2012 Senate Bill 1040 ↩

Senate Roll Call 349: Passed

To close the current "defined benefit" pension system to new school employees hired starting in 2013, and instead provide 401(k) accounts with employer contributions equal to 4 percent of salary. New hires would no longer be eligible for retirement health insurance benefits, but instead would get extra contributions into their 401(k) accounts. Current retirees would have to pay 20 percent of the cost for their health benefits, up from 10 percent now. Current school employees would have to contribute more toward their pensions, or else receive benefits calculated under a less generous formula. Final salaries used in that formula would be capped at $100,000, plus any extra merit pay amounts.