PRIOR PRINTER'S NOS. 1539, 3733
PRINTER'S NO. 3780
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 RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
REPRESENTATIVES, AS AMENDED, OCTOBER 21, 2024
AN ACT
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:
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
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annuity under this section shall be in addition to the
supplemental annuities provided for under 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 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%
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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%
(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 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
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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 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 .
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"Active employment." The situation of an individual, other
than an independent contractor, who performs for compensation
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
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annuity, retirement benefit, service pension or disability
pension benefit payments; and makes provision for these payments
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 2020 .
§ 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:
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(1) The sum of $75 per month if, on January 1, 2025, 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, 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).
(c) Modification in amount of 2025 special ad hoc
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
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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 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
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system State aid and municipal contributions used by the
municipality to make debt service 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 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.
(c) Variable definition of amortization contribution
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 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.
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(a) Benefits.--Commencing with the first monthly annuity
payment after January 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 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%
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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%
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%
(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 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
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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 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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