Regular Session 2023-2024 House Bill 1379 P.N. 3733

PRIOR PRINTER'S NO. 1539

PRINTER'S NO. 3733

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1379

Session of

2023

INTRODUCED BY MALAGARI, MADDEN, KULIK, VENKAT, SOLOMON, WEBSTER,

HILL-EVANS, DELLOSO, McNEILL, GUENST, KAZEEM, SANCHEZ, KHAN,

DEASY, GALLOWAY, MARSHALL, WARREN, HARKINS, STEELE, RIGBY,

PISCIOTTANO, M. MACKENZIE, R. MACKENZIE, EMRICK, D. WILLIAMS,

MATZIE, CERRATO, SHUSTERMAN, GALLAGHER, O'MARA, MIHALEK,

CONKLIN, CIRESI, MULLINS, GREEN, OTTEN, JOZWIAK, DALEY,

BOROWSKI, PASHINSKI, BOYD, SCOTT, GIRAL, HANBIDGE AND MADSEN,

JUNE 12, 2023

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,

OCTOBER 7, 2024

AN ACT

Amending the act of December 14, 1988 (P.L.1192, No.147),

entitled "An act requiring municipal retirement systems to

pay special ad hoc postretirement adjustments to certain

retired police officers and firefighters; providing for the

financing of these adjustments; providing for the

administration of the Commonwealth's reimbursements for these

adjustments; and making repeals," providing for 2024 special

ad hoc municipal police and firefighter postretirement

adjustment; in financing of special ad hoc adjustment,

further providing for reimbursement by Commonwealth for 2002

special ad hoc adjustment; and, in administrative provisions,

further providing for municipal retirement system

certification of adjustments paid and of reimbursable amounts

and for municipal receipt of reimbursement payment.

AMENDING TITLES 24 (EDUCATION), 53 (MUNICIPALITIES GENERALLY)

AND 71 (STATE GOVERNMENT) OF THE PENNSYLVANIA CONSOLIDATED

STATUTES, IN MEMBERSHIP, CONTRIBUTIONS AND BENEFITS,

PROVIDING FOR SUPPLEMENTAL ANNUITY COMMENCING 2025; IN

MUNICIPAL PENSIONS, PROVIDING FOR 2025 SPECIAL AD HOC

MUNICIPAL POLICE AND FIREFIGHTER POSTRETIREMENT ADJUSTMENT;

AND, IN BENEFITS, PROVIDING FOR SUPPLEMENTAL ANNUITY

COMMENCING 2025.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

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Section 1. The act of December 14, 1988 (P.L.1192, No.147),

known as the Special Ad Hoc Municipal Police and Firefighter

Postretirement Adjustment Act, is amended by adding a chapter to

read:

CHAPTER 4A

2024 SPECIAL AD HOC MUNICIPAL POLICE

AND FIREFIGHTER POSTRETIREMENT ADJUSTMENT

Section 4A01. Entitlement to 2024 special ad hoc postretirement

adjustment.

A municipal retirement system shall pay a retired police

officer or firefighter a special ad hoc postretirement

adjustment under this chapter if all of the following apply:

(1) The retiree has terminated active employment with

the municipality as a police officer or firefighter.

(2) The retiree is receiving a retirement benefit from a

municipal retirement system on the basis of active employment

with the municipality as a police officer or firefighter.

(3) The retiree began receiving the retirement benefit

before January 1, 2019.

Section 4A02. Amount of 2024 special ad hoc postretirement

adjustment.

(a) General rule.--Except as provided in subsections (b) and

(c), a municipal retirement system shall pay a retired police

officer or firefighter a monthly special ad hoc postretirement

adjustment under section 4A01 as follows:

(1) The sum of $75 per month if, on January 1, 2024, the

retiree has been retired for at least five years but less

than 10 years.

(2) The sum of $150 per month if, on January 1, 2024,

the retiree has been retired for least 10 years but less than

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20 years.

(3) The sum of $300 per month if, on January 1, 2024,

the retiree has been retired for at least 20 years.

(b) Limitation.--If, under section 4A01, a retiree is

entitled to be paid a special ad hoc postretirement adjustment

by more than one municipal retirement system, the amount of the

special ad hoc postretirement adjustment under subsection (a)

shall be reduced so that the total of all these adjustments paid

to the retiree does not exceed the amount specified in

subsection (a).

postretirement adjustment.--The amount of the special ad hoc

postretirement adjustment calculated under subsection (a) shall

be reduced annually by 65% of the total amount of any

postretirement adjustments provided to the retiree under the

municipal retirement plan after January 1, 2002, and before

December 31, 2023, and paid in the immediately preceding year.

Section 2. Sections 502.1 and 901(a)(2) of the act are

amended to read:

Section 502.1. Reimbursement by Commonwealth for 2002 and 2024

special ad hoc [adjustment] adjustments.

