SB 1174 Summary

• Adds "physician" definition to the elected officials' retirement plan and renumbers subsequent definitions accordingly.

• Modifies surviving spouse pension amounts for members joining on or after January 1, 2012, reducing the benefit from three-fourths to one-half of the deceased member's pension, with option to elect alternative forms providing actuarially reduced pension and increased surviving spouse benefit.

• Clarifies child pension payment procedures, requiring direct payment to eligible children age 18 and older (unless under guardianship/conservatorship for disability), and continuing payment to guardians/conservators for disabled children age 18 and older.

• Prohibits members from borrowing against, taking loans from, or removing contributions from their accounts before termination of membership or receipt of pension.

• Establishes separate account for retiree health insurance benefits funded by employer contributions not to exceed 25 percent of total actual employer and employee contributions, with subordination to retirement benefit payments and return of surplus to employer.

• Adds elected officials' retirement plan members to service credit transfer provisions between municipal retirement systems, subject to mutual board approval and no unfunded liability conditions.