HI HB2488

Establishes new requirements for calculating "average final compensation" to limit pension benefits when employees receive disproportionate non-base pay increases near retirement, a practice known as "spiking."

Requires employers to pay the actuarial present value of excess retirement benefits resulting from spiking for employees who retired in the previous year, effective July 1, 2012.

Defines new terms including "base pay" (regular periodic payments and recurring differentials), "non-base pay" (overtime, bonuses, and lump-sum supplements), and "comparison period" (years prior to retirement not included in average final compensation calculation).

Applies spiking restrictions immediately to employees hired after June 30, 2012, and retroactively to earlier employees beginning July 1, 2015, with a floor that protects their benefits as calculated as of June 30, 2015.

Excludes compensation earned before July 1, 2015 from spiking restrictions for members hired before July 1, 2012.