As reported by Gazette.net, the House Republican Caucus has unveiled its own pension reform legislation which mirrors the pension plan in place in Montgomery County.
The 42-page Republican proposal, which mirrors the two retirement plans Montgomery County offers its workers, seeks more structural change to the state pension system. It eliminates the defined benefit system that is regarded as more favorable for employees and gives workers the choice of a traditional 401(k)-style retirement plan or a cash balance program with a fixed 5 percent annual interest rate.That closely mirrors Montgomery County’s Guaranteed Retirement Income Program, or GRIP, which provides an annualized 7.25 percent interest return. As of June 30, Montgomery’s Employees’ Retirement System was 76.6 percent funded. The state’s pension fund was funded at 64 percent.
Like GRIP, the GOP proposal allows retirees to choose a lump-sum retirement amount or an annuity payment. It does not recommend shifting any portion of the cost of teacher pensions to county governments.