Bill Summary – FastDemocracy

PRINTER'S NO.   1326
                     THE GENERAL ASSEMBLY OF PENNSYLVANIA
                        SENATE BILL
                        No. 1029
                                               Session of
                                                 2024
     INTRODUCED BY KANE, MUTH, TARTAGLIONE, FONTANA, SCHWANK,
        CAPPELLETTI, BREWSTER, COSTA AND DILLON, JANUARY 12, 2024
     REFERRED TO FINANCE, JANUARY 12, 2024
                                    AN ACT
 Amending Titles 24 (Education) and 71 (State Government) of the
    Pennsylvania Consolidated Statutes, in membership,
    contributions and benefits, providing for supplemental
    annuity commencing 2023 and for supplemental annuity
    commencing 2024; and, in benefits, providing for supplemental
    annuity commencing 2023 and for supplemental annuity
    commencing 2024.
    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 sections to read:
 § 8348.8.   Supplemental annuity commencing 2023.
    (a)   Benefits.--Commencing with the first monthly annuity
 payment after July 1, 2023, 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
 (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), 8348.7
 (relating to supplemental annuities commencing 2003) and 8348.9
 (relating to supplemental annuity commencing 2024).
    (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:
    Most recent effective date              Percentage factor
          of retirement
    July 2, 2000, through July 1, 2001            4.5%
    July 2, 1999, through July 1, 2000            5%
    July 2, 1998, through July 1, 1999            5.5%
    July 2, 1997, through July 1, 1998            6%
    July 2, 1996, through July 1, 1997            6.5%
    July 2, 1995, through July 1, 1996            7%
    July 2, 1994, through July 1, 1995            7.5%
    July 2, 1993, through July 1, 1994            8%
    July 2, 1992, through July 1, 1993            8.5%
    July 2, 1991, through July 1, 1992            9%
    July 2, 1990, through July 1, 1991            9.5%
    July 2, 1989, through July 1, 1990            10%
    July 2, 1988, through July 1, 1989            10.5%
    July 2, 1987, through July 1, 1988            11%
    July 2, 1986, through July 1, 1987            11.5%
    July 2, 1985, through July 1, 1986            12%
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    July 2, 1984, through July 1, 1985             12.5%
    July 2, 1983, through July 1, 1984             13%
    July 2, 1982, through July 1, 1983             13.5%
    Prior to July 2, 1982                          14%
    (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
 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, 2023.
    (f)   Funding.--
          (1)   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, 2024.
          (2)   The additional liability for the increase in
    benefits provided under this section shall be paid by the
    Commonwealth. A school district of any class, intermediate
    unit or an area career and technical school under the act of
    March 10, 1949 (P.L.30, No.14), known as the Public School
    Code of 1949, shall not be liable for the increase in
    benefits provided under this section.
20240SB1029PN1326                    - 3 -
    (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, 2023;
                (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.
 § 8348.9.      Supplemental annuity commencing 2024.
    (a)   Benefits.--Commencing with the first monthly annuity
 payment after July 1, 2024, any eligible benefit recipient shall
 be entitled to receive an additional monthly supplemental
 annuity from the system. This shall be in addition to the
 supplemental annuities provided for in 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), 8348.7 (relating to
 supplemental annuities commencing 2003) and 8348.8 (relating to
 supplemental annuity commencing 2023).
    (b)   Amount of supplemental annuity.--
          (1)    Except as provided under paragraph (2), the amount
    of the supplemental annuity payable under this section shall
20240SB1029PN1326                       - 4 -
    be equal to the average percentage increase in the Consumer
    Price Index for All Urban Consumers (CPI-U) for the
    Pennsylvania, New Jersey, Delaware and Maryland area during
    the prior calendar year. The supplemental annuity payable
    under this section shall apply with the first monthly annuity
    payment after July 1, 2024, and shall be adjusted every three
    years thereafter in accordance with the average percentage
    increase in the Consumer Price Index for All Urban Consumers
    (CPI-U) for the Pennsylvania, New Jersey, Delaware and
    Maryland area during the prior calendar year.
