House Bill 4126

Complete to 2-17-99

A SUMMARY OF HOUSE BILL 4126 AS INTRODUCED 2-2-99

House Bill 4126 would create a new act to be known as the Public Employee Retirement Benefit Regulation Act. Under the bill, a retirement system would be prohibited from using the final compensation of a participant to calculate the participant's benefit, unless he or she had received that final compensation amount for a period of six months or more before retirement. If the participant did not meet this requirement, the system would be required to use the average compensation received over the 12 months before retirement.

House Bill 4126 also specifies that the bill would not apply to a retirement system that already uses a final average compensation amount in the benefit calculation, or to a participant whose final compensation would be less than a compensation amount previously received for employment under that retirement system for a period of 12 months or more before the effective date of retirement.

Analyst: J. Hunault

This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.