(a) General rule.--

(1) Except as provided in subsection (b), beginning in

the year following the year in which the amortization

contribution requirement attributable to a special ad hoc

postretirement [adjustment] adjustments under [Chapter 4 is]

Chapters 4 and 4A are first reflected in the financial

requirements of the retirement system determined under

Chapter 3 of the act of December 18, 1984 (P.L.1005, No.205),

known as the Municipal Pension Plan Funding Standard and

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Recovery Act, the Auditor General shall determine the

Commonwealth reimbursement payable to the municipality

representing the amortization contribution requirement

attributable to the special ad hoc postretirement

[adjustment] adjustments under [Chapter 4] Chapters 4 and 4A

that was paid with revenues of the municipality other than

general municipal pension system State aid provided under the

Municipal Pension Plan Funding Standard and Recovery Act.

(2) The determination of the reimbursable amount of the

amortization contribution requirement attributable to the

special ad hoc postretirement [adjustment] adjustments under

[Chapter 4] Chapters 4 and 4A in any year shall be calculated

as the amortization contribution requirement attributable to

the special ad hoc postretirement adjustments under [Chapter

4] Chapters 4 and 4A and reflected in the determination of

the financial requirements of the pension plan under Chapter

3 of the Municipal Pension Plan Funding Standard and Recovery

Act for the immediate prior year less the product of that

amortization contribution requirement multiplied by the ratio

of the amount of general municipal pension system State aid

allocated to the retirement system in the immediate prior

year to the total amount of municipal contributions made to

the retirement system from all sources other than employee

contributions in the immediate prior year. Where a

municipality has issued bonds or notes to fund an unfunded

actuarial accrued liability under 53 Pa.C.S. Pt. [V] VII

Subpt. B (relating to indebtedness and borrowing) or under

other laws applicable to the municipality, the general

municipal pension system State aid and municipal

contributions used by the municipality to make debt service

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payments on the bonds or notes, or both, issued to fund an

unfunded actuarial accrued liability shall be included in the

calculation of the ratio applied to the amortization

contribution requirement.

(3) The Commonwealth shall reimburse a municipality,

from the special account established under section 701, for

the reimbursable amount determined for each year under this

paragraph.

(b) Limitation of eligibility.--

(1) The Commonwealth shall not reimburse any

municipality for a special ad hoc [adjustment] adjustments

paid under [Chapter 4] Chapters 4 and 4A if the information

required under section 901(a)(2) either was not certified to

the Auditor General or was certified after April 1 of the

year the certification was due.

(2) The Commonwealth shall not reimburse a municipality

for the reimbursable amount of the amortization contribution

requirement attributable to the special ad hoc postretirement

[adjustment] adjustments under [Chapter 4] Chapters 4 and 4A

if the municipality fails to submit a complete certification

of the reimbursable amount of the amortization contribution

requirement determined under subsection (a) to the Auditor

General before April 1 of the year in which the reimbursement

is payable.

requirement.--For purposes of this section, the term

"amortization contribution requirement" shall have the meaning

specified in this subsection as follows:

(1) In a municipal pension plan with defined benefits

for which the municipality determines the financial

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requirements of the pension plan under section 302 of the

Municipal Pension Plan Funding Standard and Recovery Act, the

term "amortization contribution requirement" shall mean the

amortization contribution requirement attributable to the

special ad hoc postretirement adjustments under [Chapter 4]

Chapters 4 and 4A that was reflected in the financial

requirements of the pension plan determined for the immediate

prior year.

(2) In a municipal pension plan without defined benefits

for which the municipality determines the financial

requirements of the pension plan under section 303 of the

Municipal Pension Plan Funding Standard and Recovery Act, the

term "amortization contribution requirement" shall mean the

sum of the payments made to the retirement system in the

immediate prior year in order to provide the special ad hoc

postretirement adjustments under [Chapter 4] Chapters 4 and

4A in that year.

Section 901. Municipal retirement system certification of

adjustments paid and of reimbursable amounts.

(a) Certification.--

* * *

(2) Beginning in the year 2002, a municipality with a

retirement system that pays a special ad hoc postretirement

[adjustment] adjustments under [Chapter 4] Chapters 4 and 4A

in a year shall certify its reimbursable amount under section

502.1(a) to the Auditor General not later than April 1 of the

following year.

* * *

Section 3. Section 903 of the act is amended by adding a

subsection to read:

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Section 903. Municipal receipt of reimbursement payment.

* * *

receipt of the reimbursement payment from the Commonwealth for

the postretirement adjustments under Chapter 4A, the treasurer

of the municipality shall deposit the reimbursement payment into

the municipality's general fund.

