PRINTER'S NO. 224
No. 202 Session of 1997
INTRODUCED BY M. N. WRIGHT, FEBRUARY 4, 1997
REFERRED TO COMMITTEE ON EDUCATION, FEBRUARY 4, 1997
AN ACT
1 Amending Title 24 (Education) of the Pennsylvania Consolidated
2 Statutes, further providing for termination of annuities.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Section 8346 of Title 24 of the Pennsylvania
6 Consolidated Statutes is amended by adding a subsection to read:
7 § 8346. Termination of annuities.
8 * * *
9 (e) Elimination of the effect of frozen present value as
10 applied to annuitants.--
11 (1) A member who was an annuitant on July 1, 1994, and
12 who is not a member with multiple service credit and who had
13 returned to school service and earned three eligibility
14 points by performing credited school service between the
15 termination of school service most recently before July 1,
16 1994, and most recent commencement of an annuity before such
17 termination of school service and the calculation of whose
1 annuity included a frozen present value calculation in
2 accordance with subsections (a) and (b) shall have that
3 annuitant's annuity adjusted as follows:
4 (i) The system shall calculate the maximum single
5 life annuity that the member would have been entitled to
6 receive on that member's effective date of retirement,
7 calculated as if the member had been a vestee during all
8 periods as an annuitant which resulted in the present
9 value of that annuity being frozen in accordance with
10 subsection (a). Such calculated maximum single life
11 annuity shall then be modified by the optional
12 modification of annuity actually selected by the
13 annuitant and such actual postretirement adjustments to
14 that annuity as the annuitant had been eligible to
15 receive as of the effective date of this subsection.
16 (ii) The present value of the recalculated annuity
17 as modified under subparagraph (i), as of the effective
18 date of this subsection, shall be reduced by all amounts
19 paid or payable to that annuitant during all previous
20 periods as an annuitant during which the member is being
21 treated as a vestee plus interest on these amounts until
22 the effective date of this subsection. The interest for
23 each year shall be calculated based upon the annual
24 interest rate adopted for that fiscal year by the board
25 for the calculation of the normal contribution rate
26 pursuant to section 8328(b).
27 (iii) If the annuity produced by the resulting
28 present value, modified for the optional benefit payment
29 plan selected by the member, is greater than the annuity
30 being received by the member on the effective date of
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1 this subsection, then the member shall be entitled to
2 receive the greater annuity beginning with the effective
3 date of this subsection. If the annuity produced by the
4 resulting present value, modified for the optional
5 benefit payment plan selected by the member, is less than
6 the annuity being received by the member on the effective
7 date of this subsection, then the annuity being received
8 by the member will remain unchanged.
9 (2) No payments shall be made for any period of time
10 before the effective date of this subsection.
11 (3) A member who has the member's benefit adjusted
12 pursuant to this subsection shall not be entitled to reelect
13 an option unless otherwise permitted to do so pursuant to
14 section 8507(j) (relating to rights and duties of school
15 employees and members).
16 (4) This subsection shall not apply to the beneficiaries
17 and survivor annuitants of any annuitant who died prior to
18 the effective date of this subsection.
19 Section 2. The amendment of 24 Pa.C.S. § 8346 shall be
20 applicable on July 1 coincident with or following the effective
21 date of this act.
22 Section 3. This act shall take effect immediately.
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