PRINTER'S NO. 3345
No. 2339 Session of 2006
INTRODUCED BY HERMAN, CLYMER, BEBKO-JONES, GINGRICH, HUTCHINSON,
KILLION, REED, SATHER, FABRIZIO, SHAPIRO, YOUNGBLOOD,
BENNINGHOFF, ADOLPH, BAKER, BALDWIN, BASTIAN, BELARDI,
BELFANTI, BUNT, BUXTON, CALTAGIRONE, CAPPELLI, CASORIO,
CAUSER, CORRIGAN, CRAHALLA, CREIGHTON, DALLY, DeLUCA,
DeWEESE, DIVEN, J. EVANS, FAIRCHILD, FICHTER, GEIST, GEORGE,
GOOD, GRUCELA, HALUSKA, HANNA, HARHAI, HARHART, HARRIS,
HASAY, HERSHEY, HESS, JAMES, KAUFFMAN, M. KELLER, KOTIK,
LEVDANSKY, MAITLAND, MAJOR, MANDERINO, MARKOSEK, MARSICO,
McILHATTAN, McNAUGHTON, MICOZZIE, MUNDY, MUSTIO, O'NEILL,
PAYNE, PETRARCA, PHILLIPS, PICKETT, PISTELLA, RAYMOND,
READSHAW, REICHLEY, ROSS, RUBLEY, RUFFING, SANTONI, SCAVELLO,
SCHRODER, SEMMEL, SIPTROTH, B. SMITH, SOLOBAY, STABACK,
STERN, R. STEVENSON, T. STEVENSON, E. Z. TAYLOR, J. TAYLOR,
THOMAS, TIGUE, TRUE, WALKO, WANSACZ, WATERS, WILT,
WOJNAROSKI, YUDICHAK, FRANKEL, LEH, HARPER AND SURRA,
JANUARY 3, 2006
REFERRED TO COMMITTEE ON STATE GOVERNMENT, JANUARY 3, 2006
AN ACT
1 Amending Titles 24 (Education) and 71 (State Government) of the
2 Pennsylvania Consolidated Statutes, providing for
3 supplemental annuities commencing 2006 and 2007; further
4 providing for annuity reserve account and for supplemental
5 annuity account.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Title 24 of the Pennsylvania Consolidated
9 Statutes is amended by adding sections to read:
10 § 8348.8. Supplemental annuities commencing 2006.
11 (a) Benefits.--Commencing with the first monthly annuity
12 payment after July 1, 2006, any eligible benefit recipient shall
1 be entitled to receive an additional monthly supplemental
2 annuity from the system. This shall be in addition to the
3 supplemental annuities provided for in sections 8348 (relating
4 to supplemental annuities), 8348.1 (relating to additional
5 supplemental annuities), 8348.2 (relating to further additional
6 supplemental annuities), 8348.3 (relating to supplemental
7 annuities commencing 1994), 8348.4 (relating to special
8 supplemental postretirement adjustment), 8348.5 (relating to
9 supplemental annuities commencing 1998), 8348.6 (relating to
10 supplemental annuities commencing 2002) and 8348.7 (relating to
11 supplemental annuities commencing 2003).
12 (b) Amount of supplemental annuity.--The amount of the
13 supplemental annuity payable pursuant to this section shall be a
14 percentage of the amount of the monthly annuity payment on July
15 1, 2006, determined on the basis of the most recent effective
16 date of retirement, as follows:
17 Most recent effective date Percentage factor
18 of retirement
19 July 2, 1990, through July 1, 1992 8.0%
20 July 2, 1988, through July 1, 1990 10.0%
21 July 2, 1985, through July 1, 1988 15.0%
22 Prior to July 2, 1985 25.0%
23 (c) Payment.--The supplemental annuity provided under this
24 section shall be paid automatically unless the annuitant files a
25 written notice with the board requesting that the additional
26 monthly supplemental annuity not be paid.
