STATE EMPLOYEES' RETIREMENT BOARD [4 PA. CODE CH. 247] Priority of Taxation, Attachment and Assignment of Funds [38 Pa.B. 2062]
[Saturday, May 3, 2008]The State Employees' Retirement Board (Board) proposes to add § 247.11 (relating to priority of taxation, attachments and assignments of funds).
A. Effective Date
This proposed rulemaking will go into effect upon publication in the Pennsylvania Bulletin as a final-form rulemaking.
B. Contact Person
For further information contact Robert Gentzel, Director of Communications and Policy, State Employees' Retirement System, 30 North Third Street, Suite 150, Harrisburg, PA 17101-1716, (717) 787-9657, or Brian E. McDonough, Deputy Chief Counsel, State Employees' Retirement System, 30 North Third Street, Suite 150, Harrisburg, PA 17101-1716, (717) 783-7317. Information regarding submitting comments on this proposal appears in Section H of this preamble.
C. Statutory Authority
This proposed rulemaking is being made under the authority of 71 Pa.C.S. § 5902(h) (relating to administrative duties of the board).
D. Background and Purpose
This proposed new section sets priorities among conflicting demands of taxation, attachments and assignments on members' retirement benefits authorized under 71 Pa.C.S. Part XXV (relating to State Employees' Retirement Code). The court's decision in Gail G. Marshall v. State Employees' Retirement System, 887 A.2d 351 (Pa. Cmwlth. 2005) has offered partial guidance in this area. The regulation would enable consistent application of the statute and could avoid litigation of priority issues.
E. Benefits, Costs and Compliance
Benefits
The proposed rulemaking is intended to alleviate confusion and prevent possible disputes with regard to conflicting demands on members' retirement benefits.
Costs
There are no costs to the Commonwealth, its citizens or State employees associated with this proposal.
Compliance Costs
The proposed rulemaking is not expected to impose any additional compliance costs on State employees.
F. Sunset Review
There is no sunset review.
G. Regulatory Review
Under section 5(a) of the Regulatory Review Act (act) (71 P. S. § 745.5(a)), on April 18, 2008, the Board submitted a copy of this proposed rulemaking and a copy of a Regulatory Analysis Form to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the Senate Finance Committee and the House State Government Committee. A copy of this material is available to the public upon request.
Under section 5(g) of the act, IRRC may convey any comments, recommendations or objections to the proposed rulemaking within 30 days of the close of the public comment period. The comments, recommendations or objections must specify the regulatory review criteria which have not been met. The act specifies detailed procedures for review, prior to final publication of the rulemaking, by the Board, the General Assembly and the Governor of comments, recommendations or objections raised.
H. Public Comments
Written Comments--Interested persons are invited to submit comments regarding the proposed rulemaking to Robert Gentzel, Director of Communications and Policy, State Employees' Retirement System, 30 North Third Street, Suite 150, Harrisburg, PA 17101-1716. Comments submitted by facsimile will not be accepted. The Board must receive comments, suggestions or objections within 30 days of publication in the Pennsylvania Bulletin.
Electronic Comments--Comments may be submitted electronically to the Board at rgentzel@state.pa.us and must be received by the Board within 30 days of publication in the Pennsylvania Bulletin. A subject heading of the proposal and a return name and address must be included in each transmission. If an acknowledgment of electronic comments is not received by the sender within 2 working days, the comments should be retransmitted to ensure receipt.
NICHOLAS J. MAIALE,
ChairpersonFiscal Note: 31-7. No fiscal impact; (8) recommends adoption.
Annex A TITLE 4. ADMINISTRATION PART X. STATE EMPLOYEES' RETIREMENT BOARD CHAPTER 247. BENEFITS § 247.11. Priority of taxation, attachments and assignments of funds.
(a) The right of a person to any benefit or right accrued or accruing under the code, and the moneys in the fund are subject to prior payment or forfeiture of rights, as set forth in section 5953 of the code (relating to taxation, attachment and assignment of funds), in the following sequential priority to the extent the forfeitures and competing claims exist at the time the distribution is made:
(1) For pension forfeitures, fines and restitution as provided by the Public Employee Pension Forfeiture Act (43 P. S. §§ 1311--1315) or under the Pa. Const. Article V, § 16(b) or as otherwise provided by law.
(2) To the employer after certification by the head of the employer of the amount that the member is obligated to pay, and after review and approval by the employer's legal representative or upon receipt of an assignment from the member in the amount so certified.
(3) To each appropriate taxing authority for money owed on account of taxes.
(4) To an alternate payee or attaching authority as set forth in an approved domestic relations order, order for support, or order for the enforcement of arrearages as described in section 5953.1 of the code (relating to approval of domestic relations order).
(5) To the member directly or to an eligible retirement plan by way of an eligible rollover distribution.
(b) Payments from a member's retirement benefits under subsection (a)(2) and (3) shall first be made from the entire accumulated deductions then standing to the credit of the member upon entering pay status. The remaining balance, if any, of payments due under subsection (a)(2) and (3) and payments due under subsection (a)(4) for orders for support or orders for the enforcement of arrearages, or both, shall be paid out of the monthly annuity payable to or on behalf of the member at the rate of up to 50% (as determined by SERS consistent with applicable law) of the gross monthly annuity until paid in full. The amount payable under subsection (a)(4) under an approved domestic relations order may be paid out of the monthly annuity paid to or on behalf of the member at the rate of up to 100% (as determined by the System consistent with applicable law) of the member's remaining monthly annuity until paid in full. Unpaid amounts remaining after termination of an annuity paid to or on behalf of the member or, after the death of the member prior to receiving an annuity, shall be paid out of the remaining initial present value then standing to the credit of the member, if any.
(c) Payments under those pension forfeitures described in subsection (a)(1) shall be made under the operative forfeiture law.
[Pa.B. Doc. No. 08-832. Filed for public inspection May 2, 2008, 9:00 a.m.]
