24 Pa. Stat. § 5104.2

Current through Pa Acts 2024-53, 2024-56 through 2024-79
Section 5104.2 - Loans to State employes

Any person who has received a loan made or guaranteed pursuant to this act or from funds which include State-appropriated funds provided to an institution receiving State aid and who at anytime becomes or is an employe of the Commonwealth or any of its agencies shall be deemed to have agreed as a condition of their employment with the Commonwealth, and shall be deemed to have consented to voluntary or involuntary withholding of their wages, to repay such loan. Any such employe who has defaulted or does default on the repayment of such loan shall, within sixty days after service of a notice of default by the agency to the employing agency establish, a loan repayment schedule which is agreed to by the agency with the salary-status employe making such payments through payroll deductions and employes other than salary-status making payment in accordance with a repayment plan approved by the agency. Under no circumstances may an amount in excess of ten per cent of the pay of such employe be required by the agency as part of a repayment schedule or plan. If such employe fails to establish a repayment schedule within the specified period of time or fails to meet the terms and conditions of the agreed-to or approved repayment schedule as authorized by this section, such employe shall be deemed to have breached an essential condition of employment and shall be deemed to have consented to the involuntary withholding of his wages or salary for the repayment of the loan. Under no circumstances may an amount in excess of ten per cent of the pay of such employe be withheld.

24 P.S. § 5104.2

1963, Aug. 7, P.L. 549, § 4.2. Amended 1978, Nov. 26, P.L. 1291, No. 398, § 1, effective in 60 days; 1982, Dec. 29, P.L. 1450, No. 330, § 3, imd. effective.