PRINTER'S NO. 3805


THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL


Session of

No. 2562

2006 

INTRODUCED BY NICKOL, BOYD, CALTAGIRONE, CAPPELLI, CLYMER,
CRAHALLA, CREIGHTON, DENLINGER, FAIRCHILD, FICHTER,
GILLESPIE, GINGRICH, GRELL, GRUCELA, HANNA, HARHART, HERSHEY,


M. KELLER, MACKERETH, MAITLAND, R. MILLER, MUSTIO, NAILOR,
PETRI, PHILLIPS, ROHRER, ROSS, RUBLEY, SATHER, SAYLOR,
SCAVELLO, SCHRODER, SIPTROTH, B. SMITH, SONNEY, E. Z. TAYLOR,
J. TAYLOR, WATERS, WILT AND JAMES, APRIL 3, 2006
REFERRED TO COMMITTEE ON STATE GOVERNMENT, APRIL 3, 2006


AN ACT 
1 Amending Titles 24 (Education) and 71 (State Government) of the 
2 Pennsylvania Consolidated Statutes, further providing for the 
3 employer contribution rates on behalf of active members. 
4 The General Assembly of the Commonwealth of Pennsylvania 
5 hereby enacts as follows: 
6 Section 1. Section 8328(a) of Title 24 of the Pennsylvania 
7 Consolidated Statutes is amended to read: 
8 § 8328. Actuarial cost method. 
9 (a) Employer contribution rate on behalf of active 
10 members.--The amount of the total employer contributions on 
11 behalf of all active members shall be computed by the actuary as 
12 a percentage of the total compensation of all active members 
13 during the period for which the amount is determined and shall 
14 be so certified by the board. The total contribution rate on 
15 behalf of all active members shall consist of the normal 
16 contribution rate as defined in subsection (b), the accrued 


liability contribution rate as defined in subsection (c) and the
supplemental annuity contribution rate as defined in subsection
(d). Beginning July 1, 2004, the total contribution rate shall
be modified by the experience adjustment factors as calculated
in subsection (e) but in no case shall it be less than:_


___4% plus the premium assistance contribution rate[.]


(1) 
for the fiscal year beginning July 1, 2004;
(2) 7% plus the premium assistance contribution rate for
the fiscal year beginning July 1, 2007; and
(3) the employer normal contribution rate plus the
premium assistance contribution rate for the fiscal year
beginning July 1, 2008, and thereafter.
* * *
Section 2. Section 5508(a) of Title 71 is amended to read:
§ 5508. Actuarial cost method.


(a) Employer contribution rate on behalf of active
members.--The amount of the Commonwealth and other employer
contributions on behalf of all active members shall be computed
by the actuary as a percentage of the total compensation of all
active members during the period for which the amount is
determined and shall be so certified by the board. The total
employer contribution rate on behalf of all active members shall
consist of the employer normal contribution rate, as defined in
subsection (b), and the accrued liability contribution rate as
defined in subsection (c). The total employer contribution rate
shall be modified by the experience adjustment factor as
calculated in subsection (f) but in no case shall it be less
than zero. The total employer contribution rate shall be
modified by the experience adjustment factor as calculated in
subsection (f), but in no case shall it be less than:
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(1) 2% for the fiscal year beginning July 1, 2004; 
(2) 3% for the fiscal year beginning July 1, 2005; [and] 
(3) _4% for the fiscal year beginning July 1, 2006[.]; 

(4) 5% for the fiscal year beginning July 1, 2007;
(5) 6% for the fiscal year beginning July 1, 2008; and
(6) the employer normal contribution rate for the fiscal
year beginning July 1, 2009, and thereafter.
* * *
Section 3. This act shall take effect in 60 days.
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