At their final executive session before the summer recess, the Committee was expected to take action on the so-called rule-of-90 teachers retirement bill along with the 75-25 public safety retirement bill. After taking action on over 100 bills covering a myriad of retirement issues, the Committee released H-712 covering municipal police and county correction officers under 75-25.

Under H-712, currently employed municipal police and county correction officers (who are not members of the State Retirement System) will have the option of joining the 75-25 plan. Those who choose to join or any new employees hired after the effective date of the act will contribute 12% towards their pension. Their pensions will then be capped at 75% after 25 years of service. Those opting to join must contribute for a minimum of three years.

The Committee, which is chaired by Senator Brian Joyce (D-Milton) and Rep. Paul Casey (D-Winchester), then attached nearly a dozen bills to H-3372 and discharged it favorably. Among the bills attached to H-3372 was the teachers’ rule-of-90 and another version of 75-25 to be applied to firefighters and virtually all other public safety employees under Group 4.

What was not immediately known is that the Committee created separate early retirement plans for group 1 and group 2 employees and a third plan offering a five year early retirement incentive to state employees who have at least 25 years creditable service and contribute 5%. The ERI is crafted much the same as were the incentives given in the early ‘90s with the employee being given five extra years to apply towards their age or years of service.

"Although we have been pushing for an early retirement bill for Group 1 employees, this bill has come as a complete surprise. As much as I would like to see something pass, it is unlikely the bill will move beyond Ways and Means before a cost analysis can be completed," said Association President Ralph White. "At this point no one has a handle on what the overall cost of each of the plans will be."

The following is a brief summary of the major components of the omnibus retirement bill H-3372, which has now been redrafted as H-4477:

1. Public Safety Retirement (75-25): New public safety employees, including fire and state correction (excludes municipal police) must pay 12% contribution and are entitled to 60% pension after 20 years. Additional 3% for each year over 20, maximum being 75% after 25 years of service. Current employees can elect to participate in program but must pay minimum of 3 years at 12%. These provisions are automatic for state employees, but are subject to local option.

2. Group 1&2 Formula Change w/25 years: Group 1 employees, with 25 years, can use 2.0 factor in benefit formula, regardless of age. This equates to minimum 50% pension. Group 2 employees, with 25 years, can use 2.5 factor in benefit formula, regardless of age. This equates to a minimum 62.5% pension. These provisions are not close-ended and would be permanent provisions in Chapter 32. They are automatic for state / teachers, but are subject to local option.