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Committee hears bill to add overtime details to PERS retirement notices
Summary
House Committee on Labor and Workplace Standards Chair Graber opened a public hearing Feb. 17 on House Bill 2728, which would require the Public Employees Retirement System to include, in the written computation of a retiring member's allowance, both the total number of overtime hours worked during the period used to calculate final average salary and the number of overtime hours actually applied to that calculation.
House Committee on Labor and Workplace Standards Chair Graber opened a public hearing Feb. 17 on House Bill 2728, which would require the Public Employees Retirement System to include, in the written computation of a retiring member's allowance, both the total number of overtime hours worked during the period used to calculate final average salary and the number of overtime hours actually applied to that calculation. The bill would become operative Jan. 1, 2026.
Supporters said the bill closes a transparency gap that disproportionately affects tier 3 PERS members. "This added transparency will give workers a better understanding of their retirement benefits and ensure the state is accurately tracking overtime hours," Susan Allen of AFSCME told the committee.
Proponents noted that tier 1 and tier 2 members already have all overtime shown on their notice of entitlement while tier 3 members generally see only up to a 300-hour limit reflected in retirement calculations. Representative Courtney Nieron, sponsor in the House, said the bill "strengthens the existing PERS notice of entitlement by providing a clearer accounting of both the total overtime and the amount factored into the calculation." She added that staff in some units routinely record mandatory overtime in the 800-to-1,000-hour range in a year, yet only 300 hours are included for tier 3 beneficiaries.
Committee members asked clarifying questions about whether the omission was a historical oversight or an intentional policy choice. Susan Allen replied that the Department of Administrative Services calculates all overtime but that the notice of entitlement does not currently reflect the complete overtime accounting for tier 3 members; the bill would add that line item so members can cross-check total hours worked against the hours included in the final benefit calculation.
No formal action or vote occurred during the hearing. The committee closed the public hearing on House Bill 2728 and moved on to other bills on the agenda. The committee also noted additional written testimony and a PERS statement available online.
