Pensions
Police and firefighters would contribute an additional 1.5 percent of their salaries toward pensions, for a total of 10 percent. Non-uniformed public workers, including teachers, would eventually kick in an additional 2 percent of their salaries, for a total of 7.5 percent.
Cost of living adjustments would be eliminated for current and future retirees until the pension funds become stable, which is not expected until at least 2040.
The retirement age for new teachers and other non-uniformed employees would be 65, up from 60, and they would have to work 30 years, not 25, to be eligible for early retirement.
For new police and firefighters, pensions would be 65 percent of salary at 30 years, and 60 percent at 25 years. Current law is 65 percent of salary at 25 years.
The state would be contractually required to make its annual pension payment, and unions could sue to force payments.
An employee-manager board would be established to set contribution rates, retirement ages and other benefit levels, but only when the funds become stable and as long as the changes dont have an adverse effect.
Health Benefits
All public employees would pay a percentage of their health care premiums in a tiered system based on salaries.
Current retirees would not be affected. Current employees with 20 years of service on the effective date of the act would not be affected when they retire, but would pay the increased contributions while still working.
Unions would be able to renegotiate contributions levels, but not before paying the higher rates for at least four years.
A board would be established to create new health plans by Jan. 1 that would offer fewer benefits at lower prices, including at least one high-deductible plan. The board would also look at co-pays, prescriptions and other items.
