IN SB0014

State employees will receive mandatory dollar-for-dollar matching contributions to their defined contribution retirement plans after December 31, 2026, capped at $28 per paycheck and subject to available appropriations.

Retirement medical benefits account participants (except retirees and certain eligible members) will have their memberships terminated after December 31, 2026, with subaccount balances transferred to defined contribution plans; participants may make a one-time irrevocable election by December 1, 2026 to remain in a successor account.

Average annual compensation calculations for retirement benefits change for members retiring after December 31, 2027, shifting from 20 calendar quarters to the highest 5 calendar or fiscal years, with compensation exceeding 120% of the prior year excluded as "compensation received in contemplation of retirement."

Fully vested members of defined contribution plans may elect to transfer to the traditional defined benefit pension fund, and members may purchase service credit using rollovers from 401(a), 403(b), 457(b), or IRA accounts.

Minimum death benefit for 1977 Fund members increases from $12,000 to $15,000, and local governments gain authority to require certain police officers and firefighters to continue in PERF rather than electing the 1977 Fund.