HI SB1265

Increases employee contribution rates for members hired after June 30, 2012: Class A and B members contribute 9.8% (up from 7.8%), and public safety officers contribute 14.2% (up from 12.2%)

Raises the vesting requirement for new members from 5 years to 10 years of credited service before becoming eligible for withdrawal of contributions

Reduces retirement benefit formulas for new members: Class A/B members earn 1.75% per year of service (down from 2%), and public safety officers earn 2.25% per year (down from 2.5%)

Increases the average final compensation calculation period for new members from 3 highest-paid years to 5 highest-paid years, excluding vacation pay

Reduces post-retirement cost-of-living adjustments for new members to 1.5% annually (down from 2.5%), effective July 1, 2012