HB572 Summary

• Provides a funded one-time lump sum payment in fiscal year 2014-2015 to Teachers' Retirement System (TRS) retirees and beneficiaries who retired before October 1, 2013 and are receiving benefits as of September 30, 2014.

• Payment formula: $4 per month for each year of service or $1,200, whichever is greater for retirees; beneficiaries of deceased members or retirees receive a flat $1,200.

• Excludes individuals whose eligibility for Medicaid benefits would be impaired by the lump sum payment, both current beneficiaries and those who subsequently apply for Medicaid.

• Requires the TRS Board of Control to determine the total cost and notify employers of increased employer contribution rates for fiscal year 2014-2015, with costs paid from the same source as active member salaries.

• Payments to be distributed to all eligible recipients by October 2014; act becomes effective immediately upon passage and gubernatorial approval.