The Budget Repair Bill, in Section 239, would repeal this entire section. There is no replacement. It is apparently no longer necessary. After 40 years, it has outlived its usefulness.
The Budget Repair Bill requires the employee to pay half of the contribution to the pension fund, whether that is ETF, a county fund or even a private fund, and contains law changes that make it illegal for any employer, state or municipal, to pay the employee’s share of the pension contribution. The provision would nullify any contractual provision to the contrary.
There are non-statutory provisions included in the bill as well. Section 9115 of the bill provides changes to Employee Trust Funds. Section 1 applies to health care coverage. If the bill would pass, the premium would increase to $84 per month for an individual, and $208 per month for family coverage in Tier 1. Tier 2 would be $122 and $307, and Tier 3 would be $226 and $567.
These changes would apply to all state employees. There are no exceptions.
Section 9115, Part 3 would establish a committee to study the creation a defined contribution plan as an option for participating employees. Currently, we have a defined benefit plan. The difference is that a defined benefit play pays based on years of service. A defined contribution plan only has a cash value. This has been something that conservatives have advocated for years, and it looks like the door may be opening.
The study under Section 9115, Part 3 also would examine modifying the supplemental health insurance premium credit program under subchapter IX of Chapter 40 of the statutes. To put that in plain English, that is the sick leave conversion program.
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