SB 1146 Summary

• Modifies contribution requirements for elected officials in retirement plans, requiring those who became members on or after July 20, 2011 to contribute 13% of gross salary starting fiscal year 2013-2014, while earlier members remain at 7%.

• Allows members who became plan members before January 1, 2012 to redeem prior service or purchase military service credits without first accruing a minimum of five years of credited service in the plan.

• Changes the discount rate for service purchases and military service credit transfers to the lesser of the board's assumed rate of return or the ten-year Treasury note yield plus 2%, effective July 1, 2017.

• Modifies deferred retirement option plan (DROP) provisions to allow employees with less than 20 years of service on January 1, 2012 to continue making employee contributions during DROP participation, with interest credited at the average system return or assumed rate of return, whichever is lower.

• Applies amendments retroactively to July 19, 2011 for most provisions and June 30, 2017 for discount rate provisions; designates the act as an emergency measure effective immediately.