HB0671 Summary

• Changes the earnings cap threshold for State Universities Retirement System (SURS) and Downstate Teacher Retirement System (TRS) from a fixed 6% to the unadjusted consumer price index-u (CPI-U) for academic/school years beginning on or after July 1, 2017.

• Employers must pay additional contributions to pension systems when employee earnings exceed the CPI-U threshold, based on the present value of resulting benefit increases.

• Defines "consumer price index-u" as the index published by the Bureau of Labor Statistics measuring average price changes for all urban consumers (1982-84 = 100).

• Excludes earnings increases from contracts or collective bargaining agreements entered into before the bill's effective date from triggering additional employer contributions.

• Amends the State Mandates Act to exempt implementation from requiring state reimbursement to local employers; effective immediately upon enactment.