House Bill 1073
2017-2018
Tobash
1272
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 1% 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 similar to House Bill 1074; however, the annual pay limit for the defined benefit component is indexed by 1% per year instead of 3% per year.
PN 1272 | Referred to STATE GOVERNMENT, April 7, 2017 |