SB18-200 Summary

• Addresses PERA's $50+ billion unfunded liability by increasing employer and member contribution rates phased in from 2019-2021, with caps on increases and limits on benefit adjustments.

• Implements a "blended contribution" system that adjusts employer/member contribution rates, benefit increases, and direct state distributions ($225M annually) to maintain funding between 98-120% of required contributions.

• Modifies retirement eligibility and benefit calculation rules for members hired after December 31, 2019, including increased service credit requirements and longer salary averaging periods to reduce benefit amounts.

• Creates a Pension Review Subcommittee with legislative and expert members to oversee PERA's financial health, review assumptions, recommend policy changes, and report annually to the public on progress toward full funding by 2048.

• Expands the defined contribution plan option to new local government and state employees hired after January 1, 2019, allowing them to choose between defined benefit and defined contribution retirement plans.