Section 4. The special ad hoc postretirement adjustment

under section 4A01 of the act is effective on the date of the

first retirement benefit made after January 1, 2024. If the

special ad hoc postretirement adjustment under section 4A01 of

the act is not included in the initial retirement benefit

payment occurring after January 1, 2024, the special ad hoc

postretirement adjustment shall be included as soon as

practicable in the retirement benefit payment of the retiree,

and the initial retirement benefit payment that includes the

special ad hoc postretirement adjustment also shall include the

total amount of the special ad hoc postretirement adjustments

previously omitted from the retirement benefit payments made

after January 1, 2024.

Section 5. This act shall take effect immediately.

SECTION 1. TITLE 24 OF THE PENNSYLVANIA CONSOLIDATED

STATUTES IS AMENDED BY ADDING A SECTION TO READ:

§ 8348.8. SUPPLEMENTAL ANNUITY COMMENCING 2025.

(A) BENEFITS.--COMMENCING WITH THE FIRST MONTHLY ANNUITY

PAYMENT AFTER JULY 1, 2025, AN ELIGIBLE BENEFIT RECIPIENT SHALL

BE ENTITLED TO RECEIVE AN ADDITIONAL MONTHLY SUPPLEMENTAL

ANNUITY FROM THE SYSTEM. THE ADDITIONAL MONTHLY SUPPLEMENTAL

ANNUITY UNDER THIS SECTION SHALL BE IN ADDITION TO THE

SUPPLEMENTAL ANNUITIES PROVIDED FOR UNDER SECTIONS 8348

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(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 UNDER THIS SECTION SHALL BE

A PERCENTAGE OF THE AMOUNT OF THE MONTHLY ANNUITY PAYMENT ON

JULY 1, 2025, DETERMINED ON THE BASIS OF THE MOST RECENT

EFFECTIVE DATE OF RETIREMENT AS FOLLOWS:

MOST RECENT EFFECTIVE DATE PERCENTAGE FACTOR

OF RETIREMENT

JULY 2, 2000, THROUGH JULY 1, 2001 15%

JULY 2, 1999, THROUGH JULY 1, 2000 15.5%

JULY 2, 1998, THROUGH JULY 1, 1999 16%

JULY 2, 1997, THROUGH JULY 1, 1998 16.5%

JULY 2, 1996, THROUGH JULY 1, 1997 17%

JULY 2, 1995, THROUGH JULY 1, 1996 17.5%

JULY 2, 1994, THROUGH JULY 1, 1995 18%

JULY 2, 1993, THROUGH JULY 1, 1994 18.5%

JULY 2, 1992, THROUGH JULY 1, 1993 19%

JULY 2, 1991, THROUGH JULY 1, 1992 19.5%

JULY 2, 1990, THROUGH JULY 1, 1991 20%

JULY 2, 1989, THROUGH JULY 1, 1990 20.5%

JULY 2, 1988, THROUGH JULY 1, 1989 21%

JULY 2, 1987, THROUGH JULY 1, 1988 21.5%

JULY 2, 1986, THROUGH JULY 1, 1987 22%

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JULY 2, 1985, THROUGH JULY 1, 1986 22.5%

JULY 2, 1984, THROUGH JULY 1, 1985 23%

JULY 2, 1983, THROUGH JULY 1, 1984 23.5%

JULY 2, 1982, THROUGH JULY 1, 1983 24%

PRIOR TO JULY 2, 1982 24.5%

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 UNDER

THIS SECTION SHALL BE PAYABLE UNDER THE SAME TERMS AND

CONDITIONS AS PROVIDED UNDER THE OPTION PLAN IN EFFECT AS OF

JULY 1, 2025, AND SHALL BE SUBJECT TO ANY SUBSEQUENT

MODIFICATION OF THAT OPTION PLAN.

(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, 2025.

(F) FUNDING.--NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO

THE CONTRARY, THE ADDITIONAL LIABILITY FOR THE INCREASE IN

BENEFITS PROVIDED UNDER THIS SECTION SHALL BE FUNDED IN EQUAL

DOLLAR ANNUAL INSTALLMENTS OVER A PERIOD OF 10 YEARS BEGINNING

JULY 1, 2025.

(G) ELIGIBLE BENEFIT RECIPIENT.--

(1) AN ELIGIBLE BENEFIT RECIPIENT IS AN INDIVIDUAL:

(I) WHO IS RECEIVING A SUPERANNUATION, WITHDRAWAL OR

DISABILITY ANNUITY ON JULY 1, 2025;

(II) WHOSE MOST RECENT EFFECTIVE DATE OF RETIREMENT

IS PRIOR TO JULY 2, 2001; AND

(III) WHOSE CREDITED SERVICE DOES NOT INCLUDE ANY

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SERVICE CREDITED AS EITHER CLASS T-D, CLASS D-4 OR CLASS

AA SERVICE.

(2) A SUPPLEMENTAL ANNUITY 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. CHAPTER 91 OF TITLE 53 IS AMENDED BY ADDING A

SUBCHAPTER TO READ:

SUBCHAPTER D

2025 SPECIAL AD HOC MUNICIPAL POLICE

AND FIREFIGHTER POSTRETIREMENT ADJUSTMENT

SEC.

