Authorizes retired police officers and firefighters to earn income in addition to their earnable compensation; provided that, the amount would not exceed 5 times the rate of earnable compensation currently in force.
Impact
The enactment of H5271 is expected to have a considerable impact on state laws governing the retirement and earning capacities of municipal employees. By facilitating an increase in allowable earnings for retired police and fire personnel, the bill seeks to address the challenges faced by these retirees in maintaining their financial stability. Proponents argue that this change will provide necessary support to retired individuals who, for various reasons, need to supplement their income, thereby improving their quality of life post-retirement.
Summary
House Bill H5271, introduced in January 2025, aims to modify the retirement provisions for municipal employees, particularly focusing on retired police officers and firefighters. The bill proposes that these retired individuals be allowed to earn additional income alongside their disability allowances. Specifically, it sets an upper limit, allowing their total earnings to not exceed five times the current rate of earnable compensation pertinent to their previous classification before retirement. This legislative change is significant, as it enhances the financial flexibility of retired public safety officials who may wish to re-enter the workforce without jeopardizing their retirement benefits.
Contention
While the bill may appear beneficial, it has the potential to raise concerns regarding its implications for the overall retirement system for municipal employees. There may be apprehensions about the sustainability of such allowances, especially if many retirees choose to take advantage of this provision. Critics could argue that it might encourage a rethinking of retirement as an absolute end to one’s career, rather than a phase of life, potentially placing stress on the retirement fund. Discussions around the bill may also highlight differences in opinion about whether it undermines the intended purpose of retirement benefits or enhances the welfare of retired law enforcement and emergency personnel.
Authorizes retired police officers and firefighters to earn income in addition to their earnable compensation; provided that, the amount would not exceed 5 times the rate of earnable compensation currently in force.
Amends definition for final compensation, relative to police officers and firefighters, provides them life annuity regardless of age or years of service, upon retirement and further provides additional benefits upon retirement.
Allows police and firefighters to retire with 20 years of service and attained 57 years of age based on their highest 3 years consecutive compensation.
Effective July 1, 2024, entitles environmental police officers to the benefits provided by chapter 45-21.2 entitled "Optional retirement for members of police force and firefighters."
Effective July 1, 2024, entitles environmental police officers to the benefits provided by chapter 45-21.2 entitled "Optional retirement for members of police force and firefighters."
Extends injured-on-duty (IOD) benefits to police officers and firefighters that suffer from diagnosed post-traumatic stress disorders, except under certain conditions.
Extends injured-on-duty (IOD) benefits to police officers and firefighters that suffer from diagnosed post-traumatic stress disorders, except under certain conditions.
Authorizes an annual two and one-half percent (2.5%) escalation for all active and retired police and firefighter's retirement pension allowance, compounded each year on January 1 following the year of retirement and continuing yearly, on that date.