PRINTER'S NO. 3174
No. 2408 Session of 1998
INTRODUCED BY CLYMER, ALLEN, ARGALL, ARMSTRONG, BAKER, BATTISTO,
BELARDI, BELFANTI, BOSCOLA, BUNT, BUXTON, CALTAGIRONE,
CAPPABIANCA, CASORIO, CHADWICK, CIVERA, M. COHEN, COLAFELLA,
COLAIZZO, CORRIGAN, COWELL, COY, CURRY, DALEY, DALLY,
DEMPSEY, DENT, DeWEESE, EACHUS, FAIRCHILD, FARGO, FICHTER,
GANNON, GEIST, GEORGE, GODSHALL, GORDNER, HALUSKA, HANNA,
HASAY, HENNESSEY, HERMAN, HESS, ITKIN, JADLOWIEC, KENNEY,
KIRKLAND, LAUGHLIN, LEDERER, LEH, LESCOVITZ, LYNCH, MAITLAND,
MANDERINO, MARKOSEK, MARSICO, McCALL, McNAUGHTON, MILLER,
MUNDY, NAILOR, OLASZ, ORIE, PESCI, PETRARCA, READSHAW,
ROBERTS, SAINATO, SATHER, SERAFINI, SHANER, B. SMITH,
STABACK, STERN, STEVENSON, SURRA, TANGRETTI, TIGUE,
TRAVAGLIO, TRELLO, WILT AND WOJNAROSKI, MARCH 12, 1998
REFERRED TO COMMITTEE ON STATE GOVERNMENT, MARCH 12, 1998
AN ACT
1 Amending Title 71 (State Government) of the Pennsylvania
2 Consolidated Statutes, providing for supplemental annuities
3 commencing 1998.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Title 71 of the Pennsylvania Consolidated
7 Statutes is amended by adding a section to read:
8 § 5708.5. Supplemental annuities commencing 1998.
9 (a) Benefits.--Commencing with the first monthly annuity
10 payment after July 1, 1998, any eligible benefit recipient shall
11 be entitled to receive a further additional monthly supplemental
12 annuity from the system. This additional supplemental annuity
13 shall be in addition to the supplemental annuities provided for
1 in sections 5708 (relating to supplemental annuities), 5708.1
2 (relating to additional supplemental annuities), 5708.2
3 (relating to further additional supplemental annuities) and
4 5708.3 (relating to supplemental annuities commencing 1994).
5 (b) Amount of additional supplemental annuity.--The
6 additional monthly supplemental annuity shall be determined on
7 the basis of the most recent effective date of retirement and
8 payable on the first $3,500 of annuity received per month, as
9 follows:
10 Most recent effective Percentage factor
11 date of retirement
12 July 1, 1996, through June 30, 1997 2.3%
13 July 1, 1995, through June 30, 1996 4.1%
14 July 1, 1994, through June 30, 1995 5.5%
15 On or prior to June 30, 1994 6.2%
16 In addition to the supplemental annuity payable as a result of
17 the percentage factors as set forth in this subsection, there
18 shall be a monthly longevity supplemental annuity payable as
19 follows:
20 (1) For those individuals whose most recent effective
21 date of retirement is on or after July 1, 1969, and on or
22 before July 1, 1984, and who have 20 or more eligibility
23 points, the monthly longevity supplemental annuity shall be
24 equal to 0.25% of the first $3,500 of annuity received per
25 month multiplied by the number of years on retirement.
26 (2) For those individuals whose most recent effective
27 date of retirement is on or before June 30, 1969, and who
28 have 20 or more eligibility points, the monthly longevity
29 supplemental annuity shall be equal to 0.25% of the first
30 $3,500 of annuity received per month multiplied by the number
19980H2408B3174 - 2 -
1 of years on retirement between July 1, 1969, and July 1,
2 1989, plus 0.50% of the first $3,500 of annuity received per
3 month multiplied by the years on retirement on or before June
4 30, 1969.
5 (c) Payment.--The additional monthly supplemental annuity
6 provided under this section shall be paid automatically unless
7 the intended recipient files a written notice with the system
8 requesting that the additional monthly supplemental annuity not
9 be paid.
10 (d) Conditions.--The additional supplemental annuity
11 provided under this section shall be payable under the same
12 terms and conditions as provided under the option plan in effect
13 on June 30, 1997.
14 (e) Benefits paid to beneficiaries or survivors.--No
15 supplemental annuity effective after the death of the member
16 shall be payable to the beneficiary or survivor annuitant of the
17 deceased member.
18 (f) Funding.--Notwithstanding section 5508(e) (relating to
19 actuarial cost method), the additional liability for the
20 increase in benefits provided in this section shall be funded in
21 annual installments increasing by 5% each year over a period of
22 20 years beginning July 1, 1998.
23 (g) Definitions.--As used in this section, the following
24 words and phrases shall have the meanings given to them in this
25 subsection:
26 "Eligible benefit recipient." A person who is receiving a
27 superannuation, withdrawal or disability annuity and who
28 commenced receipt of that annuity on or prior to June 30, 1997,
29 but the supplemental annuities shall not be payable to an
30 annuitant receiving a withdrawal annuity prior to the first day
19980H2408B3174 - 3 -
1 of July coincident with or following the annuitant's attainment
2 of superannuation age.
3 "Years on retirement." The number of full years as of July
4 1, 1989, which have elapsed since the eligible benefit recipient
5 most recently commenced the receipt of an annuity and during
6 which the eligible benefit recipient received an annuity.
7 Section 2. This act shall take effect immediately.
B25L71DMS/19980H2408B3174 - 4 -