Vote Smart's Synopsis:

Vote to adopt an amendment to HB 2333 that establishes new retirement plans for public employees hired on or after January 1, 2014.

Highlights:

• Establishes defined contribution plans for public school, community college, and other eligible employees hired on or after January 1, 2014 (Sec. 2).

• Exempts the police, firemen, and judge’s retirement system from the new retirement plan (Sec. 1).

• Requires the board to establish separate accounts for the mandatory contributions of each member who is not a public school or community college employee, which shall be administered as defined contribution plans (Sec. 3).

• Requires public school and community college employers to contribute at least 6 percent of an employee’s salary to their retirement plans, up to the dollar amount allowed by the internal revenue code (Sec. 5).

• Authorizes public school and community college employees to make an additional, discretionary contribution to their retirement plans (Sec. 5).

• Requires individuals who are not public school or community college employees to contribute 6 percent of their compensation to their individual retirement account (Sec. 5).

• Requires the board of trustees and employers to give an employee at least 3 options of annuity or investment providers which have been selected through a competitive proposal process (Sec. 6).

• Requires employers to credit an employee’s annuity account at the end of each quarter in the following manner (Secs. 3, 9 &10):
• 1 percent of compensation for members with under 1 year of service;
• 1.5 percent of compensation for members with between 1 and 2 years of service;
• 2 percent of compensation for members with between 2 and 3 years of service;
• 2.5 percent of compensation for members with between 3 and 4 years of service;
• 3 percent of compensation for members with between 4 and 5 years of service;
• 3.5 percent of compensation for members with between 5 and 6 years of service;
• 4 percent of compensation for members with between 6 and 7 years of service; and
• 4.5 percent of compensation for members with between 7 and 8 years of service.

• Specifies that at any time after an employee’s termination or death the employee or their family member may file an application with the board of trustees to receive money from the employee’s retirement account through (Sec. 12):
• A direct rollover to an eligible retirement plan;
• A lump sum distribution; or
• Periodic distribution of the funds as directed by the board of trustees.

Full Bill Text