SB 0481 Modifies portions of the Public School Retirement System
LR Number:1839S.02I Fiscal Note:1839-02
Committee:Pensions and General Laws
Last Action:03/28/01 - Voted Do Pass S Pensions & General Laws Committee Journal page:
Effective Date:Emergency Clause
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Current Bill Summary

SB 481 - This act modifies the current Public School Retirement System pertaining to teachers and non-teachers.

TEACHER MEMBER MODIFICATIONS - An additional option is provided for teacher members who have thirty-one years or more of creditable service, regardless of age. Such persons may elect a retirement allowance of two and fifty-five hundredths percent of the members' final average salary for each year of membership service. Members retiring between July 1, 2001, and June 1, 2008, may elect this option.

The cost of living (COLA) increase for members retiring on or after July 1, 2001 will become effective the second January first, following the member's retirement.

Members who retire prior to July 1, 2001, receive an additional amount equal to three dollars times the member's number of years of creditable service.

NON-TEACHER MEMBER MODIFICATIONS - The benefit factor for members is increased from 1.51% to 1.61% (Benefit Increase from 1.51% to 1.61%).

Members retiring after July 1, 2001, who participate in the Twenty-five and Out retirement option and retire between July 1, 2001 and July 1, 2003, receive a Benefit Factor Increase of 0.10%.

Members whose creditable service is thirty years or whose sum of age and years of service is eighty years or more and who retire on or after July 1, 2001, receive an increase in the temporary allowance. Qualifying members receive a temporary retirement allowance of eight-tenths of one percent of the member's final average salary multiplied by the member's year of service until the member reaches the minimum age for social security benefits. This is an increase from four-tenths (Increase from .4% to .8%) which was authorized in HB 1808 (2000).

The Cost of living increase (COLA) cap is increased from 75% to 80%.

Members retiring prior to July 1, 2001, receive an increase of seven and one-tenth percent of the previous month's benefit.

This act has an emergency clause.

A portion of this act is similar to SCS/HB 385.