SB2526 Summary

• Requires each state retirement system (General Assembly, State Employees, State Universities, Teachers, and Judges) to prepare and implement a defined contribution plan by July 1, 2023.

• Persons who first become participants on or after July 1, 2023 shall participate in the defined contribution plan instead of the defined benefit plan.

• Defined contribution plans aggregate State and employee contributions in individual participant accounts used for payouts after retirement, with vesting occurring after 5 years of participation.

• State contributions to the defined contribution plan shall be no higher than 7.6% of salary and no lower than 3% of salary, adjusted annually based on plan performance.

• Modifies the State Employees Group Insurance Act to recognize participants in the defined contribution plans as eligible for health insurance benefits, similar to existing participants.