PRINTER'S NO. 3836
No. 2783 Session of 1998
INTRODUCED BY MUNDY, CURRY, STURLA, C. WILLIAMS, DeWEESE, EVANS,
CAPPABIANCA, PETRONE, ORIE, BELARDI, COY, KENNEY, ITKIN,
L. I. COHEN, LAUGHLIN, CORRIGAN, SHANER, NICKOL, BOSCOLA,
WOGAN, CIVERA, CASORIO, GODSHALL, JAMES, BEBKO-JONES,
LaGROTTA, WOJNAROSKI, PETRARCA, LYNCH, GIGLIOTTI, RAMOS,
DeLUCA, SCRIMENTI, HARHAI, HALUSKA, HENNESSEY, RUBLEY,
READSHAW, WALKO, TULLI, TRELLO, MICHLOVIC, LUCYK AND
YOUNGBLOOD, SEPTEMBER 17, 1998
REFERRED TO COMMITTEE ON STATE GOVERNMENT, SEPTEMBER 17, 1998
AN ACT
1 Amending Titles 24 (Education) and 71 (State Government) of the
2 Pennsylvania Consolidated Statutes, further providing for
3 effective dates of supplemental annuities for State employees
4 and public school annuitants.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Section 8348.5 of Title 24 of the Pennsylvania
8 Consolidated Statutes, added June 18, 1998 (P.L.685, No.88), is
9 amended to read:
10 § 8348.5. Supplemental annuities commencing 1998.
11 (a) Benefits.--Commencing with the first monthly annuity
12 payment after July 1, 1998, any eligible benefit recipient shall
13 be entitled to receive a further additional monthly supplemental
14 annuity from the system. This shall be in addition to the
15 supplemental annuities provided for in sections 8348 (relating
16 to supplemental annuities), 8348.1 (relating to additional
1 supplemental annuities), 8348.2 (relating to further additional
2 supplemental annuities), 8348.3 (relating to supplemental
3 annuities commencing 1994) and 8348.4 (relating to special
4 supplemental postretirement adjustment).
5 (b) Amount of supplemental annuity.--The amount of the
6 supplemental annuity payable pursuant to this section shall be a
7 percentage of the amount of the monthly annuity payment on July
8 1, 1998, determined on the basis of the most recent effective
9 date of retirement, as follows:
10 Most recent effective date Percentage
11 of retirement factor
12 [July 1, 1996, through June 30, 1997 1.86%
13 July 1, 1995, through June 30, 1996 3.59%
14 July 1, 1994, through June 30, 1995 4.95%
15 July 1, 1993, through June 30, 1994 6.42%
16 July 1, 1992, through June 30, 1993 7.97%
17 July 1, 1979, through June 30, 1992 10%
18 July 1, 1969, through June 30, 1979 20%
19 On or prior to June 30, 1969 25%]
20 July 2, 1996, through July 1, 1997 1.86%
21 July 2, 1995, through July 1, 1996 3.59%
22 July 2, 1994, through July 1, 1995 4.95%
23 July 2, 1993, through July 1, 1994 6.42%
24 July 2, 1992, through July 1, 1993 7.97%
25 July 2, 1979, through July 1, 1992 10%
26 July 2, 1969, through July 1, 1979 20%
27 On or prior to July 1, 1969 25%
28 (c) Payment.--The supplemental annuity provided under this
29 section shall be paid automatically unless the annuitant files a
30 written notice with the board requesting that the additional
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1 monthly supplemental annuity not be paid.
2 (d) Conditions.--The supplemental annuity provided under
3 this section shall be payable under the same terms and
4 conditions as provided under the option plan in effect as of
5 July 1, 1998.
6 (e) Benefits to beneficiaries or survivors.--No supplemental
7 annuity provided under this section shall be payable to the
8 beneficiary or survivor annuitant of a member who dies before
9 July 1, 1998.
10 (f) Funding.--Notwithstanding section 8328 (relating to
11 actuarial cost method), the additional liability for the
12 increase in benefits provided in this section shall be funded in
13 annual installments increasing by 5% each year over a period of
14 20 years beginning July 1, 1998. Notwithstanding the provisions
15 of section 212 of the act of April 22, 1998 (P.L., No.6A), known
16 as the General Appropriation Act of 1998, regarding payment for
17 cost of living increases for annuitants, payments for cost of
18 living increases for annuitants shall be made under section 8535
19 (relating to payments to school entities by Commonwealth).
