HB3308 Summary

• Authorizes the Downstate Teacher Retirement System to establish a self-managed plan (defined contribution plan) as an alternative to the traditional defined benefit pension.

• Allows eligible teachers to make a one-time, irrevocable election to participate in the self-managed plan if their employer adopts it, with employer contributions at 7.6% of salary minus disability benefit costs.

• Self-managed plan participants receive an opening account balance equal to their refund-eligible contributions from prior service in the traditional plan, transferred tax-free from the defined benefit program.

• Participants become vested in employer contributions after 5 years of service, upon death with 1.5+ years of service, or upon retirement with reciprocal benefits under Article 20.

• Makes conforming amendments to the Retirement Systems Reciprocal Act regarding proportional annuities, survivor benefits, and maximum benefit calculations for self-managed plan participants; effective immediately.