MS SB2902

Reduces the vesting period for PERS Tier 5 members from eight years to six years for employees joining on or after March 1, 2026.

Lowers the years of service required to retire regardless of age from 35 to 30 years, and allows retirement when age plus years of service equals at least 80.

Increases the defined-benefit multiplier from 1% to 1.25% for each year of service exceeding 20 years, with first responders receiving a 1.5% multiplier.

Establishes an annual cost-of-living adjustment tied to the Consumer Price Index for Urban Wage Earners (CPI-W), capped at 1.5%, with no COLA if CPI-W is zero or negative or if the system's unfunded liability exceeds 15%.

Creates enhanced benefits for first responders including retirement at age 55 after 20 years of service, a minimum 5% employer match for the defined-contribution portion (versus 3% for other employees), ability to buy back up to five years of pre-March 2026 service, and enhanced disability and survivor benefits.