On Nov. 15, the House of Representatives passed a bill to reform the state pension systems, HB 2497. HB 2497 will alter pension benefit enhancements granted in 2001 for new school employees, state employees and legislators.

Also, it significantly raises the retirement age, reduces the maximum pension benefit and eliminates the option to withdraw employee contributions. Senate amendments added a requirement that employees share in the risk if the pension fund suffers losses by paying a higher contribution rate.

The bill requires new workers to pay an increased rate (equivalent to 10.3 percent of pay) to receive the current defined benefit pension or receive a reduced benefit by contributing 7.5 percent of their pay to PSERS. The measure also would double the period that new employees must work — to 10 years from the current five — before they would be eligible to receive a pension. New school employees would also have to work longer in order to retire without penalty.