THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY GIBBONS, BROOKS, CALTAGIRONE, DALEY, FLECK, GEORGE, GOODMAN, JOSEPHS, JAMES, KOTIK, MURT, M. O'BRIEN, PETRARCA, NEILSON, REED AND SAINATO, OCTOBER 17, 2012

REFERRED TO COMMITTEE ON STATE GOVERNMENT, OCTOBER 17, 2012  

AN ACT

Amending Titles 24 (Education) and 71 (State Government) of the

Pennsylvania Consolidated Statutes, providing for

supplemental annuity commencing 2012.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Title 24 of the Pennsylvania Consolidated

Statutes is amended by adding a section to read:

§ 8348.8.  Supplemental annuity commencing 2012.

(a)  Benefits.--Commencing with the first monthly annuity

payment after July 1, 2012, any eligible benefit recipient shall

be entitled to receive an additional monthly supplemental

annuity from the system that shall be paid over a five-year

period in accordance with this section. This shall be in

addition to the supplemental annuities provided for in sections

8348 (relating to supplemental annuities), 8348.1 (relating to

additional supplemental annuities), 8348.2 (relating to further

additional supplemental annuities), 8348.3 (relating to

supplemental annuities commencing 1994), 8348.4 (relating to

special supplemental postretirement adjustment), 8348.5

(relating to supplemental annuities commencing 1998), 8348.6

(relating to supplemental annuities commencing 2002) and 8348.7

(relating to supplemental annuities commencing 2003).

(b)  Amount of additional supplemental annuity.--The amount

of the supplemental annuity payable from July 1, 2012, through

June 30, 2013, pursuant to this section shall be a percentage of

the amount of the monthly annuity payment on July 1, 2012,

determined on the basis of the most recent effective date of

retirement as follows:

         Most recent effective              Percentage factor

           date of retirement

    July 2, 2000, through July 1, 2001           20.0%

    July 2, 1999, through July 1, 2000           24.0%

    July 2, 1998, through July 1, 1999           28.0%

    July 2, 1997, through July 1, 1998           32.0%

    July 2, 1996, through July 1, 1997           36.0%

    July 2, 1995, through July 1, 1996           40.0%

    July 2, 1994, through July 1, 1995           44.0%

    July 2, 1993, through July 1, 1994           48.0%

    July 2, 1992, through July 1, 1993           52.0%

    July 2, 1991, through July 1, 1992           56.0%

    July 2, 1990, through July 1, 1991           60.0%

    July 2, 1989, through July 1, 1990           64.0%

    July 2, 1988, through July 1, 1989           68.0%

    July 2, 1987, through July 1, 1988           72.0%

    July 2, 1986, through July 1, 1987           76.0%

    July 2, 1985, through July 1, 1986           80.0%

    July 2, 1984, through July 1, 1985           84.0%

    July 2, 1983, through July 1, 1984           88.0%

    July 2, 1982, through July 1, 1983           92.0%

    July 2, 1981, through July 1, 1982           96.0%

    Prior to July 2, 1981                       100.0%

(c)  Payment.--The supplemental annuity provided under this

section shall be paid automatically over a five-year period at

20% of the supplemental annuity amount each year unless the

annuitant files a written notice with the board requesting that

the additional monthly supplemental annuity not be paid.

(d)  Conditions.--The supplemental annuity provided under

this section shall be payable under the same terms and

conditions as provided under the option plan in effect as of

July 1, 2012.

(e)  Benefits to beneficiaries or survivors.--No supplemental

annuity provided under this section shall be payable to the

beneficiary or survivor annuitant of a member who dies before

July 1, 2012.

(f)  Funding.--The additional liability for the increase in

benefits provided in this section shall be funded in equal

dollar annual installments over a period of ten years beginning

July 1, 2012.

(g)  Eligible benefit recipient.--As used in this section,

the term "eligible benefit recipient" means a person:

(1)  who is receiving a superannuation, withdrawal or

disability annuity on July 1, 2012;

(2)  whose most recent effective date of retirement is

prior to July 1, 2001; and

(3)  whose credited service does not include any service

credited as either Class T-D, Class D-4 or Class AA service.

