Any county, municipality, or other political subdivision (local government) or group of local governments is currently authorized to establish and maintain a plan or system (plan) of retirement benefits for its elected or appointed officers and its employees.
Current law requires participants in a plan to contribute a percentage of their salaries toward the cost of the plan and specifies that the contribution rate cannot be less than that made by the local government. The bill changes the minimum contribution rate of participants in the plan to 3% of the participant's basic salary or wage. In addition, the bill specifies that the contribution rate of the local government and the contribution rate of the participant do not have to be the same as long as the contribution rate for each is at least 3% of the participant's salary or wage.
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)