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                                                      PRINTER'S NO. 3125

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2187 Session of 2008


        INTRODUCED BY BENNINGHOFF, RAPP, BELFANTI, BOYD, BUXTON,
           CAPPELLI, CARROLL, CAUSER, CLYMER, DENLINGER, GEORGE,
           GINGRICH, GRUCELA, HALUSKA, HANNA, HARHAI, HARKINS, HELM,
           HENNESSEY, HERSHEY, HESS, HORNAMAN, HUTCHINSON, KAUFFMAN,
           M. KELLER, LEACH, LONGIETTI, MAHONEY, MAJOR, MANDERINO,
           MARKOSEK, MARSHALL, McILHATTAN, MILNE, MURT, MUSTIO, O'NEILL,
           PALLONE, PAYNE, PETRONE, PICKETT, READSHAW, REED, REICHLEY,
           ROCK, SIPTROTH, K. SMITH, SOLOBAY, STERN, R. STEVENSON,
           SURRA, SWANGER, J. TAYLOR, THOMAS, J. WHITE, WOJNAROSKI,
           YOUNGBLOOD AND KULA, JANUARY 23, 2008

        REFERRED TO COMMITTEE ON FINANCE, JANUARY 23, 2008

                                     AN ACT

     1  Amending Titles 24 (Education) and 71 (State Government) of the
     2     Pennsylvania Consolidated Statutes, providing for
     3     supplemental annuities commencing 2008.

     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.  Supplemental annuities commencing 2008.
     9     (a)  Benefits.--Commencing with the first monthly annuity
    10  payment after July 1, 2008, and annually thereafter, any
    11  eligible benefit recipient shall be entitled to receive further
    12  additional monthly supplemental annuities from the system. These
    13  shall be in addition to the supplemental annuities provided for
    14  in sections 8348 (relating to supplemental annuities), 8348.1


     1  (relating to additional supplemental annuities), 8348.2
     2  (relating to further additional supplemental annuities), 8348.3
     3  (relating to supplemental annuities commencing 1994), 8348.5
     4  (relating to supplemental annuities commencing 1998), 8348.6
     5  (relating to supplemental annuities commencing 2002) and 8348.7
     6  (relating to supplemental annuities commencing 2003).
     7     (b)  Amounts of supplemental annuities.--Beginning July 1,
     8  2008, and annually thereafter, the amounts of the supplemental
     9  annuities payable pursuant to this section shall be calculated
    10  by applying one-half the percentage change in the Consumer Price
    11  Index for All Urban Consumers (CPI-U) for the Pennsylvania, New
    12  Jersey, Delaware and Maryland area, for the most recent 12-month
    13  period for which figures have been officially reported by the
    14  United States Department of Labor, Bureau of Labor Statistics,
    15  immediately prior to the date the adjustment is due to take
    16  effect, to the then-current annuity amount.
    17     (c)  Payment.--The additional monthly supplemental annuities
    18  provided under this section shall be paid automatically unless
    19  the intended recipient files a written notice with the system
    20  requesting that the additional monthly supplemental annuities
    21  not be paid.
    22     (d)  Conditions.--The additional supplemental annuities
    23  provided under this section shall be payable under the same
    24  terms and conditions as provided under the option plan in effect
    25  July 1, 2008.
    26     (e)  Benefits paid to beneficiaries or survivors.--No
    27  supplemental annuity effective after the death of the member
    28  shall be payable to the beneficiary or survivor annuitant of the
    29  deceased member.
    30     (f)  Funding.--The additional liability for the increase in
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     1  benefits provided by this section shall be funded in equal
     2  dollar annual installments over a period of 20 years beginning
     3  July 1, 2009.
     4     (g)  Definition.--As used in this section, the term "eligible
     5  benefit recipient" means a person who is receiving a
     6  superannuation, withdrawal or disability annuity and who
     7  commenced receipt of that annuity on or prior to July 1, 2008.
     8     Section 2.  Title 71 is amended by adding a section to read:
     9  § 5708.9.  Supplemental annuities commencing 2008.
    10     (a)  Benefits.--Commencing with the first monthly annuity
    11  payment after July 1, 2008, and annually thereafter, any
    12  eligible benefit recipient shall be entitled to receive further
    13  additional monthly supplemental annuities from the system. These
    14  shall be in addition to the supplemental annuities provided for
    15  in sections 5708 (relating to supplemental annuities), 5708.1
    16  (relating to additional supplemental annuities), 5708.2
    17  (relating to further additional supplemental annuities), 5708.3
    18  (relating to supplemental annuities commencing 1994), 5708.5
    19  (relating to supplemental annuities commencing 1998), 5708.6
    20  (relating to supplemental annuities commencing 2002), and 5708.7
    21  (relating to supplemental annuities commencing 2003).
    22     (b)  Amounts of supplemental annuities.--Beginning July 1,
    23  2008, and annually thereafter, the amounts of the supplemental
    24  annuities payable pursuant to this section shall be calculated
    25  by applying one-half the percentage change in the Consumer Price
    26  Index for All Urban Consumers (CPI-U) for the Pennsylvania, New
    27  Jersey, Delaware and Maryland area, for the most recent 12-month
    28  period for which figures have been officially reported by the
    29  United States Department of Labor, Bureau of Labor Statistics,
    30  immediately prior to the date the adjustment is due to take
    20080H2187B3125                  - 3 -     

     1  effect, to the then-current annuity amount.
     2     (c)  Payment.--The additional monthly supplemental annuities
     3  provided under this section shall be paid automatically unless
     4  the intended recipient files a written notice with the system
     5  requesting that the additional monthly supplemental annuities
     6  not be paid.
     7     (d)  Conditions.--The additional supplemental annuities
     8  provided under this section shall be payable under the same
     9  terms and conditions as provided under the option plan in effect
    10  July 1, 2008.
    11     (e)  Benefits paid to beneficiaries or survivors.--No
    12  supplemental annuity effective after the death of the member
    13  shall be payable to the beneficiary or survivor annuitant of the
    14  deceased member.
    15     (f)  Funding.--The additional liability for the increase in
    16  benefits provided by this section shall be funded in equal
    17  dollar annual installments over a period of 20 years beginning
    18  July 1, 2009.
    19     (g)  Definition.--As used in this section, the term "eligible
    20  benefit recipient" means a person who is receiving a
    21  superannuation, withdrawal or disability annuity and who
    22  commenced receipt of that annuity on or prior to July 1, 2008.
    23     Section 3.  This act shall take effect immediately.





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