PRINTER'S NO. 1211
No. 963 Session of 2001
INTRODUCED BY KASUNIC, FUMO, LOGAN, MELLOW, O'PAKE, MUSTO,
STOUT, WAGNER, D. WHITE, LAVALLE, COSTA, ORIE, BELL, BOSCOLA,
TARTAGLIONE, BODACK, SCHWARTZ, ERICKSON, KUKOVICH AND
GERLACH, JUNE 15, 2001
REFERRED TO RULES AND EXECUTIVE NOMINATIONS, JUNE 15, 2001
AN ACT
1 Amending Titles 24 (Education) and 71 (State Government) of the
2 Pennsylvania Consolidated Statutes, providing for cost-of-
3 living increases for retirees.
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
11 be entitled to receive a further additional monthly supplemental
12 annuity from the system. This shall be in addition to the
13 supplemental annuities provided for in sections 8348 (relating
14 to supplemental annuities), 8348.1 (relating to additional
15 supplemental annuities), 8348.2 (relating to further additional
16 supplemental annuities), 8348.3 (relating to supplemental
17 annuities commencing 1994), 8348.4 (relating to special
1 supplemental postretirement adjustment) and 8348.5 (relating to
2 supplemental annuities commencing 1998).
3 (b) Amount of supplemental annuity.--The amount of the
4 supplemental annuity payable pursuant to this section shall be
5 an amount equal to the increase in the Consumer Price Index for
6 Urban Wage Earners for the immediately preceding calendar year.
7 (c) Payment.--The supplemental annuity provided under this
8 section shall be paid automatically unless the annuitant files a
9 written notice with the board requesting that the additional
10 monthly supplemental annuity not be paid.
11 (d) Conditions.--The supplemental annuity provided under
12 this section shall be payable under the same terms and
13 conditions as provided under the option plan in effect as of
14 July 1, 2001.
15 (e) Benefits to beneficiaries or survivors.--No supplemental
16 annuity provided under this section shall be payable to the
17 beneficiary or survivor annuitant of a member who dies before
18 July 1, 2001.
19 (f) Funding.--Notwithstanding section 8328 (relating to
20 actuarial cost method), the additional liability for the
21 increase in benefits provided in this section shall be funded in
22 annual installments increasing by 5% each year over a period of
23 20 years beginning July 1, 2001. Notwithstanding the provisions
24 of the act of , 2001 (P.L. , No. A), known as the
25 General Appropriation Act of 2001, regarding payment for cost-
26 of-living increases for annuitants, payments for cost-of-living
27 increases for annuitants shall be made under section 8535
28 (relating to payments to school entities by Commonwealth).
29 (g) Eligible benefit recipient.--As used in this section,
30 the term "eligible benefit recipient" means a person who is
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1 receiving a superannuation, withdrawal or disability annuity on
2 July 1, 2001, and whose most recent effective date of retirement
3 is prior to July 1, 2000, but the supplemental annuities
4 provided under this section shall not be payable to an annuitant
5 receiving a withdrawal annuity prior to the first day of July
6 coincident with or following the annuitant's attainment of
7 superannuation age.
8 Section 2. Title 71 is amended by adding a section to read:
9 § 5708.6. Supplemental annuities commencing 2001.
10 (a) Benefits.--Commencing with the first monthly annuity
11 payment after June 30, 2001, any eligible benefit recipient
12 shall be entitled to receive a supplemental monthly annuity from
13 the system. This shall be in addition to the supplemental
14 annuities provided for in sections 5708 (relating to
15 supplemental annuities), 5708.1 (relating to additional
16 supplemental annuities), 5708.2 (relating to further additional
17 supplemental annuities), 5708.3 (relating to supplemental
18 annuities commencing 1994) and section 5708.5 (relating to
19 supplemental annuities commencing 1998) and the special
20 supplemental postretirement adjustment provided for in section
21 5708.4 (relating to special supplemental postretirement
22 adjustment).
23 (b) Amount of supplemental annuity.--The amount of the
24 supplemental annuity payable pursuant to this section shall be
25 an amount equal to the increase in the Consumer Price Index for
26 Urban Wage Earners for the immediately preceding calendar year.
27 (c) Payment.--The supplemental annuity provided under this
28 section shall be paid automatically unless the annuitant files a
29 written notice with the board requesting that the additional
30 monthly supplemental annuity not be paid.
20010S0963B1211 - 3 -
1 (d) Conditions.--The supplemental annuity provided under
2 this section shall be payable under the same terms and
3 conditions as provided under the option plan in effect as of
4 July 1, 2001.
5 (e) Benefits paid to beneficiaries or survivors.--No
6 supplemental annuity provided under this section shall be
7 payable to the beneficiary or survivor annuitant of a member who
8 dies before July 1, 2001.
9 (f) Funding.--Notwithstanding section 5508(e) (relating to
10 actuarial cost method), the additional liability for the
11 increase in benefits provided in this section shall be funded in
12 annual installments increasing by 5% each year over a period of
13 20 years beginning July 1, 2001.
14 (g) Eligible benefit recipient.--As used in this section,
15 the term "eligible benefit recipient" means a person who is
16 receiving a superannuation, withdrawal or disability annuity on
17 July 1, 2001, and whose most recent effective date of retirement
18 is prior to July 1, 2000, but the supplemental annuities
19 provided under this section shall not be payable to an annuitant
20 receiving a withdrawal annuity prior to the first day of July
21 coincident with or following the annuitant's attainment of
22 superannuation age.
23 Section 3. This act shall apply retroactively to July 1,
24 2001.
25 Section 4. This act shall take effect immediately.
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