A Barbour statement said the legislation raises the employees’ contribution from 7.25% to 9%, and is the first increase in employee contributions since 1991. The state contributes 12%.
Barbour said he believes the legislation brings more equity among payments made by employees and taxpayers.
“Had this bill not been approved, we would have been forced to shift $70 million from state agency budgets to shore up the retirement system, which would have undoubtedly resulted in significant layoffs of other employees,” Barbour said.
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