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Senate Bill 0524

Senate Bill 0524

ARCHIVE (2011)

Latest Information

DIGEST OF SB524 (Updated April 5, 2011 2:46 pm - DI 84)

Public employees' defined contribution plan. Establishes a defined contribution plan (plan) as an option for new state employees. A state employee who does not elect to become a member of the plan becomes a member of the public employees' retirement fund (PERF). Requires the PERF board of trustees (board) to establish the same investment options for the plan that are available for the investment of a PERF member's annuity savings account. Provides that a member's contribution to the plan is 3% of the member's compensation and is paid by the state on behalf of the member. Provides that the state's employer contribution rate for the plan is equal to the state's employer contribution rate for PERF. Provides that the amount credited from the employer's contribution rate to the member's account shall not be greater than the normal cost of PERF with any amount not credited to the member's account applied to PERF's unfunded accrued liability. Establishes a minimum state employer contribution of 3% of plan members' compensation. Establishes a five year vesting schedule for employer contributions, and requires a member who terminates state employment before the member is fully vested to forfeit amounts that are not vested. Establishes provisions for the withdrawal of amounts in member accounts. Authorizes rollover contributions to the plan. Urges the legislative council to assign to the pension management oversight commission (commission) the study of whether to create a defined contribution plan as an option for new employees of political subdivisions that participate in PERF and for new employees who are eligible to become members of the teachers' retirement fund. Requires, if the commission is assigned the topic, that the commission issue a final report containing the commission's findings and recommendations, including any recommended legislation, not later than November 1, 2011.
    Current Status:
    Law Enacted
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