PRINTER'S NO. 1481
No. 1170 Session of 2001
INTRODUCED BY BELL, LOGAN, ERICKSON, ORIE, TOMLINSON, RHOADES, COSTA, BODACK, KASUNIC, CORMAN, BOSCOLA, STACK, HOLL, KUKOVICH, LAVALLE, HELFRICK, TARTAGLIONE, WAGNER, SCHWARTZ, MUSTO, SCARNATI AND WOZNIAK, OCTOBER 29, 2001
REFERRED TO RULES AND EXECUTIVE NOMINATIONS, OCTOBER 29, 2001
AN ACT 1 Amending Title 24 (Education) of the Pennsylvania Consolidated 2 Statutes, providing for cost-of-living increases for 3 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 2002. 9 (a) Benefits.--Commencing with the first monthly annuity 10 payment after July 1, 2002, 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 the greater of: 6 (1) 25% of the gross monthly annuity in effect on June 7 30, 2001; or 8 (2) the amount calculated by the board to restore the 9 purchasing power of annuitants' monthly annuities to equal 10 the purchasing power of the monthly annuities that the 11 retirees earned and began receiving at the time of 12 retirement. 13 (c) Payment.--The supplemental annuity provided under this 14 section shall be paid automatically unless the annuitant files a 15 written notice with the board requesting that the additional 16 monthly supplemental annuity not be paid. 17 (d) Conditions.--The supplemental annuity provided under 18 this section shall be payable under the same terms and 19 conditions as provided under the option plan in effect as of 20 January 1, 2002. 21 (e) Benefits to beneficiaries or survivors.--No supplemental 22 annuity provided under this section shall be payable to the 23 beneficiary or survivor annuitant of a member who dies before 24 July 2, 2002. 25 (f) Funding.--Notwithstanding section 8328(d) (relating to 26 actuarial cost method), the annuity reserve account shall be 27 credited and the State accumulation account shall be debited the 28 amount determined by the actuary as necessary to fully fund the 29 additional liability for the increase in benefits prescribed in 30 this section. 20010S1170B1481 - 2 -
1 (g) Eligible benefit recipient.--As used in this section, 2 the term "eligible benefit recipient" means a person who is 3 receiving a superannuation, withdrawal or disability annuity on 4 January 1, 2002, and whose most recent effective date of 5 retirement is prior to July 2, 2001. 6 Section 2. This act shall take effect immediately. I17L24JLW/20010S1170B1481 - 3 -