PRINTER'S NO. 2940
No. 2084 Session of 2007
INTRODUCED BY GIBBONS, SAINATO, GRUCELA, BELFANTI, BASTIAN, BIANCUCCI, BLACKWELL, BRENNAN, BROOKS, BUXTON, CAPPELLI, CARROLL, CAUSER, CLYMER, CONKLIN, COSTA, CRUZ, DENLINGER, ELLIS, FABRIZIO, FLECK, GEORGE, GERGELY, GINGRICH, GOODMAN, HALUSKA, HANNA, HARHAI, HARKINS, HARPER, HELM, HENNESSEY, HESS, HORNAMAN, HUTCHINSON, JAMES, KOTIK, KULA, LEACH, LONGIETTI, MAHONEY, MANDERINO, MARKOSEK, McILHATTAN, MENSCH, MILNE, MOYER, MUNDY, MURT, MUSTIO, MYERS, M. O'BRIEN, O'NEILL, PASHINSKI, PAYNE, PETRARCA, PETRONE, PICKETT, RAMALEY, READSHAW, REICHLEY, SCAVELLO, SCHRODER, SEIP, SHIMKUS, SIPTROTH, McILVAINE SMITH, K. SMITH, SOLOBAY, STERN, R. STEVENSON, SURRA, TANGRETTI, WAGNER, J. WHITE, WOJNAROSKI, YOUNGBLOOD, HARRIS, KAUFFMAN, D. EVANS AND REED, DECEMBER 5, 2007
REFERRED TO COMMITTEE ON STATE GOVERNMENT, DECEMBER 5, 2007
AN ACT 1 Amending Titles 24 (Education) and 71 (State Government) of the 2 Pennsylvania Consolidated Statutes, providing for 3 supplemental annuity commencing 2007. 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 § 8348.8. Supplemental annuity commencing 2007. 9 (a) Benefits.--Commencing with the first monthly annuity 10 payment after July 1, 2007, any eligible benefit recipient shall 11 be entitled to receive an additional monthly supplemental 12 annuity from the system that shall be paid over a five-year
1 period in accordance with this section. This shall be in 2 addition to the supplemental annuities provided for in sections 3 8348 (relating to supplemental annuities), 8348.1 (relating to 4 additional supplemental annuities), 8348.2 (relating to further 5 additional supplemental annuities), 8348.3 (relating to 6 supplemental annuities commencing 1994), 8348.4 (relating to 7 special supplemental postretirement adjustment), 8348.5 8 (relating to supplemental annuities commencing 1998), 8348.6 9 (relating to supplemental annuities commencing 2002) and 8348.7 10 (relating to supplemental annuities commencing 2003). 11 (b) Amount of additional supplemental annuity.--The amount 12 of the supplemental annuity payable from July 1, 2007, through 13 June 30, 2008, pursuant to this section shall be a percentage of 14 the amount of the monthly annuity payment on July 1, 2007, 15 determined on the basis of the most recent effective date of 16 retirement as follows: 17 Most recent effective Percentage factor 18 date of retirement 19 July 2, 2000, through July 1, 2001 20.0% 20 July 2, 1999, through July 1, 2000 24.0% 21 July 2, 1998, through July 1, 1999 28.0% 22 July 2, 1997, through July 1, 1998 32.0% 23 July 2, 1996, through July 1, 1997 36.0% 24 July 2, 1995, through July 1, 1996 40.0% 25 July 2, 1994, through July 1, 1995 44.0% 26 July 2, 1993, through July 1, 1994 48.0% 27 July 2, 1992, through July 1, 1993 52.0% 28 July 2, 1991, through July 1, 1992 56.0% 29 July 2, 1990, through July 1, 1991 60.0% 30 July 2, 1989, through July 1, 1990 64.0% 20070H2084B2940 - 2 -
1 July 2, 1988, through July 1, 1989 68.0% 2 July 2, 1987, through July 1, 1988 72.0% 3 July 2, 1986, through July 1, 1987 76.0% 4 July 2, 1985, through July 1, 1986 80.0% 5 July 2, 1984, through July 1, 1985 84.0% 6 July 2, 1983, through July 1, 1984 88.0% 7 July 2, 1982, through July 1, 1983 92.0% 8 July 2, 1981, through July 1, 1982 96.0% 9 Prior to July 2, 1981 100.0% 10 (c) Payment.--The supplemental annuity provided under this 11 section shall be paid automatically over a five-year period at 12 20% of the supplemental annuity amount each year unless the 13 annuitant files a written notice with the board requesting that 14 the additional monthly supplemental annuity not be paid. 15 (d) Conditions.--The supplemental annuity provided under 16 this section shall be payable under the same terms and 17 conditions as provided under the option plan in effect as of 18 July 1, 2007. 19 (e) Benefits to beneficiaries or survivors.--No supplemental 20 annuity provided under this section shall be payable to the 21 beneficiary or survivor annuitant of a member who dies before 22 July 1, 2007. 23 (f) Funding.--The additional liability for the increase in 24 benefits provided in this section shall be funded in equal 25 dollar annual installments over a period of ten years beginning 26 July 1, 2007. 27 (g) Eligible benefit recipient.--As used in this section, 28 the term "eligible benefit recipient" means a person: 29 (1) who is receiving a superannuation, withdrawal or 30 disability annuity on July 1, 2007; 20070H2084B2940 - 3 -
