Regular Session News #11: Bills to change retirement plans for new hires to be heard in House Retirement Committee
Apr 15, 2016
The House retirement committee is scheduled to meet at 9 a.m., Thursday, April 21. The following bills, sponsored by Rep. Barry Ivey, are on the agenda:- House Bill 45 (Constitutional Amendment) would retain the existing constitutional guarantee of state retirement system benefits only if the benefits are annuitized by the system, and would retain the current prohibition on diminishment or impairment of state retirement benefits only if benefits are annuitized and calculated based on accrual rate and average compensation.
- House Bill 46 (Constitutional Amendment) would require new members of state retirement systems hired on or after July 1, 2017, to pay half the amount of the accruing benefit and half of any debt attributable to any augmentation of a member's benefit during his time of service.
- House Bill 49 would require new members of state retirement systems hired on or after July 1, 2017, to pay half of the amount of the accruing benefit and half of any debt attributable to any augmentation of a member's benefit during his time of service.
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House Bill 65 would create a new retirement plan for new members of state retirement systems hired on or after July 1, 2018. The bill proposes a hybrid retirement plan that would include a reduced accrual defined benefit pension combined with a defined contribution account (similar to a 401(k)).