A01821
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1416
Session of
2023
INTRODUCED BY MALAGARI, DEASY, MADDEN, HOHENSTEIN, VENKAT,
McNEILL, SANCHEZ, SIEGEL, HILL-EVANS, FREEMAN, HOWARD,
DELLOSO, HANBIDGE, WARREN, BENHAM, KINKEAD, OTTEN, CERRATO,
SCHWEYER, ISAACSON, NEILSON, ZABEL, BRIGGS, CONKLIN, CIRESI,
GREEN, R. MACKENZIE, FLEMING, TAKAC, D. WILLIAMS, INNAMORATO
AND BOROWSKI, JUNE 14, 2023
REFERRED TO COMMITTEE ON STATE GOVERNMENT, JUNE 14, 2023
AN ACT
Amending Titles 24 (Education) and 71 (State Government) of the
Pennsylvania Consolidated Statutes, in membership,
contributions and benefits, providing for supplemental
annuity commencing 2023 upon adequate funding; and, in
benefits, providing for supplemental annuity commencing 2023
upon adequate funding.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 24 of the Pennsylvania Consolidated
Statutes is amended by adding a section to read:
§ 8348.8. Supplemental annuity commencing 2023 upon adequate
funding .
(a) Benefits.--Commencing with the first monthly annuity
payment after July 1, 2023 the first July 1 which occurs after
the effective date of this section , an eligible benefit
recipient shall be entitled to receive an additional monthly
supplemental annuity from the system. The additional monthly
supplemental annuity under this section shall be in addition to
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the supplemental annuities provided for under sections 8348
(relating to supplemental annuities), 8348.1 (relating to
additional supplemental annuities), 8348.2 (relating to further
additional supplemental annuities), 8348.3 (relating to
supplemental annuities commencing 1994), 8348.4 (relating to
special supplemental postretirement adjustment), 8348.5
(relating to supplemental annuities commencing 1998), 8348.6
(relating to supplemental annuities commencing 2002) and 8348.7
(relating to supplemental annuities commencing 2003).
(b) Amount of additional supplemental annuity.--The amount
of the supplemental annuity payable under this section shall be
a percentage of the amount of the monthly annuity payment on
July 1, 2023 the first July 1 which occurs after the effective
date of this section , determined on the basis of the most recent
effective date of retirement as follows:
Most recent effective date Percentage factor
of retirement
July 2, 2000, through July 1, 2001 15%
July 2, 1999, through July 1, 2000 15.5%
July 2, 1998, through July 1, 1999 16%
July 2, 1997, through July 1, 1998 16.5%
July 2, 1996, through July 1, 1997 17%
July 2, 1995, through July 1, 1996 17.5%
July 2, 1994, through July 1, 1995 18%
July 2, 1993, through July 1, 1994 18.5%
July 2, 1992, through July 1, 1993 19%
July 2, 1991, through July 1, 1992 19.5%
July 2, 1990, through July 1, 1991 20%
July 2, 1989, through July 1, 1990 20.5%
July 2, 1988, through July 1, 1989 21%
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July 2, 1987, through July 1, 1988 21.5%
July 2, 1986, through July 1, 1987 22%
July 2, 1985, through July 1, 1986 22.5%
July 2, 1984, through July 1, 1985 23%
July 2, 1983, through July 1, 1984 23.5%
July 2, 1982, through July 1, 1983 24%
Prior to July 2, 1982 24.5%
(c) Payment.--The supplemental annuity provided under this
section shall be paid automatically unless the annuitant files a
written notice with the board requesting that the additional
monthly supplemental annuity not be paid.
(d) Conditions.--The supplemental annuity provided under
this section shall be payable under the same terms and
conditions as provided under the option plan in effect as of
July 1, 2023 the first July 1 which occurs after the effective
date of this section , and shall be subject to any subsequent
modification of that option plan.
(e) Benefits to beneficiaries or survivors.--No supplemental
annuity provided under this section shall be payable to the
beneficiary or survivor annuitant of a member who dies before
July 1, 2023 the first July 1 which occurs after the effective
date of this section .
(f) Funding.--Notwithstanding any other provision of law to
the contrary, the additional liability for the increase in
benefits provided under this section shall be funded in equal
dollar annual installments over a period of 10 years beginning
July 1, 2024 the second July 1 which occurs after the effective
date of this section .
(g) Eligible benefit recipient.--
(1) An eligible benefit recipient is an individual:
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(i) who is receiving a superannuation, withdrawal or
disability annuity on July 1, 2023 the first July 1 which
occurs after the effective date of this section ;
(ii) whose most recent effective date of retirement
is prior to July 2, 2001; and
(iii) whose credited service does not include any
service credited as either Class T-D, Class D-4 or Class
AA service.
(2) A supplemental annuity provided under this section
shall not be payable to an annuitant receiving a withdrawal
annuity prior to the first day of July coincident with or
following the annuitant's attainment of superannuation age.
Section 2. Title 71 is amended by adding a section to read:
§ 5708.9. Supplemental annuity commencing 2023 upon adequate
funding .
