PRINTER'S NO. 1584
No. 1363 Session of 1989
INTRODUCED BY MICOZZIE, RAYMOND, FLICK AND CIVERA, MAY 1, 1989
REFERRED TO COMMITTEE ON EDUCATION, MAY 1, 1989
AN ACT
1 Amending Titles 24 (Education) and 71 (State Government) of the
2 Pennsylvania Consolidated Statutes, providing for cost-of-
3 living adjustments for survivor annuitants.
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 § 8348.3. Cost-of-living adjustment.
9 (a) Benefit.--Commencing with the first monthly payment
10 after December 31, 1989, the system shall pay a cost-of-living
11 adjustment to the beneficiary or survivor annuitant of a
12 deceased annuitant as provided in this section.
13 (b) Amount of cost-of-living adjustment.--The cost-of-living
14 adjustment shall be 5% of the survivor annuitant's monthly
15 annuity on December 31, 1989.
16 (c) Payment.--The system shall pay the cost-of-living
17 adjustment automatically once a month to the beneficiary or
18 survivor annuitant unless the beneficiary or survivor annuitant
1 files a written notice with the system requesting that the cost-
2 of-living adjustment not be paid.
3 (d) Conditions.--The system shall pay the cost-of-living
4 adjustment under the same terms and conditions as provided under
5 the option plan in effect on December 31, 1989.
6 (e) Funding.--The actuary shall annually certify the amount
7 of appropriations for the next fiscal year needed to fund, over
8 a period of 20 years from the effective date of this section,
9 the cost-of-living adjustment provided for in this section. The
10 additional liability for the increase in benefits which is
11 effective January 1, 1990, shall be funded as a level annual
12 payment over a period of 20 years beginning January 1, 1990.
13 (f) Definition.--As used in this section, the term
14 "beneficiary" or "survivor annuitant" means a person who is
15 receiving a survivor annuity and who commenced receipt of that
16 annuity on or before July 1, 1987.
17 Section 2. Title 71 is amended by adding a section to read:
18 § 5708.3. Cost-of-living adjustment.
19 (a) Benefit.--Commencing with the first monthly payment
20 after December 31, 1989, the system shall pay a cost-of-living
21 adjustment to the beneficiary or survivor annuitant of a
22 deceased annuitant as provided in this section.
23 (b) Amount of cost-of-living adjustment.--The cost-of-living
24 adjustment shall be 5% of the survivor annuitant's monthly
25 annuity on December 31, 1989.
26 (c) Payment.--The system shall pay the cost-of-living
27 adjustment automatically once a month to the beneficiary or
28 survivor annuitant unless the beneficiary or survivor annuitant
29 files a written notice with the system requesting that the cost-
30 of-living adjustment not be paid.
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1 (d) Conditions.--The system shall pay the cost-of-living
2 adjustment under the same terms and conditions as provided under
3 the option plan in effect on December 31, 1989.
4 (e) Funding.--The actuary shall annually certify the amount
5 of appropriations for the next fiscal year needed to fund, over
6 a period of 20 years from the effective date of this section,
7 the cost-of-living adjustment provided for in this section. The
8 additional liability for the increase in benefits which is
9 effective January 1, 1990, shall be funded as a level annual
10 payment over a period of 20 years beginning January 1, 1990.
11 (f) Definition.--As used in this section, the term
12 "beneficiary" or "survivor annuitant" means a person who is
13 receiving a survivor annuity and who commenced receipt of that
14 annuity on or before July 1, 1987.
15 Section 3. This act shall take effect January 1, 1990.
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