Bill > S0420

This bill reduces the early retirement penalty for teachers, municipal, and state employees by modifying the existing retirement system regulations across three different sections of law. The bill changes the cumulative annual reduction for early retirement from a sliding scale that previously ranged from 9% to 7% down to a flat 3% annually, and reduces the monthly reduction from a varying rate (between .75% and .583%) to a consistent .25% per month. This change applies to members who have completed twenty or more years of total service and are within five years of their eligible retirement age. The modifications affect retirement calculations for teachers (under Chapter 16-16), state employees (under Chapter 36-10), and municipal employees (under Chapter 45-21). Specifically, the bill allows these public sector employees to retire earlier with a less severe financial penalty, potentially making early retirement more attractive and feasible. The changes are part of a broader set of reforms to the state's retirement systems that have been implemented in stages since 2009, aimed at creating more flexible and sustainable retirement options. The bill will take effect immediately upon passage.

Budget and Finance

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