The bill amends the public employee retirement plan by increasing both employee and employer contribution rates. Specifically, employee contributions will rise to nine and one-quarter percent (9.25%) for the period from July 1, 2021, through June 30, 2023, and then to nine and three-quarters percent (9.75%) thereafter. For employers, the contribution rate will increase to nine and thirty-seven hundredths percent (9.37%) for the same period, followed by nine and eighty-seven hundredths percent (9.87%) thereafter. Additionally, the bill mandates that the increased employee contributions be paid through a reduction in the employee's cash salary.

The bill also includes appropriations from the general fund and the school foundation program account to cover the increased employer contributions for various state branches and educational institutions for fiscal year 2024. The appropriations are specifically designated for the increased employer contribution rates and cannot be used for employee contributions. The act is set to take effect on July 1, 2023.

Statutes affected:
Introduced: 9-3-412, 9-3-413