PRIOR PRINTER'S NO. 1706 PRINTER'S NO. 2336
No. 1443 Session of 2001
INTRODUCED BY HERMAN, BENNINGHOFF, FAIRCHILD, CORRIGAN,
CREIGHTON, CURRY, McILHATTAN, HORSEY, SATHER, ALLEN, BEBKO-
JONES, BELARDI, BELFANTI, BUNT, CALTAGIRONE, CAPPABIANCA,
CAPPELLI, CAWLEY, DALEY, DeWEESE, FEESE, FICHTER, GEIST,
GEORGE, HANNA, HARHAI, HESS, JADLOWIEC, JAMES, LAUGHLIN, LEH,
LESCOVITZ, LEVDANSKY, MARSICO, McNAUGHTON, S. MILLER, MUNDY,
NAILOR, PETRARCA, READSHAW, ROEBUCK, RUBLEY, SAINATO,
SCHULER, SCRIMENTI, SHANER, B. SMITH, SOLOBAY, STABACK,
SURRA, E. Z. TAYLOR, THOMAS, TRAVAGLIO, WANSACZ, WASHINGTON,
C. WILLIAMS, WILT, WOJNAROSKI, YOUNGBLOOD, YUDICHAK, PIPPY,
COSTA, SEMMEL, McCALL, HUTCHINSON, DIVEN, MAHER, STEELMAN,
M. BAKER, MICHLOVIC, YEWCIC, COLEMAN, McILHINNEY, DERMODY,
JOSEPHS, PHILLIPS, R. STEVENSON, T. STEVENSON, FLEAGLE,
R. MILLER, ARMSTRONG AND J. TAYLOR, APRIL 25, 2001
AS REPORTED FROM COMMITTEE ON EDUCATION, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 20, 2001
AN ACT
1 Amending Titles 24 (Education) and 71 (State Government) of the
2 Pennsylvania Consolidated Statutes, further providing for
3 cost-of-living increases to annuitants.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Sections 8346(a) and 8348(a) of Title 24 of the
7 Pennsylvania Consolidated Statutes are amended to read:
8 § 8346. Termination of annuities.
9 (a) General rule.--If an annuitant returns to school service
10 or enters State service and elects multiple service membership,
11 any annuity payable to him under this part shall cease and in
12 the case of an annuity other than a disability annuity the
1 present value of such annuity, adjusted for full coverage in the
2 case of a joint coverage member who makes the appropriate back
3 contributions for full coverage, shall be frozen as of the date
4 such annuity ceases. An annuitant who is credited with an
5 additional 10% of membership service as provided in section
6 8302(b.2) (relating to credited school service) and who returns
7 to school service, except as provided in subsection (b), shall
8 forfeit such credited service and shall have his frozen present
9 value adjusted as if his 10% retirement incentive had not been
10 applied to his account. In the event that [the] a cost-of-living
11 increase [enacted December 18, 1979,] occurred during the period
12 of such State or school employment, the frozen present value
13 shall be increased, on or after the member attains
14 superannuation age, by the percent applicable had he not
15 returned to service.
16 * * *
17 § 8348. Supplemental annuities.
18 (a) General rule.--Every annuitant who is in receipt of a
19 superannuation, withdrawal or disability annuity, shall continue
20 to receive such annuity [and beginning July 1, 1979, any
21 annuitant who retired on or prior to July 1, 1978, shall receive
22 a cost-of-living supplement determined as a percentage applied
23 to the retirement annuity as of June 30, 1979. Such cost-of-
24 living supplement shall be payable under the same terms and
25 conditions as provided under the option plan in effect as of
26 June 30, 1979.], and beginning January 1, 2001, and annually
27 thereafter, a cost-of-living supplement shall be payable to each
28 annuitant whose annuity has been in effect for at least 24
29 consecutive months. Any cost-of-living supplement provided in
30 this subsection shall be payable under the same terms and
20010H1443B2336 - 2 -
1 conditions as provided under the option plan in effect as of
2 December 31 of the year preceding the adjustment. The minimum <--
3 annual cost-of-living increase shall be 3% or such higher <--
4 percentage or such lower percentage as the board shall determine
5 based on an actual determination of the fiscal impact of the
6 cost-of-living adjustment on the fund. The board shall only <--
7 lower the percentage of the annual cost-of-living increase when
8 the actuarial determination shows that the fiscal impact of such
9 cost-of-living adjustment places the fund in an unsafe financial
10 position. No cost-of-living supplement shall be payable to an
11 annuitant receiving a withdrawal annuity prior to his attainment
12 of superannuation age.
