Vote Smart's Synopsis:

Vote to pass a bill that raises the retirement age for public employees, increases employee contributions to retirement and health care plans, and makes other changes to the public pension system.

Highlights:

• Requires all public employees to contribute a minimum of 1.5 percent of their base salary to the pension system and health care benefits system, in addition to a percentage of the cost of health care coverage that is to be determined by each employee's total annual income (Sec. 40).

• Increases the employee contribution rates from 5.5 percent to 6.5 percent, plus an additional 1 percent phased-in over 7 years, for members of the Teachers' Pension and Annuity Fund (TPAF) and the Public Employees' Retirement System (PERS) (Sec. 8).

• Increases the retirement age from 62 years to 65 years of age (Sec. 38).

• Authorizes the committees overseeing the pension systems to freeze the cost of living adjustment for pensions and to modify the basis for the calculation of the cost of living adjustment (Sec. 40).

• Establishes new pension committees as follows (Sec. 3):
• One 8-member committee for the Teachers' Pension and Annuity Fund (TPAF);
• One 8-member committee for the State Police Retirement System (SPRS);
• Two 8-member committees in the Public Employees' Retirement system (PERS), one for the state part of the PERS and one for the local part of the PERS; and
• Two 10-member committees in the Police and Firemen's Retirement System (PFRS), 1 for the state division of the PFRS and 1 for the local division of the PFRS.

• Authorizes the Governor to appoint half of the members of each committee and specifies that the other half of the committee members shall be appointed by labor organizations whose members are in the retirement system (Sec. 3).

• Authorizes each committee to modify the following (Sec. 3):
• The member contribution rate;
• The formula for calculation of final compensation or final salary;
• The fraction used to calculate a retirement allowance;
• The age at which a member may be eligible for benefits or early retirement; and
• The benefits and services provided for disability retirement.

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that raises the retirement age for public employees, increases employee contributions to retirement and health care plans, and makes other changes to the public pension system.

Highlights:

• Requires all public employees to contribute a minimum of 1.5 percent of their base salary to the pension system and health care benefits system, in addition to a percentage of the cost of health care coverage that is to be determined by each employee's total annual income (Sec. 40).

• Increases the employee contribution rates from 5.5 percent to 6.5 percent, plus an additional 1 percent phased-in over 7 years, for members of the Teachers' Pension and Annuity Fund (TPAF) and the Public Employees' Retirement System (PERS) (Sec. 8).

• Increases the retirement age from 62 years to 65 years of age (Sec. 38).

• Authorizes the committees overseeing the pension systems to freeze the cost of living adjustment for pensions and to modify the basis for the calculation of the cost of living adjustment (Sec. 40).

• Establishes new pension committees as follows (Sec. 3):
• One 8-member committee for the Teachers' Pension and Annuity Fund (TPAF);
• One 8-member committee for the State Police Retirement System (SPRS);
• Two 8-member committees in the Public Employees' Retirement system (PERS), one for the state part of the PERS and one for the local part of the PERS; and
• Two 10-member committees in the Police and Firemen's Retirement System (PFRS), 1 for the state division of the PFRS and 1 for the local division of the PFRS.

• Authorizes the Governor to appoint half of the members of each committee and specifies that the other half of the committee members shall be appointed by labor organizations whose members are in the retirement system (Sec. 3).

• Authorizes each committee to modify the following (Sec. 3):
• The member contribution rate;
• The formula for calculation of final compensation or final salary;
• The fraction used to calculate a retirement allowance;
• The age at which a member may be eligible for benefits or early retirement; and
• The benefits and services provided for disability retirement.

Full Bill Text