HB77 - Tier III Teacher Recruitment and Retention Act

• Establishes a new Tier III defined benefit retirement plan for Teachers' Retirement System members who first become eligible on or after January 1, 2013, except Tier II members who opt out by June 1, 2021.

• Tier III members receive a 2% pension multiplier on average final compensation (calculated using highest 5 years of last 10 years of service), capped at 80% of final compensation, with retirement age 62 (age 56 for law enforcement/correctional/fire with 10 years service).

• Tier III members contribute 7.5% of earnable compensation (7.75% for correctional/fire/law enforcement), excluded from subsistence payments in compensation calculations, and limited to 125% of annual base pay.

• Tier III members can use accrued sick leave up to legal maximum toward creditable service for retirement eligibility purposes and can retire after 30 years of creditable service regardless of age.

• Act becomes effective immediately upon passage and approval.