13 * * *
14 Section 2. Sections 8348(b) and 8348.1 of Title 24 are
15 repealed.
16 Section 3. Sections 5706(a) and 5708(a) of Title 71 are
17 amended to read:
18 § 5706. Termination of annuities.
19 (a) General rule.--If the annuitant returns to State service
20 or enters school service and elects multiple service membership,
21 any annuity payable to him under this part shall cease and in
22 the case of an annuity other than a disability annuity the
23 present value of such annuity, adjusted for full coverage in the
24 case of a joint coverage member who makes the appropriate back
25 contributions for full coverage, shall be frozen as of the date
26 such annuity ceases. An annuitant who is credited with an
27 additional 10% of Class A and Class C service as provided in
28 section 5302(c) (relating to credited State service) and who
29 returns to State service shall forfeit such credited service and
30 shall have his frozen present value adjusted as if his 10%
20010H1443B2336 - 3 -
1 retirement incentive had not been applied to his account. In the
2 event that [the] a cost-of-living increase [enacted December 18,
3 1979] occurred during the period of such State or school
4 employment, the frozen present value shall be increased, on or
5 after the member attains superannuation age, by the percent
6 applicable had he not returned to service. This subsection shall
7 not apply in the case of any annuitant who may render services
8 to the Commonwealth in the capacity of an independent contractor
9 or as a member of an independent board or commission or as a
10 member of a departmental administrative or advisory board or
11 commission when such members of independent or departmental
12 boards or commissions are compensated on a per diem basis for
13 not more than 150 days per calendar year.
14 * * *
15 § 5708. Supplemental annuities.
16 (a) General rule.--Every annuitant [who retired prior to
17 July 1, 1978 and] who is in receipt of a superannuation,
18 withdrawal or disability annuity, shall continue to receive the
19 annuity [to which he was entitled prior to July 1, 1979 and
20 beginning July 1, 1979, any annuitant retiring on or prior to
21 June 30, 1978 shall receive a cost-of-living supplement
22 determined as a percentage applied to the retirement annuity to
23 which he was entitled prior to July 1, 1979. Such cost-of-living
24 supplement shall be payable under the same terms and conditions
25 as provided under the option plan in effect as of June 30,
26 1979.], and beginning January 1, 2001, and annually thereafter,
27 a cost-of-living supplement shall be payable to each annuitant
28 whose annuity has been in effect for at least 24 consecutive
29 months. Any cost-of-living supplement provided in this
30 subsection shall be payable under the same terms and conditions
20010H1443B2336 - 4 -
1 as provided under the option plan in effect as of December 31 of
2 the year preceding the adjustment. The minimum annual cost-of- <--
3 living increase shall be 3% or such higher percentage or such <--
4 lower percentage as the board shall determine based on an actual
5 determination of the fiscal impact of the cost-of-living
6 adjustment on the fund. The board shall only lower the <--
7 percentage of the annual cost-of-living increase when the
8 actuarial determination shows that the fiscal impact of such
9 cost-of-living adjustment places the fund in an unsafe financial
10 position. No cost-of-living supplement shall be payable to an
11 annuitant receiving a withdrawal annuity prior to his attainment
12 of superannuation age.
13 * * *
14 Section 4. Sections 5708(b) and 5708.1 of Title 71 are
15 repealed.
16 Section 5. This act shall be retroactive to January 1, 2001.
17 Section 6. This act shall take effect immediately.
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