Bill > S0659

This bill recalculates retirement allowances for teachers, state employees, and municipal employees by modifying existing laws to introduce a new retirement benefit calculation method effective July 1, 2025. Specifically, the bill establishes a tiered percentage system for calculating retirement benefits based on years of service: for 1-20 years of service, employees will receive 1% per year; for 21-30 years, 1.5% per year; for 31-35 years, 2% per year; and for 36-40 years, 3% per year. This change applies to three separate retirement systems: the Teachers' Retirement System, the State Employees' Retirement System, and the Municipal Employees' Retirement System. The bill builds upon previous pension reforms from 2012 that adjusted retirement benefit calculations and continues the trend of modifying how public sector employees' retirement benefits are computed. The new calculation method aims to provide a more structured and potentially more generous approach to retirement benefits, with higher percentage rates for longer-serving employees. The bill will take effect immediately upon passage, with the new calculation method specifically becoming operative on July 1, 2025.

Budget and Finance

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