HB1082 Summary

• Reduces the minimum credited service requirement for Tier 2 (members who joined after June 30, 2012) Employees' Retirement System members to achieve vested benefit status from 10 years to 5 years, effective July 1, 2027.

• Applies the new 5-year vesting requirement to Tier 2 members who are in service as of July 1, 2027, or who return to or become members after June 30, 2027.

• Increases employer contribution rates starting in fiscal year 2025-2026 to 41.19% for police officers, firefighters, and corrections officers, and 24.19% for all other employees (up from 41% and 24% respectively) to offset the liability created by reduced vesting requirements.

• Aims to improve recruitment and retention of qualified state and county employees by making vesting requirements comparable between Tier 1 and Tier 2 members.

• Does not affect rights or benefits that vested, memberships that terminated, or retirements finalized before the Act's effective date.