27 (d) Conditions.--The supplemental annuity provided under
28 this section shall be payable under the same terms and
29 conditions as provided under the option plan in effect as of
30 July 1, 2006.
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1 (e) Benefits to beneficiaries or survivors.--No supplemental
2 annuity provided under this section shall be payable to the
3 beneficiary or survivor annuitant of a member who dies before
4 July 1, 2006.
5 (f) Funding.--The additional liability for the increase in
6 benefits provided in this section shall be funded in equal
7 dollar annual installments over a period of ten years beginning
8 July 1, 2006.
9 (g) Eligible benefit recipient.--As used in this section,
10 the term "eligible benefit recipient" means a person who is
11 receiving a superannuation, withdrawal or disability annuity on
12 July 1, 2006, and whose most recent effective date of retirement
13 is prior to July 2, 1992, but the supplemental annuities
14 provided under this section shall not be payable to an annuitant
15 receiving a withdrawal annuity prior to the first day of July
16 coincident with or following the annuitant's attainment of
17 superannuation age.
18 § 8348.9. Supplemental annuities commencing 2007.
19 (a) Benefits.--Commencing with the first monthly annuity
20 payment after July 1, 2007, any eligible benefit recipient shall
21 be entitled to receive an additional monthly supplemental
22 annuity from the system. This shall be in addition to the
23 supplemental annuities provided for in sections 8348 (relating
24 to supplemental annuities), 8348.1 (relating to additional
25 supplemental annuities), 8348.2 (relating to further additional
26 supplemental annuities), 8348.3 (relating to supplemental
27 annuities commencing 1994), 8348.4 (relating to special
28 supplemental postretirement adjustment), 8348.5 (relating to
29 supplemental annuities commencing 1998), 8348.6 (relating to
30 supplemental annuities commencing 2002) and 8348.7 (relating to
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1 supplemental annuities commencing 2003).
2 (b) Amount of supplemental annuity.--The amount of the
3 supplemental annuity payable pursuant to this section shall be a
4 percentage of the amount of the monthly annuity payment on July
5 1, 2007, determined on the basis of the most recent effective
6 date of retirement, as follows:
7 Most recent effective date Percentage factor
8 of retirement
9 July 2, 2005, through July 1, 2006 2.27%
10 July 2, 2004, through July 1, 2005 3.08%
11 July 2, 2003, through July 1, 2004 4.87%
12 July 2, 2001, through July 1, 2003 6.35%
13 July 2, 1998, through July 1, 2001 7.50%
14 July 2, 1992, through July 1, 1998 9.00%
15 Prior to July 2, 1992 0.00%
16 (c) Payment.--The supplemental annuity provided under this
17 section shall be paid automatically unless the annuitant files a
18 written notice with the board requesting that the additional
19 monthly supplemental annuity not be paid.
20 (d) Conditions.--The supplemental annuity provided under
21 this section shall be payable under the same terms and
22 conditions as provided under the option plan in effect as of
23 July 1, 2007.
24 (e) Benefits to beneficiaries or survivors.--No supplemental
25 annuity provided under this section shall be payable to the
26 beneficiary or survivor annuitant of a member who dies before
27 July 1, 2007.
28 (f) Funding.--The additional liability for the increase in
29 benefits provided in this section shall be funded in equal
30 dollar annual installments over a period of ten years beginning
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1 July 1, 2007.
2 (g) Eligible benefit recipient.--As used in this section,
3 the term "eligible benefit recipient" means a person:
4 (1) who is receiving a superannuation, withdrawal or
5 disability annuity on July 1, 2007; and
6 (2) whose most recent effective date of retirement is
7 prior to July 2, 2006.
8 Notwithstanding the above, the supplemental annuities provided
9 under this section shall not be payable to an annuitant
10 receiving a withdrawal annuity prior to the first day of July
11 coincident with or following the annuitant's attainment of
12 superannuation age.
13 Section 2. Section 8525(a) of Title 24 is amended to read:
14 § 8525. Annuity reserve account.
