HB 1850 Summary

• Reduces the vesting period from 10 years to 5 years for Tier 2 employees (those who became members after June 30, 2012) who are in service on July 1, 2025, return to service on or after July 1, 2025, or become members on or after July 1, 2025.

• Maintains the 10-year vesting requirement for Tier 2 employees who left service before July 1, 2025 and do not return to service after that date.

• Updates retirement eligibility requirements for Tier 2 employees to allow earlier retirement with 5 years of service (instead of 10 years) under the same specified conditions as the vesting change.

• Applies vesting changes to multiple employee classes including general employees (Classes A and B), judges, and other designated government employees (Class H).

• Takes effect on July 1, 2025, with no increase to employer contribution rates expected based on actuarial analysis.