House Bill 2391 has been approved by the House Appropriations Committee. It is a compromise to replace gain sharing. While I would have liked to see gain sharing stay in place for current members, that is not a part of the proposal. A majority of the employee and retiree organizations who testified in committee gave their support to this proposal. I voted for it as well.I thank Representative Hunt for his willingness to communicate with his constituents. I agree that the compromise is better than simply abolishing gainsharing, and I'm glad to see that incoming teachers won't have to be forced into Plan 3, the retirement abyss. However, I would like to see a true rule of 85 instead of the modified version given above. Let's reward those who serve without forcing them to burn down to the last ember.
House Bill 2391 represents a 3-year effort to reform the pension plan system a) Public employees, teachers and current employees will give up gain sharing after a last distribution in 2008 b) This will be done in exchange for increased cost-of-living adjustments and improved early retirement benefits.
The last gain sharing distribution in 2008 will provide more than $700 million in project benefit increases after next year gain-sharing is eliminated for all employees.
Then beginning July 1, 2009, all current retirees will get up to a 13 percent increase in cost-of-living adjustments.
New hires in the Teacher Retirement System and School Employees Retirement System will get a choice of Retirement Plan 2 or Retirement Plan 3.
Public employees retiring after age 55 with at least 30 years of service will see improved early retirement benefits.
Apr 3, 2007
Sam Hunt explains vote on HB 2391, gainsharing repeal
In an email response to my open letter (which I also sent directly to Hunt, among others), he writes,