9131. DEFINITIONS.

9132. ENTITLEMENT TO 2025 SPECIAL AD HOC POSTRETIREMENT

ADJUSTMENT.

9133. AMOUNT OF 2025 SPECIAL AD HOC POSTRETIREMENT ADJUSTMENT.

9134. REIMBURSEMENT BY COMMONWEALTH FOR 2025 SPECIAL AD HOC

ADJUSTMENT.

9135. MUNICIPAL RETIREMENT SYSTEM CERTIFICATION OF ADJUSTMENTS

PAID AND OF REIMBURSABLE AMOUNTS.

9136. MUNICIPAL RECEIPT OF REIMBURSEMENT PAYMENT.

§ 9131. DEFINITIONS.

THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS SUBCHAPTER

SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE

CONTEXT CLEARLY INDICATES OTHERWISE:

"A CT 147. " THE ACT OF DECEMBER 14, 1988 (P.L.1192, NO.147),

KNOWN AS THE SPECIAL AD HOC MUNICIPAL POLICE AND FIREFIGHTER

POSTRETIREMENT ADJUSTMENT ACT .

"ACTIVE EMPLOYMENT." THE SITUATION OF AN INDIVIDUAL, OTHER

THAN AN INDEPENDENT CONTRACTOR, WHO PERFORMS FOR COMPENSATION

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REGULAR SERVICES FOR A MUNICIPALITY AND WHO IS REGULARLY ENTERED

ON THE PAYROLL OF THE MUNICIPALITY.

"FIREFIGHTER." A MUNICIPAL EMPLOYEE WHO HOLDS A FULL-TIME

POSITION IN THE FIREFIGHTING SERVICE OF A MUNICIPALITY AND HAS

RETIREMENT COVERAGE PROVIDED BY A RETIREMENT SYSTEM.

"MUNICIPALITY." A BOROUGH, CITY, COUNTY OF THE SECOND CLASS,

INCORPORATED TOWN OR TOWNSHIP, HOWEVER CONSTITUTED, WHETHER

OPERATING UNDER A LEGISLATIVE CHARTER; A MUNICIPAL CODE; AN

OPTIONAL CHARTER ADOPTED UNDER THE ACT OF JULY 15, 1957

(P.L.901, NO.399), KNOWN AS THE OPTIONAL THIRD CLASS CITY

CHARTER LAW; A HOME RULE CHARTER OR AN OPTIONAL PLAN ADOPTED

UNDER THE FORMER ACT OF APRIL 13, 1972 (P.L.184, NO.62), KNOWN

AS THE HOME RULE CHARTER AND OPTIONAL PLANS LAW; OR OTHER

ARRANGEMENT; OR AN ASSOCIATION OF THESE MUNICIPALITIES

COOPERATING UNDER THE FORMER ACT OF JULY 12, 1972 (P.L.762,

NO.180), REFERRED TO AS THE INTERGOVERNMENTAL COOPERATION LAW.

"POLICE OFFICER." A MUNICIPAL EMPLOYEE WHO HOLDS A FULL-TIME

POSITION IN THE POLICE SERVICE OF A MUNICIPALITY AND HAS

RETIREMENT COVERAGE PROVIDED BY A RETIREMENT SYSTEM.

"POSTRETIREMENT ADJUSTMENT." AN INCREASE IN OR CHANGE IN THE

AMOUNT OF A RETIREMENT ANNUITY, RETIREMENT BENEFIT, SERVICE

PENSION OR DISABILITY PENSION BENEFIT GRANTED OR EFFECTIVE AFTER

ACTIVE EMPLOYMENT CEASES.

"PUBLIC EMPLOYEE RETIREMENT SYSTEM." AN ENTITY, WHETHER A

SEPARATE ENTITY OR PART OF A GOVERNMENTAL ENTITY, THAT COLLECTS

RETIREMENT AND OTHER EMPLOYEE BENEFIT CONTRIBUTIONS FROM

GOVERNMENT EMPLOYEES AND EMPLOYERS; HOLDS AND MANAGES THE

RESULTING ASSETS AS RESERVES FOR PRESENT AND FUTURE RETIREMENT

ANNUITY, RETIREMENT BENEFIT, SERVICE PENSION OR DISABILITY

PENSION BENEFIT PAYMENTS; AND MAKES PROVISION FOR THESE PAYMENTS

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TO QUALIFIED RETIREES AND BENEFICIARIES.

"RETIREMENT BENEFIT." THE AMOUNT PAID ON A REGULAR BASIS TO

A RETIRED OR DISABLED POLICE OFFICER OR FIREFIGHTER BY A

MUNICIPAL RETIREMENT SYSTEM ESTABLISHED FOR POLICE OFFICERS OR

FIREFIGHTERS.

