Senate 2nd Reading Amendments

Update: Senate Bill 200 passed on 2nd reading in the Senate with two amendments. The DC Expansion will start a year earlier in 2021 and the retirement age increase for active employees was removed.

Below are the amendments the Senate took up Monday morning, March 26th.

  • Amendment 13 - the details of this amendment are listed below. This amendment from Senator Kagan failed.
  • Amendment 14 - change the Highest Average Salary calculation from 7 years to 5 years, this amendment from Senator Kagan failed.
  • Amendment 24 - start the Defined Contribution (DC) Expansion in 2021 instead of 2022, this amendment from Senator Tate passed.
  • Amendment 16 - decrease the employee contributions from 3% to 1.5%, this amendment from Senator Merrifield failed.
  • Amendment 21 - remove the DC expansion, this amendment from Senator Kerr failed.
  • Amendment 17 - remove the DC Supplemental which caused the employers to pay an additional 6% - 9% for employees who select the DC plan, this amendment from Senator Kerr failed.
  • Amendment 19 - remove the retirement age increase for employees who have already vested, this amendment from Senator Jahn passed.
  • Amendment 5 - remove the retirement age increase for new employees, this amendment from Senator Zenzinger failed.

Friday morning, March 23rd,  the Senate took up Senate Bill 200 on 2nd reading. They heard two amendments which failed and are listed at the bottom of this post. They were in the middle of hearing a third amendment, amendment 13, when instead of voting they opted to lay the bill over until Monday morning.

The Amendments

Amendment 13
Senator Kagan presented a strike below amendment, which means only the title of the bill is left and then the substance of the bill is replaced with new language. Secure PERA has been working with the Senator on this plan. We expect the Senate to continue the conversation on the amendment on Monday and then vote.

The new plan in amendment 13 will:

  • Increase employee and employer contributions by 1.5% over two years
  • Set the COLA at 0% for 2018 & 2019 and then return the COLA to 1.75% in 2020
  • Increase the highest average salary from 3 years to 5 years for new employees
  • The plan will not:
    • increase retirement ages,
    • change the definition of PERA salary from net to gross
    • or, change the way full time is calculated
  • The plan will not expand the Defined Contribution Option or create the Defined Contribution Supplemental.
  • The plan will not create a Legislative Oversight Committee
  • Lastly, the plan will use the auto adjust mechanism to ensure that the plan reaches 30 year 100% funding. If from 2017 - 2019 the market returned exactly 7.25% to PERA then one full click of the auto adjust would be implemented on July 1, 2021. That click would mean:
    • In 2021, the COLA will be reduced to 1.5% and employee and employer contributions will increase a total of 2%.

The biggest difference between the plan in Senator Kagan’s amendment 13 and the PERA Board’s plan regarding contributions and COLA is that the last click of changes would only take place if the market deemed them necessary.


7/1/2018 7/1/2019 7/1/2020 7/1/2021
Employer Increase ↑ .75% ↑ .75% ↑ 0% ↑ up to .5%
Employee Increase
(rate except for state patrol)
↑ .75% (8.75%) ↑ .75% (9.5%) ↑ 0% (9.5%) ↑ up to .5%
COLA Rate 0% 0% 1.75% 1.50%

Below are a list of additional amendments that were presented today:
- Amendment 15 to increase the employer’s contribution from 0% to 1.5%, this amendment from Senator Merrifield failed.
- Amendment 20 to increase the COLA from 1.25% to 1.75%, this amendment from Senator Williams failed.