Budget & Taxes (Pensions)

This bill, signed into law by the Governor on June 24, 2026, establishes a schedule for increasing the amount public employers must contribute to the Employees' Retirement System. It specifically raises the contribution rates for police, firefighters, and corrections officers from 41% to 44% of their compensation, while keeping the rate for all other employees at 24%. These changes are designed to gradually pay down the unfunded liability of the retirement plan over time. The new rates apply to fiscal years beginning in 2026 and continuing indefinitely.

Reduces the minimum number of years of credited service qualified Tier 2 Employees' Retirement System members must have to be eligible for vested benefit status for service retirement allowance purposes from ten years to five years. Increases employer contributions to offset the resulting liability.

Reduces the minimum number of years of credited service qualified Tier 2 Employees' Retirement System members must have to be eligible for vested benefit status for service retirement allowance purposes from ten years to five years. Increases employer contributions to offset the resulting liability.

Reduces the minimum number of years of credited service from ten years to five years qualified Tier 2 employee's retirement system members must have to be eligible for vested benefit status for service retirement allowance purposes. Appropriates funds. Effective 7/1/3000. (HD1)