PRINTER'S NO. 2840
No. 2128 Session of 2001
INTRODUCED BY COY, ARMSTRONG, BARD, BEBKO-JONES, BELARDI, BUNT,
BUXTON, CALTAGIRONE, CAWLEY, CORRIGAN, COSTA, CREIGHTON,
CURRY, DALEY, DeWEESE, EACHUS, FAIRCHILD, FICHTER, GEIST,
GEORGE, GRUITZA, HALUSKA, HERMAN, HESS, HORSEY, HUTCHINSON,
KREBS, LAUGHLIN, LEH, LESCOVITZ, MAHER, MANN, MARKOSEK,
MARSICO, McCALL, McILHATTAN, McNAUGHTON, MELIO, MUNDY,
NICKOL, PETRONE, PIPPY, ROBERTS, ROONEY, SANTONI, SOLOBAY,
STABACK, STERN, T. STEVENSON, SURRA, E. Z. TAYLOR, TIGUE,
TRAVAGLIO, WALKO, WOJNAROSKI, G. WRIGHT, YUDICHAK, RUFFING,
CAPPELLI, BELFANTI AND LUCYK, NOVEMBER 13, 2001
REFERRED TO COMMITTEE ON STATE GOVERNMENT, NOVEMBER 13, 2001
AN ACT
1 Amending Title 71 (State Government) of the Pennsylvania
2 Consolidated Statutes, providing for cost-of-living increases
3 for retirees.
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 § 5708.6. Supplemental annuities commencing 2002.
9 (a) Benefits.--Commencing with the first monthly annuity
10 payment after July 1, 2002, any eligible benefit recipient shall
11 be entitled to receive a further additional monthly supplemental
12 annuity from the system. This shall be in addition to the
13 supplemental annuities provided for in sections 5708 (relating
14 to supplemental annuities), 5708.1 (relating to additional
1 supplemental annuities), 5708.2 (relating to further additional
2 supplemental annuities), 5708.3 (relating to supplemental
3 annuities commencing 1994), 5708.4 (relating to special
4 supplemental postretirement adjustment) and 5708.5 (relating to
5 supplemental annuities commencing 1998).
6 (b) Amount of supplemental annuity.--The amount of the
7 supplemental annuity payable pursuant to this section shall be
8 the greater of:
9 (1) 25% of the gross monthly annuity in effect on June
10 30, 2001; or
11 (2) the amount calculated by the board to restore the
12 purchasing power of annuitants' monthly annuities to equal
13 the purchasing power of the monthly annuities that the
14 retirees earned and began receiving at the time of
15 retirement.
16 (c) Payment.--The supplemental annuity provided under this
17 section shall be paid automatically unless the annuitant files a
18 written notice with the board requesting that the additional
19 monthly supplemental annuity not be paid.
20 (d) Conditions.--The supplemental annuity provided under
21 this section shall be payable under the same terms and
22 conditions as provided under the option plan in effect as of
23 January 1, 2002.
24 (e) Benefits to beneficiaries or survivors.--No supplemental
25 annuity provided under this section shall be payable to the
26 beneficiary or survivor annuitant of a member who dies before
27 July 2, 2002.
28 (f) Funding.--Notwithstanding section 5508(e) (relating to
29 actuarial cost method), the annuity reserve account shall be
30 credited and the State accumulation account shall be debited the
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1 amount determined by the actuary as necessary to fully fund the
2 additional liability for the increase in benefits prescribed in
3 this section.
4 (g) Eligible benefit recipient.--As used in this section,
5 the term "eligible benefit recipient" means a person who is
6 receiving a superannuation, withdrawal or disability annuity on
7 January 1, 2002, and whose most recent effective date of
8 retirement is prior to July 2, 2001.
9 Section 2. This act shall take effect immediately.
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