Bill > SB721

This bill provides for supplemental annuities for eligible retirement system members, establishes new provisions for the Budget Stabilization Reserve Fund, and makes several key changes to Pennsylvania's retirement and fiscal laws. Specifically, the bill creates a new supplemental annuity for eligible benefit recipients in two retirement systems (Public School Employees' Retirement System and State Employees' Retirement System) starting July 1, 2025. The supplemental annuity amount varies based on the most recent retirement date, ranging from 15% to 24.5% of the monthly annuity payment, with specific eligibility requirements such as having retired before July 2, 2001 and not having certain types of service credits. The bill also modifies the Budget Stabilization Reserve Fund by establishing an Interest Account, which will transfer interest earnings to the General Fund annually starting July 1, 2025, to help fund these supplemental annuities. Additionally, the bill specifies that funds from the Budget Stabilization Reserve Fund can only be used for emergencies or economic downturns that cannot be addressed through the normal budget process, and it repeals a previous section of the Fiscal Code while ensuring continuity of existing activities and agreements.

Budget and Finance

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=S&type=B&bn=721