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Senate Roll Call 746 on
2011 House Bill 4701: Transition state employees to defined contribution retirement health benefit

To eliminate the current “defined benefit” post-retirement health insurance system for new state employees, and instead offer a “defined contribution” Health Reimbursement Account (HRA), with the state matching an employee’s deposits up to 2 percent of salary, plus an annual lump sum contribution. Employees hired since 1997 could choose to switch to this system and get a lump-sum contribution of the value of benefits they had already earned. Also, to require state employees hired before 1997 to contribute 4 percent toward their traditional “defined benefit” pensions (replacing a 3 percent contribution required under a 2010 law), or else have their benefit levels “frozen” at the current level, with the state instead making contributions going forward into an employee’s 401(k) account. The Senate stripped out a House-passed provision excluding overtime pay from the basis on which the older employees' conventional pension benefits are calculated (potentially enabling "pension spiking").

View the rest of House Bill 4701: History, Amendments & Comments 

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Senate Roll Call 746 on 2011 House Bill 4701

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