"RETIREMENT SYSTEM." A PUBLIC EMPLOYEE RETIREMENT SYSTEM.

"SPECIAL AD HOC ADJUSTMENT" OR "SPECIAL AD HOC POSTRETIREMENT

ADJUSTMENT." AN INCREASE IN THE AMOUNT OF A RETIREMENT BENEFIT

AS PROVIDED FOR UNDER ACT 147 AND THIS SUBCHAPTER.

§ 9132. ENTITLEMENT TO 2025 SPECIAL AD HOC POSTRETIREMENT

ADJUSTMENT.

A MUNICIPAL RETIREMENT SYSTEM SHALL PAY A RETIRED POLICE

OFFICER OR FIREFIGHTER A SPECIAL AD HOC POSTRETIREMENT

ADJUSTMENT UNDER THIS SUBCHAPTER IF ALL OF THE FOLLOWING APPLY:

(1) THE RETIREE HAS TERMINATED ACTIVE EMPLOYMENT WITH

THE MUNICIPALITY AS A POLICE OFFICER OR FIREFIGHTER.

(2) THE RETIREE IS RECEIVING A RETIREMENT BENEFIT FROM A

MUNICIPAL RETIREMENT SYSTEM ON THE BASIS OF ACTIVE EMPLOYMENT

WITH THE MUNICIPALITY AS A POLICE OFFICER OR FIREFIGHTER.

(3) THE RETIREE BEGAN RECEIVING THE RETIREMENT BENEFIT

BEFORE JANUARY 1, 2019.

§ 9133. AMOUNT OF 2025 SPECIAL AD HOC POSTRETIREMENT

ADJUSTMENT.

(A) GENERAL RULE.--EXCEPT AS PROVIDED IN SUBSECTIONS (B) AND

(C), A MUNICIPAL RETIREMENT SYSTEM SHALL PAY A RETIRED POLICE

OFFICER OR FIREFIGHTER A MONTHLY SPECIAL AD HOC POSTRETIREMENT

ADJUSTMENT UNDER SECTION 9132 (RELATING TO ENTITLEMENT TO 2025

SPECIAL AD HOC POSTRETIREMENT ADJUSTMENT) AS FOLLOWS:

(1) THE SUM OF $75 PER MONTH IF, ON JANUARY 1, 2025, THE

RETIREE HAS BEEN RETIRED FOR AT LEAST FIVE YEARS BUT LESS

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THAN 10 YEARS.

(2) THE SUM OF $150 PER MONTH IF, ON JANUARY 1, 2025,

THE RETIREE HAS BEEN RETIRED FOR LEAST 10 YEARS BUT LESS THAN

20 YEARS.

(3) THE SUM OF $300 PER MONTH IF, ON JANUARY 1, 2025,

THE RETIREE HAS BEEN RETIRED FOR AT LEAST 20 YEARS.

(B) LIMITATION.--IF, UNDER SECTION 9132, A RETIREE IS

ENTITLED TO BE PAID A SPECIAL AD HOC POSTRETIREMENT ADJUSTMENT

BY MORE THAN ONE MUNICIPAL RETIREMENT SYSTEM, THE AMOUNT OF THE

SPECIAL AD HOC POSTRETIREMENT ADJUSTMENT UNDER SUBSECTION (A)

SHALL BE REDUCED SO THAT THE TOTAL OF ALL THESE ADJUSTMENTS PAID

TO THE RETIREE DOES NOT EXCEED THE AMOUNT SPECIFIED IN

SUBSECTION (A).

POSTRETIREMENT ADJUSTMENT.--THE AMOUNT OF THE SPECIAL AD HOC

POSTRETIREMENT ADJUSTMENT CALCULATED UNDER SUBSECTION (A) SHALL

BE REDUCED ANNUALLY BY 65% OF THE TOTAL AMOUNT OF ANY

POSTRETIREMENT ADJUSTMENTS PROVIDED TO THE RETIREE UNDER THE

MUNICIPAL RETIREMENT PLAN AFTER JANUARY 1, 2002, AND BEFORE

DECEMBER 31, 2024, AND PAID IN THE IMMEDIATELY PRECEDING YEAR.

§ 9134. REIMBURSEMENT BY COMMONWEALTH FOR 2025 SPECIAL AD HOC

ADJUSTMENT.

