Probation stakeholders press for age‑60 retirement, transition aid and past‑service buybacks

Probation stakeholders used the work group meeting to press for design elements they say are necessary to recognize the heavy duties of probation officers and to avoid disproportionate harm to employees near retirement.

Nicole, speaking for stakeholder groups, described a set of guiding priorities: a plan that recognizes the public‑safety continuum, option to purchase past service or receive legislative transition aid to mitigate reductions in the general plan benefit, a target normal retirement age of 60, a 2.0% multiplier where financially viable (1.9% as fallback), and protections for members within a short window of retirement. The memo proposed allowing purchases of past service at actuarial equivalence plus a $250 administration fee and suggested a one‑time election window for current members to opt out of the new plan within 60 days of the plan’s effective date, noting IRS and payroll constraints.

PAR and MSRS staff cautioned that opt‑out mechanics and purchase options raise tax‑qualification and payroll complexities. Amy (PAR staff) explained counsel’s advice: to permit some forms of opt‑out while preserving tax‑qualified status, plans often must keep pre‑tax employee contribution levels identical and move any additional contributions to post‑tax treatment, which has significant take‑home‑pay implications for employees and additional payroll administration for employers.

Stakeholders and staff discussed practical alternatives intended to protect near‑retirees: bright‑line cut‑off dates based on hire date (so those hired before a specified date remain in the general plan), mandatory employer certification of past service for purchase purposes, and targeted state funding for partial past‑service buybacks. No funding commitment was made; stakeholders said they will continue to seek legislative transition aid and asked staff for concrete purchase‑cost estimates for limited buybacks (for example, two to five years of service).