Tom Barrett voted Yea (Passage) on this Legislation.
Title: Establishes Teacher Pension Plan
Title: Establishes Teacher Pension Plan
Vote to pass a bill that establishes a new pension system that would automatically enroll teachers and other public school employees in an enriched 401(k) retirement savings account.
Requires that all retirement contributions must be split 50-50 between the employer and employee (Sec. 41).
Requires the retirement system to have both fixed and variable annuity options available (Sec. 108).
Prohibits the normal cost contribution rate to teacher retirement plans from being less than the cost of the immediately preceding year (Sec. 41).
Specifies that the unfunded actuarial accrued liability of an employer’s payroll may not exceed 20.96% for a reporting unit that is not a university (Sec. 41).
Establishes that the department will assume a 6% rate of return on investments per year of teachers who entered the retirement savings system after February 1, 2018 (Sec. 41).
Specifies that the department assumes an annual salary increase of 4% for teachers (Sec. 41).
Authorizes the retirement system to determine different rates for individuals who became members between July 1, 2010 and February 1, 2018 (Sec. 41).
Specifies that if a member dies, the payments they made must be refunded to their beneficiary if requested (Sec. 42).
Prohibits individuals from purchasing more than 5 years of service credit towards retirement allowance eligibility (Sec. 69).
Requires service credit to be granted when an individual is on a sabbatical leave authorized by a reporting unit (Sec. 71).
Prohibits purchasing service credit for the time of an individual’s absence that occurred during childbirth and recuperation (Sec. 79).
Title: Establishes Teacher Pension Plan