PA HB408

Establishes a new supplemental annuity for Pennsylvania public school employees and state employees who retired before July 2, 2001, with payments beginning after July 1, 2025

Provides percentage increases to monthly annuity payments ranging from 10% (for those who retired between July 2000-July 2001) to 20% (for those who retired before July 1982), with the percentage increasing by 0.5% for each additional year of retirement

Excludes retirees with Class T-D, Class D-4, or Class AA service credits, as well as multiple service members with certain cross-system service credits

Payments are automatic unless annuitants opt out in writing; survivor annuitants of members who died before July 1, 2025 are not eligible for the supplemental benefit

Additional liability will be funded through equal annual installments over 10 years beginning July 1, 2026, unless alternative funding is provided by state law