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                                                      PRINTER'S NO. 1662

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

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.






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