SB 1251 Summary

• Employees hired on or after July 1, 2017 in public safety personnel retirement system must make irrevocable election within 90 days to participate in either the traditional system or defined contribution plan, or are automatically enrolled in the traditional system.

• Establishes public safety employer risk pool for employers with 250 or fewer active members hired before July 1, 2017, with options for Indian tribes to opt out by January 1, 2019 and procedures for managing payroll deviations.

• Members hired before July 1, 2017 who receive severance refunds and are reemployed retain benefits and duties in effect at reemployment; members initially hired after July 1, 2017 return to their irrevocable system election.

• Expands defined contribution plan eligibility and vesting schedules for different member groups, including those hired on or after July 1, 2018 in corrections officer retirement plan, with three-year vesting for designated positions versus ten-year vesting for public safety personnel.

• Modifies reverse deferred retirement option plan to deposit lump sum payments directly into defined contribution plan account, allowing immediate withdrawal or transfer to eligible retirement plans.