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                                                      PRINTER'S NO. 1358

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

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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