Read the full stored bill text
PRINTER'S NO. 943
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 721
Session of
2025
INTRODUCED BY FARRY, PENNYCUICK, BROWN, ROBINSON, BAKER,
BARTOLOTTA, FONTANA, SCHWANK, KANE, SAVAL AND CULVER,
JUNE 11, 2025
REFERRED TO FINANCE, JUNE 11, 2025
AN ACT
Amending Titles 24 (Education), 71 (State Government) and 72
(Taxation and Fiscal Affairs) of the Pennsylvania
Consolidated Statutes, in membership, contributions and
benefits, providing for supplemental annuity commencing 2025;
in benefits, providing for supplemental annuity commencing
2025; providing for special funds and for disposition of
Budget Stabilization Reserve Fund; establishing the Budget
Stabilization Reserve Fund Interest Account; and making a
repeal.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 24 of the Pennsylvania Consolidated
Statutes is amended by adding a section to read:
§ 8348.8. Supplemental annuity commencing 2025.
(a) Benefits.--Commencing with the first monthly annuity
payment after July 1, 2025, an eligible benefit recipient shall
be entitled to receive an additional monthly supplemental
annuity from the system. The additional monthly supplemental
annuity under this section shall be in addition to the
supplemental annuities provided for under sections 8348
(relating to supplemental annuities), 8348.1 (relating to
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
additional supplemental annuities), 8348.2 (relating to further
additional supplemental annuities), 8348.3 (relating to
supplemental annuities commencing 1994), 8348.4 (relating to
special supplemental postretirement adjustment), 8348.5
(relating to supplemental annuities commencing 1998), 8348.6
(relating to supplemental annuities commencing 2002) and 8348.7
(relating to supplemental annuities commencing 2003).
(b) Amount of additional supplemental annuity.--The amount
of the supplemental annuity payable under this section shall be
a percentage of the amount of the monthly annuity payment on
July 1, 2025, determined on the basis of the most recent
effective date of retirement as follows:
Most recent effective date Percentage factor
of retirement
July 2, 2000, through July 1, 2001 15%
July 2, 1999, through July 1, 2000 15.5%
July 2, 1998, through July 1, 1999 16%
July 2, 1997, through July 1, 1998 16.5%
July 2, 1996, through July 1, 1997 17%
July 2, 1995, through July 1, 1996 17.5%
July 2, 1994, through July 1, 1995 18%
July 2, 1993, through July 1, 1994 18.5%
July 2, 1992, through July 1, 1993 19%
July 2, 1991, through July 1, 1992 19.5%
July 2, 1990, through July 1, 1991 20%
July 2, 1989, through July 1, 1990 20.5%
July 2, 1988, through July 1, 1989 21%
July 2, 1987, through July 1, 1988 21.5%
July 2, 1986, through July 1, 1987 22%
July 2, 1985, through July 1, 1986 22.5%
20250SB0721PN0943 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
July 2, 1984, through July 1, 1985 23%
July 2, 1983, through July 1, 1984 23.5%
July 2, 1982, through July 1, 1983 24%
Prior to July 2, 1982 24.5%
(c) Payment.--The supplemental annuity provided under this
section shall be paid automatically unless the annuitant files a
written notice with the board requesting that the additional
monthly supplemental annuity not be paid.
(d) Conditions.--The supplemental annuity provided under
this section shall be payable under the same terms and
conditions as provided under the option plan in effect as of
July 1, 2025, and shall be subject to any subsequent
modification of that option plan.
(e) Benefits to beneficiaries or survivors.--No supplemental
annuity provided under this section shall be payable to the
beneficiary or survivor annuitant of a member who dies before
July 1, 2025, or the effective date of this subsection,
whichever is later.
(f) Funding.--The additional liability for the increase in
benefits provided under this section shall be funded in equal
dollar annual installments over a period of 10 years beginning
July 1, 2026, unless a different funding source is otherwise
provided by State law.
(g) Eligible benefit recipient.--
(1) An eligible benefit recipient is an individual:
(i) who is receiving a superannuation, withdrawal or
disability annuity on July 1, 2025;
(ii) whose most recent effective date of retirement
is prior to July 2, 2001;
(iii) whose credited service does not include any
20250SB0721PN0943 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
service credited as Class T-D service;
(iii.1) who is not a multiple service member with
Class D-4 or Class AA service credited in the State
Employees' Retirement System; and
(iv) who has not died before the effective date of
this subparagraph.
