The bill amends the retirement procedures for teachers and municipal employees, specifically addressing eligibility criteria, service credit purchases, and retirement allowances. Key insertions include a new minimum retirement age of sixty-two for teachers eligible to retire on or after October 1, 2009, and provisions allowing teachers with at least five years of contributory service to retire upon reaching their Social Security retirement age, effective July 1, 2012. The bill also introduces a uniform reduction of 3% for the first five years of retirement, replacing the previous cumulative reductions of 9%, 8%, and 7%. Additionally, it clarifies that faculty at public institutions cannot be involuntarily retired at age seventy and establishes conditions for purchasing service credits, limiting purchases to a maximum of five years and setting specific rules for service prior to initial hire dates.

Significant deletions from current law include the removal of varying cumulative reductions for early retirement, standardizing the penalties for early retirement across different employee categories. The bill emphasizes the importance of members disclosing their participation in other retirement systems and outlines penalties for non-compliance or false statements. Overall, the legislation aims to create a more structured and equitable retirement process for teachers and municipal employees while ensuring the sustainability of the retirement system and protecting accrued benefits.

Statutes affected:
5407: 16-16-12, 36-10-9, 45-21-16