HB396 Summary

• Reduces minimum required fixed income securities investment from 25 percent to 15 percent of pension fund assets.

• Increases employer contribution rate to pension system phased in by: 7.25 percent (July 1, 2017), 8.50 percent (July 1, 2018), and 9 percent (July 1, 2020).

• For participants hired after July 1, 2017: raises normal retirement age to 62 with 10+ years of service (or 30 years regardless of age), reduces maximum retirement benefit to 67.5 percent of final average salary, and increases vesting requirement to 10 years of service.

• For participants hired after July 1, 2017: requires 10 years of credited service for disability and survivor benefits eligibility; provides involuntary retirement benefit after 20+ years of service before age 62; limits survivor benefits to accrue from age 62 onward (instead of age 60).

• Act becomes effective immediately upon passage and Governor approval.