Pensions

PSERS SERS

Administrative Expenses 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, 2019 (PSERS) or January 1, 2019 (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. Under the first hybrid plan, new members would contribute 5.5% and 2.75% (PSERS) or 5.0% and 3.25% (SERS) of compensation for the defined benefit (DB) and defined contribution (DC) components, respectively. The employer contribution rate for the DC component would be 2.25% of compensation. The benefit accrual rate for the DB component 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, and at a higher rate, 3.0% (PSERS) or 3.5% (SERS), for the DC component. The employer contribution rate for the DC component would be 2.0% of compensation. The benefit accrual rate for the DB component 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.

Senate Bill 1 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.