Overview
- A pension deal reported May 22 would roll back parts of Tier 6 by letting teachers with 30 years retire at 58, cutting employee contribution rates and raising overtime credit used in pension calculations.
- The changes are estimated to cost $557 million a year, with the state covering about $118 million and local governments and school districts responsible for roughly $440 million.
- Under the proposal employee contribution rates would fall to a roughly 3%–5.75% range and overtime counted toward pensions would rise to 25% for some state police and fire retirees while overtime caps would move from about $22,000 to $30,000 for other public employees.
- Unions hailed the deal as a win for recruitment and fairness while municipal and school leaders warned the local share will force budget cuts or higher property taxes for residents.
- Legislative language was expected in the days after the report and the state comptroller will review the fiscal estimates before lawmakers vote, leaving timing and local budget impacts as the next key issues to watch.