1Amending Titles 24 (Education) and 71 (State Government) of the
2Pennsylvania Consolidated Statutes, providing for
3supplemental annuity commencing 2013.

4The General Assembly of the Commonwealth of Pennsylvania
5hereby enacts as follows:

6Section 1. Title 24 of the Pennsylvania Consolidated
7Statutes is amended by adding a section to read:

8§ 8348.8. Supplemental annuity commencing 2013.

9(a) Benefits.--Commencing with the first monthly annuity
10payment after July 1, 2013, any eligible benefit recipient shall
11be entitled to receive an additional monthly supplemental
12annuity from the system that shall be paid over a five-year
13period in accordance with this section. This shall be in
14addition to the supplemental annuities provided for in sections
158348 (relating to supplemental annuities), 8348.1 (relating to
16additional supplemental annuities), 8348.2 (relating to further
17additional supplemental annuities), 8348.3 (relating to
18supplemental annuities commencing 1994), 8348.4 (relating to

1special supplemental postretirement adjustment), 8348.5
2(relating to supplemental annuities commencing 1998), 8348.6
3(relating to supplemental annuities commencing 2002) and 8348.7
4(relating to supplemental annuities commencing 2003).

5(b) Amount of additional supplemental annuity.--The amount
6of the supplemental annuity payable from July 1, 2013, through
7June 30, 2014, pursuant to this section shall be a percentage of
8the amount of the monthly annuity payment on July 1, 2013,
9determined on the basis of the most recent effective date of
10retirement as follows:

11Most recent effective 12date of retirement	Percentage factor
13July 2, 2000, through July 1, 2001	20.0%
14July 2, 1999, through July 1, 2000	24.0%
15July 2, 1998, through July 1, 1999	28.0%
16July 2, 1997, through July 1, 1998	32.0%
17July 2, 1996, through July 1, 1997	36.0%
18July 2, 1995, through July 1, 1996	40.0%
19July 2, 1994, through July 1, 1995	44.0%
20July 2, 1993, through July 1, 1994	48.0%
21July 2, 1992, through July 1, 1993	52.0%
22July 2, 1991, through July 1, 1992	56.0%
23July 2, 1990, through July 1, 1991	60.0%
24July 2, 1989, through July 1, 1990	64.0%
25July 2, 1988, through July 1, 1989	68.0%
26July 2, 1987, through July 1, 1988	72.0%
27July 2, 1986, through July 1, 1987	76.0%
28July 2, 1985, through July 1, 1986	80.0%
29July 2, 1984, through July 1, 1985	84.0%
30July 2, 1983, through July 1, 1984	88.0%
20130HB1645PN2268 -2-
1July 2, 1982, through July 1, 1983	92.0%
2July 2, 1981, through July 1, 1982	96.0%
3Prior to July 2, 1981	100.0%

4(c) Payment.--The supplemental annuity provided under this
5section shall be paid automatically over a five-year period at
620% of the supplemental annuity amount each year unless the
7annuitant files a written notice with the board requesting that
8the additional monthly supplemental annuity not be paid.

9(d) Conditions.--The supplemental annuity provided under
10this section shall be payable under the same terms and
11conditions as provided under the option plan in effect as of
12July 1, 2013.

13(e) Benefits to beneficiaries or survivors.--No supplemental
14annuity provided under this section shall be payable to the
15beneficiary or survivor annuitant of a member who dies before
16July 1, 2013.

17(f) Funding.--The additional liability for the increase in
18benefits provided in this section shall be funded in equal
19dollar annual installments over a period of ten years beginning
20July 1, 2013.

21(g) Eligible benefit recipient.--As used in this section,
22the term "eligible benefit recipient" means a person:

23(1) who is receiving a superannuation, withdrawal or
24disability annuity on July 1, 2013;

25(2) whose most recent effective date of retirement is
26prior to July 1, 2001; and

27(3) whose credited service does not include any service
28credited as either Class T-D, Class D-4 or Class AA service.

