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 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 . The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows: Section 1. Section 5301(b), (b.1), (c) and (d)(2) of Title 71 of the Pennsylvania Consolidated Statutes are amended to read: ยง 5301. Mandatory and optional membership in the system and participation in the plan . * * * (b) Optional membership in the system.--[The] (1) Except as provided under paragraph (2), 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 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. (2) A State employee who first becomes a Senator on or after December 1, 2026, and is not or has not previously been a member of the system may not elect membership in the system, but may elect participation in the plan if not a mandatory participant. (b.1) Optional participation in the plan.-- (1) 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. (2) A State employee who first becomes a Senator on or after December 1, 2026, and is not or has not previously been a member of the system or a participant in the plan may elect to be solely a participant in the plan within 30 days of taking office as a Senator. The following shall apply: (i) An election by a Senator to become solely a participant in the plan under this paragraph shall be 20250SB0248PN0200 - 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 irrevocable and shall become effective on the date the State employee takes office as Senator and shall remain in effect for all future State service, other than service performed as a Class A-5 exempt employee. Payment of mandatory participant pickup contributions for service as a Senator solely as a participant in the plan performed prior to the election shall be made in a form, manner and time determined by the board. (ii) Upon termination and subsequent reemployment, a Senator who elected to be solely a participant in the plan under this paragraph shall resume active participation for State service performed after reemployment, except as a Class A-5 exempt employee, regardless of termination of employment, termination of participation by a partial or total distribution of vested total defined contributions or status as an annuitant, vestee or inactive member of the system as a Class A-5 exempt employee after the termination of service. (iii) Failure of a Senator who is eligible to elect to become solely a participant in the plan under this paragraph to make the election within 30 days of taking office as a Senator shall result in all of the Senator's service as a Senator not being eligible for future election or crediting as service in the system or as a participant in the plan. (c) Prohibited membership in the system.--The State employees listed in [ subsection] subsections (a)(12), (13), (14) and (15) and (b)(2) shall not have the right to elect membership in the system. 20250SB0248PN0200 - 3 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 * * * (d) Return to service.-- * * * (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 subsection (b.1)(2) or 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. * * * Section 2. This act shall take effect immediately. 20250SB0248PN0200 - 4 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18