          (2)   The amount of the supplemental annuity payable under
    this section and calculated under paragraph (1) may not
    exceed 7% of the amount of the monthly annuity payment or be
    less than 1% of the amount of the monthly annuity payment
    after July 1, 2024.
    (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, 2024.
    (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, 2024.
    (f)   Funding.--
          (1)   Notwithstanding any other provision of law to the
    contrary, the additional liability for the increase in
20240SB1029PN1326                    - 5 -
    benefits provided under this section shall be funded in equal
    dollar annual installments over a period of 10 years
    beginning July 1, 2025.
          (2)    The additional liability for the increase in
    benefits provided under this section shall be paid by the
    Commonwealth. A school district of any class, intermediate
    unit or an area career and technical school under the act of
    March 10, 1949 (P.L.30, No.14), known as the Public School
    Code of 1949, shall not be liable for the increase in
    benefits provided under this section.
    (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, 2024; and
                (ii)    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.        Title 71 is amended by adding sections to read:
 § 5708.9.      Supplemental annuity commencing 2023.
    (a)   Benefits.--Commencing with the first monthly annuity
 payment after January 1, 2024, 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
20240SB1029PN1326                       - 6 -
 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), 5708.8
 (relating to special supplemental postretirement adjustment of
 2002) and 5708.10 (relating to supplemental annuity commencing
 2024).
    (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, 2024, 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            4.5%
    July 2, 1999, through July 1, 2000            5%
    July 2, 1998, through July 1, 1999            5.5%
    July 2, 1997, through July 1, 1998            6%
    July 2, 1996, through July 1, 1997            6.5%
    July 2, 1995, through July 1, 1996            7%
    July 2, 1994, through July 1, 1995            7.5%
    July 2, 1993, through July 1, 1994            8%
    July 2, 1992, through July 1, 1993            8.5%
    July 2, 1991, through July 1, 1992            9%
    July 2, 1990, through July 1, 1991            9.5%
    July 2, 1989, through July 1, 1990            10%
    July 2, 1988, through July 1, 1989            10.5%
20240SB1029PN1326                    - 7 -
    July 2, 1987, through July 1, 1988                11%
    July 2, 1986, through July 1, 1987                11.5%
    July 2, 1985, through July 1, 1986                12%
    July 2, 1984, through July 1, 1985                12.5%
    July 2, 1983, through July 1, 1984                13%
    July 2, 1982, through July 1, 1983                13.5%
    Prior to July 2, 1982                             14%
    (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, 2024, 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, 2024.
    (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, 2024.
    (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, 2024;
                (ii)   whose most recent effective date of retirement
20240SB1029PN1326                       - 8 -
          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.
 § 5708.10.     Supplemental annuity commencing 2024.
    (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), 5708.8
 (relating to special supplemental postretirement adjustment of
 2002) and 5708.9 (relating to supplemental annuity commencing
 2023).
    (b)   Amount of supplemental annuity.--
          (1)   Except as provided under paragraph (2), the amount
    of the supplemental annuity under this section shall be equal
    to the average percentage increase in the Consumer Price
20240SB1029PN1326                      - 9 -
    Index for All Urban Consumers (CPI-U) for the Pennsylvania,
    New Jersey, Delaware and Maryland area during the prior
    calendar year. The supplemental annuity under this section
    shall apply with the first monthly annuity payment after
    January 1, 2025, and shall be adjusted every three years
    thereafter in accordance with the average percentage increase
    in the Consumer Price Index for All Urban Consumers (CPI-U)
    for the Pennsylvania, New Jersey, Delaware and Maryland area
    during the prior calendar year.
          (2)   The amount of the supplemental annuity under this
    section and calculated under paragraph (1) may not exceed 7%
    of the amount of the monthly annuity payment or be less than
    1% of the amount of the monthly annuity payment after January
    1, 2025.
    (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
 benefic