SB 1327
An Act amending Title 24 (Education) of the Pennsylvania Consolidated Statutes, in preliminary provisions relating to retirement for school employees, further providing for definitions; and, in membership, contributions and benefits, further providing for mandatory and optional membership in the system and participation in the plan.
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Sign in to take action- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Bill overview
This bill amends Pennsylvania’s school employee retirement system (PSERS) by clarifying the definition of ‘governmental entity’ and establishing rules for membership, contributions, and benefits. Specifically, it restricts membership to governmental entities and certain other organizations, while outlining procedures for removing ineligible entities and imposing a fee for their removal. The bill also addresses how the system handles employers that are not participating in the plan.
Key provisions
- Defines ‘governmental entity’ to include school boards, public education boards, and related entities.
- Restricts membership in the PSERS to governmental entities and certain other organizations.
- Prohibits school employees from electing membership in the PSERS.
- Establishes a process for removing ineligible entities from the system.
- Requires ineligible entities to pay an administrative removal fee, capped at 5% of potential withdrawal liability.
- Specifies how the administrative removal fee will be used.
- Sets a timeline for identifying and removing ineligible entities.
- Outlines regulations needed to implement the changes.
Who is affected
- School employees
- School district boards of directors
- Public education boards
- Pennsylvania State Employees’ Retirement System (PSERS) members
- Employers not classified as governmental entities
Notable changes
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