From North to South, Bills Would Expand Coverage

From New England to Key West, from the Atlantic to the Great Plains, there are bills before state legislatures that would expand retirement plan coverage for certain public-sector employees.  

Rhode Island 

Rep. Patricia Serpa (D-West Warwick) on Jan. 5 introduced HB 7026, a measure that would require all public school teachers hired on or after July 1, 2024 to participate in the federal Social Security program. It also would authorize the general treasurer to enter into or amend any agreement with the federal government that is necessary to implement the measure. It would take effect immediately upon enactment. 

Status. The bill has been referred to the House Finance Committee. 

Florida

Rep. Jennifer Harris (D-Orange) on Jan. 2 introduced HB 1097, a bill that would modify the Deferred Retirement Option Program (DROP) to expand eligibility to participate in the program. DROP is a program in which an eligible member of the Florida Retirement System may participate, deferring receipt of retirement benefits while he or she is a Florida Retirement System employee. 

The bill would expand eligibility to participate to include administrative personnel and educational support employees and would removing the time limitation for DROP eligibility for them. It would go into effect July 1, 2024. SB 1482 is the Senate version of the bill. 

Status. The bill has not yet been assigned to a committee. 

Missouri 

Sen. Mike Bernskoetter (R-Cole) introduced SB 1286 in the state Senate on Jan. 3. The measure would modify the time and salary limitations on working after retirement for members of the Public School Retirement System and the Public Employee Retirement System. 

Under current law, a retired member—except for those retired due to disability—of the Public School Retirement System (PSRS) may work after retirement in a certified position with a covered employer without his or her retirement benefits being discontinued if the member does not exceed 550 hours of work each school year and 50% of the annual compensation to the person who last held the position. 

SB 1286 provides that a member, including those who retired due to disability, may earn up to 50% of their annual compensation to the person who last held the position or 50% of the limit set by the employer's school board for the position.

Current law also provides that if a member of PSRS or the Public Education Employee Retirement System (PEERS) exceeds the limitations, the member shall not be eligible to receive the retirement allowance for any month so employed. 

SB 1286 provides that either member shall not be eligible to receive the retirement allowance for any month so employed or the retirement system shall recover the amount earned that exceeds the limitations, whichever is less.

The bill would go into effect Aug. 28, 2024.

Status. The bill has not yet been assigned to a committee. 

Nebraska 

Sen. R. Brad von Gillern (Douglas) introduced LB165 on Jan. 9, 2023. The bill would include elementary and secondary schools in the Nebraska educational savings plan trust plan. It also contains provisions that would affect the assets of the retirement systems administered by the Public Employees Retirement Board.

Status. No action was taken on the measure; however, it carried over into 2024.