Labor & Employment (Retirement Benefits)

Authorizes the state retirement board to revoke or reduce an individual’s pension benefit if that individual is convicted or pleads guilty or no contest to a felony sex crime related to their public office or public employment.

Provides that retirees in the state pension system receive cost of living adjustments compounded into the retiree’s total retirement benefits each year beginning January 1, 2026. This act would be prospective only.

Provides that retirees in the state pension system receive cost of living adjustments compounded into the retiree’s total retirement benefits each year beginning January 1, 2026. This act would be prospective only.

HB 8189 offers tax credits to employers who establish retirement plans for their employees, with additional credit for implementing auto-enrollment. It directly affects employers, particularly small businesses, by reducing their tax burden for creating retirement coverage. The key provision provides financial incentives for setting up plans and automatically enrolling employees (with opt-out options) to boost participation. This policy change aims to increase retirement savings access without altering existing employee benefits.

HB 7365 proposes a voluntary portable benefit plan for independent contractors, allowing them to access benefits like health insurance or retirement savings that stay with them across different jobs. The bill establishes that contributions to this plan cannot be used to determine employment classification (e.g., employee vs. independent contractor) or affect employer liability for workers' compensation. Key provisions require the plan to be offered through regulated insurance or employment security programs, ensuring benefits remain tied to the individual, not any specific employer. This applies directly to independent contractors and hiring parties who choose to participate, with no mandatory participation for either party. The bill takes effect upon passage and does not create new benefits but enables existing systems to operate portably.

SB 2090 changes retirement benefit calculations for police officers and firefighters employed by towns and cities. Starting July 1, 2026, their retirement allowance will be based on their accrued benefit as of June 30, 2026, plus 2.5% of their final compensation for each year of service after that date. Retirees who are 57 with at least 30 years of service will continue using the previous formula until 2026 and then switch to the new calculation for service after that date. The bill preserves existing options for how benefits are paid to survivors after retirement.

HB 7255 adds two specific state correctional roles - administrator of community confinement and home confinement coordinator - to the state retirement system. This change directly affects employees in these positions by making them eligible for retirement benefits under the existing system. The bill amends the retirement law to explicitly include these titles in the list of covered positions within the Department of Corrections. It does not alter retirement age requirements or benefit calculations for existing members. The bill takes effect upon passage.