HI SB1341

Increases employee contribution rates for members hired after June 30, 2012: Class A and B members contribute 9.8% (up from 7.8%), and special service employees (firefighters, police, corrections officers, etc.) contribute 14.2% (up from 12.2%)

Raises retirement age and service requirements for new members hired after June 30, 2012: requires age 60 with 10 years service or age 55 with 25 years service (versus age 55 with 5 years service for prior members)

Reduces retirement benefit accrual rates for new members: 1.75% per year for Class A/B members and 2.25% for special service employees, down from 2% and 2.5% respectively

Lowers regular interest credited to new member accounts from 4.5% to 2% annually for members hired after June 30, 2011

Increases employer contribution rates phased in from fiscal year 2012-2013 through 2015-2016, reaching 25% for police/firefighters/corrections officers and 17% for other employees by 2015-2016