This bill amends Titles 24 (Education), 71 (State Government), and 72 (Taxation and Fiscal Affairs) of the Pennsylvania Consolidated Statutes to introduce a supplemental annuity for eligible benefit recipients, commencing with the first monthly annuity payment after July 1, 2025. The new sections, 8348.8 and 5708.9, outline the eligibility criteria, payment amounts based on retirement dates, and conditions under which the supplemental annuity will be paid. The bill specifies that the additional liability for these benefits will be funded in equal dollar annual installments over ten years starting July 1, 2026, unless a different funding source is provided by state law.

Additionally, the bill establishes a Budget Stabilization Reserve Fund Interest Account, which will collect interest from the Budget Stabilization Reserve Fund. On July 1, 2025, and annually thereafter, funds from this interest account will be transferred to the General Fund to support the payment of the newly established supplemental annuities. The bill also includes a repeal of Section 1703-A of The Fiscal Code, which is deemed necessary to implement the new provisions regarding the Budget Stabilization Reserve Fund. The act is set to take effect immediately upon passage.

Statutes/Laws affected:
Printer's No. 943 (Jun 11, 2025): P.L.343, No.176