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Committee backs PERS "tier 5" hybrid plan for future hires and moves to end SLURP for new officeholders
Summary
Senator Sparks briefed the Rules Committee on a proposed fifth tier for the Public Employees' Retirement System: a hybrid model that would split the current 9 percent employee contribution into a 4 percent defined‑benefit portion and a 5 percent defined‑contribution portion, with portability, immediate DC vesting, an 8‑year DB vesting period, and
Senator Sundar Sparks presented a multi-part bill to the Rules Committee that would create a new PERS "tier 5" for future hires and, in the same legislation, terminate the Supplemental Legislative Retirement Program (SLURP) for future elected officials. Sparks said the package is not retroactive and would not change benefits for current employees or retirees.
Sparks said the PERS board adopted a motion at a December meeting endorsing a tier‑5 hybrid model, and he said the board vote on that motion was recorded as 9 to 1. He said PERS staff and actuaries have modeled a hybrid that they project will lessen the unfunded actuarial accrued liability’s growth for future hires and improve long‑term sustainability.
As described by Sparks, the proposal would keep the employee…
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