HB 1771: Public retirement systems

Summary

• Discontinues gain-sharing for both Plan 1 and Plan 3 of the Public Employees' Retirement System (PERS) and the Teachers' Retirement System (TRS), and the School Employees' Retirement System (SERS) Plan 3 after the January 1, 2008, distribution date.
• Provides up to a 5 cent increase to the PERS and TRS Plan 1 annual increase amount should the January 1, 2008, gain-sharing increase to the Plan 1 annual increase amount be less than 23 cents.
• Establishes an optional assured benefit program (ABP) for members of Plan 3 hired prior to July 1, 2007, where in exchange for a irrevocable choice to make ongoing contributions into the ABP between July 1, 2008, and September 30, 2008, a member may receive at retirement either accumulated contributions plus investment earnings from the ABP, or an annuity equal to 1 percent of the member's average final compensation.
• Requires a member choosing to participate in the ABP to wait at least five years from the date of joining the ABP before drawing a benefit from the ABP program.
• Provides a choice of Plan 2 or Plan 3 membership for new TRS and SERS members hired after July 1, 2007.

From the House Bill Analysis 2007 (HB 1771), written by the Legislature's nonpartisan staff. Read the full report ↗