From Sean Smoot PBPA:

The House is back and so are pension attacks. Call lawmakers now at 888-412-6570. Please share.

The framework for reforms to four of the five state-funded pension systems (GARS, SERS, TRS, SURS) are reportedly as follows:

COLAs

  • Deferring COLAs until age 67.
  • Only applying COLA’s to the first $25,000 of income ($20,000 for SERS employees that participate in Social Security).
  • A possible COLA freeze for 5-6 years.

Employee Contributions

  • Employee contributions would increase by 2% with the increase being phased-in over two years.

Pensionable Salary

  • Pensions would be based on the greater of the salary earned upon passage of the bill or the wage base for Social Security.

Funding Requirements

  • Certain amounts would be transferred from the General Revenue Fund to the Pension Stabilization Fund to pay down the unfunded liability.
  • Retirement systems could enforce state contribution requirements in the court system.

Cash Balance Plan

  • A cash balance plan would be instituted for employees hired on or after January 1, 2011 (Tier 2 Employees).