UPDATE: 14 June. The state House of Representatives today passed a revised version of SB 1040, a bill that aims to restructure the public school employee retirement system. The changes in this compromise bill are less dramatic than those proposed in the Senate version, but they still represent a substantial change in retirement benefits for future employees and increased costs for current employees. While some financial pressure is being taken off local school districts, the added costs of the transition will still come out of the School Aid Fund. Absent other measures to increase revenues to the SAF, this bill will not remove the burden on the education budget in the near term.
However, the state Senate, which had approved a version forcing all new employees into a defined contribution plan, adjourned for their summer break today without voting on the bill. They resume session on 18 July.