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PA Bulletin, Doc. No. 06-927

RULES AND REGULATIONS

STATE EMPLOYEES' RETIREMENT BOARD

[4 PA. CODE CH. 243]

Membership, Credited Service and Eligibility for Benefits

[36 Pa.B. 2516]

   The State Employees' Retirement Board (Board) has deleted § 243.8. The section 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. 4922 (September 3, 2005).

A.  Effective Date

   The 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, P. O. Box 1147, Harrisburg, PA 17108-1147, (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 final-form rulemaking is being made under 71 Pa.C.S. § 5902(h) (relating to administrative duties of the board)

D.  Background and Purpose

   Section 234.8 listed the classes of service closed to new members as of March 1, 1974. Before that date, 71 Pa.C.S. §§ 5101--5956 (relating to State Employee's Retirement Code) (Retirement Code) contained various benefit formulas that 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.

   By rescinding § 234.8, the System desires to remove a regulation from the Pennsylvania Code that has been rendered obsolete and irrelevant due to subsequent changes to the Board's enabling legislation. More than 30 years have passed since the classes of membership referenced in the regulation were closed to new members; therefore, there are few, if any, Commonwealth employees subject to the regulation.

   On November 2, 2005, the Independent Regulatory Review Commission (IRRC) suggested that the Board retain both subsections of this regulation because there are still active members of System who have service credit in Classes C, D-3 and E-2. After thoughtful consideration of IRRC's comment, the Board has decided not to adopt the IRRC's suggestion.

   The Board acknowledges that each of the categories contain active members of the System who are still employed and making contributions to the System. However, a full listing of classes of service together with their respective benefit multipliers is contained in 71 Pa.C.S. § 5102 (relating to definitions). Additionally, changes in both statutory and case law since the original promulgation of this regulation have rendered this regulation obsolete. As currently promulgated, the regulation presents an inaccurate description of the System's benefit structure and therefore should be rescinded.

E.  Benefits, Costs and Compliance

   Benefits

   This final-form rulemaking benefits the System and its members. Section 248.8 is unnecessary, outmoded and irrelevant. Rescinding this section will avoid confusion on the part of members of the System and the Board'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 is not expected to 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 has 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 on 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 was given under sections 201 and 202 of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. §§ 1201 and 1202), known as the Commonwealth Documents Law and the regulations thereunder, 1 Pa. Code §§ 7.1 and 7.2.

   (2)  The adoption of the amendment is necessary and appropriate for the administration of the Retirement Code.

J.  Order

   The Board, acting under the Retirement Code and the Commonwealth Documents Law, including particularly those sections specified in the several authority sections specified with respect to each provision of the rules and procedures of the System modified by this order, orders:

   (a)  The regulations for the Board, 4 Pa. Code Chapter 243, are amended by deleting § 243.8 to read as set forth at 35 Pa.B. 4922.

   (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. 4922 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 31-4 remains valid for the final adoption of the subject regulation.

[Pa.B. Doc. No. 06-927. Filed for public inspection May 26, 2006, 9:00 a.m.]


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