(a) Amount of annuity.--A member who has made application for a disability annuity and has been found to be eligible in accordance with the provisions of section 5905(c)(1) (relating to duties of the board regarding applications and elections of members and participants) shall receive a disability annuity payable from the effective date of disability as determined by the board and continued until a subsequent determination by the board that the annuitant is no longer entitled to a disability annuity. If the sum of the products of the number of years and fractional part of a year of credited service in each class and the appropriate class of service multiplier is greater than 16.667, the disability annuity shall be a single life annuity that is equal to the sum of the standard single life annuities determined separately for each class of service multiplied by the appropriate class of service multiplier, otherwise each standard single life annuity shall be multiplied by the lesser of the following ratios:

MY*/Y or 16.667/Y

Where Y = total number of years of credited service; Y* = total years of credited service if the member were to continue as a State employee until attaining superannuation age as applicable to that class of service at the time of disability, or if the member has attained superannuation age, as applicable to that class of service at the time of disability, then the number of years of credited service and M = the class of service multiplier as applicable to that class of service at the effective date of disability. A member of Class C shall receive, in addition, any annuity to which he may be eligible under section 5702(a)(3) (relating to maximum single life annuity). The member shall be entitled to the election of a joint and survivor annuity on that portion of the disability annuity to which he is entitled under section 5702.

(b) Benefit attributable to social security integration credit.--If the member has been found to be eligible for a disability annuity and has social security integration credits as provided in section 5305 (relating to social security integration credits), he may elect to withdraw his social security integration accumulated deductions or if he has five or more eligibility points to his credit and does not withdraw his social security integration accumulated deductions he may execute an application to be filed with the board to receive, in addition to his disability annuity, an annuity calculated in accordance with section 5702(a)(2).

(c) Reduction on account of earned income.--Subsequent to January 1, 1972, payments on account of disability shall be reduced by that amount by which the earned income of the annuitant, as reported in accordance with section 5908(b) (relating to rights and duties of annuitants), for the preceding calendar year together with the disability annuity payments provided in this section other than subsection (b), for the year, exceeds the product of:

(1) the last year's salary of the annuitant as a member of the system; and

(2) the ratio of the current monthly payment to the monthly payment at the effective date of disability;

Provided, That the annuitant shall not receive less than his member's annuity or the amount to which he may be entitled under section 5702 whichever is greater.

(d) Reduction on account of ineligibility.--Payment of that portion of the disability annuity in excess of the annuity to which the annuitant was entitled at the effective date of disability calculated in accordance with section 5702 shall cease if the annuitant is no longer eligible under the provisions of sections 5905(c)(2) or 5908(b) or (c).

(e) Termination of State service.--Upon termination of disability annuity payments in excess of an annuity calculated in accordance with section 5702, a disability annuitant who does not return to State service may file an application with the board for an amount equal to the excess, if any, of the sum of the shared-risk accumulated deductions plus the regular and additional accumulated deductions standing to his credit at the effective date of disability over one-third of the total disability annuity payments received. If the annuitant on the date of termination of service was eligible for an annuity as provided in section 5308(a) or (b) (relating to eligibility for annuities), he may file an application with the board for an election of an optional modification of his annuity.

(1) (Deleted by amendment).

(2) (Deleted by amendment).

(f) Supplement for service connected disability.--

(1) If a member has been found to be eligible for a disability annuity and if the disability has been found to be a service connected disability and if the member is receiving workers' compensation payments for other than medical benefits, such member shall receive a supplement equal to the amount determined under paragraph (2) less the sum of the annuity as determined under subsection (a) and any payments paid or payable on account of such disability under the act of June 2, 1915 (P.L.736, No.338), known as the Workers' Compensation Act, the act of June 21, 1939 (P.L.566, No.284), known as The Pennsylvania Occupational Disease Act, and the Social Security Act (49 Stat. 620, 42 U.S.C. § 301 et seq.). Such supplement shall continue as long as he is determined to be disabled and is receiving workers' compensation payments for other than medical benefits on account of his service connected disability in accordance with the Workers' Compensation Act or The Pennsylvania Occupational Disease Act. If the member has received a lump sum workers' compensation payment in lieu of future weekly compensation payments, the length in weeks and calculation of the service connected disability supplement shall be determined by dividing the lump sum payment by the average weekly wage as determined by the Workers' Compensation Board.

(2) For a member who does not have Class A-5 or Class A-6 service, the amount to be used to determine eligibility for the supplement under paragraph (1) shall be 70% of the member's final average salary. For a member who has Class A-5 or Class A-6 service, the amount to be used to determine eligibility for the supplement under paragraph (1) shall be calculated according to the following formula:

A = .7[(YW MULTIPLIED BY FASW)+(YP MULTIPLIED BY FASP)]

YT YT

(3) The following apply to the formula in paragraph (2):

(i) A equals the amount used to determine the supplement;

(ii) YT equals total years of credited service;

(iii) YW equals years of credited service that are not Class A-5 or Class A-6 service;

(iv) FASW equals final average salary calculated for credited service other than Class A-5 or Class A-6 service;

(v) YP equals years of service credited as Class A-5 or Class A-6 service; and

(vi) FASP equals final average salary calculated for service credited as Class A-5 or Class A-6 service.

(g) Limitation regarding annual benefit under IRC § 415.--Notwithstanding any provisions of this part to the contrary, no benefit shall be payable to the extent that such benefit exceeds any limitation under IRC § 415 as in effect with respect to governmental plans as such term is defined in IRC § 414(d) on the date the benefit payment becomes effective, provided however, that any increase in any limitation under IRC § 415 shall be applicable to all current and future annuitants and survivor annuitants.

(h) Coordination of benefits.--The determination and payment of a disability annuity under this section is in addition to any payments a member may be entitled to receive, has received or is receiving as a result of being a participant in the plan.

(Oct. 7, 1975, P.L.348, No.101, eff. imd.; July 22, 1983, P.L.104, No.31, eff. imd.; June 13, 1985, P.L.40, No.19, eff. imd.; Apr. 29, 1994, P.L.159, No.29, eff. 60 days; May 17, 2001, P.L.26, No.9; Apr. 23, 2002, P.L.272, No.38; Nov. 23, 2010, P.L.1269, No.120, eff. imd.; Dec. 28, 2015, P.L.529, No.93, eff. imd.; June 12, 2017, P.L.11, No.5, eff. imd.)

2017 Amendment. Act 5 amended subsecs. (a), (c), (e) and (f) and added subsec. (h).

2015 Amendment. Act 93 amended subsec. (g).

2002 Amendment. Act 38 amended subsecs. (c) and (f), effective January 1, 2003, as to subsec. (c) and immediately as to the remainder of the section.

2001 Amendment. Act 9 amended subsecs. (b) and (f) and added subsec. (g), effective immediately as to subsecs. (f) and (g) and July 1, 2001, as to the remainder of the section. See section 37 of Act 9 in the appendix to this title for special provisions relating to applicability of amendment of subsec. (b) to State Employees' Retirement System members.

Effective Date of Provisions. Section 4(3) of Act 31 of 1974 provided that, as applicable to officers of the Pennsylvania State Police, the provisions of section 5704(f) relating to service connected disability shall be effective July 1, 1973.

Cross References. Section 5704 is referred to in sections 5307, 5703, 5905 of this title.