Pension changes coming in FY 2012

The State Teachers Pension has been a topic of budget discussions throughout this session of the General Assembly.  In addition to O’Malley’s proposed changes, many bills were introduced to make additional changes to the pension plan.  However, none of the bills made any progress beyond public hearings.

The House and Senate have passed the Budget Reconciliation and Finance Act (BRFA), including an employee contribution increase to 7% while maintaining the 1.8% benefit multiplier at retirement.  New employees will automatically contribute 7% and have a 1.5% benefit multiplier.  These changes will go into effect on July 1st.

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