The bill amends the State Police Retirement Act of 1986 and the state employees' retirement act, introducing several key updates and new provisions. It clarifies the definition of "banked leave time program" by referencing an Internal Revenue Service ruling from September 5, 2003, and introduces new terms such as "covered position" and "qualified participant." The calculation of "final average compensation" is also refined, taking into account members' years of service and the types of compensation, with specific guidelines for those who joined before and after June 10, 2012. Additionally, a separate contribution rate for members in covered positions is established, which will amortize changes in unfunded actuarial accrued liabilities over a 10-year level-dollar schedule.

Moreover, the bill outlines provisions for purchasing service credit for past service under the state employees' retirement act, requiring members to pay an amount equal to the actuarial value determined by the retirement system's actuary. It specifies that service will not be credited if the member is receiving a retirement allowance from another system and allows a five-year window for payment completion. The employer contribution system for qualified participants in covered positions is also structured based on years of completed service, with contributions increasing alongside service length. The enactment of this bill is contingent upon the passage of Senate Bill No. 47 of the 103rd Legislature.

Statutes affected:
Senate Introduced Bill: 38.1603