THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY STACK, FONTANA, SOLOBAY, ERICKSON, RAFFERTY, LEACH, KASUNIC AND FARNESE, MARCH 7, 2011

REFERRED TO FINANCE, MARCH 7, 2011  

AN ACT

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

Pennsylvania Consolidated Statutes, providing for

supplemental annuities 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 annuities commencing 2012.

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

payment after July 1, 2012, and annually thereafter, any

eligible benefit recipient shall be entitled to receive further

additional monthly supplemental annuities from the system. These

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)  Amounts of supplemental annuities.--Beginning July 1,

2012, and annually thereafter, the amounts of the supplemental

annuities payable under this section shall be calculated by

applying the percentage change in the Consumer Price Index for

All Urban Consumers (CPI-U) for the Pennsylvania, New Jersey,

Delaware and Maryland area, for the most recent 12-month period

for which figures have been officially reported by the United

States Department of Labor, Bureau of Labor Statistics,

immediately prior to the date the adjustment is due to take

effect, to the then-current annuity amount.

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

section shall be paid automatically 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 for 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 by this section shall be funded in equal

dollar annual installments over a period of ten years beginning

July 1, 2013.

(g)  Definition.--As used in this section, the term "eligible

benefit recipient" means a person who is receiving a

superannuation, withdrawal or disability annuity on July 2,

2012.

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

§ 5708.9.  Supplemental annuities commencing 2012.

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

payment after July 1, 2012, and annually thereafter, any

eligible benefit recipient shall be entitled to receive a

supplemental monthly annuity from the system. 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), 5708.5 (relating to

supplemental annuities commencing 1998), 5708.6 (relating to

supplemental annuities commencing 2002), 5708.7 (relating to

supplemental annuities commencing 2003) and the special

supplemental postretirement adjustment provided for in sections

5708.4 (relating to special supplemental postretirement

adjustment) and 5708.8 (relating to special supplemental

postretirement adjustment of 2002).

(b)  Amounts of supplemental annuities.--Beginning July 1,

2012, and annually thereafter, the amounts of the supplemental

annuities payable under this section shall be calculated by

applying the percentage change in the Consumer Price Index for

All Urban Consumers (CPI-U) for the Pennsylvania, New Jersey,

Delaware and Maryland area, for the most recent 12-month period

for which figures have been officially reported by the United

States Department of Labor, Bureau of Labor Statistics,

immediately prior to the date the adjustment is due to take

effect, to the then-current annuity amount.

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

section shall be paid automatically 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 for 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 for 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 by this section shall be funded in equal

dollar annual installments over a period of ten years beginning

July 1, 2013.

(g)  Definition.--As used in this section, the term "eligible

benefit recipient" means a person who is receiving a

superannuation, withdrawal or disability annuity on July 2,

2012.

Section 3.  This act shall take effect immediately.