The legislation puts in place a new Tier VI pension plan that includes:
•New Employee Contribution Rates: The new tier increases employee contribution rates in a progressive fashion to ensure lower paid state and local workers are not seriously affected. Employee contribution rates vary depending on salary:
o $0 – $45,000: 3%
o $45,000 – $55,000: 3.5%
o $55,000 – $75,000: 4.5%
o $75,000 – $100,000: 5.75%
o $100,000+: 6%
These rates remain substantially lower than the large majority of similar state systems around the country. The new tier impacts only newly hired employees. Existing employees and retirees retain all benefits. (more…)