HB76 Summary - Education Workforce Investment Act

• Establishes a new Tier III defined benefit retirement plan effective October 1, 2020, for public employees first hired on or after January 1, 2013, who participate in the Teachers' Retirement System.

• Tier III plan members receive a service retirement allowance consisting of an annuity (equal to accumulated contributions) plus a pension of 2% of average final compensation multiplied by years of creditable service, capped at 80% of average final compensation.

• Tier II plan members (hired January 1, 2013 - September 30, 2020) may opt out by June 1, 2021 to remain in the Tier II plan; those not opting out automatically become Tier III members effective October 1, 2020.

• Tier III members contribute 7.5% of earnable compensation (7.75% for correctional officers, firefighters, and law enforcement officers) to the Annuity Savings Fund, and are eligible to convert accrued sick leave to creditable service for retirement purposes.

• Retirement age for Tier III members is 62, with special provisions allowing retirement at age 56 for correctional officers, firefighters, and law enforcement officers with 10 years of service; any future increase in Tier III retirement age requires a two-thirds vote of both legislative houses.