State Legislative Update

State Legislative Update is an occasional feature that provides the status of bills before state legislatures relevant to NTSA members.

Pension Reform

Colorado. SB 18-200 would allow new employees to choose between the Public Employees’ Retirement Association (PERA) defined contribution plan and the hybrid defined benefit plan.
Status: Gov. John Hickenlooper (D) signed the measure into law on June 5.

Illinois. IL HB 4027 would reduce and delay benefit payments in retirement but also would require systems to establish DC plans for new hires, through which each employee must contribute at least 4%, and employers contribute between 2-6%, with immediate vesting.
Status: The bill passed in committee in 2017, but did not go to the House of Representatives for a vote; it was re-referred to the Rules Committee on Jan. 3, 2018, but the session ended with no action on the bill, so it failed.

IL HB 669 would have authorized units of local government to provide alternative retirement plans in lieu of or in addition to the existing plan under the applicable Article. It provided that the alternative retirement plan could have included a DB component, a DC component, or both, and may have included disability or survivor benefits and any other benefits that are permitted under federal law. It would have applied to teachers.
Status: The session ended with no action on the bill, so it failed.

Lousiana. LA HB 39 would have established a hybrid retirement benefit structure for members of the state retirement systems first hired on or after July 1, 2020.
Status: The session ended with no action on the bill, so it failed.

South Carolina. SC S 1040 would have amended Section 9-1-1085 of the code of laws of South Carolina relating to employer and employee contribution rates, so as to provide that, beginning July 1, 2019, all new employees shall participate in a DC plan, and required the participating employers of the system to appropriate certain funds.
Status: The session ended with no action on the bill, so it failed.

Joseph A. Caruso, III, JD, MSPPM, is Government Affairs Counsel for the American Retirement Association.