The PERS administrative committee approved the initial adoption of a broad set of regulatory changes meant to implement Tier 5 provisions in the retirement system, with staff saying the board will consider final adoption in October and that most Tier 5 rules take effect March 1, 2026.

The measures cover multiple chapters of the regulations, including reporting of monthly contributions, definitions of normal retirement age and service-credit rules, the treatment of unused leave, eligibility for certain supplemental credits and the mechanics for public safety officer premium handling. "If you all approve today, this will be the initial adoption of the regulations. We'll come back in October for the final adoption," said a PERS staff presenter during the meeting.

Why it matters: The package implements changes already enacted in statute to create the Tier 5 hybrid plan and clarifies operational details that employers and PERS staff will use to enroll and process future members. The board's initial adoption begins the formal regulatory process; final adoption will lock in the text that employers and employees must follow before Tier 5 becomes effective.

Key items summarized: The package updates multiple regulation chapters to reflect Tier 5's mixture of defined benefit and defined contribution elements, clarifies the normal retirement age and vesting rules (including an eight-year vesting trigger mentioned repeatedly in the discussion), removes unused-leave credit for Tier 5 members, and adds limited federal-law-based language for public safety officer premium handling. Staff repeatedly noted the changes are largely implementation and housekeeping to align existing rules with the new statutory Tier 5 framework.

Procedure and next steps: Committee members moved and seconded a motion for initial adoption; the motion passed on a recorded “aye” vote. Staff said they will return in October for final adoption and to present any technical changes discovered during the initial-adoption period. The regulations as discussed will become effective on dates noted in the text, with many Tier 5 provisions tied to a March 1, 2026 effective date.

Discussion and clarifying points: Board members and staff spent time clarifying how the new normal retirement ages and service thresholds interact (for example, the conversation noted unreduced retirement possibilities at 35 years of service regardless of age, or at specified age-and-service combinations), and staff said that some federal requirements and tax-counsel suggestions led to small wording additions. Staff also said the package had input from legal counsel and the attorney general's office.

Ending: With initial adoption complete, the board will reconvene on the package at the scheduled October meeting for final adoption and to publish the definitive regulatory text for employers and plan members ahead of Tier 5's March 1, 2026 effective date.