According to the Associated Press, the bill would provide a choice between a hybrid retirement plan with reduced benefits or a 401(k) plan that allows workers to contribute 8% of their salaries. Under the hybrid plan, public safety employees like firefighters and police officers could retire after 25 years instead of the 35 years originally proposed.
Another bill passed would bar state workers who retire and are rehired after July 1, 2010, from collecting a pension and a paycheck at the same time, or ”double-dipping.”
The two measures now go to the state House.
The news report said the Senate didn’t have time to vote on a third proposal, Senate Bill 94, which would relieve employers of the requirement to add 1.5% of state or school employees’ salaries into their defined-contribution plans.