HI SB2750

Establishes new provisions to address "pension spiking" by excluding excess non-base pay compensation from average final compensation calculations for retirement benefits.

Requires employers to pay the actuarial present value of excess retirement allowances resulting from spiking for employees who retired in the previous year.

Defines "spiking" as occurring when non-base pay exceeds 10% of base pay AND the non-base pay ratio increase from comparison period is 135% or greater.

Applies spiking restrictions to new employees (hired after June 30, 2012) immediately and to existing employees (hired before July 1, 2012) beginning July 1, 2015, with grandfathering provisions.

Effective July 1, 2030, with implementation delayed to allow for system adjustments and calculation methodologies.