HI HB817

Reduces the regular interest rate credited to retirement accounts for public employees who first enter service after June 30, 2011 from 4.5% to 2% annually, compounded annually.

Maintains the existing 4.5% regular interest rate for public employees who first entered service before July 1, 2011.

Applies the applicable regular interest rate to the annuity savings fund based on each individual member's account and entry date.

Requires the board of trustees to conduct a study by January 1, 2020 comparing the 2% regular interest rate against guaranteed interest rates of other investment and savings vehicles, with a recommendation to the legislature by 2021 on whether the rate should change.

Takes effect on July 1, 2011.