HB 411 — 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, in benefits, providing for supplemental annuity commencing 2025.

PRINTER'S NO.   383

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 411
                                               Session of
                                                 2025

     INTRODUCED BY MALAGARI, DEASY, PROBST, WAXMAN, HILL-EVANS,
        PIELLI, ISAACSON, McNEILL, GIRAL, KENYATTA, KHAN, RABB,
        HARKINS, WEBSTER, DOUGHERTY, GUENST, FREEMAN, HANBIDGE,
        MAYES, OTTEN, SANCHEZ, SCHLOSSBERG, POWELL, DONAHUE, VENKAT,
        D. MILLER, HOHENSTEIN, HADDOCK AND BOYD, JANUARY 29, 2025

     REFERRED TO COMMITTEE ON STATE GOVERNMENT, JANUARY 29, 2025


                                    AN ACT
 1   Amending Titles 24 (Education) and 71 (State Government) of the
 2      Pennsylvania Consolidated Statutes, in membership,
 3      contributions and benefits, providing for supplemental
 4      annuity commencing 2025; and, in benefits, providing for
 5      supplemental annuity commencing 2025.
 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 a section to read:
10   § 8348.8.   Supplemental annuity commencing 2025.
11      (a)   Benefits.--Commencing with the first monthly annuity
12   payment after July 1, 2025, an eligible benefit recipient shall
13   be entitled to receive an additional monthly supplemental
14   annuity from the system. The additional monthly supplemental
15   annuity under this section shall be in addition to the
16   supplemental annuities provided for under sections 8348
17   (relating to supplemental annuities), 8348.1 (relating to
18   additional supplemental annuities), 8348.2 (relating to further
 1   additional supplemental annuities), 8348.3 (relating to
 2   supplemental annuities commencing 1994), 8348.4 (relating to
 3   special supplemental postretirement adjustment), 8348.5
 4   (relating to supplemental annuities commencing 1998), 8348.6
 5   (relating to supplemental annuities commencing 2002) and 8348.7
 6   (relating to supplemental annuities commencing 2003).
 7      (b)   Amount of additional supplemental annuity.--The amount
 8   of the supplemental annuity payable under this section shall be
 9   a percentage of the amount of the monthly annuity payment on
10   July 1, 2025, determined on the basis of the most recent
11   effective date of retirement as follows:
12      Most recent effective date              Percentage factor
13            of retirement
14      July 2, 2000, through July 1, 2001            15%
15      July 2, 1999, through July 1, 2000            15.5%
16      July 2, 1998, through July 1, 1999            16%
17      July 2, 1997, through July 1, 1998            16.5%
18      July 2, 1996, through July 1, 1997            17%
19      July 2, 1995, through July 1, 1996            17.5%
20      July 2, 1994, through July 1, 1995            18%
21      July 2, 1993, through July 1, 1994            18.5%
22      July 2, 1992, through July 1, 1993            19%
23      July 2, 1991, through July 1, 1992            19.5%
24      July 2, 1990, through July 1, 1991            20%
25      July 2, 1989, through July 1, 1990            20.5%
26      July 2, 1988, through July 1, 1989            21%
27      July 2, 1987, through July 1, 1988            21.5%
28      July 2, 1986, through July 1, 1987            22%
29      July 2, 1985, through July 1, 1986            22.5%
30      July 2, 1984, through July 1, 1985            23%

20250HB0411PN0383                    - 2 -
 1      July 2, 1983, through July 1, 1984                23.5%
 2      July 2, 1982, through July 1, 1983                24%
 3      Prior to July 2, 1982                             24.5%
 4      (c)   Payment.--The supplemental annuity provided under this
 5   section shall be paid automatically unless the annuitant files a
 6   written notice with the board requesting that the additional
 7   monthly supplemental annuity not be paid.
 8      (d)   Conditions.--The supplemental annuity provided under
 9   this section shall be payable under the same terms and
10   conditions as provided under the option plan in effect as of
11   July 1, 2025, and shall be subject to any subsequent
12   modification of that option plan.
13      (e)   Benefits to beneficiaries or survivors.--No supplemental
14   annuity provided under this section shall be payable to the
15   beneficiary or survivor annuitant of a member who dies before
16   July 1, 2025, or the effective date of this subsection,
17   whichever is later.
18      (f)   Funding.--The additional liability for the increase in
19   benefits provided under this section shall be funded in equal
20   dollar annual installments over a period of 10 years beginning
21   July 1, 2026, unless a different funding source is otherwise
22   provided by State law.
23      (g)   Eligible benefit recipient.--
24            (1)   An eligible benefit recipient is an individual:
25                  (i)    who is receiving a superannuation, withdrawal or
26            disability annuity on July 1, 2025;
27                  (ii)    whose most recent effective date of retirement
28            is prior to July 2, 2001;
29                  (iii)   whose credited service does not include any
30            service credited as either Class T-D, Class D-4 or Class

