Mandatory and optional membership in the system and participation in the plan

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(a) Mandatory membership.--Membership in the system shall be mandatory as of the effective date of employment for all State employees except the following:

(1) Governor.

(2) Lieutenant Governor.

(3) Members of the General Assembly.

(4) Heads or deputy heads of administrative departments.

(5) Members of any independent administrative board or commission.

(6) Members of any departmental board or commission.

(7) Members of any advisory board or commission.

(8) Secretary to the Governor.

(9) Budget Secretary.

(10) Legislative employees.

(11) School employees who have elected membership in the Public School Employees' Retirement System.

(12) School employees who have elected membership in an independent retirement program approved by the employer, provided that in no case, except as hereinafter provided, shall the employer contribute on account of such elected membership at a rate greater than the employer normal contribution rate as determined in section 5508(b) (relating to actuarial cost method). For the fiscal year 1986-1987 an employer may contribute on account of such elected membership at a rate which is the greater of 7% or the employer normal contribution rate as determined in section 5508(b) and for the fiscal year 1992-1993 and all fiscal years after that at a rate of 9.29%.

(13) Persons who have elected to retain membership in the retirement system of the political subdivision by which they were employed prior to becoming eligible for membership in the State Employees' Retirement System.

(14) Persons who are not members of the system and are employed on a per diem or hourly basis for less than 100 days or 750 hours in a calendar year.

(15) Employees of the Philadelphia Regional Port Authority who have elected to retain membership in the pension plan or retirement system in which they were enrolled as employees of the predecessor Philadelphia Port Corporation prior to the creation of the Philadelphia Regional Port Authority.

(16) Employees of the Juvenile Court Judges' Commission who, before the effective date of this paragraph, were transferred from the State System of Higher Education to the Juvenile Court Judges' Commission as a result of an interagency transfer of staff approved by the Office of Administration and who, while employees of the State System of Higher Education, had elected membership in an independent retirement program approved by the employer.

(17) State employees, other than any Class A-5 exempt employees performing service as Class A-5 exempt employees, whose first period of State service starts on or after January 1, 2019, provided that a State employee listed in this paragraph who is not listed in paragraphs (1) through (16) shall be mandatory members unless the employee elected to be solely a participant in the plan under section 5306.4 (relating to election to become a Class A-6 member or solely a participant in the plan).

(a.1) Mandatory participation in the plan.--A State employee who is a member of the system as a member of Class A-5 or Class A-6 shall be a mandatory participant in the plan for that same service as of the effective date of Class A-5 or Class A-6 membership in the system except for service as a Class A-5 exempt employee. A State employee who elected to be solely a participant in the plan shall be a mandatory participant in the plan for all service except for service as a Class A-5 exempt employee.

(b) Optional membership in the system.--The State employees listed in subsection (a)(1) through (11) shall have the right to elect membership in the system; once such election is exercised, membership shall continue until the termination of State service. State employees listed in subsection (a)(17) who are listed in subsection (a)(1) through (11) shall have the right to elect membership in Class A-5 or Class A-6 provided they have not previously elected to be solely participants in the plan.

(b.1) Optional participation in the plan.--The State employees who are optional members of the system as members of Class A-5 or Class A-6 also are optional participants in the plan. The State employees who elect membership in the system as members of Class A-5 or Class A-6, including the employees who elect to become members of Class A-5 or Class A-6 under section 5306.5 (relating to election by active members to become a Class A-5 member, Class A-6 member or plan participant) also automatically elect participation in the plan as of the date they elect membership in the system, except for service as a Class A-5 exempt employee. A State employee can elect participation in the plan without also electing membership in the system under section 5306.4.

(c) Prohibited membership in the system.--The State employees listed in subsection (a)(12), (13), (14) and (15) shall not have the right to elect membership in the system.

(c.1) Prohibited participation in the plan.--The State employees listed in subsection (a)(11), (12), (13), (14) and (15) or who first become a member of the system before January 1, 2019, or who could have elected membership in the system but did not do so in the required time period shall not be eligible to be active participants in the plan unless an election is made under section 5306.5. Class A-5 exempt employees shall not be eligible to participate in the plan for service performed as a Class A-5 exempt employee. State employees who are not mandatory participants in the plan under subsection (a.1) or eligible for optional participation in the plan under subsection (b.1) shall not be eligible to participate in the plan unless an election is made under section 5306.5.