15 (a) Credits and charges to account.--The annuity reserve
16 account shall be the ledger account to which shall be credited
17 the reserves held for the payment of annuities and death
18 benefits on account of all annuitants and the contributions from
19 the Commonwealth and other employers as determined in accordance
20 with section 8328 (relating to actuarial cost method) for the
21 payment of the supplemental annuities provided in sections 8348
22 (relating to supplemental annuities), 8348.1 (relating to
23 additional supplemental annuities), 8348.2 (relating to further
24 additional supplemental annuities), 8348.3 (relating to
25 supplemental annuities commencing 1994), 8348.4 (relating to
26 special supplemental postretirement adjustment), 8348.5
27 (relating to supplemental annuities commencing 1998), 8348.6
28 (relating to supplemental annuities commencing 2002) [and],
29 8348.7 (relating to supplemental annuities commencing 2003),
30 8348.8 (relating to supplemental annuities commencing 2006) and
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1 8348.9 (relating to supplemental annuities commencing 2007). The
2 annuity reserve account shall be credited with valuation
3 interest. After the transfers provided in sections 8523
4 (relating to members' savings account) and 8524 (relating to
5 State accumulation account), all annuity and death benefit
6 payments shall be charged to the annuity reserve account and
7 paid from the fund.
8 * * *
9 Section 3. Title 71 is amended by adding sections to read:
10 § 5708.9. Supplemental annuities commencing 2006.
11 (a) Benefits.--Commencing with the first monthly annuity
12 payment after July 1, 2006, any eligible benefit recipient shall
13 be entitled to receive an additional monthly supplemental
14 annuity from the system. This shall be in addition to the
15 supplemental annuities provided for in sections 5708 (relating
16 to supplemental annuities), 5708.1 (relating to additional
17 supplemental annuities), 5708.2 (relating to further additional
18 supplemental annuities), 5708.3 (relating to supplemental
19 annuities commencing 1994), 5708.5 (relating to supplemental
20 annuities commencing 1998), the special supplemental
21 postretirement adjustment provided for in section 5708.4
22 (relating to special supplemental postretirement adjustment),
23 5708.6 (relating to supplemental annuities commencing 2002) and
24 5708.7 (relating to supplemental annuities commencing 2003).
25 (b) Amount of supplemental annuity.--The amount of the
26 supplemental annuity payable pursuant to this section shall be a
27 percentage of the amount of the monthly annuity payment on July
28 1, 2006, determined on the basis of the most recent effective
29 date of retirement, as follows:
30 Most recent effective date Percentage factor
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1 of retirement
2 July 2, 1990, through July 1, 1992 8.0%
3 July 2, 1988, through July 1, 1990 10.0%
4 July 2, 1985, through July 1, 1988 15.0%
5 Prior to July 2, 1985 25.0%
6 (c) Payment.--The supplemental annuity provided under this
7 section shall be paid automatically unless the annuitant files a
8 written notice with the board requesting that the additional
9 monthly supplemental annuity not be paid.
10 (d) Conditions.--The supplemental annuity provided under
11 this section shall be payable under the same terms and
12 conditions as provided under the option plan in effect as of
13 July 1, 2006.
14 (e) Benefits to beneficiaries or survivors.--No supplemental
15 annuity provided under this section shall be payable to the
16 beneficiary or survivor annuitant of a member who dies before
17 July 1, 2006.
18 (f) Funding.--The additional liability for the increase in
19 benefits provided in this section shall be funded in equal
20 dollar annual installments over a period of ten years beginning
21 July 1, 2006.
22 (g) Eligible benefit recipient.--As used in this section,
23 the term "eligible benefit recipient" means a person who is
24 receiving a superannuation, withdrawal or disability annuity on
25 July 1, 2006, and whose most recent effective date of retirement
26 is prior to July 2, 1992, but the supplemental annuities
27 provided under this section shall not be payable to an annuitant
28 receiving a superannuation or withdrawal annuity prior to the
29 first day of July coincident with or following the annuitant's
30 attainment of superannuation age.
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1 § 5708.10. Supplemental annuities commencing 2007.
