PROPOSED RULEMAKING
PUBLIC SCHOOL EMPLOYEES' RETIREMENT BOARD
[22 PA. CODE CHS. 201, 211, 213 AND 215]
Formalization and Clarification of Current Practices
[37 Pa.B. 3423]
[Saturday, July 21, 2007]The Public School Employees' Retirement Board (Board) proposes to amend its Chapters 201, 211, 213 and 215 to read as set forth in Annex A.
Statutory Authority
This rulemaking is proposed under 24 Pa.C.S. § 8502(h) (relating to administrative duties of board).
Purpose
The primary purpose of this proposed rulemaking is to formalize and clarify current practices, remedy problems that have arisen and reflect issues unique to the Public School Employees' Retirement System (PSERS). A definition is deleted if it merely repeats the definition in 24 Pa.C.S. Part IV (relating to Public School Employees' Retirement Code) (Retirement Code). Outdated regulations were deleted and new regulations were added to provide a clear, concise understanding of the Board's policies and procedures in accordance with the Retirement Code. In addition, editorial amendments have been made for improved readability.
Summary of Amendments
Chapter 201. Applicability of General Rules
Amendments to § 201.1 (relating to applicability of general rules) were made for the purpose of addressing grammatical errors and clarity.
Sections 201.2--201.5 are proposed to be rescinded.
Proposed § 201.2a (relating to definitions) contains terms used only in the hearing and appeal process. The definition section of the Retirement Code does not provide a definition of the terms used in the hearing and appeal process. The definitions were added in the beginning of this chapter to provide clarification and understanding of the terms regarding the hearing and appeal process. The distinction between a matter before the Executive Staff Review Committee (ESRC) and a matter appealed to the Board is made through the use of the terms ''adjudicatory benefit appeal'' and ''nonadjudicatory benefit appeal.''
Proposed § 201.3a (relating to nonadjudicatory benefit appeal) sets out the procedure before the ESRC for a nonadjudicatory benefit appeal.
Proposed § 201.4a (relating to adjudicatory benefit appeal and request for administrative hearing) clarifies the procedure required of a claimant to file an adjudicatory benefit appeal within the prescribed time.
Proposed § 201.5 (relating to authorization of Secretary of the Board) was taken from an existing Board resolution and added to clarify the Secretary's powers and duties regarding the appeal process in approving uncontested orders.
Proposed § 201.6 (relating to motions practice) provides for the Board to rule directly on a preliminary objection or summary judgment or to delegate the recommendation to the hearing examiner. This section provides more flexibility and clarity in the motions process.
Proposed § 201.7 (relating to service and return of subpoenas) conforms the method of service of subpoenas to the Pennsylvania Rules of Civil Procedure. See 231 Pa. Code.
Proposed § 201.8 (relating to dismissal for nonappearance) was moved from § 201.4 for organizational purposes.
Proposed § 201.9 (relating to introduction of documents from the System's records) clarifies the method of authenticating PSERS' documents to be admitted as evidence in an adjudicatory benefit appeal hearing.
Proposed § 201.10 (relating to briefs) clarifies the process of filing briefs after a hearing. Section (a) supplements 1 Pa. Code Part II (relating to General Rules of Administrative Practice and Procedure) in requiring that the claimant shall file the first brief.
Proposed § 201.11 (relating to proposed opinion and recommendation) clarifies the requirements of the hearing examiner's proposed opinion.
Proposed § 201.12 (relating to oral argument before the Board) was added to clarify the process of requesting oral argument before the Board and the procedure to be followed when presenting oral argument. It is adopted from an existing Board resolution.
Chapter 211. Preliminary Provisions
Section 211.1(a) (relating to short title of part) is amended to clarify the chapters to which the definitions are applied.
Section 211.2 (relating to definitions) is amended to delete definitions that repeat the Retirement Code definitions or that are outdated. Some existing definitions are amended to correct grammatical errors. Some definitions are amended to conform to Internal Revenue Code. Some definitions are added or amended for clarification.
Proposed § 211.3 (relating to construction) is moved from § 213.35 (relating to general regulations) for organizational purposes. Section 213.35 is rescinded in this proposed rulemaking.
