SB1401 Summary

• Reduces the minimum credited service requirement for Tier 2 members (those who became members after June 30, 2012) to achieve vested benefit status from ten years to five years, matching Tier 1 members' requirements.

• Applies the five-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 effective fiscal year 2025-2026 from 24% to 24.19% for general employees and from 41% to 41.19% for police officers, firefighters, and corrections officers.

• Modifies retirement eligibility rules for Tier 2 members to allow service retirement with five years of credited service and age 60 (or age 65 for class H members) if in service as of July 1, 2027.

• Does not affect rights, duties, or obligations that vested or proceedings that began before the act's effective date.