The bill, known as SB1, forces current Tier 1 employees to choose to freeze their pensionable salaries as they are today in exchange for keeping a 3 percent compounded COLA in retirement and access to health care [?]. Or, active Tier 1 employees can continue to count salary increases toward their pensions but reduce their COLA in retirement to half of the consumer price index or 3 percent simple COLAs, whichever is less, and have access to healthcare.
Other key components to this bill are that it does not include any current TRS retirees or anyone who has already declared through irrevocable letters of retirement that they are leaving the profession.
Or, active Tier 1 employees can continue to count salary increases toward their pensions but they would see their COLA reduced in retirement to half of the consumer price index or 3 percent simple COLAs, whichever is less, to retain access to a (as yet undefined) healthcare plan. The legislation even suggests that this access could be to a plan in which the participating retiree could be required to pay for the entire cost of their health insurance (unlike TRIP as we know it today)…
Mar 20, 2013
30 YEAS, 22 NAYS, 2 PRESENT
N Barickman N Frerichs Y Link Y Raoul
When David Koehler changed his vote to "yes," the bill passed.