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PA SB721
Bill
Status
6/11/2025
Primary Sponsor
Frank Farry
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AI Summary
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Provides supplemental annuity increases of 15% to 24.5% for Pennsylvania public school employees (PSERS) and state employees (SERS) who retired before July 2, 2001, with higher percentages for those who retired earlier (24.5% for pre-July 1982 retirees)
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Supplemental payments begin with the first monthly annuity after July 1, 2025, calculated as a percentage of the recipient's current monthly benefit based on their retirement date
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Excludes retirees with Class T-D, Class D-4, or Class AA service credits, as well as beneficiaries or survivors of members who died before July 1, 2025
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Establishes the Budget Stabilization Reserve Fund Interest Account to capture interest earned on the Rainy Day Fund, with annual transfers to the General Fund beginning July 1, 2025 to pay for the supplemental annuities
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PSERS benefit liability funded through equal annual installments over 10 years beginning July 1, 2026; SERS liability funded through existing actuarial cost method provisions
Legislative Description
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.
Last Action
Referred to Finance
6/11/2025