PRIOR PRINTER'S NO. 142                       PRINTER'S NO. 2468

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 168 Session of 1995


        INTRODUCED BY M. COHEN, LUCYK, THOMAS, ROONEY, JAROLIN, GEORGE,
           NAILOR, TIGUE, COWELL, STABACK, PESCI, MAYERNIK, CURRY,
           DALEY, D. R. WRIGHT, TRELLO, JOSEPHS, STERN, McCALL,
           WASHINGTON, PETRONE, E. Z. TAYLOR, LAUGHLIN, RICHARDSON,
           HORSEY, MIHALICH, YOUNGBLOOD, HALUSKA, MICHLOVIC, BELARDI,
           B. SMITH, WOGAN, TRAVAGLIO, BELFANTI, LEDERER AND
           L. I. COHEN, JANUARY 20, 1995

        AS REPORTED FROM COMMITTEE ON STATE GOVERNMENT, HOUSE OF
           REPRESENTATIVES, AS AMENDED, SEPTEMBER 20, 1995

                                     AN ACT

     1  Amending Titles 24 (Education) and 71 (State Government) of the
     2     Pennsylvania Consolidated Statutes, providing for special
     3     supplemental postretirement adjustments.

     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  § 8348.4.  Special supplemental postretirement adjustment.
     9     (a)  Eligibility.--An annuitant who:
    10         (1)  retired after October 1, 1975, and before December    <--
    11     31, 1984 JANUARY 1, 1985;                                      <--
    12         (2)  has military service as set forth in section
    13     8304(b)(1) or (2) (relating to creditable nonschool service);
    14         (3)  is receiving or will receive retirement pay under 10
    15     U.S.C. Ch. 67 (relating to retired pay for nonregular


     1     service) for this military service; and
     2         (4)  has not purchased nonschool service credit for this
     3     military service;
     4  shall be eligible for this special supplemental postretirement
     5  adjustment.
     6     (b)  Calculation of adjustment.--The monthly amount of this
     7  special supplemental postretirement adjustment shall be equal to
     8  the final average salary multiplied by 2% multiplied by the
     9  years of this military service divided by 12 multiplied by any
    10  applicable early retirement or option factors.
    11     (c)  Adjustment paid.--Upon receipt of a timely request by an
    12  eligible annuitant, the system shall pay this special
    13  supplemental postretirement adjustment monthly from the
    14  effective date of this section.
    15     (d)  Adjustment enacted after death of annuitant.--No special
    16  supplemental postretirement adjustment enacted after the death
    17  of an annuitant shall be payable to the beneficiary or survivor
    18  annuitant of the deceased annuitant.
    19     (e)  Future supplemental annuities.--This special
    20  supplemental postretirement adjustment shall be included in the
    21  total annuity, and this military service shall be included in
    22  the total credited service in determining all future
    23  supplemental annuities.
    24     (f)  Time limitations.--An annuitant who is eligible for this
    25  special supplemental postretirement adjustment shall have two
    26  years from the effective date of this section within which to
    27  make a request to the system for the adjustment established in
    28  this section.
    29     (g)  Court-ordered purchase of nonschool service.--If a court
    30  of competent jurisdiction rules that an annuitant who is
    19950H0168B2468                  - 2 -

     1  receiving or will receive retirement pay under 10 U.S.C. Ch. 67
     2  for this military service is eligible under section 8304(b)(1)
     3  or (2) to purchase nonschool service credit for this military
     4  service, this special supplemental postretirement adjustment
     5  shall stop with the annuitant's purchase of nonschool service
     6  credit for this military service, and the total amount of this
     7  special supplemental postretirement paid to the annuitant from
     8  the effective date of this section shall be subtracted from any
     9  increase in the annuity caused by the court-ordered purchase of
    10  nonschool service credit for this military service.
    11     Section 2.  Title 71 is amended by adding a section to read:
    12  § 5708.4.  Special supplemental postretirement adjustment.
    13     (a)  Eligibility.--An annuitant who:
    14         (1)  retired after February 28, 1974, and before December  <--
    15     31, 1984 JANUARY 1, 1985;                                      <--
    16         (2)  has military service as set forth in section
    17     5304(c)(1) or (2) (relating to creditable nonstate service);
    18         (3)  is receiving or will receive retirement pay under 10
    19     U.S.C. Ch. 67 (relating to retired pay for nonregular
    20     service) for this military service; and
    21         (4)  has not purchased nonstate service credit for this
    22     military service;
    23  shall be eligible for this special supplemental postretirement
    24  adjustment.
    25     (b)  Calculation of adjustment.--The monthly amount of this
    26  special supplemental postretirement adjustment shall be equal to
    27  the final average salary multiplied by 2% multiplied by the
    28  years of this military service divided by 12 multiplied by any
    29  applicable early retirement or option factors.
    30     (c)  Adjustment paid.--Upon receipt of a timely request by an
    19950H0168B2468                  - 3 -

     1  eligible annuitant, the system shall pay this special
     2  supplemental postretirement adjustment monthly from the
     3  effective date of this section.
     4     (d)  Adjustment enacted after death of annuitant.--No special
     5  supplemental postretirement adjustment enacted after the death
     6  of an annuitant shall be payable to the beneficiary or survivor
     7  annuitant of the deceased annuitant.
     8     (e)  Future supplemental annuities.--This special
     9  supplemental postretirement adjustment shall be included in the
    10  total annuity, and this military service shall be included in
    11  the total credited service in determining all future
    12  supplemental annuities.
    13     (f)  Time limitations.--An annuitant who is eligible for this
    14  special supplemental postretirement adjustment shall have two
    15  years from the effective date of this section within which to
    16  make a request to the system for the adjustment established in
    17  this section.
    18     (g)  Court-ordered purchase of nonstate service.--If a court
    19  of competent jurisdiction rules that an annuitant who is
    20  receiving or will receive retirement pay under 10 U.S.C. Ch. 67
    21  for this military service is eligible under section 5304(c)(1)
    22  or (2) to purchase nonstate service credit for this military
    23  service, this special supplemental postretirement adjustment
    24  shall stop with the annuitant's purchase of nonstate service
    25  credit for this military service, and the total amount of this
    26  special supplemental postretirement adjustment paid to the
    27  annuitant from the effective date of this section shall be
    28  subtracted from any increase in the annuity caused by the court
    29  ordered purchase of nonstate service credit for this military
    30  service.
    19950H0168B2468                  - 4 -

     1     Section 3.  This act shall be retroactive to January 1, 1974.
     2     Section 4.  This act shall take effect immediately.



















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