SB 563 — 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.   716

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                        SENATE BILL
                        No. 563
                                               Session of
                                                 2025

     INTRODUCED BY MUTH, KANE, SCHWANK, FONTANA, SANTARSIERO,
        HAYWOOD, TARTAGLIONE, COMITTA, L. WILLIAMS, STREET, COLLETT
        AND MILLER, APRIL 30, 2025

     REFERRED TO STATE GOVERNMENT, APRIL 30, 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
19   additional supplemental annuities), 8348.3 (relating to
 1   supplemental annuities commencing 1994), 8348.4 (relating to
 2   special supplemental postretirement adjustment), 8348.5
 3   (relating to supplemental annuities commencing 1998), 8348.6
 4   (relating to supplemental annuities commencing 2002) and 8348.7
 5   (relating to supplemental annuities commencing 2003).
 6      (b)   Amount of additional supplemental annuity.--The amount
 7   of the supplemental annuity payable under this section shall be
 8   a percentage of the amount of the monthly annuity payment on
 9   July 1, 2025, determined on the basis of the most recent
10   effective date of retirement as follows:
11      Most recent effective date              Percentage factor
12            of retirement
13      July 2, 2000, through July 1, 2001            10%
14      July 2, 1999, through July 1, 2000            10.5%
15      July 2, 1998, through July 1, 1999            11%
16      July 2, 1997, through July 1, 1998            11.5%
17      July 2, 1996, through July 1, 1997            12%
18      July 2, 1995, through July 1, 1996            12.5%
19      July 2, 1994, through July 1, 1995            13%
20      July 2, 1993, through July 1, 1994            13.5%
21      July 2, 1992, through July 1, 1993            14%
22      July 2, 1991, through July 1, 1992            14.5%
23      July 2, 1990, through July 1, 1991            15%
24      July 2, 1989, through July 1, 1990            15.5%
25      July 2, 1988, through July 1, 1989            16%
26      July 2, 1987, through July 1, 1988            16.5%
27      July 2, 1986, through July 1, 1987            17%
28      July 2, 1985, through July 1, 1986            17.5%
29      July 2, 1984, through July 1, 1985            18%
30      July 2, 1983, through July 1, 1984            18.5%

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

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 1      shall not be payable to an annuitant receiving a withdrawal
 2      annuity prior to the first day of July coincident with or
 3      following the annuitant's attainment of superannuation age.
 4      Section 2.   Title 71 is amended by adding a section to read:
 5   § 5708.9.   Supplemental annuity commencing 2025.
 6      (a)   Benefits.--Commencing with the first monthly annuity
 7   payment after July 1, 2025, an eligible benefit recipient shall
 8   be entitled to receive an additional monthly supplemental
 9   annuity from the system. The additional monthly supplemental
10   annuity under this section shall be in addition to the
11   supplemental annuities provided for under sections 5708
12   (relating to supplemental annuities), 5708.1 (relating to
13   additional supplemental annuities), 5708.2 (relating to further
14   additional supplemental annuities), 5708.3 (relating to
15   supplemental annuities commencing 1994), 5708.4 (relating to
16   special supplemental postretirement adjustment), 5708.5
17   (relating to supplemental annuities commencing 1998), 5708.6
18   (relating to supplemental annuities commencing 2002), 5708.7
19   (relating to supplemental annuities commencing 2003) and 5708.8
20   (relating to special supplemental postretirement adjustment of
21   2002).
22      (b)   Amount of additional supplemental annuity.--The amount
23   of the supplemental annuity under this section shall be a
24   percentage of the amount of the monthly annuity payment on July
25   1, 2025, determined on the basis of the most recent effective
26   date of retirement as follows:
27      Most recent effective date              Percentage factor
28            of retirement
29      July 2, 2000, through July 1, 2001               10%
30      July 2, 1999, through July 1, 2000               10.5%

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 1      July 2, 1998, through July 1, 1999            11%
 2      July 2, 1997, through July 1, 1998            11.5%
 3      July 2, 1996, through July 1, 1997            12%
 4      July 2, 1995, through July 1, 1996            12.5%
 5      July 2, 1994, through July 1, 1995            13%
 6      July 2, 1993, through July 1, 1994            13.5%
 7      July 2, 1992, through July 1, 1993            14%
 8      July 2, 1991, through July 1, 1992            14.5%
 9      July 2, 1990, through July 1, 1991            15%
10      July 2, 1989, through July 1, 1990            15.5%
11      July 2, 1988, through July 1, 1989            16%
12      July 2, 1987, through July 1, 1988            16.5%
13      July 2, 1986, through July 1, 1987            17%
14      July 2, 1985, through July 1, 1986            17.5%
15      July 2, 1984, through July 1, 1985            18%
16      July 2, 1983, through July 1, 1984            18.5%
17      July 2, 1982, through July 1, 1983            19%
18      Prior to July 2, 1982                         20%
19      (c)   Payment.--The supplemental annuity provided under this
20   section shall be paid automatically unless the annuitant files a
21   written notice with the board requesting that the additional
22   monthly supplemental annuity not be paid.
23      (d)   Conditions.--The supplemental annuity provided under
24   this section shall be payable under the same terms and
25   conditions as provided under the option plan in effect as of
26   July 1, 2025, and shall be subject to any subsequent
27   modification of that option plan.
28      (e)   Benefits to beneficiaries or survivors.--No supplemental
29   annuity provided under this section shall be payable to the
30   beneficiary or survivor annuitant of a member who dies before

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 1   July 1, 2025.
 2      (f)   Funding.--Notwithstanding any other provision of law to
 3   the contrary, the additional liability for the increase in
 4   benefits provided under this section shall be funded in equal
 5   dollar annual installments over a period of 10 years beginning
 6   July 1, 2025.
 7      (g)   Eligible benefit recipient.--
 8            (1)   An eligible benefit recipient is an individual:
 9                  (i)    who is receiving a superannuation, withdrawal or
10            disability annuity on July 1, 2025;
11                  (ii)    whose most recent effective date of retirement
12            is prior to July 2, 2001; and
13                  (iii)    whose credited service does not include any
14            service credited as either Class T-D, Class D-4 or Class
15            AA service.
16            (2)   A supplemental annuity provided under this section
17      shall not be payable to an annuitant receiving a withdrawal
18      annuity prior to the first day of July coincident with or
19      following the annuitant's attainment of superannuation age.
20      Section 3.        This act shall take effect immediately.




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