29Notwithstanding the above, the supplemental annuities provided
30under this section shall not be payable to an annuitant

1receiving a withdrawal annuity prior to the first day of July
2coincident with or following the annuitant's attainment of
3superannuation age.

4Section 2. Title 71 is amended by adding a section to read:

5§ 5708.9. Supplemental annuity commencing 2013.

6(a) Benefits.--Commencing with the first monthly annuity
7payment after July 1, 2013, any eligible benefit recipient shall
8be entitled to receive an additional monthly supplemental
9annuity from the system that shall be paid over a five-year
10period in accordance with this section. This shall be in
11addition to the supplemental annuities provided for in sections
125708 (relating to supplemental annuities), 5708.1 (relating to
13additional supplemental annuities), 5708.2 (relating to further
14additional supplemental annuities), 5708.3 (relating to
15supplemental annuities commencing 1994), 5708.4 (relating to
16special supplemental postretirement adjustment), 5708.5
17(relating to supplemental annuities commencing 1998), 5708.6
18(relating to supplemental annuities commencing 2002) and 5708.7
19(relating to supplemental annuities commencing 2003).

20(b) Amount of additional supplemental annuity.--The amount
21of the supplemental annuity payable from July 1, 2013, through
22June 30, 2014, pursuant to this section shall be a percentage of
23the amount of the monthly annuity payment on July 1, 2013,
24determined on the basis of the most recent effective date of
25retirement as follows:

26

27Most recent effective 28date of retirement	Percentage factor
29July 2, 2000, through July 1, 2001	20.0%
30July 2, 1999, through July 1, 2000	24.0%
20130HB1645PN2268 -4-
1July 2, 1998, through July 1, 1999	28.0%
2July 2, 1997, through July 1, 1998	32.0%
3July 2, 1996, through July 1, 1997	36.0%
4July 2, 1995, through July 1, 1996	40.0%
5July 2, 1994, through July 1, 1995	44.0%
6July 2, 1993, through July 1, 1994	48.0%
7July 2, 1992, through July 1, 1993	52.0%
8July 2, 1991, through July 1, 1992	56.0%
9July 2, 1990, through July 1, 1991	60.0%
10July 2, 1989, through July 1, 1990	64.0%
11July 2, 1988, through July 1, 1989	68.0%
12July 2, 1987, through July 1, 1988	72.0%
13July 2, 1986, through July 1, 1987	76.0%
14July 2, 1985, through July 1, 1986	80.0%
15July 2, 1984, through July 1, 1985	84.0%
16July 2, 1983, through July 1, 1984	88.0%
17July 2, 1982, through July 1, 1983	92.0%
18July 2, 1981, through July 1, 1982	96.0%
19Prior to July 2, 1981	100.0%

20(c) Payment.--The supplemental annuity provided under this
21section shall be paid automatically over a five-year period at
2220% of the supplemental annuity amount each year unless the
23annuitant files a written notice with the board requesting that
24the additional monthly supplemental annuity not be paid.

25(d) Conditions.--The supplemental annuity provided under
26this section shall be payable under the same terms and
27conditions as provided under the option plan in effect as of
28July 1, 2013.

29(e) Benefits to beneficiaries or survivors.--No supplemental
30annuity provided under this section shall be payable to the

1beneficiary or survivor annuitant of a member who dies before
2July 1, 2013.

3(f) Funding.--The additional liability for the increase in
4benefits provided in this section shall be funded in equal
5dollar annual installments over a period of ten years beginning
6July 1, 2013.

7(g) Eligible benefit recipient.--As used in this section, 
8the term "eligible benefit recipient" means a person:

9(1) who is receiving a superannuation, withdrawal or
10disability annuity on July 1, 2013;

11(2) whose most recent effective date of retirement is
12prior to July 1, 2001; and

13(3) whose credited service does not include any service
14credited as either Class T-D, Class D-4 or Class AA service.

15Notwithstanding the above, the supplemental annuities provided
16under this section shall not be payable to an annuitant
17receiving a withdrawal annuity prior to the first day of July
18coincident with or following the annuitant's attainment of
19superannuation age.

20Section 3. This act shall take effect immediately.