HB 4532 Summary

• Changes contribution rate calculation from percent of payroll to dollar amount basis and implements layered amortization with 10-year maximum amortization periods starting fiscal year 2021.

• Caps investment return and discount rate assumptions at 6% annually beginning fiscal year 2021 for actuarial valuations and actuarial equivalent retirement allowance calculations.

• Creates new Section 509a allowing qualified members (those hired before July 1, 2019) to opt out of retiree health insurance coverage between July 1-September 15, 2019 and redirect health benefit contributions to a Tier 2 account instead.

• Establishes health reimbursement account credits of $1,000-$2,000 for new members hired after September 30, 2019 who meet age and service requirements, with credits based on age at termination.

• Adds Section 714a requiring automatic enrollment feature in Tier 2 and tax-deferred accounts by April 2, 2020, with default contribution levels to maximize employer matching contributions.