(2) A supplemental annuity provided under this section
shall not be payable to an annuitant receiving a withdrawal
annuity prior to the first day of July coincident with or
following the annuitant's attainment of superannuation age.
Section 2. Title 71 is amended by adding a section to read:
§ 5708.9. Supplemental annuity commencing 2025.
(a) Benefits.--Commencing with the first monthly annuity
payment after July 1, 2025, an eligible benefit recipient shall
be entitled to receive an additional monthly supplemental
annuity from the system. The additional monthly supplemental
annuity under this section shall be in addition to the
supplemental annuities provided for under sections 5708
(relating to supplemental annuities), 5708.1 (relating to
additional supplemental annuities), 5708.2 (relating to further
additional supplemental annuities), 5708.3 (relating to
supplemental annuities commencing 1994), 5708.4 (relating to
special supplemental postretirement adjustment), 5708.5
(relating to supplemental annuities commencing 1998), 5708.6
(relating to supplemental annuities commencing 2002), 5708.7
(relating to supplemental annuities commencing 2003) and 5708.8
(relating to special supplemental postretirement adjustment of
2002).
(b) Amount of additional supplemental annuity.--The amount
of the supplemental annuity under this section shall be a
20250SB0721PN0943 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
percentage of the amount of the monthly annuity payment on July
1, 2025, determined on the basis of the most recent effective
date of retirement as follows:
Most recent effective date Percentage factor
of retirement
July 2, 2000, through July 1, 2001 15%
July 2, 1999, through July 1, 2000 15.5%
July 2, 1998, through July 1, 1999 16%
July 2, 1997, through July 1, 1998 16.5%
July 2, 1996, through July 1, 1997 17%
July 2, 1995, through July 1, 1996 17.5%
July 2, 1994, through July 1, 1995 18%
July 2, 1993, through July 1, 1994 18.5%
July 2, 1992, through July 1, 1993 19%
July 2, 1991, through July 1, 1992 19.5%
July 2, 1990, through July 1, 1991 20%
July 2, 1989, through July 1, 1990 20.5%
July 2, 1988, through July 1, 1989 21%
July 2, 1987, through July 1, 1988 21.5%
July 2, 1986, through July 1, 1987 22%
July 2, 1985, through July 1, 1986 22.5%
July 2, 1984, through July 1, 1985 23%
July 2, 1983, through July 1, 1984 23.5%
July 2, 1982, through July 1, 1983 24%
Prior to July 2, 1982 24.5%
(c) Payment.--The supplemental annuity provided under this
section shall be paid automatically unless the annuitant files a
written notice with the board requesting that the additional
monthly supplemental annuity not be paid.
(d) Conditions.--The supplemental annuity provided under
20250SB0721PN0943 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
this section shall be payable under the same terms and
conditions as provided under the option plan in effect as of
July 1, 2025, and shall be subject to any subsequent
modification of that option plan.
(e) Benefits to beneficiaries or survivors.--No supplemental
annuity provided under this section shall be payable to the
beneficiary or survivor annuitant of a member who dies before
July 1, 2025, or the effective date of this subsection,
whichever is later.
(f) Funding.--The additional liability for the increase in
benefits provided under this section shall be funded as provided
in section 5508(e)(2) (relating to actuarial cost method).
(g) Eligible benefit recipient.--
(1) An eligible benefit recipient is an individual:
(i) who is receiving a superannuation, withdrawal or
disability annuity on July 1, 2025;
(ii) whose most recent effective date of retirement
is prior to July 2, 2001;
(iii) whose credited service does not include any
service credited as either Class D-4 or Class AA service;
(iii.1) who is not a multiple service member with
Class T-D service credited in the Public School
Employees' Retirement System; and
(iv) who has not died before the effective date of
this subparagraph.
(2) A supplemental annuity provided under this section
shall not be payable to an annuitant receiving a withdrawal
annuity prior to the first day of July coincident with or
following the annuitant's attainment of superannuation age.
Section 3. Title 72 is amended by adding a chapter to read:
20250SB0721PN0943 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
CHAPTER 19
SPECIAL FUNDS
Subchapter
A. Preliminary Provisions
B. Budget Stabilization Reserve Fund
SUBCHAPTER A
PRELIMINARY PROVISIONS
(Reserved)
SUBCHAPTER B
BUDGET STABILIZATION RESERVE FUND
Sec.
