The bill amends the State Employees' Retirement Act of 1943 by updating several sections related to the Tier 2 retirement plan. Key changes include the definition of "qualified participant," which now specifies eligibility criteria, such as employment dates and service requirements. The bill also introduces a new definition for "plan document" and clarifies the terms for "year of service," ensuring that participants receive credit for various types of employment situations, including furloughs and military service. Additionally, it establishes guidelines for employer contributions to Tier 2 accounts, including matching contributions based on employee contributions, with specific provisions for certain qualified participants like conservation officers and state police.

Furthermore, the bill outlines the investment options available to qualified participants, including fixed and variable annuity options, and mandates that the investment board select multiple annuity providers based on competitive proposals. It also emphasizes the importance of financial stability and transparency from these providers. The bill ensures that distributions from both employer and employee contributions are exempt from local taxes and establishes the state treasurer's authority to recover overpayments and correct errors in Tier 2 records. Overall, these amendments aim to enhance the retirement benefits for state employees while ensuring compliance with federal regulations.