HB387 Summary

• Provides a one-time funded lump-sum payment to Employees' Retirement System (ERS) retirees and beneficiaries with retirement effective dates prior to October 1, 2013, who are receiving benefits on September 30, 2014.

• Calculates lump-sum payment as $2 per month for each year of service earned, or $300, whichever is greater; beneficiaries of deceased members receive a flat $300 payment.

• Employers participating in ERS under certain code sections may elect to come under the act, with each electing employer bearing the full cost of payments to their retirees through increased employer contribution rates.

• Excludes individuals whose Medicaid eligibility would be impaired by the lump-sum payment, with the exclusion applying to those currently receiving Medicaid or those whose subsequent Medicaid applications would be affected.

• Directs payment of all lump-sum amounts by the ERS in October 2014 and establishes that employers pay increased rates for fiscal year 2014-2015 in the same manner as active member salaries are funded.