PRINTER'S NO. 1860
No. 1533 Session of 2001
INTRODUCED BY BELFANTI, PHILLIPS, DeWEESE, J. TAYLOR, ALLEN,
CAPPABIANCA, LESCOVITZ, BELARDI, GEORGE, WOGAN, TIGUE,
CREIGHTON, LEVDANSKY, COY, TRAVAGLIO, McILHATTAN, CURRY,
MUNDY, HORSEY, ROEBUCK, BUNT, PETRARCA, WASHINGTON, SAINATO,
STETLER, YOUNGBLOOD, COSTA, WANSACZ, BUXTON, WATERS,
READSHAW, WOJNAROSKI, STABACK, SHANER, C. WILLIAMS, SOLOBAY,
DALEY, HERMAN, LAUGHLIN, FICHTER, L. I. COHEN, THOMAS,
ROONEY, JAMES, KIRKLAND, B. SMITH, YUDICHAK, CALTAGIRONE,
CAWLEY, JADLOWIEC, CAPPELLI, BEBKO-JONES, CORRIGAN, DIVEN,
ROBERTS, DERMODY, SURRA, EACHUS, GRUCELA, STEELMAN,
HUTCHINSON AND J. WILLIAMS, MAY 7, 2001
REFERRED TO COMMITTEE ON STATE GOVERNMENT, MAY 7, 2001
AN ACT
1 Amending Titles 24 (Education) and 71 (State Government) of the
2 Pennsylvania Consolidated Statutes, providing additional
3 supplemental annuities commencing 2001.
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 § 8348.6. Supplemental annuities commencing 2001.
9 (a) Benefits.--Commencing with the first monthly annuity
10 payment after July 1, 2001, any eligible benefit recipient shall
11 be entitled to receive a further additional monthly supplemental
12 annuity from the system. This shall be in addition to the
13 supplemental annuities provided for in sections 8348 (relating
14 to supplemental annuities), 8348.1 (relating to additional
1 supplemental annuities), 8348.2 (relating to further additional
2 supplemental annuities), 8348.3 (relating to supplemental
3 annuities commencing 1994), 8348.4 (relating to special
4 supplemental postretirement adjustment) and 8348.5 (relating to
5 supplemental annuities commencing 1998).
6 (b) Amount of supplemental annuity.--The amount of the
7 supplemental annuity payable pursuant to this section shall be a
8 percentage of the amount of the monthly annuity payment on July
9 1, 2001, determined on the basis of the most recent effective
10 date of retirement, as follows:
11 Most recent effective date Percentage
12 of retirement factor
13 July 2, 1999, through July 1, 2000 1.86%
14 July 2, 1998, through July 1, 1999 3.59%
15 July 2, 1997, through July 1, 1998 4.95%
16 July 2, 1996, through July 1, 1997 6.42%
17 July 2, 1995, through July 1, 1996 7.97%
18 July 2, 1979, through July 1, 1995 10%
19 July 2, 1969, through July 1, 1979 20%
20 On or prior to June 30, 1969 25%
21 (c) Payment.--The supplemental annuity provided under this
22 section shall be paid automatically unless the annuitant files a
23 written notice with the board requesting that the additional
24 monthly supplemental annuity not be paid.
25 (d) Conditions.--The supplemental annuity provided under
26 this section shall be payable under the same terms and
27 conditions as provided under the option plan in effect as of
28 July 1, 2001.
29 (e) Benefits to beneficiaries or survivors.--No supplemental
30 annuity provided under this section shall be payable to the
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1 beneficiary or survivor annuitant of a member who dies before
2 July 1, 2001.
3 (f) Funding.--Notwithstanding section 8328 (relating to
4 actuarial cost method), the additional liability for the
5 increase in benefits provided in this section shall be funded in
6 annual installments increasing by 5% each year over a period of
7 20 years beginning July 1, 2001. Notwithstanding the provisions
8 of section 212 of the act of April 22, 1998 (P.L.1341, No.6A),
9 known as the General Appropriation Act of 1998, regarding
10 payment for cost-of-living increases for annuitants, payments
11 for cost-of-living increases for annuitants shall be made under
12 section 8535 (relating to payments to school entities by
13 Commonwealth).
14 (g) Eligible benefit recipient.--As used in this section,
15 the term "eligible benefit recipient" means a person who is
16 receiving a superannuation, withdrawal or disability annuity on
17 July 1, 2001, and whose most recent effective date of retirement
18 is prior to July 1, 2000, but the supplemental annuities
19 provided under this section shall not be payable to an annuitant
20 receiving a withdrawal annuity prior to the first day of July
21 coincident with or following the annuitant's attainment of
22 superannuation age.
23 Section 2. Title 71 is amended by adding a section to read:
24 § 5708.6. Supplemental annuities commencing 2001.
25 (a) Benefits.--Commencing with the first monthly annuity
26 payment after June 30, 2001, any eligible benefit recipient
27 shall be entitled to receive a supplemental monthly annuity from
28 the system. This shall be in addition to the supplemental
29 annuities provided for in sections 5708 (relating to
30 supplemental annuities), 5708.1 (relating to additional
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1 supplemental annuities), 5708.2 (relating to further additional
2 supplemental annuities), 5708.3 (relating to supplemental
3 annuities commencing 1994), the special supplemental
4 postretirement adjustment provided for in sections 5708.4
5 (relating to special supplemental postretirement adjustment) and
6 5708.5 (relating to supplemental annuities commencing 1998).
7 (b) Amount of supplemental annuity.--The amount of the
8 supplemental annuity payable pursuant to this section shall be a
9 percentage of the amount of the monthly annuity payment on July
10 1, 2001, determined on the basis of the most recent effective
11 date of retirement, as follows:
12 Most recent effective date Percentage
13 of retirement factor
14 July 2, 1999, through July 1, 2000 1.86%
15 July 2, 1998, through July 1, 1999 3.59%
16 July 2, 1997, through July 1, 1998 4.95%
17 July 2, 1996, through July 1, 1997 6.42%
18 July 2, 1995, through July 1, 1996 7.97%
19 July 2, 1979, through July 1, 1995 10%
20 July 2, 1969, through July 1, 1979 20%
21 On or prior to June 30, 1969 25%
22 (c) Payment.--The supplemental annuity provided under this
23 section shall be paid automatically unless the annuitant files a
24 written notice with the board requesting that the additional
25 monthly supplemental annuity not be paid.
26 (d) Conditions.--The supplemental annuity provided under
27 this section shall be payable under the same terms and
28 conditions as provided under the option plan in effect as of
29 July 1, 2001.
30 (e) Benefits paid to beneficiaries or survivors.--No
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1 supplemental annuity provided under this section shall be
2 payable to the beneficiary or survivor annuitant of a member who
3 dies before July 1, 2001.
4 (f) Funding.--Notwithstanding section 5508(e) (relating to
5 actuarial cost method), the additional liability for the
6 increase in benefits provided in this section shall be funded in
7 annual installments increasing by 5% each year over a period of
8 20 years beginning July 1, 2001.
9 (g) Eligible benefit recipient.--As used in this section,
10 the term "eligible benefit recipient" means a person who is
11 receiving a superannuation, withdrawal or disability annuity on
12 July 1, 2001, and whose most recent effective date of retirement
13 is prior to July 1, 2000, but the supplemental annuities
14 provided under this section shall not be payable to an annuitant
15 receiving a withdrawal annuity prior to the first day of July
16 coincident with or following the annuitant's attainment of
17 superannuation age.
18 Section 3. This act shall take effect immediately.
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