SB 564 — 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.   717

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                        SENATE BILL
                        No. 564
                                               Session of
                                                 2025

     INTRODUCED BY MUTH, KANE, TARTAGLIONE, SCHWANK, FONTANA,
        SANTARSIERO, PENNYCUICK, COSTA, HAYWOOD, SAVAL, 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            15%
14      July 2, 1999, through July 1, 2000            15.5%
15      July 2, 1998, through July 1, 1999            16%
16      July 2, 1997, through July 1, 1998            16.5%
17      July 2, 1996, through July 1, 1997            17%
18      July 2, 1995, through July 1, 1996            17.5%
19      July 2, 1994, through July 1, 1995            18%
20      July 2, 1993, through July 1, 1994            18.5%
21      July 2, 1992, through July 1, 1993            19%
22      July 2, 1991, through July 1, 1992            19.5%
23      July 2, 1990, through July 1, 1991            20%
24      July 2, 1989, through July 1, 1990            20.5%
25      July 2, 1988, through July 1, 1989            21%
26      July 2, 1987, through July 1, 1988            21.5%
27      July 2, 1986, through July 1, 1987            22%
28      July 2, 1985, through July 1, 1986            22.5%
29      July 2, 1984, through July 1, 1985            23%
30      July 2, 1983, through July 1, 1984            23.5%

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 1      July 2, 1982, through July 1, 1983                24%
 2      Prior to July 2, 1982                             24.5%
 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.--The additional liability for the increase in
17   benefits provided under this section shall be funded by the
18   Commonwealth in equal dollar annual installments over a period
19   of 10 years beginning July 1, 2026.
20      (g)   Eligible benefit recipient.--
21            (1)   An eligible benefit recipient is an individual:
22                  (i)    who is receiving a superannuation, withdrawal or
23            disability annuity on July 1, 2025;
24                  (ii)    whose most recent effective date of retirement
25            is prior to July 2, 2001; and
26                  (iii)   whose credited service does not include any
27            service credited as either Class T-D, Class D-4 or Class
28            AA service.
29            (2)   A supplemental annuity provided under this section
30      shall not be payable to an annuitant receiving a withdrawal

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 1      annuity prior to the first day of July coincident with or
 2      following the annuitant's attainment of superannuation age.
 3      Section 2.   Title 71 is amended by adding a section to read:
 4   § 5708.9.   Supplemental annuity commencing 2025.
 5      (a)   Benefits.--Commencing with the first monthly annuity
 6   payment after January 1, 2025, an eligible benefit recipient
 7   shall be entitled to receive an additional monthly supplemental
 8   annuity from the system. The additional monthly supplemental
 9   annuity under this section shall be in addition to the
10   supplemental annuities provided for under sections 5708
11   (relating to supplemental annuities), 5708.1 (relating to
12   additional supplemental annuities), 5708.2 (relating to further
13   additional supplemental annuities), 5708.3 (relating to
14   supplemental annuities commencing 1994), 5708.4 (relating to
15   special supplemental postretirement adjustment), 5708.5
16   (relating to supplemental annuities commencing 1998), 5708.6
17   (relating to supplemental annuities commencing 2002), 5708.7
18   (relating to supplemental annuities commencing 2003) and 5708.8
19   (relating to special supplemental postretirement adjustment of
20   2002).
21      (b)   Amount of additional supplemental annuity.--The amount
22   of the supplemental annuity under this section shall be a
23   percentage of the amount of the monthly annuity payment on
24   January 1, 2025, determined on the basis of the most recent
25   effective date of retirement as follows:
26      Most recent effective date              Percentage factor
27            of retirement
28      July 2, 2000, through July 1, 2001               15%
29      July 2, 1999, through July 1, 2000               15.5%
30      July 2, 1998, through July 1, 1999               16%

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 1      July 2, 1997, through July 1, 1998            16.5%
 2      July 2, 1996, through July 1, 1997            17%
 3      July 2, 1995, through July 1, 1996            17.5%
 4      July 2, 1994, through July 1, 1995            18%
 5      July 2, 1993, through July 1, 1994            18.5%
 6      July 2, 1992, through July 1, 1993            19%
 7      July 2, 1991, through July 1, 1992            19.5%
 8      July 2, 1990, through July 1, 1991            20%
 9      July 2, 1989, through July 1, 1990            20.5%
10      July 2, 1988, through July 1, 1989            21%
11      July 2, 1987, through July 1, 1988            21.5%
12      July 2, 1986, through July 1, 1987            22%
13      July 2, 1985, through July 1, 1986            22.5%
14      July 2, 1984, through July 1, 1985            23%
15      July 2, 1983, through July 1, 1984            23.5%
16      July 2, 1982, through July 1, 1983            24%
17      Prior to July 2, 1982                         24.5%
18      (c)   Payment.--The supplemental annuity provided under this
19   section shall be paid automatically unless the annuitant files a
20   written notice with the board requesting that the additional
21   monthly supplemental annuity not be paid.
22      (d)   Conditions.--The supplemental annuity provided under
23   this section shall be payable under the same terms and
24   conditions as provided under the option plan in effect as of
25   January 1, 2025, and shall be subject to any subsequent
26   modification of that option plan.
27      (e)   Benefits to beneficiaries or survivors.--No supplemental
28   annuity provided under this section shall be payable to the
29   beneficiary or survivor annuitant of a member who dies before
30   January 1, 2025.

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




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