HB 2032 — An Act amending Titles 24 (Education) and 71 (State Government) of the Pennsylvania Consolidated Statutes, in membership, contributions and benefits, further providing for termination of annuities; in membership, credited service, classes of service, and eligibility for benefits relating to retirement for State employees and officers, further providing for mandatory and optional membership in the system and participation in the plan; and, in benefits, further providing for termination of annuities.

PRINTER'S NO.   2603

                      THE GENERAL ASSEMBLY OF PENNSYLVANIA



                          HOUSE BILL
                          No. 2032
                                                 Session of
                                                   2025

     INTRODUCED BY STRUZZI, BANTA, CAUSER, CIRESI, COOPER, GILLEN,
        HAMM, JAMES, M. MACKENZIE, PICKETT, SMITH, STENDER, WATRO AND
        ZIMMERMAN, NOVEMBER 13, 2025

     REFERRED TO COMMITTEE ON STATE GOVERNMENT, NOVEMBER 17, 2025


                                      AN ACT
 1   Amending Titles 24 (Education) and 71 (State Government) of the
 2      Pennsylvania Consolidated Statutes, in membership,
 3      contributions and benefits, further providing for termination
 4      of annuities; in membership, credited service, classes of
 5      service, and eligibility for benefits relating to retirement
 6      for State employees and officers, further providing for
 7      mandatory and optional membership in the system and
 8      participation in the plan; and, in benefits, further
 9      providing for termination of annuities.
10      The General Assembly of the Commonwealth of Pennsylvania
11   hereby enacts as follows:
12      Section 1.     Section 8346(b.2) heading, (1) and (2) of Title
13   24 of the Pennsylvania Consolidated Statutes are amended and the
14   section is amended by adding a subsection to read:
15   § 8346.    Termination of annuities.
16      * * *
17      (b.2)    Limitation on return to school service by an annuitant
18   [during emergency or in an extracurricular position].--
19             (1)   An annuitant may return to school service under
20      subsection (b) [or], (b.1) or (b.3), provided the annuitant
21      otherwise meets the requirements of subsection (b) [or],
 1      (b.1) or (b.3) and has attained the age set forth in IRC §
 2      401(a)(36) or the applicable "normal retirement age" in 26
 3      C.F.R. § 1.401(a)-1(b)(2) (relating to post-ERISA qualified
 4      plans and qualified trusts; in general).
 5          (2)   An annuitant who has not reached the age as set
 6      forth in IRC § 401(a)(36), or the applicable "normal
 7      retirement age" under 26 C.F.R. § 1.401(a)-1(b)(2), may
 8      return to service under subsection (b) [or], (b.1) or (b.3)
 9      provided the annuitant otherwise meets the requirements of
10      subsection (b) [or], (b.1) or (b.3) and has had a break in
11      service, as set forth in paragraph (3).
12          * * *
13      (b.3)   Return to school service as a police instructor or
14   emergency medical services instructor.--
15          (1)   An annuitant or participant receiving distributions
16      may be employed in the following capacity for a school
17      employer without loss of annuity:
18                (i)    a part-time instructor teaching a basic police
19          training course or an in-service police training course
20          that is approved by the Municipal Police Officers'
21          Education and Training Commission for any school
22          employer; or
23                (ii)   a part-time emergency medical services
24          instructor under 35 Pa.C.S. § 8124 (relating to emergency
25          medical services instructors) for any school employer.
26          (2)   The annuitant or the participant receiving
27      distributions under paragraph (1) and the school employer of
28      the annuitant or participant shall not make contributions to
29      the member's savings account, individual investment account
30      or State accumulation account, respectively, for service

