PERS Technical Legislation
1. Allow Rollovers from Various Retirement Plans for Purchase of Service
Adding rollover language would be an important step to further encourage member retirement savings. This provides more flexibility to our members in financing any purchase of service within our plan.
2. Modification to Definition of Compensation Subject to Retirement Contribution
This language will clarify that only compensation enumerated in statute, as subject to retirement contributions will be contributed on.
3. Increase Benefits for Certain Survivor Benefit Recipients
This would allow surviving spouses of deceased members who had between 15 and 20 years of service at the time of death to receive the maximum survivor benefit amount. Presently this is restricted to the surviving spouses of deceased members with 20 or more years of service.
4. Increase Benefits for Certain Survivor Benefit Recipients
We are recommending a prospective increase of $50 per month for surviving spouses and children. The new amounts would be $450 for a surviving spouse and $400 per month for surviving children.
5. Enroll Gaming Commissioners in PERS
Our analysis reveals these positions are more akin to full-time employees of the state than board or commission members receiving a per diem income.
6. Remove the Marriage Penalty for Surviving Spouses
We believe the pension system should be neutral to issues of public policy when there is no impact on the underlying pension policy for the retirement system.
7. Modifications to Police/Fire Spouse Option
This would remove the restriction that the spouse of a police or fire member at the time of retirement would still need to be married to that person to receive benefits under the spousal option retirement plan.
8. Revise the Benefit Formula for Re-Employed Retirees Upon Re-Entering Retirement
This will allow a retiree who is re-employed and re-enrolled in the system for at least 5 years the ability to have his prior service combined with his current service to determine his benefit when he re-enters retirement.
9. Treat Certain City Council, Mayor, and County Commissioner Service as Regular Service for Benefit Computation Purposes
This will be done only if the average salary for the entire period of elective service was equal to or greater than the average salary of a regular PERS member for the corresponding time frame.
Although there are some minimal costs associated with the above legislation they are not significant enough to cause an increase in contribution rates. PERS does not have any fiscal legislation for 1999.
If you have any questions regarding legislation affecting PERS, please feel free to call us at the Retirement System.
