CORRECTIVE REPRINT
PRIOR PRINTER'S NO. 1860 PRINTER'S NO. 2288
No. 1533 Session of 2001
INTRODUCED BY BELFANTI, PHILLIPS, DeWEESE, J. TAYLOR, ALLEN,
CAPPABIANCA, LESCOVITZ, BELARDI, GEORGE, WOGAN, TIGUE,
CREIGHTON, LEVDANSKY, COY, TRAVAGLIO, McILHATTAN, CURRY,
MUNDY, HORSEY, ROEBUCK, BUNT, PETRARCA, WASHINGTON, SAINATO,
STETLER, YOUNGBLOOD, COSTA, WANSACZ, BUXTON, READSHAW,
WOJNAROSKI, STABACK, SHANER, C. WILLIAMS, SOLOBAY, DALEY,
HERMAN, LAUGHLIN, FICHTER, L. I. COHEN, THOMAS, ROONEY,
JAMES, KIRKLAND, B. SMITH, YUDICHAK, CALTAGIRONE, CAWLEY,
JADLOWIEC, CAPPELLI, BEBKO-JONES, CORRIGAN, DIVEN, ROBERTS,
DERMODY, SURRA, EACHUS, GRUCELA, STEELMAN, HUTCHINSON,
J. WILLIAMS, MICHLOVIC, NAILOR, R. STEVENSON, COLAFELLA,
WILT, CASORIO, TANGRETTI, M. BAKER, YEWCIC, HALUSKA, CLARK,
FEESE, FAIRCHILD, STURLA, ARMSTRONG, MARSICO, SANTONI, MANN,
FREEMAN, PISTELLA, FRANKEL, MARKOSEK, DeLUCA, DALLY,
T. STEVENSON, PALLONE, BLAUM, BROWNE, MAYERNIK, SCRIMENTI,
GRUITZA, WALKO, PETRONE, MAHER, TRELLO, HARHAI, HANNA, HESS,
SATHER, LUCYK, S. MILLER, DAILEY, McGILL, SCHRODER, CRUZ,
MANDERINO, JOSEPHS, KAISER AND WATERS, MAY 7, 2001
REFERRED TO COMMITTEE ON STATE GOVERNMENT, MAY 7, 2001
AN ACT
1 Amending Titles 24 (Education) and 71 (State Government) of the
2 Pennsylvania Consolidated Statutes, providing additional
3 supplemental annuities commencing 2001.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Title 24 of the Pennsylvania Consolidated
7 Statutes is amended by adding a section to read:
8 § 8348.6. Supplemental annuities commencing 2001.
9 (a) Benefits.--Commencing with the first monthly annuity
10 payment after July 1, 2001, any eligible benefit recipient shall
1 be entitled to receive a further additional monthly supplemental
2 annuity from the system. This shall be in addition to the
3 supplemental annuities provided for in sections 8348 (relating
4 to supplemental annuities), 8348.1 (relating to additional
5 supplemental annuities), 8348.2 (relating to further additional
6 supplemental annuities), 8348.3 (relating to supplemental
7 annuities commencing 1994), 8348.4 (relating to special
8 supplemental postretirement adjustment) and 8348.5 (relating to
9 supplemental annuities commencing 1998).
10 (b) Amount of supplemental annuity.--The amount of the
11 supplemental annuity payable pursuant to this section shall be a
12 percentage of the amount of the monthly annuity payment on July
13 1, 2001, determined on the basis of the most recent effective
14 date of retirement, as follows:
15 Most recent effective date Percentage
16 of retirement factor
17 July 2, 1999, through July 1, 2000 1.86%
18 July 2, 1998, through July 1, 1999 3.59%
19 July 2, 1997, through July 1, 1998 4.95%
20 July 2, 1996, through July 1, 1997 6.42%
21 July 2, 1995, through July 1, 1996 7.97%
22 July 2, 1979, through July 1, 1995 10%
23 July 2, 1969, through July 1, 1979 20%
24 On or prior to June 30, 1969 25%
25 (c) Payment.--The supplemental annuity provided under this
26 section shall be paid automatically unless the annuitant files a
27 written notice with the board requesting that the additional
28 monthly supplemental annuity not be paid.