2 (a) Benefits.--Commencing with the first monthly annuity
3 payment after July 1, 2007, any eligible benefit recipient shall
4 be entitled to receive an additional monthly supplemental
5 annuity from the system. This shall be in addition to the
6 supplemental annuities provided for in sections 5708 (relating
7 to supplemental annuities), 5708.1 (relating to additional
8 supplemental annuities), 5708.2 (relating to further additional
9 supplemental annuities), 5708.3 (relating to supplemental
10 annuities commencing 1994) and section 5708.5 (relating to
11 supplemental annuities commencing 1998) and the special
12 supplemental postretirement adjustments provided for in sections
13 5708.4 (relating to special supplemental postretirement
14 adjustment), 5708.6 (relating to supplemental annuities
15 commencing 2002) and 5708.7 (relating to supplemental annuities
16 commencing 2003), 5708.8 (relating to special supplemental
17 postretirement adjustment of 2002).
18 (b) Amount of supplemental annuity.--The amount of the
19 supplemental annuity payable pursuant to this section shall be a
20 percentage of the amount of the monthly annuity payment on July
21 1, 2007, determined on the basis of the most recent effective
22 date of retirement, as follows:
23 Most recent effective date Percentage factor
24 of retirement
25 July 2, 2005, through July 1, 2006 2.27%
26 July 2, 2004, through July 1, 2005 3.08%
27 July 2, 2003, through July 1, 2004 4.87%
28 July 2, 2001, through July 1, 2003 6.35%
29 July 2, 1998, through July 1, 2001 7.50%
30 July 2, 1992, through July 1, 1998 9.00%
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1 Prior to July 2, 1992 0.00%
2 (c) Payment.--The supplemental annuity provided under this
3 section shall be paid automatically unless the annuitant files a
4 written notice with the board requesting that the additional
5 monthly supplemental annuity not be paid.
6 (d) Conditions.--The supplemental annuity provided under
7 this section shall be payable under the same terms and
8 conditions as provided under the option plan in effect as of
9 July 1, 2007.
10 (e) Benefits to beneficiaries or survivors.--No supplemental
11 annuity provided under this section shall be payable to the
12 beneficiary or survivor annuitant of a member who dies before
13 July 1, 2007.
14 (f) Funding.--The additional liability for the increase in
15 benefits provided in this section shall be funded in equal
16 dollar annual installments over a period of ten years beginning
17 July 1, 2007.
18 (g) Eligible benefit recipient.--As used in this section,
19 the term "eligible benefit recipient" means a person:
20 (1) who is receiving a superannuation, withdrawal or
21 disability annuity on July 1, 2007; and
22 (2) whose most recent effective date of retirement is
23 prior to January 1, 2006.
24 Notwithstanding the above, the supplemental annuities provided
25 under this section shall not be payable to an annuitant
26 receiving a superannuation or withdrawal annuity prior to the
27 first day of July coincident with or following the annuitant's
28 attainment of superannuation age.
29 Section 4. Section 5938 of Title 71 is amended to read:
30 § 5938. Supplemental annuity account.
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1 The supplemental annuity account shall be the ledger account
2 to which shall be credited all contributions from the
3 Commonwealth in accordance with section 5507(b) (relating to
4 contributions by the Commonwealth and other employers) for the
5 payment of the supplemental annuities provided in sections 5708
6 (relating to supplemental annuities), 5708.1 (relating to
7 additional supplemental annuities), 5708.2 (relating to further
8 additional supplemental annuities), 5708.3 (relating to
9 supplemental annuities commencing 1994), 5708.4 (relating to
10 special supplemental postretirement adjustment), 5708.5
11 (relating to supplemental annuities commencing 1998), 5708.6
12 (relating to supplemental annuities commencing 2002), 5708.7
13 (relating to supplemental annuities commencing 2003) [and],
14 5708.8 (relating to special supplemental postretirement
15 adjustment of 2002), 5708.9 (relating to supplemental annuities
16 commencing 2006) and 5708.10 (relating to supplemental annuities
17 commencing 2007). The supplemental annuity account shall be
18 credited with valuation interest. The reserves necessary for the
19 payment of such supplemental annuities shall be transferred from
20 the supplemental annuity account to the annuity reserve account
21 as provided in section 5935 (relating to annuity reserve
22 account).
23 Section 5. This act shall take effect immediately.
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