Chapter 213. Contributions and Benefits
Section 213.1(a) (relating to mandatory and optional membership) is amended to correct grammatical errors. Subsection (b) was moved from § 215.36 (relating to optional alternate retirement programs) for organizational purposes. Section 215.36 is rescinded in this proposed rulemaking.
Sections 213.2 and 213.3 (relating to credited school service; and eligibility points for retention and reinstatement of service credits) are amended to correct grammatical errors and for clarification.
Proposed § 213.3a (relating to waiver of adjustments) reflects the Board's policies in interpreting 24 Pa.C.S. § 8303.1 (relating to waiver of adjustments) regarding adjustments to a member's account that would cause an undue hardship for the member.
Amendments to § 213.4 (relating to creditable nonschool service) correct grammatical errors and the deletion of outdated provisions.
Section 213.5 (relating to classes of service) is proposed to be rescinded because it is outdated.
Section 213.6 (relating to eligibility points) is amended to correct grammatical errors.
Section 213.9 (relating to eligibility for death benefits) is amended to comply with the wording of 20 Pa.C.S. § 3101 (relating to payments to family and funeral directors).
Section 213.23 (relating to member contributions for creditable school service) is proposed to be rescinded because it is outdated and does not supplement 24 Pa.C.S. § 8323 (relating to member contributions for creditable school service).
Section 213.24 (relating to contributions for the purchase of credit for creditable school and nonschool service) is amended to correct grammatical errors and clarification. Subsection (b) is amended to clarify the requirements of 24 Pa.C.S. § 8324(b) (relating to contributions for purchase of credit for creditable nonschool service) to receive credit for nonintervening military service. The section was also amended to reflect changes in legislation to include service as a Class T-D member.
The amendments to § 213.25 (relating to incomplete payments) clarify that a member's estate may not complete payments of purchasable service but that the annuity benefit will be reduced by the debt, provided that the reduction does not negatively impact the present value.
Section 213.27 (relating to payments by employers) is amended to correct grammatical errors and for clarity. Subsection (a) reduces the time for an employer to file monthly reports from 15 days to 10 days following the end of the month. An amendment has also been made to reduce the time to 5 business days that the employer has to pay the bill issued by the Board.
Section 213.30 (relating to appropriations by the Commonwealth) is amended to correct grammatical errors.
Section 213.41 (relating to return of accumulated deductions) is amended to clarify that the member must also qualify for membership into PSERS upon return to service.
Section 213.44 (relating to disability annuities) is amended to be consistent with amendments to the pertinent sections of the Retirement Code.
Section 213.45 (relating to change in benefit payment plan) is amended to correct grammatical errors and to provide consistency with the Retirement Code. Subsection (h)(1) provides that an annuitant has 30 days following certification of the amount due to return money received by PSERS or elect an actuarial reduction to the annuitant's account, in default of which, an actuarial reduction shall be applied.
Section 213.46 (relating to termination of annuities) is amended to reflect changes in the Retirement Code.
Sections 213.47 and 213.49 (relating to death benefits; and payment of benefits) are amended to correct grammatical errors and for clarification.
Chapter 215. General Administration
Section 215.2(a) (relating to administrative duties of the Board) is deleted because it is inconsistent with act of June 21, 1957 (P. L. 390, No. 212) (65 P. S. §§ 66.1--66.9), known as the Right-to-Know Law, which controls the subject matter.
Section 215.5 (relating to duties of the Board) is amended for clarification and correction of grammatical errors. This section is also generally amended for consistency with the Retirement Code to clarify that the effective date of a member's disability will be the day after the last day of compensation. Subsections (a)(5) and (b) were amended for purposes of clarity.
Section 215.6 and 215.7 (relating to duties of employers; and rights and duties of school employes and members) are amended to correct grammatical errors. Amendments and deletions were also made to be consistent with changes made to the Retirement Code. Section 215.7(d) is also amended to clarify that a nomination of beneficiary must be in writing but is not required to be on a form issued by the Board.
Section 215.33 (relating to taxation, attachment and assignment of funds) is amended because it is outdated.
