HB 1857 Summary

• Changes average final compensation calculation from last 2 years to last 5 years of service for firefighters hired on or after August 29, 2012

• Reduces maximum service retirement allowance from 75 percent to 70 percent of average final compensation for new hires, with accrual rate of 4 percent per year instead of 5 percent after 25 years of service

• Increases service requirement for new hires from 25 years to 30 years for full retirement benefits, but allows early retirement at age 55 with 10 years of service (versus age 62 with 5 years for prior employees)

• Limits contribution refunds to new hires to 25 percent of total contributions upon retirement, compared to 100 percent for existing members

• Modifies actuarial funding methodology to entry age normal funding method with 30-year amortization period for unfunded liabilities effective October 1, 2012, and restricts sick leave credit for new hires to service years only