PRINTER'S NO. 142

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 168 Session of 1995


        INTRODUCED BY M. COHEN, LUCYK, THOMAS, ROONEY, JAROLIN, GEORGE,
           NAILOR, TIGUE, COWELL, STABACK, PESCI, MAYERNIK, CURRY,
           DALEY, D. R. WRIGHT, TRELLO, JOSEPHS, STERN, McCALL,
           WASHINGTON, PETRONE, E. Z. TAYLOR, LAUGHLIN, RICHARDSON,
           HORSEY AND MIHALICH, JANUARY 20, 1995

        REFERRED TO COMMITTEE ON STATE GOVERNMENT, JANUARY 20, 1995

                                     AN ACT

     1  Amending Titles 24 (Education) and 71 (State Government) of the
     2     Pennsylvania Consolidated Statutes, providing for special
     3     supplemental postretirement adjustments.

     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  § 8348.4.  Special supplemental postretirement adjustment.
     9     (a)  Eligibility.--An annuitant who:
    10         (1)  retired after October 1, 1975, and before December
    11     31, 1984;
    12         (2)  has military service as set forth in section
    13     8304(b)(1) or (2) (relating to creditable nonschool service);
    14         (3)  is receiving or will receive retirement pay under 10
    15     U.S.C. Ch. 67 (relating to retired pay for nonregular
    16     service) for this military service; and
    17         (4)  has not purchased nonschool service credit for this

     1     military service;
     2  shall be eligible for this special supplemental postretirement
     3  adjustment.
     4     (b)  Calculation of adjustment.--The monthly amount of this
     5  special supplemental postretirement adjustment shall be equal to
     6  the final average salary multiplied by 2% multiplied by the
     7  years of this military service divided by 12 multiplied by any
     8  applicable early retirement or option factors.
     9     (c)  Adjustment paid.--Upon receipt of a timely request by an
    10  eligible annuitant, the system shall pay this special
    11  supplemental postretirement adjustment monthly from the
    12  effective date of this section.
    13     (d)  Adjustment enacted after death of annuitant.--No special
    14  supplemental postretirement adjustment enacted after the death
    15  of an annuitant shall be payable to the beneficiary or survivor
    16  annuitant of the deceased annuitant.
    17     (e)  Future supplemental annuities.--This special
    18  supplemental postretirement adjustment shall be included in the
    19  total annuity, and this military service shall be included in
    20  the total credited service in determining all future
    21  supplemental annuities.
    22     (f)  Time limitations.--An annuitant who is eligible for this
    23  special supplemental postretirement adjustment shall have two
    24  years from the effective date of this section within which to
    25  make a request to the system for the adjustment established in
    26  this section.
    27     (g)  Court-ordered purchase of nonschool service.--If a court
    28  of competent jurisdiction rules that an annuitant who is
    29  receiving or will receive retirement pay under 10 U.S.C. Ch. 67
    30  for this military service is eligible under section 8304(b)(1)
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     1  or (2) to purchase nonschool service credit for this military
     2  service, this special supplemental postretirement adjustment
     3  shall stop with the annuitant's purchase of nonschool service
     4  credit for this military service, and the total amount of this
     5  special supplemental postretirement paid to the annuitant from
     6  the effective date of this section shall be subtracted from any
     7  increase in the annuity caused by the court-ordered purchase of
     8  nonschool service credit for this military service.
     9     Section 2.  Title 71 is amended by adding a section to read:
    10  § 5708.4.  Special supplemental postretirement adjustment.
    11     (a)  Eligibility.--An annuitant who:
    12         (1)  retired after February 28, 1974, and before December
    13     31, 1984;
    14         (2)  has military service as set forth in section
    15     5304(c)(1) or (2) (relating to creditable nonstate service);
    16         (3)  is receiving or will receive retirement pay under 10
    17     U.S.C. Ch. 67 (relating to retired pay for nonregular
    18     service) for this military service; and
    19         (4)  has not purchased nonstate service credit for this
    20     military service;
    21  shall be eligible for this special supplemental postretirement
    22  adjustment.
    23     (b)  Calculation of adjustment.--The monthly amount of this
    24  special supplemental postretirement adjustment shall be equal to
    25  the final average salary multiplied by 2% multiplied by the
    26  years of this military service divided by 12 multiplied by any
    27  applicable early retirement or option factors.
    28     (c)  Adjustment paid.--Upon receipt of a timely request by an
    29  eligible annuitant, the system shall pay this special
    30  supplemental postretirement adjustment monthly from the
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     1  effective date of this section.
     2     (d)  Adjustment enacted after death of annuitant.--No special
     3  supplemental postretirement adjustment enacted after the death
     4  of an annuitant shall be payable to the beneficiary or survivor
     5  annuitant of the deceased annuitant.
     6     (e)  Future supplemental annuities.--This special
     7  supplemental postretirement adjustment shall be included in the
     8  total annuity, and this military service shall be included in
     9  the total credited service in determining all future
    10  supplemental annuities.
    11     (f)  Time limitations.--An annuitant who is eligible for this
    12  special supplemental postretirement adjustment shall have two
    13  years from the effective date of this section within which to
    14  make a request to the system for the adjustment established in
    15  this section.
    16     (g)  Court-ordered purchase of nonstate service.--If a court
    17  of competent jurisdiction rules that an annuitant who is
    18  receiving or will receive retirement pay under 10 U.S.C. Ch. 67
    19  for this military service is eligible under section 5304(c)(1)
    20  or (2) to purchase nonstate service credit for this military
    21  service, this special supplemental postretirement adjustment
    22  shall stop with the annuitant's purchase of nonstate service
    23  credit for this military service, and the total amount of this
    24  special supplemental postretirement adjustment paid to the
    25  annuitant from the effective date of this section shall be
    26  subtracted from any increase in the annuity caused by the court
    27  ordered purchase of nonstate service credit for this military
    28  service.
    29     Section 3.  This act shall be retroactive to January 1, 1974.
    30     Section 4.  This act shall take effect immediately.
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