HB268 Summary

• Establishes a new Tier III defined benefit retirement plan for public employees first hired on or after October 1, 2020, in the Employees' Retirement System, with option for eligible Tier II members to elect into the plan.

• Sets Tier III retirement age at 62 for regular employees and 56 for state police/law enforcement/firefighters/correctional officers with 10 years of creditable service, with pension calculated at 2% of average final compensation multiplied by years of service.

• Caps Tier III service retirement allowance at 80% of average final compensation and establishes disability retirement requirements and benefit calculations consistent with Tier II standards.

• Modifies employee contribution rates effective October 1, 2020, requiring Tier III members to contribute 7.5% of earnable compensation (7.75% for correctional officers, firefighters, and law enforcement officers).

• Restricts future increases to Tier II retirement age above 62 to require a two-thirds vote of both legislative houses, and excludes Tier II and Tier III members from prior service credit conversion and hazardous duty provisions.