Pensions

PSERS SERS

Administrative Operations Alternative Retirement Plans Early Retirement Benefits Employee Contributions Employer Contributions Fiduciary Responsibility Investments Membership Provisions Miscellaneous Normal Retirement Benefits Public Safety Employee Benefit Retirement Eligibility Survivor Benefits Vesting

Amends Titles 24 (Education) and 71 (State Government) to provide three new retirement benefit options applicable to most public employees hired by school or state employers beginning July 1, 2018 (PSERS) or January 1, 2018 (SERS). The new plan options would include two "side-by-side" hybrid retirement plans (includes defined benefit and defined contribution components) and a third stand-alone defined contribution plan. Current members of PSERS and SERS would be ineligible to participate in the new plans. Under the first hybrid plan, new members would contribute 5.5% and 3.0% (PSERS) or 5.0% and 3.5% (SERS) of compensation for the defined benefit (DB) and defined contribution (DC) components, respectively. The benefit accrual rate would be 1.25%. Under the second hybrid plan, new members would contribute at a lower rate, 4.5% (PSERS) or 4.0% (SERS), for the DB component. The benefit accrual rate would be 1.0%. For the stand-alone defined contribution plan, new members of PSERS and SERS would contribute 7.5% of compensation. The employer contribution rate would be 2.0% for PSERS and 3.5% for SERS. New members would vest after 10 years of service credit for the DB components of the two hybrid retirement plans and after 3 years for all DC plans.

House Bill 930 is a re-introduction of Senate Bill 1071 (P.N. 2202) of the 2015-2016 Legislative Session, which was recommitted to conference committee on October 27, 2016.