CS/CS/HB 525 - State Retirement Summary

• Increases normal retirement age and years of service requirements for employees enrolled on or after July 1, 2011: Regular/Senior Management/Elected Officers' Class changes from age 62/30 years to age 65/33 years; Special Risk Class changes from age 55/25 years to age 60/30 years

• Increases vesting requirements for employees enrolled on or after July 1, 2011: from 8 years to 11 years of creditable service for pension plan eligibility

• Allows members to receive up to 10 percent of their account after 1 calendar month of termination if they reach normal retirement date (previously required 3 months), with rulemaking authority delegated to Department of Management Services

• Changes default enrollment for new state employees hired on or after July 1, 2012 from pension plan to investment plan, with 12-month window to elect pension plan participation

• Adjusts contribution rates effective July 1, 2012 to fund benefit changes, with Special Risk Class increasing by 1.19 percentage points while most other classes decrease

• Effective date: July 1, 2012