HB 776 Summary

• Increases mandatory employee contributions to the police retirement system from 7% to 9% for members whose first day of active participation is on or after October 1, 2011

• Raises the retirement age requirement for members joining on or after October 1, 2011 to age 55 and 25 years of creditable service (instead of age 55 or 20 years), with vesting after 25 years of service

• Modifies the average final compensation calculation for newer members to use the last 3 years of service (instead of 2 years) and establishes different formulas for members based on their participation start date

• Changes the Deferred Retirement Option Plan (DROP) interest crediting for members entering on or after October 1, 2011 from market-rate returns to a fixed 6% simple annual interest rate

• Excludes members hired on or after October 1, 2011 from provisions allowing refunds of mandatory contributions and special consultant compensation arrangements