f2c7e9a0_2011_Legislative_Session__Title
[House Bill Number] *ESHB 1981 [Title] 
Retire/Rehire and Higher Education Retirement Plans Reform This bill impacts retirees from each plan within PERS, TRS, SERS and PSERS in the following: Limits to 867 the post retirement hours a retiree from Plan 1 of PERS and TRS may work prior to suspending their pension benefit. This limit applies to all retirees beginning January 1, 2012. Limits the ability of higher education institutions and entities to offer their Higher Education Retirement Plans (HERPs) to only exempt employees. Applies the return to work provisions of the applicable retirement system to higher education positions eligible for the HERPs. Higher education institutions and entities are prohibited from offering participation in a HERP to any newly hired employee that has retired or is eligible to retire from a DRS administered retirement system. The guaranteed minimum retirement benefit provisions currently available to HERP participants is discontinued for all newly hired HERP participants. Newly hired employees eligible for participating in a HERP are given the option at the time of hire to participate in PERS or TRS Plan 3, or participate in a HERP. The Office of the State Actuary will oversee an actuarial valuation of the guaranteed minimum retirement benefit provisions. Institutions are required to submit a percentage of HERP covered employees’ salary to DRS to be invested by the WSIB. These funds will be used to pay required supplemental benefits to eligible HERP retirees. The SCPP is given the authority to review HERP benefits and make recommendations to the Legislature. General Fund payments to higher education institutions and entities will only pay up to 6% of salary in matching contributions to the HERP participants.
2011 Legislative Session
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