(d) Return to service.--

(1) An annuitant who returns to service as a State employee before January 1, 2019, or returns to State service as a Class A-5 exempt employee after December 31, 2018, shall resume active membership in the system as of the effective date of employment, except as otherwise provided in section 5706(a) (relating to termination of annuities), regardless of the optional membership category of the position.

(2) An annuitant or a participant receiving distributions who returns to service as a State employee on or after January 1, 2019, shall resume active membership in the system and, if an active member of Class A-5 or Class A-6, shall be an active participant in the plan as of the effective date of employment, except as otherwise provided in section 5706(a), regardless of the optional membership or participation category of the position: Provided, however, That a participant or former participant who previously elected to be solely a participant under section 5306.4 or 5306.5 shall be a participant in the plan and not an active member of the system, except for service as a Class A-5 exempt employee.

(e) Election prohibited.--Notwithstanding subsections (a)(13) and (c), county employees who are transferred to State employment and become State employees pursuant to 42 Pa.C.S. § 1905 (relating to county-level court administrators) shall not have the election to remain a contributor in the retirement system or pension plan of the county by which they were employed prior to becoming eligible for membership in the State Employees' Retirement System. Such employees shall be mandatory members of the system provided they are otherwise eligible and unless they are eligible for optional membership pursuant to subsections (a)(1) through (11) and (b) or prohibited membership pursuant to subsections (a)(14) and (c).

(f) Additional optional membership.--The State employees listed in subsection (a)(16) shall be mandatory members of the system as of the effective date of employment with the Juvenile Court Judges' Commission unless they elect membership in an independent retirement program approved by the Juvenile Court Judges' Commission. Employees who elect membership in an independent retirement program approved by the Juvenile Court Judges' Commission shall be prohibited from being active members in the system while employed by the Juvenile Court Judges' Commission. If an employee described in this subsection becomes a State employee with an employer other than the Juvenile Court Judges' Commission, then membership for that employee shall be determined as otherwise provided for in this part. The election of membership in the independent retirement program approved by the Juvenile Court Judges' Commission must be made by the transferred employee filing written notice with the employer while a State employee no later than 90 days after the effective date of this subsection. Upon receipt of such an election, the Juvenile Court Judges' Commission shall certify the election to the board and the independent retirement program.

(Oct. 7, 1975, P.L.348, No.101, eff. imd.; Mar. 4, 1982, P.L.141, No.45, eff. imd.; Dec. 15, 1986, P.L.1597, No.176, eff. imd.; Oct. 30, 1987, P.L.380, No.78, eff. imd.; Aug. 5, 1991, P.L.183, No.23, eff. imd.; Nov. 30, 1992, P.L.737, No.112, eff. imd.; June 22, 1999, P.L.75, No.12, eff. imd.; Apr. 23, 2002, P.L.272, No.38, eff. imd.; June 12, 2017, P.L.11, No.5, eff. imd.)

2017 Amendment. Act 5 amended the section heading and subsecs. (a), (b), (c) and (d) and added subsecs. (a.1), (b.1) and (c.1).

2002 Amendment. Act 38 added subsecs. (a)(16) and (f).

1999 Amendment. Act 12 added subsec. (e). See sections 19 and 22(b) of Act 12 in the appendix to this title for special provisions relating to required membership in State Employees' Retirement System and contributions left in county retirement system.

1992 Amendment. See section 5 of Act 112 in the appendix to this title for special provisions relating to annual employer contribution rates to optional alternate retirement programs.

Special Provisions in Appendix. See sections 2 and 3 of Act 78 of 1987 in the appendix to this title for special provisions relating to annual employer contribution rates to optional alternate retirement programs and effective date and retroactivity.

Cross References. Section 5301 is referred to in sections 5303, 5303.2, 5304, 5306, 5701.1, 5706 of this title.


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