Fiscal Impact
The proposed rulemaking is not expected to have significant negative fiscal impact upon the Commonwealth, its political subdivisions or the general public.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on July 6, 2007, the Board submitted a copy of this proposed rulemaking and a copy of a Regulatory Analysis Form to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the House Education Committee and the Senate Finance Committee. A copy of this material is available to the public upon request.
Under section 5(g) of the Regulatory Review Act, IRRC may convey any comments, recommendations or objections to the proposed rulemaking within 30 days of the close of the public comment period. The comments, recommendations or objections must specify the regulatory review criteria which have not been met. The Regulatory Review Act specifies detailed procedures for review, prior to final publication of the rulemaking, by the Board, the General Assembly and the Governor of comments, recommendations or objections raised.
Effective Date
This proposed rulemaking will go into effect upon final-form publication in the Pennsylvania Bulletin.
Contact Person
For further information, contact Frank Ryder, Director of Government Relations, Public School Employees' Retirement System, 5 North Fifth Street, P. O. Box 125, Harrisburg, PA 17108, (717) 720-4733; or Charles K. Serine, Deputy Chief Counsel, Public School Employees' Retirement System, 5 North Fifth Street, P. O. Box 125, Harrisburg, PA 17108, (717) 720-4679.
Public Comments
Written comments. Interested persons are invited to submit comments, suggestions or objections regarding the proposed rulemaking to the Public School Employees' Retirement System, 5 North Fifth Street, P. O. Box 125, Harrisburg, PA 17108-0125. Comments submitted by facsimile will not be accepted. Comments, suggestions or objections must be received by the Board by August 20, 2007. Interested persons may also submit a summary of their comments to the Board. The summary may not exceed one page in length and must be received by August 10, 2007. The one-page summary will be provided to each member of the Board in the agenda packet distributed prior to the meeting at which the final regulation will be considered.
Electronic comments. Comments may also be submitted electronically to the Board at fryder@state.pa.us and must also be received by the Board by August 20, 2007. A subject heading of the proposal and a return name and address must be included in each transmission. If an acknowledgment of electronic comments is not received by the sender within 2 working days, the comments should be transmitted by mail to ensure receipt.
JEFFREY B. CLAY,
SecretaryFiscal Note: 43-10. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 22. EDUCATION
PART XIII. PUBLIC SCHOOL [EMPLOYES'] EMPLOYEES' RETIREMENT BOARD
CHAPTER 201. [APPLICABILITY OF GENERAL RULES] PRACTICE AND PROCEDURE § 201.1. Applicability of general rules.
Under 1 Pa. Code § 31.1 (relating to scope of part), 1 Pa. Code Part II (relating to General Rules of Administrative Practice and Procedure), [are] is applicable to the activities of and proceedings before the Board, except as provided in, or inconsistent with, this chapter.
§ 201.2. [Expedited disposition process] (Reserved).
[When the claimant and System agree that no facts are in dispute, they may agree to submit the case directly to the Board for adjudication. Under these circumstances, only the claimant will file a brief in support of claimant's position. The Board will issue a proposed adjudication, to which the claimant may file exceptions. If no exceptions are timely filed, the Board will issue a final adjudication adopting the proposed adjudication. If exceptions are filed, the Board will consider the exceptions when rendering its final adjudication.]
§ 201.2a. Definitions.
(a) In addition to the definitions in 1 Pa. Code § 31.3 (relating to definitions under the General Rules of Administrative Practice and Procedure), as used in this chapter, the following words and terms have the following meanings, unless the context clearly indicates otherwise:
Adjudicatory benefit appeal--An appeal from the ESRC to the Board in which a formal hearing is requested and in which an adjudication of the Board is issued under 2 Pa.C.S. §§ 501--508 and 701--704 (relating to Administrative Agency Law) and 1 Pa. Code Part II (relating to General Rules of Administrative Practice and Procedure).
Board--The Public School Employees' Retirement Board.
Claimant--An individual who, or entity that, has requested an adjudicatory benefit appeal.
Executive Director--The appointed executive director of the System. The Executive Director of the System is also the Secretary of the Board.
ESRC--The Executive Staff Review Committee, which consists of the Executive Director and additional senior staff members as appointed by the Executive Director.
Hearing examiner--A presiding officer appointed to hear an adjudicatory benefit appeal in accordance with 1 Pa. Code § 35.185 (relating to designation of presiding officers).
