To allow individual school districts rather than the state to select management companies to administer the 401(k)-type defined contribution component of a so-called “hybrid” retirement plan for new school employees. This gives these employees tax deferred contributions to a savings account they own, but also creates additional long term taxpayer liabilities by enrolling new hires in a slightly more modest conventional defined benefit pension plan than existing employees.
Referred to the Committee on Financial Liability Reform
Reported without amendment
With the recommendation that the substitute (H-2) be adopted and that the bill then pass.
Passed in the House 66 to 43
Referred to the Committee on Appropriations