29 (d) Conditions.--The supplemental annuity provided under
30 this section shall be payable under the same terms and
20010H1533B2288 - 2 -
1 conditions as provided under the option plan in effect as of
2 July 1, 2001.
3 (e) Benefits to beneficiaries or survivors.--No supplemental
4 annuity provided under this section shall be payable to the
5 beneficiary or survivor annuitant of a member who dies before
6 July 1, 2001.
7 (f) Funding.--Notwithstanding section 8328 (relating to
8 actuarial cost method), the additional liability for the
9 increase in benefits provided in this section shall be funded in
10 annual installments increasing by 5% each year over a period of
11 20 years beginning July 1, 2001. Notwithstanding the provisions
12 of section 212 of the act of April 22, 1998 (P.L.1341, No.6A),
13 known as the General Appropriation Act of 1998, regarding
14 payment for cost-of-living increases for annuitants, payments
15 for cost-of-living increases for annuitants shall be made under
16 section 8535 (relating to payments to school entities by
17 Commonwealth).
18 (g) Eligible benefit recipient.--As used in this section,
19 the term "eligible benefit recipient" means a person who is
20 receiving a superannuation, withdrawal or disability annuity on
21 July 1, 2001, and whose most recent effective date of retirement
22 is prior to July 1, 2000, but the supplemental annuities
23 provided under this section shall not be payable to an annuitant
24 receiving a withdrawal annuity prior to the first day of July
25 coincident with or following the annuitant's attainment of
26 superannuation age.
27 Section 2. Title 71 is amended by adding a section to read:
28 § 5708.6. Supplemental annuities commencing 2001.
29 (a) Benefits.--Commencing with the first monthly annuity
30 payment after June 30, 2001, any eligible benefit recipient
20010H1533B2288 - 3 -
1 shall be entitled to receive a supplemental monthly annuity from
2 the system. This shall be in addition to the supplemental
3 annuities provided for in sections 5708 (relating to
4 supplemental annuities), 5708.1 (relating to additional
5 supplemental annuities), 5708.2 (relating to further additional
6 supplemental annuities), 5708.3 (relating to supplemental
7 annuities commencing 1994), the special supplemental
8 postretirement adjustment provided for in sections 5708.4
9 (relating to special supplemental postretirement adjustment) and
10 5708.5 (relating to supplemental annuities commencing 1998).
11 (b) Amount of supplemental annuity.--The amount of the
12 supplemental annuity payable pursuant to this section shall be a
13 percentage of the amount of the monthly annuity payment on July
14 1, 2001, determined on the basis of the most recent effective
15 date of retirement, as follows:
16 Most recent effective date Percentage
17 of retirement factor
18 July 2, 1999, through July 1, 2000 1.86%
19 July 2, 1998, through July 1, 1999 3.59%
20 July 2, 1997, through July 1, 1998 4.95%
21 July 2, 1996, through July 1, 1997 6.42%
22 July 2, 1995, through July 1, 1996 7.97%
23 July 2, 1979, through July 1, 1995 10%
24 July 2, 1969, through July 1, 1979 20%
25 On or prior to June 30, 1969 25%
26 (c) Payment.--The supplemental annuity provided under this
27 section shall be paid automatically unless the annuitant files a
28 written notice with the board requesting that the additional
29 monthly supplemental annuity not be paid.
30 (d) Conditions.--The supplemental annuity provided under
20010H1533B2288 - 4 -
1 this section shall be payable under the same terms and
2 conditions as provided under the option plan in effect as of
3 July 1, 2001.
4 (e) Benefits paid to beneficiaries or survivors.--No
5 supplemental annuity provided under this section shall be
6 payable to the beneficiary or survivor annuitant of a member who
7 dies before July 1, 2001.
8 (f) Funding.--Notwithstanding section 5508(e) (relating to
9 actuarial cost method), the additional liability for the
10 increase in benefits provided in this section shall be funded in
11 annual installments increasing by 5% each year over a period of
12 20 years beginning July 1, 2001.
13 (g) Eligible benefit recipient.--As used in this section,
14 the term "eligible benefit recipient" means a person who is
15 receiving a superannuation, withdrawal or disability annuity on
16 July 1, 2001, and whose most recent effective date of retirement
17 is prior to July 1, 2000, but the supplemental annuities
18 provided under this section shall not be payable to an annuitant
19 receiving a withdrawal annuity prior to the first day of July
20 coincident with or following the annuitant's attainment of
21 superannuation age.
22 Section 3. This act shall take effect immediately.
D9L24MRD/20010H1533B2288 - 5 -