Nonadjudicatory benefit appeal--An appeal to the ESRC, which is resolved without conducting a hearing or issuing an adjudication. The action of the ESRC will be deemed final unless a claimant files a timely adjudicatory benefit appeal from that action and seeks an administrative hearing.
Party--An individual or entity participating in an adjudicatory benefit appeal, including an intervenor and any person or entity joined to the appeal.
Retirement Code--The Public School Employees' Retirement Code (24 Pa.C.S. §§ 8101--8535).
Secretary of the Board--The appointed Secretary of the Board as provided in the Retirement Code. The Secretary of the Board is also the Executive Director of the System.
Subordinate officer--
(i) An officer or employee of the System.
(ii) The term does not include the Executive Director, Secretary of the Board or the Board.
System--The Public School Employees' Retirement System.
(b) The provisions of this section supplement 1 Pa. Code § 31.3 (relating to definitions); the definition of ''subordinate officer'' supersedes the definition in 1 Pa. Code § 31.3.
§ 201.3. [Motions practice] (Reserved).
[(a) Preliminary objections. The System may, before filing an answer, file preliminary objections directly with the Board. The preliminary objections shall conform to Pa.R.C.P. No. 1028 (relating to preliminary objections).
(b) Summary judgment. The System or the claimant may file a motion for summary judgment directly with the Board. The motion shall conform to Pa.R.C.P. Nos. 1035.1--1035.4.]
§ 201.3a. Nonadjudicatory benefit appeal.
(a) Benefit appeals from actions of subordinate officers of the System shall be made to the ESRC and shall be nonadjudicatory.
(b) A letter from the System taking an action or making a determination on behalf of the System shall constitute action of a subordinate officer. A letter shall constitute action of a subordinate officer whether or not the letter states that an appeal must be taken within 30 days.
(c) An appeal to the ESRC shall be received by the System within 30 days after the date of the letter from the System taking an action or making a determination on behalf of the System. If a claimant fails to appeal an action or determination by a subordinate officer to the ESRC within the prescribed time, the action of the subordinate officer will become final.
(d) An appeal to the ESRC must be made in writing and addressed to:
Executive Staff Review Committee
Public School Employees'
Retirement System
P. O. Box 125
Harrisburg, Pennsylvania 17108-0125(e) The ESRC will meet as necessary to review and decide nonadjudicatory benefit appeals. If the appeal is granted, the claimant will be notified and the matter will be closed. If the appeal is denied, in full or in part, the claimant shall have the right to appeal the denial to the Board. The ESRC will send the claimant a denial letter explaining why the appeal is denied, and advise the claimant of the right to appeal to the Board and request an adjudicatory benefit appeal and administrative hearing within 30 days after the date of the denial letter.
(f) The Executive Director or a designee will maintain a record of the decisions of the ESRC and report to the Board the results of each decision by the ESRC, which will include a brief summary of the issues involved.
(g) This section supersedes 1 Pa. Code § 35.20 (relating to appeals from actions of the staff).
§ 201.4. [Dismissal for nonappearance] (Reserved).
[Whenever a claimant fails to appear, either in person or through counsel, for a scheduled hearing without good cause, the hearing examiner will issue a recommendation to dismiss the case, without considering the merits of the claim.]
§ 201.4a. Adjudicatory benefit appeal and request for administrative hearing.
(a) An adjudicatory benefit appeal and request for administrative hearing from a denial letter from the ESRC must be in writing and received by the Board within 30 days after the date of the ESRC denial letter.
(b) An adjudicatory benefit appeal and request for administrative hearing must be addressed to:
Appeal Docket Administrator
Public School Employees' Retirement Board
P. O. Box 125
Harrisburg, PA 17108-0125(c) If a claimant fails to appeal a decision of the ESRC to the Board within the prescribed time, the decision of the ESRC is deemed final.
(d) Appeals to the Board from the ESRC as to which no motions are filed under § 201.6 (relating to motions practice) will be referred to a hearing examiner under 1 Pa. Code Chapter 35, Subchapter E (relating to presiding officers) to conduct a hearing and prepare a recommended decision to the Board under 1 Pa. Code §§ 35.202 and 35.205 (relating to proceedings in which proposed reports are prepared; and contents of proposed reports).
