The bill amends the State Police Retirement Act of 1986 by introducing several key updates and new provisions. It redefines "banked leave time program" to clarify how additional annual leave hours can be accrued through pay reductions or concessions. The definitions of "final average compensation" and "eligible retirement plan" are expanded to include specific compensation items and retirement accounts. A new section (14b) is added, requiring the retirement system to establish a separate contribution rate for members in covered positions, with unfunded actuarial accrued liabilities to be amortized over a 10-year period. The bill also clarifies the definitions of "member," "officer," and "qualified participant," ensuring that individuals who leave the state employees' retirement system are treated as new members under certain conditions.

Additionally, the bill allows members to purchase service credit for time served under the act, contingent upon payment equal to the actuarial value of that service, with a five-year window for completion. It establishes contribution requirements for qualified participants in Tier 2 accounts, mandating a 2% contribution from their compensation, with a 50% employer match. For participants in covered positions, employer contributions will vary based on years of service, ranging from 1% to 4%. The term "covered position" is defined according to the existing state employees' retirement act. The enactment of this bill is dependent on the passage of Senate Bill No. 47.

Statutes affected:
Senate Introduced Bill: 38.1603