HB5063 Summary

• Reduces the minimum age for unreduced retirement annuities from 67 to 62 for public employees hired on or after January 1, 2011.

• Removes provisions allowing reduced retirement annuities at age 62, eliminating the 0.5% monthly reduction factor for early retirement.

• Changes annual retirement annuity increases to begin at age 62 instead of 67, calculated at 3% or one-half the annual unadjusted consumer price index increase, whichever is less.

• Caps annual earnings subject to pension calculations at $106,800 (adjusted annually by the lesser of 3% or one-half the CPI increase) for covered new hires.

• Exempts the bill from State Mandates Act reimbursement requirements and makes it effective immediately.