Pennsylvania House Bill HB408

Pennsylvania 2025-2026 Regular Session

• Introduced: 1/29/25
• Refer: 1/29/25

Caption

In membership, contributions and benefits, providing for supplemental annuity commencing 2025; and, in benefits, providing for supplemental annuity commencing 2025.

Impact

The bill proposes a structured formula for determining the amount of additional annuity payments due to eligible recipients starting in 2025. The funding for these additional benefits will be distributed over a period of ten years beginning July 1, 2026, creating a financial obligation for the state to appropriately allocate resources for this purpose. The broad impact of HB 408 lies in its potential to enhance the financial security of older retirees, particularly those who may have been negatively affected by stagnant benefit levels in previous years.

Summary

House Bill 408 is a legislative proposal concerning the establishment of supplemental annuities for eligible benefit recipients beginning in July 2025. This bill amends Titles 24 (Education) and 71 (State Government) of the Pennsylvania Consolidated Statutes, introducing provisions related to the calculation and distribution of additional monthly supplementary annuities. The key feature of this bill is to ensure that those who have retired prior to July 2, 2001, and meet specific conditions, receive a supplementary amount on top of their existing retirement annuities, based on a predetermined percentage of their monthly payments upon retirement.

Sentiment

Discussions surrounding HB 408 have generally been positive, highlighting the bill as a crucial step towards improving the financial well-being of public sector retirees. Legislators supporting the bill express a strong commitment to addressing the needs of older retirees, presenting it as a long-overdue adjustment to prior annuity payments. However, some concerns have been raised regarding the sustainability of funding these additional incentives, alongside the potential impact on the state's budget and other financial obligations.

Contention

Notable points of contention primarily revolve around the eligibility criteria outlined in the bill and the percentages outlined for the supplemental annuities. Some opponents argue that the criteria may exclude a significant number of potential beneficiaries who could also be in need. Additionally, ensuring consistent funding to meet the bill’s promises poses a challenge, with critics questioning whether the state can uphold this commitment without compromising other essential services.