SB2284 Summary

• Establishes a self-directed retirement plan for the General Assembly Retirement System (GARS) allowing participants to invest in mutual funds, collective investment funds, or other investment products to purchase annuities.

• Requires new participants (Tier 3) starting on or after the effective date to participate exclusively in the self-directed plan, while existing Tier 1 and Tier 2 participants may voluntarily elect to switch with an irrevocable choice.

• Participants in the self-directed plan become immediately vested in their own contributions, employer contributions, and all investment returns upon first day of participation.

• Sets contribution rates at 8% employee and 7% employer for the self-directed plan, and caps pensionable salary for new participants at $106,800 with annual adjustments limited to the lesser of 3% or the Consumer Price Index-U increase.

• Allows members who previously elected not to participate to become Tier 3 participants by electing the self-directed plan without making required back contributions, but they cannot receive credit for prior service.