§ 201.5. [Letter briefs] (Reserved).
[Both the claimant and the System shall be entitled to file letter briefs to the hearing examiner. The letter briefs need not conform to 1 Pa. Code §§ 35.191 and 35.192 (relating to proceedings in which briefs are to be filed; and context and form of briefs), but the letter briefs may not be more than 3 pages in length.]
§ 201.5a. Authorization of Secretary of the Board.
The Secretary of the Board will be authorized to execute and issue routine and uncontested orders on behalf of the Board, including, but not limited to, the following:
(1) An order to dismiss when a claimant has withdrawn a request for an adjudication.
(2) An order granting an extension of time to file a document.
(3) An order granting the right of a third party to intervene in a pending appeal.
§ 201.6. Motions practice.
(a) Preliminary objections. The System may, before filing an answer, file preliminary objections directly with the Board. The preliminary objections will conform to Pa.R.C.P. No. 1028 (relating to preliminary objections).
(b) Summary judgment. The System or the claimant may file a motion for summary judgment directly with the Board. The motion must conform to Pa.R.C.P. Nos. 1035.1--1035.5.
(c) The Board will rule directly on preliminary objections or motions for summary judgment unless, by order, it delegates the matter to a hearing examiner to prepare a proposed opinion and recommendation under § 201.12 (relating to oral argument before the Board).
(d) This section supersedes 1 Pa. Code § 35.54 (relating to motions as to complaint).
§ 201.7. Service and return of subpoenas.
(a) Service of subpoenas will be made by any of the methods authorized by Pa.R.C.P. No. 234.2(b) (relating to Subpoena. Issuance. Service. Compliance. Fees. Prisoners.). It will not be necessary that witness fees be tendered at the time of service of the subpoena, but the party on whose behalf the subpoena is issued shall furnish the fees promptly upon the written request of the witness after service of the subpoena.
(b) This section supersedes 1 Pa. Code § 35.142(b) (relating to service and return of subpoenas) and supplements 1 Pa. Code §§ 35.139 and 35.142(c) (relating to fees of witnesses; and subpoenas).
§ 201.8. Dismissal for nonappearance.
(a) Whenever a claimant fails to appear, either in person or through counsel, for a scheduled hearing without good cause, the hearing examiner will issue a recommendation to dismiss the case, without considering the merits of the claim.
(b) This section supplements 1 Pa. Code §§ 35.125, 35.187 and 35.205 (relating to order of procedure; authority delegated to presiding officers; and contents of proposed reports).
§ 201.9. Introduction of documents from the System's records.
(a) Documents from the System's records need not be certified or authenticated under 42 Pa.C.S. §§ 6103 and 6104(a) (relating to proof of official records; and effect of official records generally) to be admitted into evidence in an administrative hearing.
(b) Any subordinate officer who has access to the System's records, and has knowledge regarding the identity and mode of preparation of the records prepared by the System and the filing with, and maintenance of records by the System in the regular course of the System's business will be qualified to identify any documents or other records on file with the System in any hearing and to testify regarding the documents or other records.
(c) This section supplements 1 Pa. Code §§ 35.161 and 35.164 (relating to form and admissibility of evidence; and documents on file with agency).
§ 201.10. Briefs.
(a) After the close of the testimony, the hearing examiner will fix a briefing schedule. Unless otherwise agreed to by all parties and the hearing examiner, the claimant, or other party upon whom rests the burden of proof, shall file the first brief, followed by the brief of the System and a reply brief by the claimant or other party who filed the first brief. Briefs must conform to 1 Pa. Code § 35.192 (relating to content and form of briefs). A party upon whom rests the burden of proof may not be denied the right to file a reply brief. Any party may waive the right to file a brief or reply brief, either on the record, or in writing to the hearing examiner, in either of which events, the hearing examiner will note that fact on the record, deduct the time allotted for the filing of the brief or briefs from the briefing schedule and prepare an opinion and recommendation for the Board without the benefit of a brief on behalf of the party who elected to waive the filing of a brief.
