PRINTER'S NO. 2673
No. 2035 Session of 2001
INTRODUCED BY SCHULER, L. I. COHEN, McILHATTAN, KREBS,
ARMSTRONG, LYNCH, GORDNER, WOJNAROSKI, CAPPELLI, TRAVAGLIO,
TRICH, FAIRCHILD, FLEAGLE, HALUSKA, MELIO, SATHER, HERMAN,
T. STEVENSON, STERN, SOLOBAY, YEWCIC, MARKOSEK, WILT,
RAYMOND, BELARDI, BUXTON, LAUGHLIN, READSHAW, RUBLEY,
GRUCELA, MARSICO, B. SMITH, BELFANTI, SANTONI, M. BAKER,
MUNDY, STABACK, SCHRODER, SURRA, HANNA, GEORGE, FICHTER,
SAYLOR, CRUZ, HARHAI, C. WILLIAMS, E. Z. TAYLOR, HUTCHINSON,
LEDERER, CREIGHTON, LUCYK, KENNEY, McNAUGHTON, HORSEY, MAJOR,
MAITLAND, DiGIROLAMO, TANGRETTI, ROBERTS, NAILOR,
R. STEVENSON, FRANKEL, TIGUE, WANSACZ, HESS, LEVDANSKY,
PISTELLA, WATSON, J. EVANS, SEMMEL, DALEY, STAIRS, CORRIGAN,
GEIST, LEH, GRUITZA, HARHART, McCALL, COY, MANDERINO, CIVERA,
DeLUCA, BASTIAN, LaGROTTA, SAINATO, BENNINGHOFF, WALKO,
BEBKO-JONES, BOYES, BUNT, DeWEESE, FEESE, YOUNGBLOOD, STURLA,
SCRIMENTI, ADOLPH, BARD, COLEMAN, CLYMER, PALLONE,
McILHINNEY, THOMAS, JOSEPHS, DALLY, OLIVER, FREEMAN, COSTA,
COLAFELLA, STEELMAN, CAWLEY, JADLOWIEC, HENNESSEY, EACHUS,
TRELLO, S. MILLER AND STRITTMATTER, OCTOBER 16, 2001
REFERRED TO COMMITTEE ON EDUCATION, OCTOBER 16, 2001
AN ACT
1 Amending Title 24 (Education) of the Pennsylvania Consolidated
2 Statutes, further providing for supplemental annuities.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Title 24 of the Pennsylvania Consolidated
6 Statutes is amended by adding a section to read:
7 § 8348.6. Supplemental annuities commencing 2002.
8 (a) Benefits.--Commencing with the first monthly annuity
9 payment after January 1, 2002, any eligible benefit recipient
1 shall be entitled to receive further additional monthly
2 supplemental annuities from the system. These shall be in
3 addition to the supplemental annuities provided for in sections
4 8348 (relating to supplemental annuities), 8348.1 (relating to
5 additional supplemental annuities), 8348.2 (relating to further
6 additional supplemental annuities), 8348.3 (relating to
7 supplemental annuities commencing 1994), 8348.4 (relating to
8 special supplemental postretirement adjustment) and 8348.5
9 (relating to supplemental annuities commencing 1998).
10 (b) Amounts of supplemental annuities.--The amounts of the
11 supplemental annuities payable pursuant to this section shall be
12 as follows:
13 (1) Commencing with the first monthly annuity payment
14 after January 1, 2002, the amount calculated by the board to
15 restore the purchasing power of annuitants' monthly annuities
16 to equal the purchasing power of the monthly annuities that
17 the retirees earned and began receiving at the time of
18 retirement.
19 (2) Beginning July 1, 2002, and annually thereafter,
20 amounts equal to the increases in the Consumer Price Index
21 for Urban Wage Earners for the immediately preceding calendar
22 year.
23 The increase to an annuitant's pension caused by the payment of
24 the annual supplemental annuity pursuant to this section shall
25 not exceed 3%.
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
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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 to beneficiaries or survivors.--No supplemental
5 annuity provided under this section shall be payable to the
6 beneficiary or survivor annuitant of a member who dies before
7 July 1, 2001.
8 (f) Funding.--Notwithstanding section 8328(d) (relating to
9 actuarial cost method), the annuity reserve account shall be
10 credited and the State accumulation account shall be debited the
11 amount determined by the actuary as necessary to fully fund the
12 additional liability for the increase in benefits prescribed in
13 this section.
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 2, 2001.
18 Section 2. This act shall be retroactive to July 1, 2001.
19 Section 3. This act shall take effect immediately.
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