Regular Session News #12: Bills to change retirement plans deferred

Apr 15, 2016

The House retirement committee met yesterday and the following bills affecting retirement plans were voluntarily deferred by sponsor Rep. Barry Ivey:

• House Bill 45 (Constitutional Amendment) was amended to clarify that benefits derived from the defined benefit plan of state retirement systems would retain their constitutional protections, but the guarantee of benefits would not necessarily be extended to any defined contribution plans created in the future, according to the bill’s author.

• 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, the statutory companion to HB 46, 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. The bill was amended to clarify provisions relating to overpayments of employee contributions and to tie the bill’s passage to HB 46.

House Bill 65, the statutory companion to HB 45, 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)). Amendments were adopted for technical corrections, to tie the bill’s passage to HB 45, and to exclude new higher education employees who elect to participate in the existing Optional Retirement Plan (ORP).

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Next week:
The Senate retirement committee will meet next week at 12:30 p.m., Monday, April 25. The following bill impacting TRSL is on the agenda:

• Senate Bill 452 (White) would allow K-12 employers to terminate participation in TRSL.

Also, the House and governmental affairs committee is scheduled to consider Senate Bill 372 (Peacock) which would require the actuarial notes of retirement bills, pre-filed for the regular session, to be completed and filed at least five days prior to the convening of that session. The committee will meet at 9 a.m., Wednesday, April 27.
 
A complete list of legislation impacting TRSL, including the position taken by the TRSL Board of Trustees on each bill, is available on the Legislation page of our website.