SB201 Summary

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

• Tier III plan members receive a 2% pension benefit multiplied by years of creditable service, capped at 80% of average final compensation, with retirement eligibility at age 62 and 10+ years of service.

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

• Requires legislative supermajority (two-thirds vote) to increase the retirement age for Tier II plan members above age 62.

• Excludes hazardous duty service credits and certain prior service credit purchase provisions from applying to Tier II and Tier III plan members.