Pennsylvania § 5306.5 - Election by active members to become a Class A-5 member, Class A-6 member or plan participant.

§ 5306.5. Election by active members to become a Class A-5 member, Class A-6 member or plan participant.

(a) General rule.--A State employee, except for a Class A-5 exempt employee, who is an active member or inactive member on leave without pay on December 31, 2018, and January 1, 2019, may elect to become a member of Class A-5, a member of Class A-6 or solely a participant in the plan. A State employee who was previously a member of the system before January 1, 2019, and who returns to State service on or after January 1, 2019, or who is a Class A-5 exempt employee on December 31, 2018, and January 1, 2019, is not eligible to elect Class A-5 membership, Class A-6 membership or participation in the plan.

(b) Time for making election.--The election to become a Class A-5 member, Class A-6 member or solely a participant in the plan must be made by the employee filing written notice with the board before the termination of State service or by March 31, 2019, whichever occurs first, but may not be made before January 1, 2019. A State employee who is eligible to elect to become a Class A-5 member, Class A-6 member or solely a participant in the plan who begins USERRA leave during the election period without having elected Class A-5 membership, Class A-6 membership or participation in the plan will have the election period extended by the number of days the employee is on USERRA leave.

(c) Effect of election.--An election to become a Class A-5 member, a Class A-6 member or solely a participant in the plan shall be irrevocable as of the earlier of the date of termination of State service or the day after the election period expires. The election shall apply to all service performed on or after July 1, 2019, and shall remain in effect for all future creditable State service, other than service performed as a Class A-5 exempt employee. A member who elects Class A-5 membership shall be subject to all provisions of this part applicable to Class A-5 membership and participation in the plan as a Class A-5 member for all service other than service as a Class A-5 exempt employee performed on and after July 1, 2019. A member who elects Class A-6 membership shall be subject to all provisions of this part applicable to Class A-6 membership and participation in the plan as a Class A-6 member for all service other than service as a Class A-5 exempt employee performed on and after July 1, 2019. A member who elects to be solely a participant in the plan shall be subject to all provisions of this part applicable to participation in the plan for all service other than service as a Class A-5 exempt employee performed on and after July 1, 2019. Upon termination and subsequent reemployment, a member who elected Class A-5 membership, Class A-6 membership or to be solely a participant in the plan shall be credited as a Class A-5 member, a Class A-6 member or solely as a participant in the plan, as the case may be, for creditable State service performed after reemployment, except as a Class A-5 exempt employee, regardless of termination of employment, termination of membership by withdrawal of accumulated deductions, termination of participation by a distribution of vested total defined contributions or status as an annuitant, vestee, inactive member or participant receiving distributions after the termination of service.

(d) Effect of failure to make election.--If the employee fails to file timely an election to become a Class A-5 member, a Class A-6 member or solely a participant in the plan, the employee shall continue to be enrolled in the applicable class of service and shall never be able to elect Class A-5 membership, Class A-6 membership or participation in the plan, regardless of whether the employee terminates service or has a break in service.

(e) Mandatory pickup participant contributions.--An individual who has made the election under subsection (a) shall make the following mandatory pickup participant contributions for service:

(1) If the participant elected to be a member of Class A-5, then:

(i) If the participant would have been a member of Class A if the election had not been made, no mandatory pickup participant contributions shall be made.

(ii) If the participant would have been a member of Class AA if the election had not been made, at a rate of 1.25% of compensation.

(iii) If the participant would have been a member of Class A-3 if the election had not been made, at a rate of 1.25% of compensation.

(iv) If the participant would have been a member of Class A-4 if the election had not been made, at a rate of 4.3% of compensation.

(v) If the participant would have been a member of Class D-4 if the election had not been made, at a rate of 2.5% of compensation.

(vi) If the participant would have been a member of Class E-1 if the election had not been made, at a rate of 5% of compensation for service for which the regular member contributions would have been 10% of compensation or at a rate of 2.5% for service for which the regular member contributions would have been 7.5% of compensation.

(vii) If the participant would have been a member of Class E-2 if the election had not been made, at a rate of 2.5% of compensation.

(2) If the participant elected to be a member of Class A-6, then:

(i) If the participant would have been a member of Class A if the election had not been made, at a rate of 1% of compensation.

(ii) If the participant would have been a member of Class AA if the election had not been made, at a rate of 2.25% of compensation.

(iii) If the participant would have been a member of Class A-3 if the election had not been made, at a rate of 2.25% of compensation.

(iv) If the participant would have been a member of Class A-4 if the election had not been made, at a rate of 5.3% of compensation.

(v) If the participant would have been a member of Class D-4 if the election had not been made, at a rate of 3.5% of compensation.

(vi) If the participant would have been a member of Class E-1 if the election had not been made, at a rate of 6% of compensation for service for which the regular member contributions would have been 10% of compensation or at a rate of 3.5% for service for which the regular member contributions would have been 7.5% of compensation.

(vii) If the participant would have been a member of Class E-2 if the election had not been made, at a rate of 3.5% of compensation.

(3) If the participant elected to be solely a participant in the plan, then:

(i) If the participant would have been a member of Class A if the election had not been made, at a rate of 5% of compensation.

(ii) If the participant would have been a member of Class AA if the election had not been made, at a rate of 6.25% of compensation.

(iii) If the participant would have been a member of Class A-3 if the election had not been made, at a rate of 6.25% of compensation.

(iv) If the participant would have been a member of Class A-4 if the election had not been made, at a rate of 9.3% of compensation.

(v) If the participant would have been a member of Class D-4 if the election had not been made, at a rate of 7.5% of compensation.

(vi) If the participant would have been a member of Class E-1 if the election had not been made, at a rate of 10% of compensation for service for which the regular member contributions would have been 10% of compensation or at a rate of 7.5% for service for which the regular member contributions would have been 7.5% of compensation.

(vii) If the participant would have been a member of Class E-2 if the election had not been made, at a rate of 7.5% of compensation.

(viii) If the participant would have been making shared-risk member contributions if the election had not been made, then the mandatory pickup participant contributions shall be a percentage of compensation greater than the amounts listed in this subsection equal to the shared-risk member contribution rate that would have been applicable. This percentage rate shall be subject to any subsequent changes in the shared-risk member contributions.

(ix) If the participant would have had regular member contributions adjusted by the shared-gain adjustment if the election had not been made, then the mandatory pickup participant contributions shall be reduced by the same percentage of compensation regular member contributions would have been reduced by the shared-gain adjustment. This percentage rate shall be subject to any subsequent changes in the shared-gain adjustment to regular member contributions.

(4) If the participant would have been making Social Security Integration contributions if the election had not been made, then the mandatory pickup participant contributions on compensation for which Social Security Integration contributions would have been made shall be 5% of compensation greater than the amounts listed in this subsection.

(June 12, 2017, P.L.11, No.5, eff. imd.)

2017 Amendment. Act 5 added section 5306.5. See section 411 of Act 5 in the appendix to this title for special provisions relating to Class A-5 or Class A-6 membership limited.

Cross References. Section 5306.5 is referred to in sections 5102, 5301, 5306, 5306.1, 5306.2, 5306.3, 5306.4, 5501.1, 5804 of this title.