Bill > HB07276

This bill creates a new retirement plan tier called MERS 2.0 for municipal employees, with several key provisions. For employees who become eligible on or after July 1, 2027, the new tier establishes different retirement eligibility requirements, including 30 years of aggregate service or 5 years of continuous service and reaching age 65, with slightly different rules for public safety employees who can retire after 25 years of service or at age 55. Members will contribute 5% of their base pay to the retirement fund (8% for public safety employees), and upon retirement, they will receive a monthly allowance calculated as a percentage of their average annual pay based on their years of service. The bill also requires the Connecticut Municipal Employees Retirement Commission to create a new defined contribution retirement plan where members will contribute a small percentage of their pay and overtime pay, with participating municipalities contributing matching funds. Additionally, the bill allows the commission to establish an optional annuity plan as an alternative retirement option for municipalities not currently participating in the municipal employees retirement system, which can be adopted with unanimous approval and may allow municipalities to transfer existing defined contribution plan accounts. The changes are designed to provide more flexibility and options for municipal employee retirement planning while establishing standardized contribution and benefit structures.