SB1763 Summary

• Active Tier 1 employees of the General Assembly Retirement System must make an irrevocable election between January 1, 2018 and March 31, 2018 to either delay automatic annual retirement annuity increases or maintain current benefits with restrictions on future pay increases.

• Tier 1 employees electing to delay increases receive a one-time consideration payment equal to 10% of prior contributions, reduced employee contribution rates (8.5% for retirement, 1.85% for survivor's annuity), and the ability to treat future income increases as pensionable salary.

• Tier 1 employees not electing the delay option cannot have future pay increases count as pensionable salary, with all future raises offered on the condition of not being included in pension calculations.

• Establishes a voluntary defined contribution plan limited to 5% of eligible active Tier 1 employees, allowing them to cease accruing defined benefit plan benefits and instead build individual investment accounts with state contributions.

• Modifies state funding requirements through fiscal year 2045 and restricts system participation to those who became participants before the act's effective date; repeals previous defined contribution plan provisions held unconstitutional.