hearings for redress of grievances.
On November 2, 2005, the Independent Regulatory Review Commission (IRRC) suggested that the Board replace the definition with a cross reference to the definition of the term ''class of service multiplier'' found in 71 Pa.C.S. § 5102 (relating to definitions).
After thoughtful consideration of IRRC's suggestion, the Board respectfully declines to replace the definition with a cross reference to 71 Pa.C.S. § 5102. That section contains a complete list of the System's classes of service and their respective benefit multipliers. It is the Board's opinion that the cross reference to 71 Pa.C.S. § 5102 will not add anything.
E. Benefits, Costs and Compliance
Benefits
This final-form rulemaking benefits the System and its members. This definition is unnecessary, outmoded and irrelevant. Repealing this definition will avoid confusion on the part of members of System and the agency's personnel, reduce paperwork and potentially reduce the number of administrative hearings for redress of grievances.
Costs
There are no costs to the Commonwealth, its citizens or State employees associated with this proposal.
Compliance Costs
The final-form rulemaking will not impose any additional compliance costs on state employees.
F. Sunset Review
A sunset review date has not been established.
G. Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on August 18, 2005, the Board submitted a copy of the proposed amendment to IRRC and the Chairpersons of the House State Government Committee and the Senate Finance Committee. In addition to submitting the proposed amendment, the Board provided IRRC and the Committees with a detailed Regulatory Analysis Form prepared by the Board. A copy of this material is available to the public upon request.
Under section 5.1(d) of the Regulatory Review Act (71 P. S. § 745.5a(d)), this final-form rulemaking was deemed approved by the House and Senate Committees on April 18, 2006. Under section 5.1(e) of the Regulatory Review Act (71 P. S. § 745.5a(e)), the final-form rulemaking was approved by IRRC effective April 19, 2006.
H. Public Comments
The Board has received no public comments.
I. Findings
The Board finds that:
(1) Public notice of intention to adopt the administrative amendment adopted by this order has been given under sections 201 and 202 of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. §§ 1201 and 1202) and the regulations thereunder, 1 Pa. Code §§ 7.1 and 7.2.
(2) The adoption of the amendment of the Board in the manner provided in this order is necessary and appropriate for the administration and enforcement of the authorizing statute.
J. Order
The Board, acting under the authorizing statute, orders that:
(a) The regulations of the Board, 4 Pa. Code Chapter 241, are amended by amending § 241.1 to read as set forth at 35 Pa.B. 4923.
(b) The amendment shall be submitted to the Office of Attorney General for approval as to legality as required by law.
(c) The Secretary of the Board shall certify this order and 35 Pa.B. 4923 and deposit them with the Legislative Reference Bureau as required by law.
(d) This order shall take effect immediately upon publication in the Pennsylvania Bulletin.
ERIC HENRY,
Secretary(Editor's Note: For the text of the order of the Independent Regulatory Review Commission, relating to this document, see 36 Pa.B. 2251 (May 6, 2006).)
Fiscal Note: Fiscal Note 31-3 remains valid for the final adoption of the subject regulation.
[Pa.B. Doc. No. 06-926. Filed for public inspection May 26, 2006, 9:00 a.m.]
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