1 (2) whose most recent effective date of retirement is 2 prior to July 1, 2001; and 3 (3) whose credited service does not include any service 4 credited as either Class T-D, Class D-4 or Class AA service. 5 Notwithstanding the above, the supplemental annuities provided 6 under this section shall not be payable to an annuitant 7 receiving a withdrawal annuity prior to the first day of July 8 coincident with or following the annuitant's attainment of 9 superannuation age. 10 Section 2. Title 71 is amended by adding a section to read: 11 § 5708.9. Supplemental annuity commencing 2007. 12 (a) Benefits.--Commencing with the first monthly annuity 13 payment after July 1, 2007, any eligible benefit recipient shall 14 be entitled to receive an additional monthly supplemental 15 annuity from the system that shall be paid over a five-year 16 period in accordance with this section. This shall be in 17 addition to the supplemental annuities provided for in sections 18 5708 (relating to supplemental annuities), 5708.1 (relating to 19 additional supplemental annuities), 5708.2 (relating to further 20 additional supplemental annuities), 5708.3 (relating to 21 supplemental annuities commencing 1994), 5708.4 (relating to 22 special supplemental postretirement adjustment), 5708.5 23 (relating to supplemental annuities commencing 1998), 5708.6 24 (relating to supplemental annuities commencing 2002) and 5708.7 25 (relating to supplemental annuities commencing 2003). 26 (b) Amount of additional supplemental annuity.--The amount 27 of the supplemental annuity payable from July 1, 2007, through 28 June 30, 2008, pursuant to this section shall be a percentage of 29 the amount of the monthly annuity payment on July 1, 2007, 30 determined on the basis of the most recent effective date of 20070H2084B2940 - 4 -
1 retirement as follows: 2 Most recent effective Percentage factor 3 date of retirement 4 July 2, 2000, through July 1, 2001 20.0% 5 July 2, 1999, through July 1, 2000 24.0% 6 July 2, 1998, through July 1, 1999 28.0% 7 July 2, 1997, through July 1, 1998 32.0% 8 July 2, 1996, through July 1, 1997 36.0% 9 July 2, 1995, through July 1, 1996 40.0% 10 July 2, 1994, through July 1, 1995 44.0% 11 July 2, 1993, through July 1, 1994 48.0% 12 July 2, 1992, through July 1, 1993 52.0% 13 July 2, 1991, through July 1, 1992 56.0% 14 July 2, 1990, through July 1, 1991 60.0% 15 July 2, 1989, through July 1, 1990 64.0% 16 July 2, 1988, through July 1, 1989 68.0% 17 July 2, 1987, through July 1, 1988 72.0% 18 July 2, 1986, through July 1, 1987 76.0% 19 July 2, 1985, through July 1, 1986 80.0% 20 July 2, 1984, through July 1, 1985 84.0% 21 July 2, 1983, through July 1, 1984 88.0% 22 July 2, 1982, through July 1, 1983 92.0% 23 July 2, 1981, through July 1, 1982 96.0% 24 Prior to July 2, 1981 100.0% 25 (c) Payment.--The supplemental annuity provided under this 26 section shall be paid automatically over a five-year period at 27 20% of the supplemental annuity amount each year unless the 28 annuitant files a written notice with the board requesting that 29 the additional monthly supplemental annuity not be paid. 30 (d) Conditions.--The supplemental annuity provided under 20070H2084B2940 - 5 -
1 this section shall be payable under the same terms and 2 conditions as provided under the option plan in effect as of 3 July 1, 2007. 4 (e) Benefits to beneficiaries or survivors.--No supplemental 5 annuity provided under this section shall be payable to the 6 beneficiary or survivor annuitant of a member who dies before 7 July 1, 2007. 8 (f) Funding.--The additional liability for the increase in 9 benefits provided in this section shall be funded in equal 10 dollar annual installments over a period of ten years beginning 11 July 1, 2007. 12 (g) Eligible benefit recipient.--As used in this section, 13 the term "eligible benefit recipient" means a person: 14 (1) who is receiving a superannuation, withdrawal or 15 disability annuity on July 1, 2007; 16 (2) whose most recent effective date of retirement is 17 prior to July 1, 2001; and 18 (3) whose credited service does not include any service 19 credited as either Class T-D, Class D-4 or Class AA service. 20 Notwithstanding the above, the supplemental annuities provided 21 under this section shall not be payable to an annuitant 22 receiving a withdrawal annuity prior to the first day of July 23 coincident with or following the annuitant's attainment of 24 superannuation age. 25 Section 3. This act shall take effect immediately. J10L24DMS/20070H2084B2940 - 6 -