PRINTER'S NO. 2839
No. 2010 Session of 2007
INTRODUCED BY CUTLER, BEAR, BOYD, COX, CREIGHTON, DENLINGER,
GINGRICH, HERSHEY, HICKERNELL, MANTZ, MARSHALL, MILNE, MOUL,
PYLE, ROAE, SONNEY, STERN, SWANGER, TRUE, MURT, ROCK, PERRY
AND MACKERETH, NOVEMBER 14, 2007
REFERRED TO COMMITTEE ON FINANCE, NOVEMBER 14, 2007
AN ACT
1 Amending Titles 24 (Education) and 71 (State Government) of the
2 Pennsylvania Consolidated Statutes, further providing, in
3 retirement systems, for maximum single life annuities.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Section 8342 of Title 24 of the Pennsylvania
7 Consolidated Statutes is amended by adding a subsection to read:
8 § 8342. Maximum single life annuity.
9 * * *
10 (b.1) Limitation on amount of annuity.--The annuity paid to
11 a member under subsection (a) shall not exceed the highest
12 compensation received during any period of 12 consecutive months
13 of credited service.
14 * * *
15 Section 2. Section 5702(a)(6) and (c) of Title 71 are
16 amended to read:
17 § 5702. Maximum single life annuity.
1 (a) General rule.--Any full coverage member who is eligible
2 to receive an annuity pursuant to the provisions of section
3 5308(a) or (b) (relating to eligibility for annuities) who
4 terminates State service, or if a multiple service member who is
5 a school employee who is an active member of the Public School
6 Employees' Retirement System who terminates school service,
7 before attaining age 70 shall be entitled to receive a maximum
8 single life annuity attributable to his credited service and
9 equal to the sum of the following single life annuities
10 beginning at the effective date of retirement:
11 * * *
12 (6) If eligible, a single life annuity sufficient
13 together with the annuity provided for in paragraph (1) as a
14 Class A and Class AA member and the highest annuity provided
15 for in paragraph (2) to which he is entitled, or at his
16 option could have been entitled, to produce that percentage
17 of a standard single life annuity on the effective date of
18 retirement as determined by his total years of credited
19 service as a member of Class A and Class AA. [and by the
20 following table:
21 Total Years of Percentage of
22 Credited Service Standard
23 as a Member of Single Life
24 Class A and Annuity
25 Class AA
26 35-40 100%
27 41 102%
28 42 104%
29 43 106%
30 44 108%
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1 45 or more 110%]
2 * * *
3 (c) Limitation on amount of annuity.--The annuity paid to a
4 member under subsection (a) [and reduced in accordance with the
5 option elected under section 5705 (relating to member's
6 options)] shall not exceed the highest compensation received
7 during any period of twelve consecutive months of credited
8 service. [No limit on the total annuity paid to a member with
9 Class D-3 service shall be applied in the case of a member who
10 served as a constitutional officer of the General Assembly.]
11 * * *
12 Section 3. This act shall apply as follows:
13 (1) The addition of 24 Pa.C.S. § 8342(b.1) shall apply
14 to an individual who, on or after the effective date of this
15 paragraph, becomes an "active member" as defined in 24
16 Pa.C.S. § 8102.
17 (2) The amendment of 71 Pa.C.S. § 5702(a)(6) and (c)
18 shall apply to an individual who, on or after the effective
19 date of this paragraph, becomes an "active member" as defined
20 in 71 Pa.C.S. § 5102.
21 Section 4. This act shall take effect in 60 days.
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