The State Employee Retirement System (SERS = your pension) will be a frequent topic of discussion during this legislative session. The primary issue regarding SERS is related to the underfunding of our pension system. To that end, it is helpful for members to have an understanding of what the legislators and pundits will be blathering about for the next 5 months. Much nonsense will be played out in the press and at the Capitol. It is important that members know what is real and what nonsense. A recently released report from the Office of Legislative Research does a good job of taking this complex issue and summarizing it in a readable manner.
NOTE: the report incorrectly lists the Tier2/2A/3 breakpoint as $77,000 for 2016, this number was derived using the "old" formula of a straight 6% annual increase in the breakpoint. However, there is a "second" formula which kicked-in two years ago and properly establishes the breakpoint at $73,000 for 2016.
posted 1/9/17