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SCS/SB 501 - This act modifies provisions of the Public School Retirement System (PSRS) and the Non-Teachers Retirement System (NTRS).

PROVISIONS APPLICABLE TO BOTH PSRS AND NTRS - This act extends the eligibility for the modified "25-and-out" retirement option for members for two more years (until July 1, 2000). Currently such eligibility expires July 1, 1998.

PROVISIONS APPLICABLE TO PSRS - 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.

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.

Currently, the total of increases (maximum COLA) is 75 percent of the original retirement allowance. This act changes the maximum COLA to 80%.

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.

PROVISIONS APPLICABLE TO NTRS - COLA. Currently, the total of increases (maximum COLA) is 65 percent of the original retirement allowance. This act changes the maximum COLA to 75%.

An additional "Social Security-Adjusted/Level Income Option" is established. This option provides variable monthly benefits which, in conjunction with Social Security benefits, will provide level or nearly level retirement income to the member for life and to an appropriate beneficiary designated by the member.

GENERAL - 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.

The portions of this act applicable to PSRS are almost identical to SB 500 (1998).

OTTO FAJEN