House of Representatives

HB 2046

CORP; normal retirement; contribution rate

Sponsors: Representatives Brimhall, Hatch-Miller

X	Committee on Retirement & Government Operations
	Committee on Appropriations
	Caucus and COW
	As Passed the House

HB 2046 changes the 25 years of credited service normal retirement qualification for the Correctional Officers Retirement Plan (CORP) to a 20 years of credited service normal retirement plan. Additionally, this legislation changes the normal retirement benefits and sets the contribution rate for CORP members at a 7.65% fixed rate.

History

Currently, normal retirement eligibility for CORP members is achieved at any age with 25 years of credited service, or age 62 with 10 years of credited service, or any combination of age and years of credited service totaling 80 points. The normal retirement benefits are calculated by multiplying 2.5% times the average monthly salary times the years of credited service, not to exceed 75% of the members average monthly salary.

The employer’s contribution rate is actuarially determined annually and set for a biennium. Currently, the employer’s contribution rate has a floor placed in statute that disallows the employer’s contribution rate to fall below 2%. The employee’s contribution rate is currently set in statute at an 8.5% fixed rate.

Provisions

· Changes the 25 years of credited service normal retirement eligibility for CORP members to 20 years of credited service.

· Provides for a normal retirement benefit that equals 50% of the member’s average monthly salary, if the member has achieved 20 years of credited service.

· Provides for a 2% increase of the member’s average monthly salary multiplied by each year of credited service in excess of 20 years.

· Provides for a 2.5% increase of the member’s average monthly salary multiplied by each year of credited service in excess of 20 years, if the member has achieved 25 or more years of credited service.

· States that fractional years in excess of 20 or 25 years of credited service shall be increased on a pro rata basis.

· States that a member who has achieved normal retirement eligibility, other than 20 years of credited service is entitled to receive a retirement benefit equal to 2.5% of the member’s average monthly salary times the member’s years of credited service.

· Caps the member’s retirement benefit at 80% of the member’s average monthly salary, rather than 75%.

· Changes the member’s contribution rate to a 7.65% fixed rate from an 8.5% fixed rate.

· Applies the new member contribution rate retroactively July 1, 2001.

·

·

· ---------- DOCUMENT FOOTER ---------

· 44th Legislature

· Second Regular Session 2 January 15, 2001

·

· ---------- DOCUMENT FOOTER ---------