Notwithstanding the above, the supplemental annuities provided

under this section shall not be payable to an annuitant

receiving a withdrawal annuity prior to the first day of July

coincident with or following the annuitant's attainment of

superannuation age.

Section 2.  Title 71 is amended by adding a section to read:

§ 5708.9.  Supplemental annuity commencing 2012.

(a)  Benefits.--Commencing with the first monthly annuity

payment after July 1, 2012, any eligible benefit recipient shall

be entitled to receive an additional monthly supplemental

annuity from the system that shall be paid over a five-year

period in accordance with this section. This shall be in

addition to the supplemental annuities provided for in sections

5708 (relating to supplemental annuities), 5708.1 (relating to

additional supplemental annuities), 5708.2 (relating to further

additional supplemental annuities), 5708.3 (relating to

supplemental annuities commencing 1994), 5708.4 (relating to

special supplemental postretirement adjustment), 5708.5

(relating to supplemental annuities commencing 1998), 5708.6

(relating to supplemental annuities commencing 2002) and 5708.7

(relating to supplemental annuities commencing 2003).

(b)  Amount of additional supplemental annuity.--The amount

of the supplemental annuity payable from July 1, 2012, through

June 30, 2013, pursuant to this section shall be a percentage of

the amount of the monthly annuity payment on July 1, 2012,

determined on the basis of the most recent effective date of

retirement as follows:

         Most recent effective              Percentage factor

           date of retirement

    July 2, 2000, through July 1, 2001           20.0%

    July 2, 1999, through July 1, 2000           24.0%

    July 2, 1998, through July 1, 1999           28.0%

    July 2, 1997, through July 1, 1998           32.0%

    July 2, 1996, through July 1, 1997           36.0%

    July 2, 1995, through July 1, 1996           40.0%

    July 2, 1994, through July 1, 1995           44.0%

    July 2, 1993, through July 1, 1994           48.0%

    July 2, 1992, through July 1, 1993           52.0%

    July 2, 1991, through July 1, 1992           56.0%

    July 2, 1990, through July 1, 1991           60.0%

    July 2, 1989, through July 1, 1990           64.0%

    July 2, 1988, through July 1, 1989           68.0%

    July 2, 1987, through July 1, 1988           72.0%

    July 2, 1986, through July 1, 1987           76.0%

    July 2, 1985, through July 1, 1986           80.0%

    July 2, 1984, through July 1, 1985           84.0%

    July 2, 1983, through July 1, 1984           88.0%

    July 2, 1982, through July 1, 1983           92.0%

    July 2, 1981, through July 1, 1982           96.0%

    Prior to July 2, 1981                       100.0%

(c)  Payment.--The supplemental annuity provided under this

section shall be paid automatically over a five-year period at

20% of the supplemental annuity amount each year unless the

annuitant files a written notice with the board requesting that

the additional monthly supplemental annuity not be paid.

(d)  Conditions.--The supplemental annuity provided under

this section shall be payable under the same terms and

conditions as provided under the option plan in effect as of

July 1, 2012.

(e)  Benefits to beneficiaries or survivors.--No supplemental

annuity provided under this section shall be payable to the

beneficiary or survivor annuitant of a member who dies before

July 1, 2012.

(f)  Funding.--The additional liability for the increase in

benefits provided in this section shall be funded in equal

dollar annual installments over a period of ten years beginning

July 1, 2012.

(g)  Eligible benefit recipient.--As used in this section,

the term "eligible benefit recipient" means a person:

(1)  who is receiving a superannuation, withdrawal or

disability annuity on July 1, 2012;

(2)  whose most recent effective date of retirement is

prior to July 1, 2001; and

(3)  whose credited service does not include any service

credited as either Class T-D, Class D-4 or Class AA service.

Notwithstanding the above, the supplemental annuities provided

under this section shall not be payable to an annuitant

receiving a withdrawal annuity prior to the first day of July

coincident with or following the annuitant's attainment of

superannuation age.

Section 3.  This act shall take effect immediately.