SB2527 Summary

• Requires the General Assembly, State Employees, State Universities, Downstate Teachers, and Judges retirement systems to prepare and implement defined contribution plans by July 1, 2023 that aggregate State and employee contributions in individual participant accounts.

• Allows Tier 1 and Tier 2 participants to irrevocably elect to participate in the defined contribution plan instead of the defined benefit plan, with election deadline of December 31, 2022.

• Permits participants who elect the defined contribution plan to irrevocably terminate all participation in the defined benefit plan and receive a transfer equal to their contribution refund plus interest.

• Establishes defined contribution plan requirements including minimum 3% employee contributions, State contributions between 3-7.6% of salary, 5-year vesting of State contributions, and various investment and payout options.

• Takes effect immediately upon becoming law.