Bill > H3491

This bill establishes a new "teachers alternative retirement program" that will be available to teachers hired on or after its effective date, and also allows teachers hired before that date to opt out of the current system and join this new program. Under this alternative program, both the employer and the teacher will contribute 5% of the teacher's gross monthly compensation, with the employer also deducting funds for program administration. While teachers in this new program will retain any service credit earned in the previous system, they will not be able to earn additional service credit in the old system. Contributions will initially go into a default fund and can be moved to an investment plan once an account is activated. The program will be administered by a commission acting as a fiduciary, ensuring assets are held in a trust compliant with Section 401 of the Internal Revenue Code, and will involve selecting third-party administrators and educational service providers to manage enrollment, contributions, investments, and provide financial guidance. The bill also details the criteria for selecting these administrators and providers, outlines the types of investment options available, including a self-directed brokerage account with specific investment limitations and member requirements, and clarifies rules regarding benefit distributions, survivor benefits, and the handling of forfeited funds.