Vote Smart's Synopsis:

Vote to pass a bill that establishes new pension guidelines.

Highlights:

• Establishes that all changes only apply to individuals who became a reciprocal member of an eligible retirement system or pension fund on or after January 1, 2011 (Sec. 5).

• Specifies all individuals over the age of 65 who have served 10 years of service credit are entitled to a retirement annuity upon written application (Sec. 5).

• Specifies that payments to participants retiring at age 62 will be reduced by .5% for each full month the individual is below the age of 67 (Sec. 5).

• Specifies that payments to participants retiring at age 60 will be reduced by .5% for each full month the individual’s age is below the age of 65 (Sec. 5).

• Specifies that after the pension fund reaches the 90% of the funding goal, the average employee contribution will be 5.5% his or her wage or salary (Sec. 8).

• Specifies that the state’s required contribution will increase from $266 million in 2018 to $576 million in 2022 (Sec. 7).

• Specifies that if the state fails to deposit the required amount into the pension fund, the comptroller has unilateral authority to transfer the required amount into the fund (Sec. 7).

• Specifies that if an injured employees or their representative brings a case to court and judgement is obtained, paid, or settled, an amount equal to the regular payment of the individual must be paid to the state pension fund, which can hold a lien on the settlement (Sec. 8).

• Specifies that any refund from the general pension fund will based off of an individual’s contribution to the fund less the amount received by the individual or their beneficiaries (Sec. 11).

• Specifies that if a city can’t pay the age and service annuity or widow’s annuity, the city is mandated to do so as soon as they are capable (Sec. 11).

• Specifies that any levies held by the city may not exceed the city’s total contribution to the pension fund for the next payment year (Sec. 8).

Full Bill Text

Highlights:

Vote Smart staff and volunteers have provided this synopsis based on an initial review of the text and voting record of SB 14. We will continue to analyze the contents of this bill and will have more information available as soon as possible.

For further status information, email the Key Votes Department at votes@votesmart.org or call the Voter's Research Hotline at 1-888-VOTE-SMART (1-888-868-3762).

Full Bill Text