S.B. 1042 Summary

• Establishes a lump sum pension payment for retirees at least 75 years of age who have been retired for at least 20 years as of June 30, 2009.

• Payment amount equals $1 for each month of credited service earned by the retirant (calculated by multiplying years of service by 12).

• Payments begin in fiscal year 2009-2010 and recur every 5 years thereafter.

• Lump sum payments are not considered an increase to basic monthly pension or other post-retirement benefits.

• Appropriates funds from general revenues for the Employees' Retirement System to make these payments, effective July 1, 2009.