(a) Benefits.--Commencing with the first monthly annuity
payment after January 1, 2024 the first January 1 which occurs
after the effective date of this section , an eligible benefit
recipient shall be entitled to receive an additional monthly
supplemental annuity from the system. The additional monthly
supplemental annuity under this section shall be in addition to
the supplemental annuities provided for under sections 5708
(relating to supplemental annuities), 5708.1 (relating to
additional supplemental annuities), 5708.2 (relating to further
additional supplemental annuities), 5708.3 (relating to
supplemental annuities commencing 1994), 5708.4 (relating to
special supplemental postretirement adjustment), 5708.5
(relating to supplemental annuities commencing 1998), 5708.6
(relating to supplemental annuities commencing 2002), 5708.7
(relating to supplemental annuities commencing 2003) and 5708.8
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(relating to special supplemental postretirement adjustment of
2002).
(b) Amount of additional supplemental annuity.--The amount
of the supplemental annuity under this section shall be a
percentage of the amount of the monthly annuity payment on
January 1, 2024 the first January 1 which occurs after the
effective date of this section , determined on the basis of the
most recent effective date of retirement as follows:
Most recent effective date Percentage factor
of retirement
July 2, 2000, through July 1, 2001 15%
July 2, 1999, through July 1, 2000 15.5%
July 2, 1998, through July 1, 1999 16%
July 2, 1997, through July 1, 1998 16.5%
July 2, 1996, through July 1, 1997 17%
July 2, 1995, through July 1, 1996 17.5%
July 2, 1994, through July 1, 1995 18%
July 2, 1993, through July 1, 1994 18.5%
July 2, 1992, through July 1, 1993 19%
July 2, 1991, through July 1, 1992 19.5%
July 2, 1990, through July 1, 1991 20%
July 2, 1989, through July 1, 1990 20.5%
July 2, 1988, through July 1, 1989 21%
July 2, 1987, through July 1, 1988 21.5%
July 2, 1986, through July 1, 1987 22%
July 2, 1985, through July 1, 1986 22.5%
July 2, 1984, through July 1, 1985 23%
July 2, 1983, through July 1, 1984 23.5%
July 2, 1982, through July 1, 1983 24%
Prior to July 2, 1982 24.5%
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(c) Payment.--The supplemental annuity provided under this
section shall be paid automatically unless the annuitant files a
written notice with the board requesting that the additional
monthly supplemental annuity not be paid.
(d) Conditions.--The supplemental annuity provided under
this section shall be payable under the same terms and
conditions as provided under the option plan in effect as of
January 1, 2024 the first January 1 which occurs after the
effective date of this section , and shall be subject to any
subsequent modification of that option plan.
(e) Benefits to beneficiaries or survivors.--No supplemental
annuity provided under this section shall be payable to the
beneficiary or survivor annuitant of a member who dies before
January 1, 2024 the first January 1 which occurs after the
effective date of this section .
(f) Funding.-Notwithstanding any other provision of law to
the contrary, the additional liability for the increase in
benefits provided under this section shall be funded in equal
dollar annual installments over a period of 10 years beginning
July 1, 2024 the July 1 which occurs after the first July 1
which occurs after the effective date of this section .
(g) Eligible benefit recipient.--
(1) An eligible benefit recipient is an individual:
(i) who is receiving a superannuation, withdrawal or
disability annuity on January 1, 2024 the first January 1
which occurs after the effective date of this section ;
(ii) whose most recent effective date of retirement
is prior to July 2, 2001; and
(iii) whose credited service does not include any
service credited as either Class T-D, Class D-4 or Class
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AA service.
(2) A supplemental annuity provided under this section
shall not be payable to an annuitant receiving a withdrawal
annuity prior to the first day of July coincident with or
following the annuitant's attainment of superannuation age.
Section 3. This act shall take effect immediately.
Section 3. The following shall apply:
(1) The Public School Employees' Retirement Board shall
transmit notice to the Legislative Reference Bureau for
publication in the next available issue of the Pennsylvania
Bulletin when it has certified that the Public School
Employees' Retirement System has an actuarial funded ratio of
at least 100%, as calculated using actuarial methods and
assumptions that are consistent with generally accepted
actuarial standards and generally accepted accounting
principles, including professional actuarial standards of
practice.
(2) The State Employees' Retirement Board shall:
(i) certify when the annual valuation made by the
actuary under 71 Pa.C.S. § 5902(j) determines that the
actuarial value of the assets of the State Employees'
Retirement System as calculated under 71 Pa.C.S. § 5508
and including any balance of advance payments made under
71 Pa.C.S. § 5507(h) are 100% or greater of the actuarial
accrued liability calculated under 71 Pa.C.S. § 5508; and
(ii) transmit notice of that certification to the
Legislative Reference Bureau for publication in the next
available issue of the Pennsylvania Bulletin.
Section 4. This act shall take effect as follows:
(1) The addition of 24 Pa.C.S. § 8348.8 shall take
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effect 60 days after the publication of the notice under
section 3(1) of this act.
(2) The addition of 71 Pa.C.S. § 5708.9 shall take
effect 60 days after the publication of the notice under
section 3(2)(ii) of this act.
(3) The remainder of this act shall take effect
immediately.
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