SB 248 — An Act amending Title 71 (State Government) of the Pennsylvania Consolidated Statutes, in membership, credited service, classes of service, and eligibility for benefits, further providing for mandatory and optional membership in the system and participation in the plan.

PRINTER'S NO.   200

                      THE GENERAL ASSEMBLY OF PENNSYLVANIA



                          SENATE BILL
                          No. 248
                                                  Session of
                                                    2025

     INTRODUCED BY COLEMAN, PHILLIPS-HILL AND STEFANO,
        FEBRUARY 13, 2025

     REFERRED TO FINANCE, FEBRUARY 13, 2025


                                       AN ACT
 1   Amending Title 71 (State Government) of the Pennsylvania
 2      Consolidated Statutes, in membership, credited service,
 3      classes of service, and eligibility for benefits, further
 4      providing for mandatory and optional membership in the system
 5      and participation in the plan.
 6      The General Assembly of the Commonwealth of Pennsylvania
 7   hereby enacts as follows:
 8      Section 1.      Section 5301(b), (b.1), (c) and (d)(2) of Title
 9   71 of the Pennsylvania Consolidated Statutes are amended to
10   read:
11   § 5301.    Mandatory and optional membership in the system and
12                   participation in the plan.
13      * * *
14      (b)    Optional membership in the system.--[The]
15             (1)   Except as provided under paragraph (2), the State
16      employees listed in subsection (a)(1) through (11) shall have
17      the right to elect membership in the system; once such
18      election is exercised, membership shall continue until the
19      termination of State service. State employees listed in
 1    subsection (a)(17) who are listed in subsection (a)(1)
 2    through (11) shall have the right to elect membership in
 3    Class A-5 or Class A-6 provided they have not previously
 4    elected to be solely participants in the plan.
 5        (2)   A State employee who first becomes a Senator on or
 6    after December 1, 2026, and is not or has not previously been
 7    a member of the system may not elect membership in the
 8    system, but may elect participation in the plan if not a
 9    mandatory participant.
10    (b.1)   Optional participation in the plan.--
11        (1)   The State employees who are optional members of the
12    system as members of Class A-5 or Class A-6 also are optional
13    participants in the plan. The State employees who elect
14    membership in the system as members of Class A-5 or Class A-
15    6, including the employees who elect to become members of
16    Class A-5 or Class A-6 under section 5306.5 (relating to
17    election by active members to become a Class A-5 member,
18    Class A-6 member or plan participant) also automatically
19    elect participation in the plan as of the date they elect
20    membership in the system, except for service as a Class A-5
21    exempt employee. A State employee can elect participation in
22    the plan without also electing membership in the system under
23    section 5306.4.
24        (2)   A State employee who first becomes a Senator on or
25    after December 1, 2026, and is not or has not previously been
26    a member of the system or a participant in the plan may elect
27    to be solely a participant in the plan within 30 days of
28    taking office as a Senator. The following shall apply:
29              (i)   An election by a Senator to become solely a
30        participant in the plan under this paragraph shall be

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 1            irrevocable and shall become effective on the date the
 2            State employee takes office as Senator and shall remain
 3            in effect for all future State service, other than
 4            service performed as a Class A-5 exempt employee. Payment
 5            of mandatory participant pickup contributions for service
 6            as a Senator solely as a participant in the plan
 7            performed prior to the election shall be made in a form,
 8            manner and time determined by the board.
 9                (ii)    Upon termination and subsequent reemployment, a
10            Senator who elected to be solely a participant in the
11            plan under this paragraph shall resume active
12            participation for State service performed after
13            reemployment, except as a Class A-5 exempt employee,
14            regardless of termination of employment, termination of
15            participation by a partial or total distribution of
16            vested total defined contributions or status as an
17            annuitant, vestee or inactive member of the system as a
18            Class A-5 exempt employee after the termination of
19            service.
20                (iii)    Failure of a Senator who is eligible to elect
21            to become solely a participant in the plan under this
22            paragraph to make the election within 30 days of taking
23            office as a Senator shall result in all of the Senator's
24            service as a Senator not being eligible for future
25            election or crediting as service in the system or as a
26            participant in the plan.
27      (c)   Prohibited membership in the system.--The State
28   employees listed in [subsection] subsections (a)(12), (13), (14)
29   and (15) and (b)(2) shall not have the right to elect membership
30   in the system.

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 1    * * *
 2    (d)   Return to service.--
 3          * * *
 4          (2)   An annuitant or a participant receiving
 5    distributions who returns to service as a State employee on
 6    or after January 1, 2019, shall resume active membership in
 7    the system and, if an active member of Class A-5 or Class A-
 8    6, shall be an active participant in the plan as of the
 9    effective date of employment, except as otherwise provided in
10    section 5706(a), regardless of the optional membership or
11    participation category of the position: Provided, however,
12    That a participant or former participant who previously
13    elected to be solely a participant under subsection (b.1)(2)
14    or section 5306.4 or 5306.5 shall be a participant in the
15    plan and not an active member of the system, except for
16    service as a Class A-5 exempt employee.
17    * * *
18    Section 2.    This act shall take effect immediately.




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