(A) GENERAL RULE.--

(1) EXCEPT AS PROVIDED IN SUBSECTION (B), BEGINNING IN

THE YEAR FOLLOWING THE YEAR IN WHICH THE AMORTIZATION

CONTRIBUTION REQUIREMENT ATTRIBUTABLE TO A SPECIAL AD HOC

POSTRETIREMENT ADJUSTMENT UNDER THIS SUBCHAPTER IS FIRST

REFLECTED IN THE FINANCIAL REQUIREMENTS OF THE RETIREMENT

SYSTEM DETERMINED UNDER CHAPTER 3 OF THE ACT OF DECEMBER 18,

1984 (P.L.1005, NO.205), KNOWN AS THE MUNICIPAL PENSION PLAN

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FUNDING STANDARD AND RECOVERY ACT, THE AUDITOR GENERAL SHALL

DETERMINE THE COMMONWEALTH REIMBURSEMENT PAYABLE TO THE

MUNICIPALITY REPRESENTING THE AMORTIZATION CONTRIBUTION

REQUIREMENT ATTRIBUTABLE TO THE SPECIAL AD HOC POSTRETIREMENT

ADJUSTMENT UNDER THIS SUBCHAPTER THAT WAS PAID WITH REVENUES

OF THE MUNICIPALITY OTHER THAN GENERAL MUNICIPAL PENSION

SYSTEM STATE AID PROVIDED UNDER THE MUNICIPAL PENSION PLAN

FUNDING STANDARD AND RECOVERY ACT.

(2) THE DETERMINATION OF THE REIMBURSABLE AMOUNT OF THE

AMORTIZATION CONTRIBUTION REQUIREMENT ATTRIBUTABLE TO THE

SPECIAL AD HOC POSTRETIREMENT ADJUSTMENT UNDER THIS

SUBCHAPTER IN ANY YEAR SHALL BE CALCULATED AS THE

AMORTIZATION CONTRIBUTION REQUIREMENT ATTRIBUTABLE TO THE

SPECIAL AD HOC POSTRETIREMENT ADJUSTMENTS UNDER THIS

SUBCHAPTER AND REFLECTED IN THE DETERMINATION OF THE

FINANCIAL REQUIREMENTS OF THE PENSION PLAN UNDER CHAPTER 3 OF

THE MUNICIPAL PENSION PLAN FUNDING STANDARD AND RECOVERY ACT

FOR THE IMMEDIATE PRIOR YEAR LESS THE PRODUCT OF THAT

AMORTIZATION CONTRIBUTION REQUIREMENT MULTIPLIED BY THE RATIO

OF THE AMOUNT OF GENERAL MUNICIPAL PENSION SYSTEM STATE AID

ALLOCATED TO THE RETIREMENT SYSTEM IN THE IMMEDIATE PRIOR

YEAR TO THE TOTAL AMOUNT OF MUNICIPAL CONTRIBUTIONS MADE TO

THE RETIREMENT SYSTEM FROM ALL SOURCES OTHER THAN EMPLOYEE

CONTRIBUTIONS IN THE IMMEDIATE PRIOR YEAR. WHERE A

MUNICIPALITY HAS ISSUED BONDS OR NOTES TO FUND AN UNFUNDED

ACTUARIAL ACCRUED LIABILITY UNDER SUBPART B OF PART VII

(RELATING TO INDEBTEDNESS AND BORROWING) OR UNDER OTHER LAWS

APPLICABLE TO THE MUNICIPALITY, THE GENERAL MUNICIPAL PENSION

SYSTEM STATE AID AND MUNICIPAL CONTRIBUTIONS USED BY THE

MUNICIPALITY TO MAKE DEBT SERVICE PAYMENTS ON THE BONDS OR

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NOTES, OR BOTH, ISSUED TO FUND AN UNFUNDED ACTUARIAL ACCRUED

LIABILITY SHALL BE INCLUDED IN THE CALCULATION OF THE RATIO

APPLIED TO THE AMORTIZATION CONTRIBUTION REQUIREMENT.

(3) THE COMMONWEALTH SHALL REIMBURSE A MUNICIPALITY,

FROM THE SPECIAL ACCOUNT ESTABLISHED UNDER SECTION 701 OF ACT

147, FOR THE REIMBURSABLE AMOUNT DETERMINED FOR EACH YEAR

UNDER THIS PARAGRAPH.

(B) LIMITATION OF ELIGIBILITY.--

(1) THE COMMONWEALTH SHALL NOT REIMBURSE ANY

MUNICIPALITY FOR A SPECIAL AD HOC ADJUSTMENT PAID UNDER THIS

SUBCHAPTER IF THE INFORMATION REQUIRED UNDER SECTION 901(A)

(2) OF ACT 147 EITHER WAS NOT CERTIFIED TO THE AUDITOR

GENERAL OR WAS CERTIFIED AFTER APRIL 1 OF THE YEAR THE

CERTIFICATION WAS DUE.

