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Maximum single life annuity - 24 Pa. Cons. Stat. § 8342

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     § 8342.  Maximum single life annuity.
        (a)  General rule.--Upon termination of service, any full
     coverage member who is eligible to receive an annuity pursuant
     to the provisions of section 8307(a) or (b) (relating to
     eligibility for annuities) and has made an application in
     accordance with the provisions of section 8507(f) (relating to
     rights and duties of school employees and members) shall be
     entitled to receive a maximum single life annuity attributable
     to his credited service and equal to the sum of the following
     single life annuities beginning at the effective date of
     retirement and, in case the member on the effective date of
     retirement is under superannuation age, multiplied by a
     reduction factor calculated to provide benefits actuarially
     equivalent to an annuity starting at superannuation age:
     Provided however, That on or after July 1, 1976, in the case of
     any member who has attained age 55 and has 25 or more
     eligibility points such sum of single life annuities shall be
     reduced by a percentage determined by multiplying the number of
     months, including a fraction of a month as a full month, by
     which the effective date of retirement precedes superannuation
     age by 1/4%:
            (1)  A standard single life annuity multiplied by the
        class of service multiplier and calculated on the basis of
        the number of years of credited school service other than
        concurrent service.
            (2)  A standard single life annuity multiplied by the
        class of service multiplier and calculated on the basis of
        the number of years of concurrent service and multiplied by
        the ratio of total compensation received in the school system
        during the period of concurrent service to the total
        compensation received during such period.
            (3)  A supplemental annuity such that the total annuity
        prior to any optional modification or any reduction due to
        retirement prior to superannuation age shall be at least $100
        for each full year of credited service.
        (b)  Present value of annuity.--The present value of the
     maximum single life annuity as calculated in accordance with
     subsection (a) shall be determined by multiplying the maximum
     single life annuity by the cost of a dollar annuity on the
     effective date of retirement. Such present value shall be
     decreased only as specifically provided in this part.
        (c)  Limitation regarding annual benefit under IRC §
     415(b).--Notwithstanding any provision of this part to the
     contrary, no benefit shall be payable to the extent that such
     benefit exceeds any limitation under IRC § 415(b) in effect with
     respect to governmental plans, as such term is defined in IRC §
     414(d), on the date the benefit payment becomes effective.
     (Dec. 18, 1979, P.L.566, No.130, eff. imd.; May 17, 2001,
     P.L.26, No.9, eff. imd.)

        2001 Amendment.  Act 9 added subsec. (c).
        1979 Amendment.  Act 130 amended subsec. (a).
        Cross References.  Section 8342 is referred to in sections
     8312, 8313, 8343, 8344, 8345, 8505 of this title.

Last modified: November 27, 2007