Bill
HB 5764
Summary of HB 5764: Public Officers and Employees Retirement System Bill OverviewHB 5764 is a bill introduced in the state legislature that proposes changes to the public employee
HB 5764 is a bill introduced in the state legislature that proposes changes to the public employee retirement system, including adjustments to contribution rates and benefit calculations.
The main components of HB 5764 include:
Contribution Rate Increases: The bill would gradually increase the required contribution rates for both public employees and employers into the state's retirement system. Employees' contribution rates would rise from the current 8% to 10% over a 3-year period, while employer contributions would increase from 12% to 14%.
Benefit Formula Adjustments: The legislation would modify the formula used to calculate pension benefits for retirees. The "highest average salary" component would be calculated based on an employee's top 5 earning years, rather than the current 3-year average.
Cost-of-Living Adjustments (COLAs): The automatic COLA for retirees would be reduced from 3% annually to 2% under the new bill.
The changes proposed in HB 5764 would primarily affect:
Current Public Employees: Workers in state and local government jobs would see deductions from their paychecks increase as contribution rates rise. Retirees would receive smaller annual COLA increases.
Taxpayers: The higher employer contribution rates would put additional financial strain on state and local government budgets, potentially impacting public services and taxes.
Retirement System Solvency: Supporters argue the changes are necessary to ensure the long-term financial sustainability of the public pension system, which currently has an unfunded liability of over $8 billion.
HB 5764 was introduced in the legislature on January 21, 2025. As of April 22, 2025, the bill has been recommended by a committee to be held for further study, rather than advancing immediately. This suggests the legislature is taking a more cautious approach to evaluate the proposed reforms before potentially taking a final vote.
Compiled from official sources — confirm details with the bill’s official record.
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