Vote Smart's Synopsis:

Vote to pass a bill that increases member contribution rates to the state educational pension fund, effective July 1, 2013.

Highlights:

• Increases member contribution rates for employees of educational institutions who earn more than $20,000 annually according to the following schedule (Sec. 1):
• Increases contributions from 9.4 percent to 10.1 percent of each individual’s annual salary starting July 1, 2013 through June 30, 2014; and
• Increases contributions from 10.1 percent to 10.7 percent of each individual’s annual salary beginning July 1, 2014.

• Increases contributions for educational institutions according to the following schedule (Sec. 1):
• Increases contributions from 10.9 percent to 13.15 percent of each employee’s annual salary starting July 1, 2013 through June 30, 2014; and
• Increases contributions from 13.15 percent to 13.9 percent of each employee’s annual salary beginning July 1, 2014.

• Requires individuals who become members on or after July 1, 2013, to be at least 55 years old when retiring to receive unadjusted retirement benefits (Sec. 4).

• Requires consumer price index adjustments for the pensions of employees of educational institutions, who are initially hired on or after July 1, 2013, to take effect on the latter of the following dates (Sec. 7):
• July 1 of the year in which the individual becomes 67 years old; or
• July 1 of the year following the individual’s retirement.

Full Bill Text