Bill > SB565

This bill amends pension laws for certain public employees by establishing two new supplemental annuity programs, one commencing in 2025 and another in 2026, for eligible benefit recipients. For the 2025 supplemental annuity, eligible recipients will receive an additional monthly payment based on a percentage scale that ranges from 4.5% to 14%, depending on their retirement date before July 2, 2001. The 2026 supplemental annuity will be calculated based on the average Consumer Price Index (CPI-U) increase for the Pennsylvania-Maryland-Delaware-New Jersey area, with a minimum of 1% and a maximum of 7% of the monthly annuity payment. Both supplemental annuities are automatically paid unless an annuitant specifically requests otherwise and are only available to individuals receiving superannuation, withdrawal, or disability annuities who do not have certain specific service classifications. The additional costs for these supplemental annuities will be funded by the Commonwealth over 10-year periods, with school districts and other educational institutions not being responsible for the increased benefits. The bill applies to both education and state government pension systems and takes effect immediately upon enactment.

Budget and Finance

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=S&type=B&bn=565