Pensions

PSERS SERS

Administrative Operations Alternative Retirement Plans 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 a "stacked" hybrid retirement benefit plan (includes defined benefit and defined contribution components) to most public employees hired by school or state employers beginning July 1, 2018 (PSERS) or January 1, 2018 (SERS). Under the defined benefit component, new members would contribute 6.0% of compensation for the first $50,000 for the first 25 years of service. The benefit formula would be 2.0% multiplied by the member's years of service (maximum of 25 years), multiplied by the member's final average salary (highest five years), with an annual pay limit of $50,000 indexed by 3% per year. New members would vest after 10 years of service credit. Under the defined contribution component, new members would contribute 1.5% of compensation of the first $50,000 for the first 25 years of service and 7.5% of compensation on pay above $50,000 or any service over 25 years. The employer contribution would be 0.5% of the member's first $50,000 of compensation for the first 25 years of service and 4.0% of compensation on pay above $50,000 or any service over 25 years.

House Bill 1073 is a re-introduction of Senate Bill 1071 (P.N. 1913) of the 2015-2016 Legislative Session, which was passed out of the House. The Senate non-concurred and the bill was recommitted to conference committee on October 27, 2016. For an actuarial note, see Amendment Numbers 06859 and 06888 to House Bill 727 (P.N. 1555).