Pennsylvania SB 565: 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 2025 and for supplemental annuity commencing 2026; and, in benefits, providing for supplemental annuity commencing 2025 and for supplemental annuity commencing 2026.

Bill Text

PRINTER'S NO. 578
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 565
Session of
2025
INTRODUCED BY KANE, MUTH, TARTAGLIONE, SCHWANK, FONTANA,
SANTARSIERO, COSTA, HAYWOOD, COLLETT, COMITTA, L. WILLIAMS
AND MILLER, APRIL 9, 2025
REFERRED TO FINANCE, APRIL 9, 2025
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 2025 and for supplemental annuity
commencing 2026; and, in benefits, providing for supplemental
annuity commencing 2025 and for supplemental annuity
commencing 2026.
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 2025.
(a) Benefits.--Commencing with the first monthly annuity
payment after July 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 8348
(relating to supplemental annuities), 8348.1 (relating to
additional supplemental annuities), 8348.2 (relating to further
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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 2026).
(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, 2025, 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, 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
beneficiary or survivor annuitant of a member who dies before
July 1, 2025.
(f) Funding.--
(1) 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, 2026.
(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.--
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(1) An eligible benefit recipient is an individual:
(i) who is receiving a superannuation, withdrawal or
disability annuity on July 1, 2025;
(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 ag