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Reduction of annuities on account of social security old-age insurance benefits - 24 Pa. Cons. Stat. § 8343

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     § 8343.  Reduction of annuities on account of social security
                old-age insurance benefits.
        (a)  General rule.--A joint coverage member who is eligible
     to receive an annuity under section 8307(a) or (b) (relating to
     eligibility for annuities) shall be entitled to receive the
     annuity provided for in section 8342 (relating to maximum single
     life annuity) and section 8348 (relating to supplemental
     annuities) which shall be reduced at the time at which the
     member would be entitled to receive full social security old-age
     insurance benefits whether or not he has applied for such
     benefits. The reduction shall be an amount equal to 40% of the
     primary insurance amount paid or payable to him and subject to
     the following provisions:
            (1)  The eligibility of such member for the old-age
        insurance benefit and the amount of such benefit upon which
        the reduction in his annuity shall be based shall be
        determined by the board in accordance with the provisions of
        the Federal Social Security Act, 42 U.S.C.A. § 301 et seq.,
        in effect on the effective date of retirement, except that in
        determining such eligibility and such amount only wages or
        compensation for services covered by the system shall be
        included.
            (2)  The reduction shall not be more than one-half of the
        standard single life annuity multiplied by the ratio of the
        sum of the three years of highest taxable wages to an amount
        equal to three times the final average salary and by the
        ratio of the years of credited service after December 31,
        1955 to total years of credited service.
            (3)  Whenever the amount of the reduction from the
        annuity shall have been once determined, it shall remain
        fixed for the duration of the annuity except that any
        decrease in the old-age insurance benefit under the Federal
        Social Security Act, 42 U.S.C.A. § 301 et seq., shall result
        in a corresponding decrease in the amount of the reduction
        from the annuity.
        (b)  Exception.--The reduction provided for in subsection (a)
     shall not apply to disability annuities.

Last modified: November 27, 2007