(b) Both the claimant and the System shall be entitled to file letter briefs to the hearing examiner. The letter briefs need not conform to 1 Pa. Code §§ 35.191 and 35.192 (relating to proceedings in which briefs are to be filed; and content and form of briefs), but the letter briefs may not be more than 3 pages in length.
(c) This section supplements 1 Pa. Code §§ 35.191 and 35.192.
§ 201.11. Proposed opinion and recommendation.
(a) Unless otherwise ordered by the Board, the hearing examiner will file a proposed opinion and recommendation to the Board in cases when an administrative hearing has been held before a hearing examiner. The contents of the proposed opinion and recommendation will be in accordance with 1 Pa. Code § 35.205 (relating to contents of proposed reports) and will also include a discussion of the matter. The proposed opinion and recommendation will not become the opinion and order of the Board unless it is adopted by the Board.
(b) The proposed opinion and recommendation shall be filed with the System, together with the transcript of testimony, exhibits and briefs, all of which shall become part of the record. At the same time the proposed opinion and recommendation is filed with the System, the hearing examiner will serve copies upon all parties and staff counsel.
(c) The Board may adopt or reject, in whole or in part, or supplement the proposed opinion and recommendation or issue its own opinion and order, whether or not exceptions to the proposed opinion and recommendation are filed by any party. When exceptions are filed, the Board will rule on the exceptions.
(d) This section supplements 1 Pa. Code §§ 35.202 and 35.207 (relating to proceedings in which proposed reports are prepared; and service of proposed reports).
§ 201.12. Oral argument before the Board.
(a) The right to oral argument will be discretionary with the Board. When oral argument is granted, the Secretary of the Board will schedule the argument for the next available Board meeting.
(b) If a party filing exceptions to a recommendation of the hearing examiner wishes oral argument before the Board, the party shall file the request for oral argument with the exceptions.
(c) If a party seeks oral argument in a case in which exceptions have been filed by the System to a recommendation of the hearing examiner that is in favor of a claimant, the request for oral argument shall be filed with or before the party's response to the System's exceptions. In that case, the Secretary of the Board will grant oral argument and schedule it for the next available Board meeting.
(d) Oral argument will be limited to a maximum of 10 minutes for each party, unless otherwise directed by the Board. The claimant, as the party with the burden of proof, shall argue first. If there are more than two parties to the appeal, the Secretary of the Board will establish the order of argument consistent with who has the burden of proof. New evidence will not be accepted at the oral argument.
(e) At the conclusion of the oral argument, the Board will discuss and decide the case. The Board may table the case for further consideration at its next meeting. The Board may also elect to discuss all or part of the case in executive session in accordance with 65 Pa.C.S. Chapter 7 (relating to the Sunshine Act).
(f) The Board's counsel will draft a proposed adjudication in accordance with the Board's decision. The proposed adjudication will be presented for the Board's approval at the Board meeting next following the Board's determination of the case, unless the Board agrees to have the proposed adjudication issued without further review by the Board.
(g) This section supersedes 1 Pa. Code § 35.214 (relating to oral argument on exceptions).
CHAPTER 211. PRELIMINARY PROVISIONS § 211.1. Short title of part.
(a) [This part is] Chapters 211, 213 and 215 (relating to preliminary provisions; contributions and benefits; and general administration) are promulgated under the Retirement Code.
* * * * * § 211.2. Definitions.
(a) The definitions in section 8102 of the Retirement Code (relating to definitions) are applicable to Chapters 211, 213 and 215 (relating to preliminary provisions; contributions and benefits; and general administration) as clarified or supplemented by the definitions in subsection (b).
(b) The following words and terms, when used in this part, have, consistent with the Retirement Code definitions, the following meanings, unless the context clearly indicates otherwise:
[Accumulated deductions--The total of pickup contributions paid into the Fund by the member, on account of previous school service, current school service, or creditable nonschool service, as well as the statutory interest credited on all contributions.]
Active member--
(i) A school [employe] employee for whom pickup contributions are properly being made to the Fund, including those granted a sabbatical leave of absence, or who are on an approved leave of absence for professional study, as an exchange teacher, or service with a collective bargaining organization, under sections 8102 and 8302 (relating to definitions; and credited school service) of the Retirement Code, or for whom the contributions otherwise required for current school service are not being made solely by reason of any provision in the Retirement Code relating to the limitations under sections 401(a)(17) or 415(b) of the Internal Revenue Code.
