Comparing SB 200 & PERA Board Proposal

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Impacts Division(s) Currently SB 200 PERA Board Proposal
Statutory Employer Contributions Overall +2%
1% (7/1/2018)
1% 7/1/2019)
+2% (7/1/2020)
Active Employee Contributions Overall +3%
.5% increase (7/1/2018)
.5% increase (1/1/2019)
1% increase (7/1/2019)
1% increase (1/1/2020)
+3%
New Employee
Contributions
Overall +3%
.5% increase  (7/1/2018)
.5% increase (1/1/2019)
1% increase (7/1/2019)
1% increase (1/1/2020)
+2%
Highest Average Salary Non-vested & new employees All Divisions, Except Judicial 3 years 7 years 5 years
Non-vested & new employees Judicial Division 1 year 3 years 3 years
Retirement Age New Employees State (Not Troopers), Local, Judicial 60 65 years old, 5 years service or 40 years service
Reduced service at 55 w/ 25 years service
65 or 40 years of service
New Employees Troopers 50 55 with min 25 years or any age 35 years service or
65 with 5 years service
Reduced service at 55 years with 20 years service
55 or 40 years of service
New Employees School & DPS 58 65 years old, 5 years service or 40 years service 65 or 40 years of service
Existing Employees Beginning 1/1/2020
add 1 year for every 4 years for under 46 years old on 1/1/2020
Won’t exceed 65 years for full retirement or 60 years for reduced service retirement
COLA Suspension Current Retirees All divisions 2 years 2 years
Future Retirees All divisions 3 years ( 1 year from SB1) 3 years ( 1 year from SB1)
COLA Rate Current & Future Retirees All divisions 2% 1.25% 1.50%
Additional Details Net to Gross Net to Gross
FTE Equivalent FTE Equivalent
2% additional for disaffiliation 2% additional for disaffiliation
Auto Adjust Reduce COLA by .25% & increase contributions by .5% if fall below 100% funded in 30 years
If over 110% then adjust contributions down .5% and COLA up .25%
Adjust COLA by .25% & contributions by .5% if fall below 100% funded in 30 years
DC Option ` Part of State Division has the option for DC Expand DC Option To All Divisions
Employee account will receive employee contributions and employer statutory contribution as of today 10.15% etc.
DC Supplement Beginning 1/1/2022
Employer Contribution Rates increase between 6% – 9%
(12.15% Statutory, 10% AED & SAED, & 6%-9% for DC Supplement for total ~30%)
for those who opt into DC Plan
Governance Public Pension Legislative Oversight Committee of 14 people oversee legislation regarding FPPA & PERA,
4 Senators from Senate President (no more than 2 same party), 6 Reps from Speaker (no more than 3 same party) and 4 experts by State Treasurer (no more than 2 same party)
Lots of details – including independent study every three years
Impact on Employers/ Employees/ Retirees 25%/ 57%/ 18% 28% / 55% / 17%
Results 100% in 25 years for schools & state 100% in 30 years