Pensions

SERS

Normal Retirement Benefits Post Retirement Adjustments

Provides cost-of-living adjustments for certain SERS annuitants that retired prior to July 2, 2001. Adjustments range from 4.5-15% of current annuities depending on year of retirement. Initial adjustments would be effective beginning July 1, 2023 (SERS). Funding for these adjustments will be made in ten-year, equal dollar installments beginning July 1, 2024. The bill also provides for automatic cost-of-living adjustments beginning July 1, 2024 for qualified individuals who have been receiving an annuity for at least five years. The adjustments would be made every three years. The annuity would be increased by the average change in the CPI-U for the Pennsylvania, New Jersey, Delaware and Maryland area that is recorded for the three-year period before the increase is set to take place and calculated on a July 1 cycle for that period. These automatic adjustments would begin the July 1 after the fifth anniversary of the individual's retirement date, for those who retire on or after July 1, 2024. The cost-of-living-adjustment used may never exceed 7% or be less than 1%. If an annuitant's annual payment exceeds the median Pennsylvania wage earner's income from the most recent decennial census, the adjustment factor will only be applied to the portion of the annual annuity below the median income. Funding for these adjustments shall be funded as part of the employer contribution rate set annually by SERS and its board.