20 (g) Eligible benefit recipient.--As used in this section,
21 the term "eligible benefit recipient" means a person who is
22 receiving a superannuation, withdrawal or disability annuity on
23 July 1, 1998, and whose most recent effective date of retirement
24 is prior to July 1, 1997, but the supplemental annuities
25 provided under this section shall not be payable to an annuitant
26 receiving a withdrawal annuity prior to the first day of July
27 coincident with or following the annuitant's attainment of
28 superannuation age.
29 Section 2. Section 5708.5 of Title 71, added June 18, 1998
30 (P.L.685, No.88), is amended to read:
19980H2783B3836 - 3 -
1 § 5708.5. Supplemental annuities commencing 1998.
2 (a) Benefits.--Commencing with the first monthly annuity
3 payment after June 30, 1998, any eligible benefit recipient
4 shall be entitled to receive a supplemental monthly annuity from
5 the system. This shall be in addition to the supplemental
6 annuities provided for in sections 5708 (relating to
7 supplemental annuities), 5708.1 (relating to additional
8 supplemental annuities), 5708.2 (relating to further additional
9 supplemental annuities, 5708.3 (relating to supplemental
10 annuities commencing 1994) and the special supplemental
11 postretirement adjustment provided for in section 5708.4
12 (relating to special supplemental postretirement adjustment).
13 (b) Amount of supplemental annuity.--The amount of the
14 supplemental annuity payable pursuant to this section shall be a
15 percentage of the amount of the monthly annuity payment on July
16 1, 1998, determined on the basis of the most recent effective
17 date of retirement, as follows:
18 Most recent effective date Percentage
19 of retirement factor
20 [July 1, 1996, through June 30, 1997 1.86%
21 July 1, 1995, through June 30, 1996 3.59%
22 July 1, 1994, through June 30, 1995 4.95%
23 July 1, 1993, through June 30, 1994 6.42%
24 July 1, 1992, through June 30, 1993 7.97%
25 July 1, 1979, through June 30, 1992 10%
26 July 1, 1969, through June 30, 1979 20%
27 On or prior to June 30, 1969 25%]
28 July 2, 1996, through July 1, 1997 1.86%
29 July 2, 1995, through July 1, 1996 3.59%
30 July 2, 1994, through July 1, 1995 4.95%
19980H2783B3836 - 4 -
1 July 2, 1993, through July 1, 1994 6.42%
2 July 2, 1992, through July 1, 1993 7.97%
3 July 2, 1979, through July 1, 1992 10%
4 July 2, 1969, through July 1, 1979 20%
5 On or prior to July 1, 1969 25%
6 (c) Payment.--The supplemental annuity provided under this
7 section shall be paid automatically unless the annuitant files a
8 written notice with the board requesting that the additional
9 monthly supplemental annuity not be paid.
10 (d) Conditions.--The supplemental annuity provided under
11 this section shall be payable under the same terms and
12 conditions as provided under the option plan in effect as of
13 July 1, 1998.
14 (e) Benefits paid to beneficiaries or survivors.--No
15 supplemental annuity provided under this section shall be
16 payable to the beneficiary or survivor annuitant of a member who
17 dies before July 1, 1998.
18 (f) Funding.--Notwithstanding section 5508(e) (relating to
19 actuarial cost method), the additional liability for the
20 increase in benefits provided in this section shall be funded in
21 annual installments increasing by 5% each year over a period of
22 20 years beginning July 1, 1998.
23 (g) Eligible benefit recipient.--As used in this section,
24 the term "eligible benefit recipient" means a person who is
25 receiving a superannuation, withdrawal or disability annuity on
26 July 1, 1998 and whose most recent effective date of retirement
27 is prior to July 1, 1997, but the supplemental annuities
28 provided under this section shall not be payable to an annuitant
29 receiving a withdrawal annuity prior to the first day of July
30 coincident with or following the annuitant's attainment of
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1 superannuation age.
2 Section 3. This act shall take effect immediately.
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