Tier 2 and Social Security Safe Harbor Concerns
- Surviving spouse benefit: Tier 2 eliminated pension benefits for spouses of public safety workers whose deaths occurred before the end of the ten-year period for pension benefit vesting and whose deaths were not duty-related. Senate Bill 616 reinstates the Tier 1 benefit for these surviving spouses.
- Pensionable salary cap: The Tier 2 pensionable salary cap currently increases at one-half of CPI or 3%, whichever is less. The legislation raises the formula to the lesser of full CPI or 3%.
- Final average salary: Senate Bill 616 restores the higher Tier 1 level based on the average of the highest four of the last five years, instead of the average of the highest eight of the last ten years.