PRINTER'S NO. 1662
No. 1221 Session of 2007
INTRODUCED BY STACK, MELLOW, PUNT, KASUNIC, COSTA, LOGAN, WASHINGTON, FONTANA, O'PAKE, RAFFERTY, RHOADES, BOSCOLA AND WOZNIAK, DECEMBER 21, 2007
REFERRED TO FINANCE, DECEMBER 21, 2007
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 15 (relating to additional supplemental annuities), 8348.2 16 (relating to further additional supplemental annuities), 8348.3 17 (relating to supplemental annuities commencing 1994), 8348.4 18 (relating to special supplemental postretirement adjustment),
1 8348.5 (relating to supplemental annuities commencing 1998), 2 8348.6 (relating to supplemental annuities commencing 2002) and 3 8348.7 (relating to supplemental annuities commencing 2003). 4 (b) Amounts of supplemental annuities.--Beginning July 1, 5 2008, and annually thereafter, the amounts of the supplemental 6 annuities payable pursuant to this section shall be calculated 7 by applying the percentage change in the Consumer Price Index 8 for All Urban Consumers (CPI-U) for the Pennsylvania, New 9 Jersey, Delaware and Maryland area, for the most recent 12-month 10 period for which figures have been officially reported by the 11 United States Department of Labor, Bureau of Labor Statistics, 12 immediately prior to the date the adjustment is due to take 13 effect, to the then-current annuity amount. 14 (c) Payment.--The supplemental annuity provided under this 15 section shall be paid automatically unless the annuitant files a 16 written notice with the board requesting that the additional 17 monthly supplemental annuity not be paid. 18 (d) Conditions.--The supplemental annuity provided for under 19 this section shall be payable under the same terms and 20 conditions as provided under the option plan in effect as of 21 July 1, 2008. 22 (e) Benefits to beneficiaries or survivors.--No supplemental 23 annuity provided under this section shall be payable to the 24 beneficiary or survivor annuitant of a member who dies before 25 July 1, 2008. 26 (f) Funding.--The additional liability for the increase in 27 benefits provided by this section shall be funded in equal 28 dollar annual installments over a period of ten years beginning 29 July 1, 2009. 30 (g) Definition.--As used in this section, the term "eligible 20070S1221B1662 - 2 -
1 benefit recipient" means a person who is receiving a 2 superannuation, withdrawal or disability annuity on July 2, 3 2008. 4 Section 2. Title 71 is amended by adding a section to read: 5 § 5708.9. Supplemental annuities commencing 2008. 6 (a) Benefits.--Commencing with the first monthly annuity 7 payment after July 1, 2008, and annually thereafter, any 8 eligible benefit recipient shall be entitled to receive a 9 supplemental monthly annuity from the system. This shall be in 10 addition to the supplemental annuities provided for in sections 11 5708 (relating to supplemental annuities), 5708.1 (relating to 12 additional supplemental annuities), 5708.2 (relating to further 13 additional supplemental annuities), 5708.3 (relating to 14 supplemental annuities commencing 1994), 5708.5 (relating to 15 supplemental annuities commencing 1998), 5708.6 (relating to 16 supplemental annuities commencing 2002), 5708.7 (relating to 17 supplemental annuities commencing 2003), and the special 18 supplemental postretirement adjustment provided for in sections 19 5708.4 (relating to special supplemental postretirement 20 adjustment) and 5708.8 (relating to special supplemental 21 postretirement adjustment of 2002). 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 the percentage change in the Consumer Price Index 26 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 20070S1221B1662 - 3 -
1 effect, to the then-current annuity amount. 2 (c) Payment.--The supplemental annuity provided under this 3 section shall be paid automatically unless the annuitant files a 4 written notice with the board requesting that the additional 5 monthly supplemental annuity not be paid. 6 (d) Conditions.--The supplemental annuity provided for under 7 this section shall be payable under the same terms and 8 conditions as provided under the option plan in effect as of 9 July 1, 2008. 10 (e) Benefits to beneficiaries or survivors.--No supplemental 11 annuity provided for under this section shall be payable to the 12 beneficiary or survivor annuitant of a member who dies before 13 July 1, 2008. 14 (f) Funding.--The additional liability for the increase in 15 benefits provided by this section shall be funded in equal 16 dollar annual installments over a period of ten years beginning 17 July 1, 2009. 18 (g) Definition.--As used in this section, the term "eligible 19 benefit recipient" means a person who is receiving a 20 superannuation, withdrawal or disability annuity on July 2, 21 2008. 22 Section 3. This act shall take effect immediately. K27L24DMS/20070S1221B1662 - 4 -