HB 5953 Summary

• Service Credit Cap: Members reaching 30 years of earned service credit on or after October 1, 2010 are limited to using only 30 years for retirement benefit calculations; members with more than 30 years as of October 1, 2010 are capped at their accrued service as of that date.

• New Tier 2 Retirement Plan: Establishes a defined contribution plan (Tier 2) for new employees hired on or after July 1, 2010 and members exceeding the 30-year service cap, with employer contributions of 4% for certain participants and 2% with 50% employer match for others.

• Early Retirement Incentive: Creates an incentive program allowing eligible members to retire between July 1 and September 1, 2010 with enhanced benefits calculated at 1.6% per year of service, with optional deadline extensions through July 1, 2011.

• Modified Eligibility for Higher Education: Members first employed by universities on or after January 1, 1996 are excluded from Tier 1 membership, affecting public school employee eligibility definitions.

• Member Investment Plan Adjustments: Increases contribution rates for members in the member investment plan effective July 1, 2010, with tiered rates based on compensation levels, and establishes alternative eligibility thresholds for retirement.