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Committee lowers years for unreduced retirement in proposed Tier 5 to 30 years, sponsor says cost about $44 million annually
Summary
A committee substitute for SB 29-09 would reduce the years-of-service for unreduced retirement under Tier 5 from 35 to 30 years (effective 03/01/2026); the sponsor cited actuary estimates of about 0.57% of payroll, roughly $44 million a year on a $7.4 billion payroll.
Senator Sparks described a committee substitute to amend PERS Tier 5 rules, lowering the number of years required for unreduced retirement from 35 to 30. "It would lower from 35 to 30 the number of years required to have an unreduced retirement," Sparks said, adding that the change applies even if an employee reaches the service total at a younger age.
Sparks told colleagues the actuaries estimate the change would cost roughly 0.57 percent of payroll, which he translated to about $44,000,000 annually based on a $7.4 billion payroll. He framed the change as responding to feedback from first responders and other affected groups.
Committee members sought clarification about when Tier 5 takes effect and whether the amendment would affect current employees; Sparks said Tier 5 is not yet in effect and the change would not disenfranchise existing staff. The committee adopted the committee substitute and reported the bill out by voice vote.
