His first bill would require employees hired after July 1st, 2011 to either a)contribute 8% into a 401(a) plan administered by URS or b) go to a hybrid defined benefit/defined contribution plan. The new defined benefit component is expected to cost 5% of the 8% total retirement contribution. This would be a contributory system with a 35 year minimum retirement, 1% service credit per year, with a 5 year final average salary calculation.
His second bill would eliminate the 1.5% salary contribution into current employees’ 401(k) and put that money into the pension system to help address the current 2.1% contribution rate increase.
His third bill would increase the years of service for retirement using the following schedule:
Employees in the big retirement system
- 24-30 years of service would see no change
- 20-24 years of service would be eligible to retire after 31 years
- 16-20 years of service would be eligible to retire after 32 years
- 10-16 years of service would be eligible to retire after 33 years
- 4-10 years of service would be eligible to retire after 34 years
- Less than 4 years of service would be eligible to retire after 35 years
- 18-20 years would see no changes
- 15-18 years of service would be eligible to retire after 21 years
- 12-15 years of service would be eligible to retire after 22 years
- 9-12 years of service would be eligible to retire after 23 years
- 6-9 years of service would be eligible to retire after 24 years
- Less than 6 years would be eligible to retire after 25 years
UPEA is working toward a better solution that will keep retirement whole for all employees. UPEA has also called for an independent actuarial analysis and more time to educate stakeholders on the issue.