HB 408 — 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.

PRIOR PRINTER'S NO.

380 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

984 THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

WILLIAMS,WILLIAMS BOYD, SHUSTERMAN, DAVIDSON, CIRESI AND INGLIS,BOYD, JANUARY 29, 2025 ASREFERRED REPORTEDTO FROM COMMITTEE ON STATE GOVERNMENT, HOUSEJANUARY OF29, REPRESENTATIVES, AS AMENDED, MARCH 17, 2025 AN ACT AmePennsylvaniaAmending ConsolidatedTitles Statutes,24 in(Education) membership,nt)and 71 (State Government) of the contributionsPennsylvania andConsolidated benefits,Statutes, providingin formembership, supplemental annuity commencing 2025;

Most recent effective date Percentage factor of retirement July 2, 2000, through July 1, 2001 10% July 2, 1999, through July 1, 2000 10.5% July 2, 1998, through July 1, 1999 11% July 2, 1997, through July 1, 1998 11.5% July 2, 1996, through July 1, 1997 12% July 2, 1995, through July 1, 1996 12.5% July 2, 1994, through July 1, 1995 13% July 2, 1993, through July 1, 1994 13.5% July 2, 1992, through July 1, 1993 14% July 2, 1991, through July 1, 1992 14.5% July 2, 1990, through July 1, 1991 15% July 2, 1989, through July 1, 1990 15.5% July 2, 1988, through July 1, 1989 16% July 2, 1987, through July 1, 1988 16.5% July 2, 1986, through July 1, 1987 17% July 2, 1985, through July 1, 1986 17.5% 20250HB0408PN0984 - 2 - July 2, 1984, through July 1, 1985 18% 20250HB0408PN0380 - 2 - July 2, 1983, through July 1, 1984 18.5% July 2, 1982, through July 1, 1983 19% Prior to July 2, 1982 20% (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.

(iii) whose credited service does not include any 20250HB0408PN0984 - 3 - service credited as either Class T-D, Class D-4 or Class <--20250HB0408PN0380 - 3 - AA service;

and CLASS(iv) T-Dwho SERVICE;has not died before the effective date of this subparagraph.

<-- (III.1) WHO IS NOT A MULTIPLE SERVICE MEMBER WITH CLASS D-4 OR CLASS AA SERVICE CREDITED IN THE STATE EMPLOYEES' RETIREMENT SYSTEM;

AND (iv) who has not died before the effective date of this subparagraph.

(b) Amount of additional supplemental annuity.--The amount 20250HB0408PN0984 - 4 - of the supplemental annuity 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:

20250HB0408PN0380 - 4 - Most recent effective date Percentage factor of retirement July 2, 2000, through July 1, 2001 10% July 2, 1999, through July 1, 2000 10.5% July 2, 1998, through July 1, 1999 11% July 2, 1997, through July 1, 1998 11.5% July 2, 1996, through July 1, 1997 12% July 2, 1995, through July 1, 1996 12.5% July 2, 1994, through July 1, 1995 13% July 2, 1993, through July 1, 1994 13.5% July 2, 1992, through July 1, 1993 14% July 2, 1991, through July 1, 1992 14.5% July 2, 1990, through July 1, 1991 15% July 2, 1989, through July 1, 1990 15.5% July 2, 1988, through July 1, 1989 16% July 2, 1987, through July 1, 1988 16.5% July 2, 1986, through July 1, 1987 17% July 2, 1985, through July 1, 1986 17.5% July 2, 1984, through July 1, 1985 18% July 2, 1983, through July 1, 1984 18.5% July 2, 1982, through July 1, 1983 19% Prior to July 2, 1982 20% (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.

20250HB0408PN0984 - 5 - (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 20250HB0408PN0380 - 5 - modification of that option plan.

(f) Funding.--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, unless a different funding source is otherwise provided by State law.

AS PROVIDED IN SECTION 5508(E)(2) <-- (RELATING TO ACTUARIAL COST METHOD).

(iii) whose credited service does not include any service credited as either Class T-D, Class D-4 or Class <-- AA service;

and <--(iv) (III.1)who WHOhas ISnot NOTdied Abefore MULTIPLEthe SERVICEeffective MEMBERdate WITHof <--this CLASSsubparagraph. T-D SERVICE CREDITED IN THE PUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM;

AND(2) (iv)A whosupplemental hasannuity provided under this section shall not diedbe beforepayable to an annuitant receiving a withdrawal annuity prior to the effectivefirst dateday of thisJuly subparagraph.coincident with or following the annuitant's attainment of superannuation age.

20250HB0408PN0984 - 6 - (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.

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