FISCAL NOTE

Senate Bill 229 as introduced provides a one-time lump-sum longevity bonus, of $2 per month for each year of service or $300, whichever is greater, to Employees' Retirement System (ERS) retirees whose effective date of retirement is prior to June 1, 2021, or their beneficiaries. The longevity bonus will be provided for fiscal year 2022 only and will be paid in December 2021. However, the increase in employer costs will be paid in fiscal year 2023 and will cost an estimated total of $15.1 million. This bill provides that the employer can pay the full cost of the longevity bonus in a lump sum amount or pay the increase in the employer rate in the same manner and from the same source of funds as salaries of active members are paid. 

The employer rate paid by state agencies to the ERS in fiscal year 2023 will increase by 0.98% of payroll for state employees, and that would be 1.40% for state police. 

In addition, this bill provides that retirees of cities, towns, counties, or public or quasi-public organizations of the state that are members of ERS, and that are receiving or are entitled to receive a monthly allowance on November 30, 2021, shall receive the bonus if the employer elects to bear the cost of the bonus.