SB3549 Summary

• Establishes a new funding formula for 5 State-funded retirement systems with a goal of 100% funding by fiscal year 2047 and 90% funding thereafter, replacing the previous 2044 deadline.

• Freezes service credit accrual and pensionable salary increases for active participants effective upon passage, and eliminates automatic cost-of-living adjustments for annuitants.

• Increases retirement age requirements for new employees to Social Security Normal Retirement Age and establishes age 59 as minimum for current participants ineligible to retire as of the effective date.

• Requires each State-funded retirement system to establish self-directed retirement plans allowing participants to contribute to individual investment accounts; specifies employee and employer contribution percentages (3-8% depending on system and employment status).

• Declares provisions controlling over conflicting state law and reverses changes made by Public Act 98-599.