(2) THE COMMONWEALTH SHALL NOT REIMBURSE A MUNICIPALITY

FOR THE REIMBURSABLE AMOUNT OF THE AMORTIZATION CONTRIBUTION

REQUIREMENT ATTRIBUTABLE TO THE SPECIAL AD HOC POSTRETIREMENT

ADJUSTMENT UNDER THIS SUBCHAPTER IF THE MUNICIPALITY FAILS TO

SUBMIT A COMPLETE CERTIFICATION OF THE REIMBURSABLE AMOUNT OF

THE AMORTIZATION CONTRIBUTION REQUIREMENT DETERMINED UNDER

SUBSECTION (A) TO THE AUDITOR GENERAL BEFORE APRIL 1 OF THE

YEAR IN WHICH THE REIMBURSEMENT IS PAYABLE.

REQUIREMENT.--FOR PURPOSES OF THIS SECTION, THE TERM

"AMORTIZATION CONTRIBUTION REQUIREMENT" SHALL HAVE THE MEANING

SPECIFIED IN THIS SUBSECTION AS FOLLOWS:

(1) IN A MUNICIPAL PENSION PLAN WITH DEFINED BENEFITS

FOR WHICH THE MUNICIPALITY DETERMINES THE FINANCIAL

REQUIREMENTS OF THE PENSION PLAN UNDER SECTION 302 OF THE

MUNICIPAL PENSION PLAN FUNDING STANDARD AND RECOVERY ACT, THE

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TERM "AMORTIZATION CONTRIBUTION REQUIREMENT" SHALL MEAN THE

AMORTIZATION CONTRIBUTION REQUIREMENT ATTRIBUTABLE TO THE

SPECIAL AD HOC POSTRETIREMENT ADJUSTMENTS UNDER THIS

SUBCHAPTER THAT WAS REFLECTED IN THE FINANCIAL REQUIREMENTS

OF THE PENSION PLAN DETERMINED FOR THE IMMEDIATE PRIOR YEAR.

(2) IN A MUNICIPAL PENSION PLAN WITHOUT DEFINED BENEFITS

FOR WHICH THE MUNICIPALITY DETERMINES THE FINANCIAL

REQUIREMENTS OF THE PENSION PLAN UNDER SECTION 303 OF THE

MUNICIPAL PENSION PLAN FUNDING STANDARD AND RECOVERY ACT, THE

TERM "AMORTIZATION CONTRIBUTION REQUIREMENT" SHALL MEAN THE

SUM OF THE PAYMENTS MADE TO THE RETIREMENT SYSTEM IN THE

IMMEDIATE PRIOR YEAR IN ORDER TO PROVIDE THE SPECIAL AD HOC

POSTRETIREMENT ADJUSTMENTS UNDER THIS SUBCHAPTER IN THAT

YEAR.

§ 9135. MUNICIPAL RETIREMENT SYSTEM CERTIFICATION OF

ADJUSTMENTS PAID AND OF REIMBURSABLE AMOUNTS.

BEGINNING IN THE YEAR 2002, A MUNICIPALITY WITH A RETIREMENT

SYSTEM THAT PAYS A SPECIAL AD HOC POSTRETIREMENT ADJUSTMENT

UNDER THIS SUBCHAPTER IN A YEAR SHALL CERTIFY ITS REIMBURSABLE

AMOUNT UNDER SECTION 502.1(A) OF ACT 147 TO THE AUDITOR GENERAL

NOT LATER THAN APRIL 1 OF THE FOLLOWING YEAR.

§ 9136. MUNICIPAL RECEIPT OF REIMBURSEMENT PAYMENT.

UPON RECEIPT OF THE REIMBURSEMENT PAYMENT FROM THE

COMMONWEALTH FOR THE POSTRETIREMENT ADJUSTMENTS UNDER THIS

SUBCHAPTER, THE TREASURER OF THE MUNICIPALITY SHALL DEPOSIT THE

REIMBURSEMENT PAYMENT INTO THE MUNICIPALITY'S GENERAL FUND.

SECTION 3. TITLE 71 IS AMENDED BY ADDING A SECTION TO READ:

§ 5708.9. SUPPLEMENTAL ANNUITY COMMENCING 2025.

(A) BENEFITS.--COMMENCING WITH THE FIRST MONTHLY ANNUITY

PAYMENT AFTER JANUARY 1, 2025, AN ELIGIBLE BENEFIT RECIPIENT

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SHALL BE ENTITLED TO RECEIVE AN ADDITIONAL MONTHLY SUPPLEMENTAL

ANNUITY FROM THE SYSTEM. THE ADDITIONAL MONTHLY SUPPLEMENTAL

ANNUITY UNDER THIS SECTION SHALL BE IN ADDITION TO THE

SUPPLEMENTAL ANNUITIES PROVIDED FOR UNDER 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), 5708.7

(RELATING TO SUPPLEMENTAL ANNUITIES COMMENCING 2003) AND 5708.8

(RELATING TO SPECIAL SUPPLEMENTAL POSTRETIREMENT ADJUSTMENT OF

2002).