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 1      under this subsection. Service under paragraph (1) shall not
 2      be subject to member or participant contributions or be
 3      eligible for qualification as creditable school service or
 4      for participation in the plan, mandatory pickup participant
 5      contributions or employer defined contributions.
 6      * * *
 7      Section 2.      Sections 5301(d) and 5706(a)(2) and (a.5) of
 8   Title 71 are amended to read:
 9   § 5301.    Mandatory and optional membership in the system and
10                   participation in the plan.
11      * * *
12      (d)    Return to service.--
13             (1)   An annuitant who returns to service as a State
14      employee before January 1, 2019, or returns to State service
15      as a Class A-5 exempt employee after December 31, 2018, shall
16      resume active membership in the system as of the effective
17      date of employment, except as otherwise provided in section
18      5706(a) and (a.1) (relating to termination of annuities),
19      regardless of the optional membership category of the
20      position.
21             (2)   An annuitant or a participant receiving
22      distributions who returns to service as a State employee on
23      or after January 1, 2019, shall resume active membership in
24      the system and, if an active member of Class A-5 or Class A-
25      6, shall be an active participant in the plan as of the
26      effective date of employment, except as otherwise provided in
27      section 5706(a) and (a.1), regardless of the optional
28      membership or participation category of the position:
29      Provided, however, That a participant or former participant
30      who previously elected to be solely a participant under

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 1      section 5306.4 or 5306.5 shall be a participant in the plan
 2      and not an active member of the system, except for service as
 3      a Class A-5 exempt employee.
 4      * * *
 5   § 5706.    Termination of annuities.
 6      (a)    General rule.--
 7             * * *
 8             (2)     This subsection shall not apply in the case of any
 9      annuitant who:
10                   (i)    may render services to the Commonwealth in the
11             capacity of an independent contractor; or
12                   (ii)    is over normal retirement age or who has been
13             an annuitant for more than one year and who may render
14             service to the Commonwealth:
15                          (A)   as a member of an independent board or
16                   commission or as a member of a departmental
17                   administrative or advisory board or commission when
18                   such members of independent or departmental boards or
19                   commissions are compensated on a per diem basis for
20                   not more than 150 days per calendar year; [or]
21                          (B)   as a member of an independent board or
22                   commission requiring appointment by the Governor,
23                   with advice and consent of the Senate, where the
24                   annual salary payable to the member does not exceed
25                   $35,000 and where the member has been an annuitant
26                   for at least six months immediately preceding the
27                   appointment[.];
28                          (C)   as a part-time fire instructor at any of the
29                   following who has received certification as a
30                   firefighter training instructor from the Pennsylvania

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 1               State Fire Academy:
 2                         (I)    the Pennsylvania State Fire Academy;
 3                         (II)    the Department of Education;
 4                         (III)    a State-owned educational institution;
 5                         (IV)    a community college; or
 6                         (V)    The Pennsylvania State University;
 7                   (D)   as a part-time instructor teaching a basic
 8               police training course or an in-service police
 9               training course that is approved by the Municipal
10               Police Officers' Education and Training Commission at
11               any State Employees' Retirement System employer; or
12                   (E)   as a part-time emergency medical services
13               instructor under 35 Pa.C.S. § 8124 (relating to
14               emergency medical services instructors) at any State
15               Employees' Retirement System employer.
16      * * *
17      (a.5)   No contributions or credited service.--The service of
18   an annuitant whose annuity does not cease upon his return to
19   State or school service shall not be subject to member
20   contributions or eligible for qualification as creditable State
21   service [and], shall not be eligible for participation in the
22   plan, mandatory pickup participant contributions, voluntary
23   contributions or employer defined contributions[.], shall not be
24   subject to school employee member contributions to the Public
25   School Employees' Retirement System or eligible for
26   qualification as creditable school service in the Public School
27   Employees' Retirement System and shall not be eligible for
28   participation as a school employee in the School Employees'
29   Defined Contribution Plan or any type of contributions to the
30   School Employees' Defined Contribution Plan.

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1      * * *
2      Section 3.   This act shall apply only to service as a State-
3   certified fire instructor, police instructor or emergency
4   medical services instructor performed after the effective date
5   of this section without regard to whether the service as an
6   annuitant began before or after the effective date of this
7   section.
8      Section 4.   This act shall take effect immediately.




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