HB0445 Summary

• Creates a "Tier 3 plan" for the 5 state-funded retirement systems (DSRS, SERS, SURS, TRS, JRS) to be implemented by July 1, 2018, using individual participant accounts funded by aggregated state and employee contributions.

• Allows current Tier 1 and Tier 2 participants to irrevocably elect to participate in the Tier 3 plan instead of the defined benefit plan, with the option to terminate all defined benefit participation and receive a lump-sum account credit.

• Tier 3 plan features include employee contributions of 3-10% of salary, state contributions of 3-7.6% of salary, 5-year vesting requirement, investment options including state-managed and private sector funds, and various payout options for retirees and survivors.

• Allows active employees and certain public employees to elect not to participate in or terminate participation in their respective retirement systems, with refund of contributions minus benefits received.

• Service credit earned under Tier 3 plans may be used for determining retirement eligibility under defined benefit plans, and takes effect immediately upon enactment.