PRINTER'S NO. 1358
No. 1054 Session of 2007
INTRODUCED BY KASUNIC, MELLOW, O'PAKE, COSTA, FONTANA, BOSCOLA, LOGAN, STACK, STOUT, WASHINGTON, ERICKSON, PUNT, RAFFERTY AND RHOADES, AUGUST 27, 2007
REFERRED TO FINANCE, AUGUST 27, 2007
AN ACT 1 Amending Titles 24 (Education) and 71 (State Government) of the 2 Pennsylvania Consolidated Statutes, providing for permanent 3 biannual cost-of-living increases for retirees. 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. Biannual cost-of-living increases 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 biannual cost-of-living increases in his 12 or her monthly annuity payment. Each biannual increase shall 13 have an effective date of July 1 or December 1. The increases 14 shall be in addition to the supplemental annuities provided for 15 in sections 8348 (relating to supplemental annuities), 8348.1 16 (relating to additional supplemental annuities), 8348.2 17 (relating to further additional supplemental annuities), 8348.3 18 (relating to supplemental annuities commencing 1994), 8348.4
1 (relating to special supplemental postretirement adjustment), 2 8348.5 (relating to supplemental annuities commencing 1998), 3 8348.6 (relating to supplemental annuities commencing 2002) and 4 8348.7 (relating to supplemental annuities commencing 2003). 5 (b) Amount of cost-of-living increases.--The amount of a 6 cost-of-living increase payable pursuant to this section shall 7 be an amount equal to the increase in the Consumer Price Index 8 for Urban Wage Earners for the immediately preceding six-month 9 period. 10 (c) Payment.--The cost-of-living increases provided under 11 this section shall be paid automatically as an additional 12 monthly supplemental annuity unless the annuitant files a 13 written notice with the board requesting that the additional 14 monthly supplemental annuity not be paid. 15 (d) Conditions.--A supplemental annuity provided under this 16 section shall be payable under the same terms and conditions as 17 provided under the option plan in effect as of July 1, 2007. 18 (e) Benefits to beneficiaries or survivors.--No cost-of- 19 living increase provided under this section shall be payable to 20 the beneficiary or survivor annuitant of a member who dies 21 before July 1, 2007. 22 (f) Funding.-- 23 (1) Notwithstanding section 8328 (relating to actuarial 24 cost method), the additional liability for the increase in 25 benefits provided in this section shall be funded in annual 26 installments increasing by 5% each year over a period of 20 27 years beginning July 1, 2007. 28 (2) Notwithstanding the provisions of the act of July 4, 29 2004 (P.L.1837, No.7A), known as the General Appropriation 30 Act of 2004, regarding payment for cost-of-living increases 20070S1054B1358 - 2 -
1 for annuitants, payments for cost-of-living increases for 2 annuitants shall be made under section 8535 (relating to 3 payments to school entities by Commonwealth). 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 July 1, 2007, and whose most recent effective date of retirement 8 is prior to July 1, 2006, but the supplemental annuities 9 provided under this section shall not be payable to an annuitant 10 receiving a withdrawal annuity prior to the first day of July 11 coincident with or following the annuitant's attainment of 12 superannuation age. 13 Section 2. Title 71 is amended by adding a section to read: 14 § 5708.9. Biannual cost-of-living increases commencing 2007. 15 (a) Benefits.--Commencing with the first monthly annuity 16 payment after June 30, 2007, any eligible benefit recipient 17 shall be entitled to receive biannual cost-of-living increases 18 in his or her monthly annuity. This shall be in addition to the 19 supplemental annuities provided for in sections 5708 (relating 20 to supplemental annuities), 5708.1 (relating to additional 21 supplemental annuities), 5708.2 (relating to further additional 22 supplemental annuities), 5708.3 (relating to supplemental 23 annuities commencing 1994), 5708.5 (relating to supplemental 24 annuities commencing 1998) 5708.6 (relating to supplemental 25 annuities commencing 2002), 5708.7 (relating to supplemental 26 annuities commencing 2003) and the special supplemental 27 postretirement adjustments provided for in sections 5708.4 28 (relating to special supplemental postretirement adjustment) and 29 5708.8 (relating to special supplemental postretirement 30 adjustment of 2002). 20070S1054B1358 - 3 -
1 (b) Amount of cost-of-living increases.--The amount of a 2 cost-of-living increase payable pursuant to this section shall 3 be an amount equal to the increase in the Consumer Price Index 4 for Urban Wage Earners for the immediately preceding six-month 5 period. 6 (c) Payment.--The cost-of-living increases provided under 7 this section shall be paid automatically as an additional 8 monthly supplemental annuity unless the annuitant files a 9 written notice with the board requesting that the additional 10 monthly supplemental annuity not be paid. 11 (d) Conditions.--A supplemental annuity provided under this 12 section shall be payable under the same terms and conditions as 13 provided under the option plan in effect as of July 1, 2007. 14 (e) Benefits to beneficiaries or survivors.--No supplemental 15 annuity provided under this section shall be payable to the 16 beneficiary or survivor annuitant of a member who dies before 17 July 1, 2007. 18 (f) Funding.--Notwithstanding section 5508(e) (relating to 19 actuarial cost method), the additional liability for the 20 increase in benefits provided in this section shall be funded in 21 annual installments increasing by 5% each year over a period of 22 20 years beginning July 1, 2007. 23 (g) Eligible benefit recipient.--As used in this section, 24 the term "eligible benefit recipient" means a person who is 25 receiving a superannuation, withdrawal or disability annuity on 26 July 1, 2007, and whose most recent effective date of retirement 27 is prior to July 1, 2006, but the supplemental annuities 28 provided under this section shall not be payable to an annuitant 29 receiving a withdrawal annuity prior to the first day of July 30 coincident with or following the annuitant's attainment of 20070S1054B1358 - 4 -
1 superannuation age.
2 Section 3. This act shall take effect immediately.
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