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| SPONSOR: | M.H. Garcia | DATE TYPED: | 02/14/99 | HB | 117 | ||
| SHORT TITLE: | ERA Service Credit | SB | |||||
| ANALYST: | Eaton | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY99 | FY2000 | |||
| $ 0.0 | ERA Retirement | |||
Companion to/Relates to SB38 ERA Military Service Credit (Garcia); HB461 Purchase of Service Credit (Vickers)
SOURCES OF INFORMATION
Education Retirement Board (ERB)
SUMMARY
Synopsis of Bill:
The purpose of HB 117 is to allow provisional members who previously exempted themselves, to purchase service credit in the retirement fund.
Significant Issues:
In the past, the legislature has provided a window of opportunity for the purchase of service credit -particularly military service. This legislation would amend the Education Retirement Act by providing a window for provisional members to purchase previously exempted service. The window would expire on June 30, 2002.The cost would be based on contribution rates of the time, and interest to date. The employer may, but is not obligated to, pay the administrative unit contributions of the time and interest.
FISCAL IMPLICATIONS
No appropriation is required. The employer may, but is not obligated to, pay the administrative unit contributions of the service credit.
ADMINISTRATIVE IMPLICATIONS
Increased volume of service and processing. ERB has not indicated that additional funds will be required.
COMPANIONSHIP/RELATIONSHIP
SB 38 (M.J. Garcia) ERA Military Service Credit would amend the Education Retirement Act -removing certain restrictions on the purchase of military service credit.
HB 461 (Vickers) Purchase of Service Credit would amend the Educational Retirement Act - increasing the contribution/purchase cost of the service credit.
The purchase of military service has federal authority under Uniform Services Employment Reemployment and Retirement Act (USERRA). Possible conflict with this law has not been analyzed.
JBE/gm