Bill
HB 5021
Overview: HB 5021 - AN ACT RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- RETIREMENT SYSTEM -- CONTRIBUTIONS AND BENEFITSPurpose and Intent: This bill aims to make changes to the sta
Overview: HB 5021 - AN ACT RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- RETIREMENT SYSTEM -- CONTRIBUTIONS AND BENEFITS
Purpose and Intent: This bill aims to make changes to the state's public employee retirement system, including adjustments to contribution rates and benefit calculations.
Key Provisions:
- Increases the employee contribution rate for the Public Employees' Retirement System (PERS) by 1% over a 3-year period.
- Modifies the formula for calculating retirement benefits, reducing the multiplier from 2% to 1.75% for future service years.
- Introduces a new hybrid retirement plan option that combines a defined benefit and a defined contribution component.
- Requires a study on the long-term sustainability of the state's retirement systems and potential further reforms.
Affected Parties and Impacts:
- Current and future public employees, including state, local government, and school district workers, will be impacted by the changes to contribution rates and benefit calculations.
- The state and local governments may experience cost savings from the reduced retirement benefit formula, but employees may see lower overall retirement income.
Procedural and Timeline Considerations:
The bill has been recommended to be held for further study by the committee. If passed, the changes would be phased in over several years, with the new hybrid plan option available to new hires.
Compiled from official sources — confirm details with the bill’s official record.
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