SB 500 - This act modifies provisions of the Public School Retirement System.

Currently, the multiplier for an eligible regular retirement allowance is computed by 2.3 percent of the member's final average salary for each year of service. This act changes the multiplier to 2.5 percent.

This act extends the options for members with less than 30 years of service for two more years (until July 1, 2000). Currently such options expire July 1, 1998.

COLA. Currently, retirees are not eligible for a Cost of Living Adjustment (COLA) until the fourth January after they retire. This act changes COLA eligibility to the third January.

SURVIVORS. Currently, retirees receive minimum retirement benefits based on thirty, twenty-five, twenty and fifteen years of service. This act extends such minimum benefits to survivors of these retirees.

Members retired prior to May 26, 1994, currently receive an amount equal to the lessor of $60 or $2 times the number of years' service as part of their monthly annuity. This act adds such amount to survivors of these members.

This act changes the dollar amounts for minimum and maximum monthly benefits for certain surviving spouses and children of deceased members.

CURRENT RETIREES AND SURVIVORS. This act makes an adjustment equivalent to 8.7 percent of the current retiree's or survivor's last monthly annuity, which is not applied to the COLA limit.

This act contains an emergency clause, with an effective date of July 1, 1998, or the date the act is signed by the Governor, whichever occurs last.

This act is almost identical to SB 501 (1998).
OTTO FAJEN