Bill > HB408

This bill introduces a supplemental annuity program for certain retirement system members, effective July 1, 2025, which provides additional monthly payments to eligible benefit recipients based on their retirement date. The bill applies to two retirement systems: the Public School Employees' Retirement System and the State Employees' Retirement System. Eligible recipients must be receiving a superannuation, withdrawal, or disability annuity on July 1, 2025, have retired prior to July 2, 2001, and not have service credited in specific service classes (Class T-D, Class D-4, or Class AA). The supplemental annuity percentage ranges from 10% to 20% of the monthly annuity payment, with the percentage increasing for earlier retirement dates (those retiring before July 2, 1982, receive the maximum 20%). The additional annuity will be paid automatically unless the recipient files a written request to opt out, and it will be subject to the same terms and conditions as the existing option plan. The additional financial liability for these supplemental annuities will be funded through equal annual installments over a 10-year period beginning July 1, 2026. The bill also specifies that no supplemental annuity will be paid to beneficiaries or survivors of members who die before July 1, 2025.

Government Affairs

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=408