20250HB0411PN0383                       - 3 -
 1            AA service; and
 2                  (iv)   who has not died before the effective date of
 3            this subparagraph.
 4            (2)    A supplemental annuity provided under this section
 5      shall not be payable to an annuitant receiving a withdrawal
 6      annuity prior to the first day of July coincident with or
 7      following the annuitant's attainment of superannuation age.
 8      Section 2.      Title 71 is amended by adding a section to read:
 9   § 5708.9.      Supplemental annuity commencing 2025.
10      (a)   Benefits.--Commencing with the first monthly annuity
11   payment after July 1, 2025, an eligible benefit recipient shall
12   be entitled to receive an additional monthly supplemental
13   annuity from the system. The additional monthly supplemental
14   annuity under this section shall be in addition to the
15   supplemental annuities provided for under sections 5708
16   (relating to supplemental annuities), 5708.1 (relating to
17   additional supplemental annuities), 5708.2 (relating to further
18   additional supplemental annuities), 5708.3 (relating to
19   supplemental annuities commencing 1994), 5708.4 (relating to
20   special supplemental postretirement adjustment), 5708.5
21   (relating to supplemental annuities commencing 1998), 5708.6
22   (relating to supplemental annuities commencing 2002), 5708.7
23   (relating to supplemental annuities commencing 2003) and 5708.8
24   (relating to special supplemental postretirement adjustment of
25   2002).
26      (b)   Amount of additional supplemental annuity.--The amount
27   of the supplemental annuity under this section shall be a
28   percentage of the amount of the monthly annuity payment on July
29   1, 2025, determined on the basis of the most recent effective
30   date of retirement as follows:

20250HB0411PN0383                      - 4 -
 1      Most recent effective date               Percentage factor
 2            of retirement
 3      July 2, 2000, through July 1, 2001             15%
 4      July 2, 1999, through July 1, 2000             15.5%
 5      July 2, 1998, through July 1, 1999             16%
 6      July 2, 1997, through July 1, 1998             16.5%
 7      July 2, 1996, through July 1, 1997             17%
 8      July 2, 1995, through July 1, 1996             17.5%
 9      July 2, 1994, through July 1, 1995             18%
10      July 2, 1993, through July 1, 1994             18.5%
11      July 2, 1992, through July 1, 1993             19%
12      July 2, 1991, through July 1, 1992             19.5%
13      July 2, 1990, through July 1, 1991             20%
14      July 2, 1989, through July 1, 1990             20.5%
15      July 2, 1988, through July 1, 1989             21%
16      July 2, 1987, through July 1, 1988             21.5%
17      July 2, 1986, through July 1, 1987             22%
18      July 2, 1985, through July 1, 1986             22.5%
19      July 2, 1984, through July 1, 1985             23%
20      July 2, 1983, through July 1, 1984             23.5%
21      July 2, 1982, through July 1, 1983             24%
22      Prior to July 2, 1982                          24.5%
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, 2025, and shall be subject to any subsequent

20250HB0411PN0383                    - 5 -
 1   modification of that option plan.
 2      (e)   Benefits to beneficiaries or survivors.--No supplemental
 3   annuity provided under this section shall be payable to the
 4   beneficiary or survivor annuitant of a member who dies before
 5   July 1, 2025, or the effective date of this subsection,
 6   whichever is later.
 7      (f)   Funding.--The additional liability for the increase in
 8   benefits provided under this section shall be funded in equal
 9   dollar annual installments over a period of 10 years beginning
10   July 1, 2026, unless a different funding source is otherwise
11   provided by State law.
12      (g)   Eligible benefit recipient.--
13            (1)   An eligible benefit recipient is an individual:
14                  (i)    who is receiving a superannuation, withdrawal or
15            disability annuity on July 1, 2025;
16                  (ii)    whose most recent effective date of retirement
17            is prior to July 2, 2001;
18                  (iii)    whose credited service does not include any
19            service credited as either Class T-D, Class D-4 or Class
20            AA service; and
21                  (iv)    who has not died before the effective date of
22            this subparagraph.
23            (2)   A supplemental annuity provided under this section
24      shall not be payable to an annuitant receiving a withdrawal
25      annuity prior to the first day of July coincident with or
26      following the annuitant's attainment of superannuation age.
27      Section 3.        This act shall take effect immediately.




20250HB0411PN0383                       - 6 -