Penalty timer is actually used in calculation of C2. Well, this timer works/stars when the MS places a non-serving cell on the list of six strongest carriers. Value of this timer is broadcast on the BCCH. This works in Siemens Equipments.
As long as the timer runs and Penalty Timer which is send on broadcast is less than 31
If the timer has expired and Penalty Timer is less than 31
If Penalty Timer is equal to 31