(ii) [It shall exclude employes] The term excludes employees who are on leave of absence without pay.
Actuarially equivalent--[Equal] Two benefits are said to be actuarially equivalent if they have equal present values, computed on the basis of statutory interest and the mortality tables currently adopted and used by the Board.
* * * * * [Basic contribution rate--A rate of 6.25% on all compensation received by the member during school employment.]
Beneficiary--The person, estate, trust, or licensed charitable organization or entity last designated by a member in writing to the Board [on forms supplied by the Board] to receive accumulated deductions or a lump sum benefit upon the member's death.
Board--The Public School [Employes'] Employees' Retirement Board [required by the Retirement Code to administer the System].
Certified members--For purposes of voting to fill a seat on the Board, the term includes members whose position requires certification by the Department of Education under section 1101 of the Public School Code of 1949 (24 P. S. § 11-1101). All other members are noncertified members.
[Compensation--Pickup contributions plus any remuneration received as a school employe, excluding a bonus, severance payment or other remuneration or similar emoluments received by a school employe during school service not based on the standard salary schedule for which the employe is rendering service. The term excludes payments for unused sick leave, unused vacation leave, bonuses for attending school seminars and conventions, special payments for health and welfare plans based on the hours employed or any other payment or similar emoluments which may be negotiated in a collective bargaining agreement for the express purpose of enhancing the compensation factor for retirement benefits.
Date of termination of service--The last day of service for which pickup contributions are made for an active member, or in the case of an inactive member, the date of resignation or the date the employer formally discontinues employment or 2 years following the last date of service for which contributions were made, whichever is earliest.
Effective date of retirement--The first day following date of termination of service, if application for an annuity is timely filed, but if not timely filed, the date of actual filing or date specified on the application, whichever is later. In the case of a vestee, it shall mean the attainment of superannuation age, if filed within 90 days thereof, otherwise the date of actual filing or the date specified on the application, whichever is later, and, in the case of a disability benefit, the date certified by the Board as the effective date of disability.]
Employer--
(i) A governmental entity directly responsible for the employment and payment of the school [employe] employee and charged with the responsibility of providing public education within this Commonwealth.
(ii) The term includes all governmental entities whose [employes] employees under prior law and regulations are members of the System as of the effective date of the Retirement Code.
Final average salary--The highest average compensation received as an active member during any three nonoverlapping periods of 12 consecutive months. In the case of a part-time [employe] employee, compensation shall be annualized by multiplying actual earnings by the reciprocal of the fractional portion of time worked during nonoverlapping periods of 12 consecutive months or equivalent consecutive pay periods during which compensation is received; and, in the case of a member with multiple service credit, the salary shall be determined by reference to include compensation received as a school [employe] employee or a State [employe] employee, or both. In the case of a member who first became a member on or after July 1, 1996, compensation shall be subject to the application of section 8325.1 of the Retirement Code (relating to annual compensation limit under IRC § 401(a)(17)). Final average salary is an average of the 3 highest school years. For terminations before the end of the school year, salary for that part of the year may be used in combination with a proportionate percentage of a prior year. School years with part-time service may be annualized for salary calculation. Either annualized or actual retirement-covered compensation is allocated to months for each school year. For final average salary purposes, retirement-covered compensation is credited in the school year in which it is earned, not paid. Retirement-covered compensation is not recognized for any period of creditable nonschool service purchased by a member.
[Full coverage member--A dual coverage or a single coverage member excluding joint coverage member.]
Full-day session--That period of time determined by the [school district] employer, without objection from the Department of Education, during which a school [employe] employee is employed daily for instructional purposes.
Full time [employe] employee--An [employe] employee employed [no less than] at least 5 hours per day or 25 hours per week or its equivalent.
* * * * * Governmental entity--In addition to those enumerated in the Retirement Code, the term includes any agency or authority, being a corporate body or body politic created by law, or any entity created by those agencies or authorities, charged with the responsibility of providing public education within this Commonwealth.