(B) AMOUNT OF ADDITIONAL SUPPLEMENTAL ANNUITY.--THE AMOUNT

OF THE SUPPLEMENTAL ANNUITY UNDER THIS SECTION SHALL BE A

PERCENTAGE OF THE AMOUNT OF THE MONTHLY ANNUITY PAYMENT ON

JANUARY 1, 2025, DETERMINED ON THE BASIS OF THE MOST RECENT

EFFECTIVE DATE OF RETIREMENT AS FOLLOWS:

MOST RECENT EFFECTIVE DATE PERCENTAGE FACTOR

OF RETIREMENT

JULY 2, 2000, THROUGH JULY 1, 2001 15%

JULY 2, 1999, THROUGH JULY 1, 2000 15.5%

JULY 2, 1998, THROUGH JULY 1, 1999 16%

JULY 2, 1997, THROUGH JULY 1, 1998 16.5%

JULY 2, 1996, THROUGH JULY 1, 1997 17%

JULY 2, 1995, THROUGH JULY 1, 1996 17.5%

JULY 2, 1994, THROUGH JULY 1, 1995 18%

JULY 2, 1993, THROUGH JULY 1, 1994 18.5%

JULY 2, 1992, THROUGH JULY 1, 1993 19%

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JULY 2, 1991, THROUGH JULY 1, 1992 19.5%

JULY 2, 1990, THROUGH JULY 1, 1991 20%

JULY 2, 1989, THROUGH JULY 1, 1990 20.5%

JULY 2, 1988, THROUGH JULY 1, 1989 21%

JULY 2, 1987, THROUGH JULY 1, 1988 21.5%

JULY 2, 1986, THROUGH JULY 1, 1987 22%

JULY 2, 1985, THROUGH JULY 1, 1986 22.5%

JULY 2, 1984, THROUGH JULY 1, 1985 23%

JULY 2, 1983, THROUGH JULY 1, 1984 23.5%

JULY 2, 1982, THROUGH JULY 1, 1983 24%

PRIOR TO JULY 2, 1982 24.5%

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 UNDER

THIS SECTION SHALL BE PAYABLE UNDER THE SAME TERMS AND

CONDITIONS AS PROVIDED UNDER THE OPTION PLAN IN EFFECT AS OF

JANUARY 1, 2025, AND SHALL BE SUBJECT TO ANY SUBSEQUENT

MODIFICATION OF THAT OPTION PLAN.

(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

JANUARY 1, 2025.

(F) FUNDING.-NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO

THE CONTRARY, THE ADDITIONAL LIABILITY FOR THE INCREASE IN

BENEFITS PROVIDED UNDER THIS SECTION SHALL BE FUNDED IN EQUAL

DOLLAR ANNUAL INSTALLMENTS OVER A PERIOD OF 10 YEARS BEGINNING

JULY 1, 2025.

(G) ELIGIBLE BENEFIT RECIPIENT.--

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(1) AN ELIGIBLE BENEFIT RECIPIENT IS AN INDIVIDUAL:

(I) WHO IS RECEIVING A SUPERANNUATION, WITHDRAWAL OR

DISABILITY ANNUITY ON JANUARY 1, 2025;

(II) WHOSE MOST RECENT EFFECTIVE DATE OF RETIREMENT

IS PRIOR TO JULY 2, 2001; AND

(III) WHOSE CREDITED SERVICE DOES NOT INCLUDE ANY

SERVICE CREDITED AS EITHER CLASS T-D, CLASS D-4 OR CLASS

AA SERVICE.

(2) A SUPPLEMENTAL ANNUITY 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 4. THE FOLLOWING SHALL APPLY:

(1) THE SPECIAL AD HOC POSTRETIREMENT ADJUSTMENT UNDER

53 PA.C.S. CH. 91 SUBCH. D SHALL BE EFFECTIVE ON THE DATE OF

THE FIRST RETIREMENT BENEFIT MADE AFTER JANUARY 1, 2025.

(2) IF THE SPECIAL AD HOC POSTRETIREMENT ADJUSTMENT

UNDER 53 PA.C.S. CH. 91 SUBCH. D IS NOT INCLUDED IN THE

INITIAL RETIREMENT BENEFIT PAYMENT OCCURRING AFTER JANUARY 1,

2025, THE SPECIAL AD HOC POSTRETIREMENT ADJUSTMENT SHALL BE

INCLUDED AS SOON AS PRACTICABLE IN THE RETIREMENT BENEFIT

PAYMENT OF THE RETIREE, AND THE INITIAL RETIREMENT BENEFIT

PAYMENT THAT INCLUDES THE SPECIAL AD HOC POSTRETIREMENT

ADJUSTMENT SHALL ALSO INCLUDE THE TOTAL AMOUNT OF THE SPECIAL

AD HOC POSTRETIREMENT ADJUSTMENTS PREVIOUSLY OMITTED FROM THE

RETIREMENT BENEFIT PAYMENTS MADE AFTER JANUARY 1, 2025.

SECTION 5. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.

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