Bill > SB864

This bill amends Title 24 (Education) of the Pennsylvania Consolidated Statutes to provide a new supplemental annuity commencing in 2023. The key provisions include: 1. An eligible benefit recipient, defined as an individual receiving a superannuation, withdrawal, or disability annuity as of July 1, 2023, with a retirement date prior to July 2, 2001, and without any service credited as Class T-D, Class D-4, or Class AA, will receive an additional monthly supplemental annuity. 2. The amount of the supplemental annuity will be a percentage of the monthly annuity payment on July 1, 2023, based on the most recent effective date of retirement, ranging from 15% to 24.5%. 3. The supplemental annuity will be paid automatically by the Commonwealth, unless the annuitant requests not to receive it. 4. The supplemental annuity will be subject to the same terms and conditions as the option plan in effect as of July 1, 2023, and any subsequent modifications to that plan. 5. The additional liability for the increased benefits will be funded by the Commonwealth in equal dollar annual installments over a 10-year period beginning July 1, 2024. 6. The bill also introduces an automatic cost-of-living adjustment for eligible annuitants, which will be applied every three years based on the average percentage change in the Consumer Price Index for the preceding three-year period, with a minimum increase of 1% and a maximum of 7%.