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House Bill 2796 |
House Author: Strama |
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Effective: 9-1-09 |
Senate Sponsor: Watson |
House Bill 2796 amends the law governing the police officers retirement system in a municipality having a population of more than 600,000 and less than 700,000 to raise the cap on compensation of each noneligible member that is taken into account by the retirement system in determining retirement benefits and benefit increases from $150,000 to $200,000 per calendar year, indexed pursuant to the federal Internal Revenue Code of 1986. The bill maintains the existing level of the city's contributions to the police retirement system at 18 percent of the basic hourly earnings of each member employed by the city for all periods on or before September 30, 2010, but increases the required level of contribution to 19 percent for each member employed by the city for all periods after September 30, 2010.
House Bill 2796 also requires the city to contribute amounts, in addition to the percentage of each member's basic hourly earnings as required by the proportionate retirement program, to fund the additional liabilities incurred by the retirement system as a result of participating in that program. The bill sets the rate of this additional required contribution at 0.25 percent of the basic hourly earnings of each member employed by the city for all periods from January 4, 2009, through September 30, 2009, and increases that rate to 0.63 percent for each member employed by the city for all periods after September 30, 2009. The amount of the additional contribution is subject to rate increases or decreases every five years as determined necessary by the retirement system's actuary to fund the system's additional liabilities incurred as a result of its participation in the proportionate retirement program and of the consolidation of the city's public safety and emergency management department with the police department in January 2009. The effective date of this initial contribution rate adjustment is October 1, 2015, and subsequent adjustments take effect October 1 every five years after that initial adjustment date. The bill prohibits a rate adjustment from causing the additional contribution rate to be less than zero.
House Bill 2796 amends the law's provisions that limit benefit payments when the amount of any payment otherwise due or the total payments due under the bill's provisions and any other qualified defined benefit plan maintained by a city would exceed Internal Revenue Code limitations to make the benefit reductions required by the statute comply with applicable code provisions.