Public Act No. 23-182 Summary

• Modifies the Municipal Employees' Retirement System to use "aggregate service" (active service plus credited service) instead of just "service" when calculating retirement allowances for members not covered by Social Security.

• Establishes a deferred retirement option plan effective July 1, 2025, allowing eligible members to defer retirement for up to five years with a specified interest credit rate, structured to have no anticipated impact on municipal contribution rates.

• Creates a phased cost-of-living adjustment schedule for members retiring on or after July 1, 2025, with minimum increases ranging from 0.5% to 2% and maximum increases up to 7.5%, gradually transitioning toward a full consumer price index adjustment by July 1, 2029.

• Requires municipalities to submit retirement plan information to the Comptroller by September 1, 2023, including investment policy statements, plan documents, actuarial valuations, governance structures, and fee information.

• Directs the Comptroller, Treasurer, and Secretary of Policy and Management to develop best practices for municipal retirement plan governance and submit recommendations to the legislature by July 1, 2024.