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UPDATE:
Changes to the State/Teacher, Legislative
and Judicial Retirement and Retiree Health
Plans
The following changes to retirement plans for Teachers, State
Employees, Legislators and Judges have been
enacted by the Legislature:
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The age at which most new hires and members
with less than 5 years of service on
July 1, 2011 are eligible to retire will
change from 62 to 65. Members may be
able to purchase other types of service
in order to remain in the Age 62 plan.
This does not apply to State employees
covered by a “special plan”. |
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The retiree Cost-of-Living-Adjustment will be
frozen for 3 years, and then capped at
3% in future years based on the Consumer
Price Index (CPI). Retirees will receive
a COLA on their first $20,000 of
benefits. The cap amount will be
indexed, or increased, each year by the
CPI for that year. A non-cumulative,
one-time COLA may be awarded if
funds are available. These payments
would not become a permanent part of
the retiree’s benefit. |
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State employees or teachers who are 1) normal
retirement age; 2) retire after
September 1, 2011;
and 3) return to work
in a position covered by the
State/Teacher retirement plan may work
no more than 5 years and only at a
salary not more than 75% of the salary
established for the position. Retirees
must wait 30 days before returning to
work. Substitute teachers are exempt
from this provision.
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Retiree Health: State employees who retire
after January 1, 2012 and teachers who
retire after
July 1, 2012 will pay 100%
of health insurance premiums until the
member reaches normal retirement age.
This does not apply to individuals while
they receive a disability retirement
benefit. It also does not apply to State
employees who are covered by a “special
plan". |
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Have a question about legislation? Submit it
here. |
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