The bill amends the State Police Retirement Act of 1986 and the state employees' retirement act, introducing several key updates and new provisions. It redefines "banked leave time program" to clarify the conditions under which members can exchange pay reductions for additional leave hours. The definitions of "final average compensation" and "last years of service" are expanded to include service with the departments of corrections and health and human services, alongside the state police. A new section (14b) is added, requiring the retirement system to establish a separate contribution rate for members in "covered positions," along with specific amortization schedules for unfunded actuarial accrued liabilities. The bill also modifies funding objectives to ensure contributions cover both current and past service liabilities, including health benefits.

In addition, the bill allows members to purchase service credit for time served under the state employees' retirement act, contingent upon payment of the actuarial value of that service. Members have five years to complete this payment if they choose to purchase service credit, and such service will count towards vesting regardless of whether the credit is purchased. Contribution requirements for Tier 2 accounts are established, mandating a 2% contribution from participants' compensation, with a 50% employer match. For those in covered positions, additional employer contributions based on years of service are specified. The enactment of this bill is contingent upon the passage of Senate Bill No. 47.

Statutes affected:
Senate Introduced Bill: 38.1603