* * * * * Inactive member--
(i) A member for whom no pickup contributions are being made, who has accumulated deductions standing to the member's credit in the Fund and for whom no pickup contributions have been made within the last 2 school years [or a multiple service member who is active in the System], except in the case of an active member for whom the contributions otherwise required for current school service are not being made solely by reason of any provision in the Retirement Code relating to the limitations under sections 401(a)(17) of the Internal Revenue Code, who has accumulated deductions standing to his credit in the Fund and for whom contributions have been made within the last 2 school years or a multiple service member who is active in the State Employees' Retirement System.
(ii) The term also includes a member who is on furlough and has elected to leave the accumulated deductions in the Fund at statutory interest during the furlough period, which period may not exceed 2 school years; or a member who is on leave of absence without pay.
* * * * * [Intervening military service--Active military service of a member who was a school employee immediately preceding the member's induction into the armed services or forces of the United States to meet a draft obligation excluding any voluntary extension of the obligational service and who becomes a school employe within 90 days of the expiration of the service.]
* * * * * Nonprofessional members--The term includes all school [employes] employees who are not ''professional [members] employees,'' as defined in section 1101 of the Public School Code of 1949, and who also qualify for membership in the System under section 8301 of the Retirement Code (relating to mandatory and optional membership). See also definition of ''certified members'' for the meaning of ''noncertified members.''
[Pickup contributions--Regular or joint coverage member contributions which are made by the employer for active members for current service on or after January 1, 1983.]
Professional members--[As] ''Professional employees,'' as defined in section 1101 of the Public School Code of 1949 [(24 P. S. § 11-1101)], including all temporary professional [employes] employees, professional [employes] employees, substitutes and commissioned officers currently employed by a school district or intermediate unit and qualifying for membership in the System under section 8301 of the Retirement Code (relating to mandatory and optional membership). See also definition of ''certified members.''
* * * * * Retirement Code--The Public School [Employes'] Employees' Retirement Code[,] (24 Pa.C.S. §§ 8101--[8534] 8535).
* * * * * School [employe] employee--
(i) A person engaged in work relating to a public school for any governmental entity and for which work the person is receiving regular remuneration as an officer, administrator or [employe] employee excluding, however, any independent contractor or a person compensated on a fee basis.
(ii) The term does not include a person who is rendering services to the school district on a commission or fee basis, whether an elected official or not.
School year--The 12-month period which the governmental entity uses for purposes of administration, regardless of the actual time during which a member renders service. A member will not be credited, during a school year, with credited service in excess of 1 year. For the purpose of the Retirement Code, the school year commences on July 1 and ends on June 30 of the following year.
* * * * * [Superannuation or normal retirement age--
Class of service Age T-A 62 or any age upon accrual of 35 eligibility points T-B 62 T-C 62 or age 60 provided the member has at least 30 eligibility points or any age upon accrual of 35 eligibility points System--The Public School Employes' Retirement System.
Vestee--A member with ten or more eligibility points who has terminated school service, left accumulated deductions in the fund, and is deferring the filing of an application for receipt of an annuity.]
* * * * * § 211.3. Construction.
(a) Former annuitants who are active members of the System on October 2, 1975, are not subject to the recalculation of annuities of annuitants who return to school service thereafter.
(b) The rights of members of Class T-B, as provided in section 301(2)(c) and (d) of the Public School Employees' Retirement Code of 1959 (24 P. S. § 3301(2)(c) and (d) (repealed)) shall continue.
(c) The provisions relating to former teachers as provided in sections 303(3) and 407(1) of the Public School Employees' Retirement Code of 1959 (24 P. S. §§ 3303(3) and 3407(1) (repealed)), shall continue.
(d) As applicable to members terminating school service on or after March 1, 1974, the provisions relating to the purchase of credit for previous school or creditable nonschool service and the calculation of benefits shall be effective March 1, 1974.
(e) The provisions relating to the crediting of statutory interest to the accounts of members on leave without pay shall become effective on July 1, 1975.
(f) Part-time employee membership, as provided by the Retirement Code, shall become effective with the beginning of the school year 1975-76, subject to the limitations based upon qualification, as provided in this part.
(g) The provisions relating to eligibility for disability annuities, shall be effective, as applied to all active or inactive members, from December 1, 1974.
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