PRINTER'S NO. 1027

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

863

Session of

2023

INTRODUCED BY KANE, MUTH, TARTAGLIONE, FONTANA, DILLON, STREET,

COSTA, CAPPELLETTI, BREWSTER, L. WILLIAMS AND SCHWANK,

JULY 27, 2023

hereby enacts as follows:

Section 1. Title 71 of the Pennsylvania Consolidated

Statutes is amended by adding a section to read:

§ 5708.9. Supplemental annuity commencing 2023.

(a) Benefits.--Commencing with the first monthly annuity

payment after July 1, 2023, an eligible benefit recipient under

this section 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 in sections 5708

supplemental annuities commencing 2003) and the special

supplemental postretirement adjustments provided for in sections

5708.4 (relating to special supplemental postretirement

adjustment) and 5708.8 (relating to special supplemental

postretirement adjustment of 2002).

(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, 2023, determined on the basis of the most recent

effective date of retirement, as follows:

July 2, 1996, through July 1, 1997 17.0%

July 2, 1995, through July 1, 1996 17.5%

July 2, 1994, through July 1, 1995 18.0%

July 2, 1993, through July 1, 1994 18.5%

July 2, 1992, through July 1, 1993 19.0%

July 2, 1991, through July 1, 1992 19.5%

July 2, 1990, through July 1, 1991 20.0%

July 2, 1989, through July 1, 1990 20.5%

July 2, 1988, through July 1, 1989 21.0%

July 2, 1987, through July 1, 1988 21.5%

July 2, 1982, through July 1, 1983 24.0%

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, 2023, and shall be subject to any subsequent

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, 2024.

(g) Eligible benefit recipient.--

(i) who is receiving a superannuation, withdrawal or

(ii) whose most recent effective date of retirement

beginning July 1, 2024, and every three years thereafter, the

annuity of an individual who is receiving a superannuation,

withdrawal or disability annuity, has at least 10 years of

credited service and has been receiving an annuity for at

least five years shall be increased by a cost-of-living

factor which shall be determined by increasing the

individual's annuity by the average percentage change in the

Consumer Price Index for All Urban Consumers (CPI-U) for the

Pennsylvania, New Jersey, Delaware and Maryland area,

of-living factor under paragraph (1) after July 1, 2024, the

cost-of-living factor shall be applied beginning July 1

following the fifth anniversary of the individual's effective

date of retirement under section 5702 (relating to maximum

single life annuity), and every three years thereafter.

never exceed 7% or be less than 1%.

income of PA wage earners based on data from the 2020 and

then most current thereafter Federal decennial census at the

additional liability for the automatic cost-of-living

adjustment shall be funded as part of the employer

contribution rate set annually.

include an individual's initial annuity under section 5702 as

well as all prior supplemental annuities and cost-of-living

adjustments.