1911. Disposition of Budget Stabilization Reserve Fund.
§ 1911. Disposition of Budget Stabilization Reserve Fund.
(a) Purpose.--It is the intent of the General Assembly that:
(1) Money from the Budget Stabilization Reserve Fund be
appropriated only when emergencies involving the health,
safety or welfare of the residents of this Commonwealth or
downturns in the economy resulting in significant
unanticipated revenue shortfalls cannot be dealt with through
the normal budget process.
(2) Money in the Budget Stabilization Reserve Fund shall
not be used to begin new programs but to provide for the
continuation of vital public programs in danger of being
eliminated or severely reduced due to financial problems
resulting from the economy.
(b) Appropriation.-- Except as provided under subsections (c)
and (d), whenever the Governor determines that an appropriation
from the Budget Stabilization Reserve Fund is necessary to meet
emergencies involving the health, safety or welfare of the
residents of this Commonwealth or to counterbalance downturns of
20250SB0721PN0943 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
the economy which result in significant unanticipated revenue
shortfalls, the Governor shall present a request for an
appropriation which may include the specifics of the proposal
and suggested ancillary and substantive legislation as may be
necessary to the chairperson of the Appropriations Committee of
the Senate and the chairperson of the Appropriations Committee
of the House of Representatives. The General Assembly may then
through approval of a separate appropriation bill by a vote of
two-thirds of the members elected to the Senate and the House of
Representatives appropriate money from the Budget Stabilization
Reserve Fund to meet the needs identified in the Governor's
proposal. Any money appropriated according to this section which
has then lapsed shall be returned to the Budget Stabilization
Reserve Fund.
(c) Transfer.--No later than November 30, 2020, $100,000,000
shall be transferred from the Budget Stabilization Reserve Fund
to the General Fund and shall be available for appropriation by
the General Assembly.
( d) Interest account.--
(1) The Budget Stabilization Reserve Fund Interest
Account is established as a restricted account within the
Budget Stabilization Reserve Fund.
(2) Interest accruing on money in the Budget
Stabilization Reserve Fund shall be transferred to the Budget
Stabilization Reserve Fund Interest Account on a continuing
basis.
(3) On July 1, 2025, and on July 1 of each year
thereafter, money in the Budget Stabilization Reserve Fund
Interest Account shall be transferred to the General Fund and
shall be available for appropriation by the General Assembly
20250SB0721PN0943 - 8 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
for the payment of supplemental annuities under 24 Pa.C.S. §
8348.8 (relating to supplemental annuity commencing 2025) and
71 Pa.C.S. § 5708.9 (relating to supplemental annuity
commencing 2025).
Section 4. Repeals are as follows:
(1) The General Assembly declares that the repeal under
paragraph (2) is necessary to effectuate the addition of 72
Pa.C.S. § 1911.
(2) Section 1703-A of the act of April. 9, 1929
(P.L.343, No.176), known as The Fiscal Code, is repealed.
Section 5. The addition of 72 Pa.C.S. § 1911 is a
continuation of section 1703-A of the act of April. 9, 1929
(P.L.343, No.176), known as The Fiscal Code. The following
apply:
(1) Except as otherwise provided in 72 Pa.C.S. § 1911,
all activities initiated under section 1703-A of The Fiscal
Code shall continue and remain in full force and effect and
may be completed under 72 Pa.C.S. § 1911. Orders,
regulations, rules and decisions which were made under
section 1703-A of The Fiscal Code and which are in effect on
the effective date of section 4(2) of this act shall remain
in full force and effect until revoked, vacated or modified
under 72 Pa.C.S. § 1911. Contracts, obligations and
collective bargaining agreements entered into under section
1703-A of The Fiscal Code are not affected nor impaired by
the repeal of section 1703-A of The Fiscal Code.
(2) Except as specified in paragraph (3), any difference
in language between 72 Pa.C.S. § 1911 and section 1703-A of
The Fiscal Code is intended only to conform to the style of
the Pennsylvania Consolidated Statutes and is not intended to
20250SB0721PN0943 - 9 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
change or affect the legislative intent, judicial
construction or administration and implementation of section
1703-A of The Fiscal Code.
(3) Paragraph (2) does not apply to the addition of 72
Pa.C.S. § 1911(b) and (d).
Section 6. This act shall take effect immediately.
20250SB0721PN0943 - 10 -
1
2
3
4
5
6