HB 581 Summary

• Establishes Employees' Investment Retirement Plan (EIRP) as optional accounts within Teachers' Retirement System and Employees' Retirement System allowing members to defer retirement benefits while continuing employment for 3-5 years.

• Tier I members must have 25 years creditable service, be at least 55 years old (52 for state police in ERS), and be eligible for service retirement; Tier II members must be at least 62 years old (56 for law enforcement/firefighters/corrections officers/state police in ERS).

• Members receive 80% of their monthly retirement allowance paid into EIRP account during participation period with employer and employee contributions continuing; voluntary termination within first 3 years results in forfeiture of the EIRP account balance.

• Upon withdrawal from service, members receive lump-sum payment from EIRP account plus monthly retirement benefit recalculated to include accrued sick leave; no participation in EIRP counts toward service credit and members cannot receive cost-of-living increases while participating.

• Effective date: January 1, 2020.