HB 1548 Summary

• Closes the Public Employees Retirement System (PERS) defined benefit main plan to new eligible employees effective January 1, 2025, and routes new hires to a defined contribution plan instead.

• Increases member contribution rates for the defined benefit plan from 4% to 7% of monthly salary, while new defined contribution plan members contribute 4% with optional additional 3%.

• Allows current PERS members with less than five years of service a three-month window (January-March 2025) to transfer to the defined contribution plan, with employer providing a lump sum transfer and $3,333 annual contribution for up to three years.

• Modifies participation rules for temporary employees, elected officials, and appointed officials to participate in the defined contribution plan rather than the defined benefit plan after the effective date.

• Effective date is contingent on retirement board certification that the PERS is prepared to close the main system and open the new defined contribution plan before January 1, 2025.