PRIOR PRINTER'S NO. 3174 PRINTER'S NO. 3385
No. 2408 Session of 1998
INTRODUCED BY CLYMER, ALLEN, ARGALL, ARMSTRONG, BAKER, BATTISTO,
BELARDI, BELFANTI, BOSCOLA, BUNT, BUXTON, CALTAGIRONE,
CAPPABIANCA, CASORIO, CHADWICK, CIVERA, M. COHEN, COLAFELLA,
COLAIZZO, CORRIGAN, COWELL, COY, CURRY, DALEY, DALLY,
DEMPSEY, DENT, DeWEESE, EACHUS, FAIRCHILD, FARGO, FICHTER,
GANNON, GEIST, GEORGE, GODSHALL, GORDNER, HALUSKA, HANNA,
HASAY, HENNESSEY, HERMAN, HESS, ITKIN, JADLOWIEC, KENNEY,
KIRKLAND, LAUGHLIN, LEDERER, LEH, LESCOVITZ, LYNCH, MAITLAND,
MANDERINO, MARKOSEK, MARSICO, McCALL, McNAUGHTON, MILLER,
MUNDY, NAILOR, OLASZ, ORIE, PESCI, PETRARCA, READSHAW,
ROBERTS, SAINATO, SATHER, SERAFINI, SHANER, B. SMITH,
STABACK, STERN, STEVENSON, SURRA, TANGRETTI, TIGUE,
TRAVAGLIO, TRELLO, WILT, WOJNAROSKI, PIPPY, E. Z. TAYLOR,
PETRONE, RAMOS, YOUNGBLOOD, SEYFERT, GLADECK, L. I. COHEN,
AND BENNINGHOFF, MARCH 12, 1998
AS REPORTED FROM COMMITTEE ON STATE GOVERNMENT, HOUSE OF
REPRESENTATIVES, AS AMENDED, APRIL 20, 1998
AN ACT
1 Amending Title 71 (State Government) of the Pennsylvania
2 Consolidated Statutes, providing for supplemental annuities
3 commencing 1998.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Title 71 of the Pennsylvania Consolidated
7 Statutes is amended by adding a section to read:
8 § 5708.5. Supplemental annuities commencing 1998.
9 (a) Benefits.--Commencing with the first monthly annuity
10 payment after July 1, 1998, any eligible benefit recipient shall
11 be entitled to receive a further additional monthly supplemental
1 annuity from the system. This additional supplemental annuity
2 shall be in addition to the supplemental annuities provided for
3 in sections 5708 (relating to supplemental annuities), 5708.1
4 (relating to additional supplemental annuities), 5708.2
5 (relating to further additional supplemental annuities) and
6 5708.3 (relating to supplemental annuities commencing 1994) AND <--
7 THE SPECIAL SUPPLEMENTAL POSTRETIREMENT ADJUSTMENT PROVIDED FOR
8 IN SECTION 5708.4 (RELATING TO SPECIAL SUPPLEMENTAL
9 POSTRETIREMENT ADJUSTMENT).
10 (b) Amount of additional supplemental annuity.--The
11 additional monthly supplemental annuity shall be determined on
12 the basis of the most recent effective date of retirement and
13 payable on the first $3,500 of annuity received per month, as
14 follows:
15 Most recent effective Percentage factor
16 date of retirement
17 July 1, 1996, through June 30, 1997 2.3%
18 July 1, 1995, through June 30, 1996 4.1%
19 July 1, 1994, through June 30, 1995 5.5%
20 On or prior to June 30, 1994 6.2%
21 In addition to the supplemental annuity payable as a result of
22 the percentage factors as set forth in this subsection, there
23 shall be a monthly longevity supplemental annuity payable as
24 follows:
25 (1) For those individuals whose most recent effective
26 date of retirement is on or after July 1, 1969, and on or
27 before July 1, 1984, and who have 20 or more eligibility
28 points, the monthly longevity supplemental annuity shall be
29 equal to 0.25% of the first $3,500 of annuity received per
30 month multiplied by the number of years on retirement ON OR <--
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1 BEFORE JULY 1, 1989.
2 (2) For those individuals whose most recent effective
3 date of retirement is on or before June 30, 1969, and who
4 have 20 or more eligibility points, the monthly longevity
5 supplemental annuity shall be equal to 0.25% of the first
6 $3,500 of annuity received per month multiplied by the number
7 of years on retirement between July 1, 1969, and July 1,
8 1989, plus 0.50% of the first $3,500 of annuity received per
9 month multiplied by the years on retirement on or before June
10 30, 1969.
11 (c) Payment.--The additional monthly supplemental annuity
12 provided under this section shall be paid automatically unless
13 the intended recipient files a written notice with the system
14 requesting that the additional monthly supplemental annuity not
15 be paid.
16 (d) Conditions.--The additional supplemental annuity
17 provided under this section shall be payable under the same
18 terms and conditions as provided under the option plan in effect
19 on June 30, 1997 JULY 1, 1998. <--
20 (e) Benefits paid to beneficiaries or survivors.--No
21 supplemental annuity effective after the death of the member
22 shall be payable to the beneficiary or survivor annuitant of the
23 deceased member.
24 (f) Funding.--Notwithstanding section 5508(e) (relating to
25 actuarial cost method), the additional liability for the
26 increase in benefits provided in this section shall be funded in
27 annual installments increasing by 5% each year over a period of
28 20 years beginning July 1, 1998.
29 (g) Definitions.--As used in this section, the following
30 words and phrases shall have the meanings given to them in this
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1 subsection:
2 "Eligible benefit recipient." A person who is receiving a
3 superannuation, withdrawal or disability annuity and who
4 commenced receipt of that annuity on or prior to June 30, 1997,
5 but the supplemental annuities shall not be payable to an
6 annuitant receiving a withdrawal annuity prior to the first day
7 of July coincident with or following the annuitant's attainment
8 of superannuation age.
9 "Years on retirement." The number of full years as of July
10 1, 1989, which have elapsed since the eligible benefit recipient
11 most recently commenced the receipt of an annuity and during
12 which the eligible benefit recipient received an annuity.
13 Section 2. This act shall take effect immediately.
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