FISCAL NOTE

Senate Bill 16 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 March 1, 2022, or their beneficiaries. The longevity bonus will be paid in April 2022. This will cost an estimated total of $15.1 million with the State General Fund portion not to exceed an estimated $4.2 million if funded in a lump sum.

If paid through an increase in the employer rate, in fiscal year 2024, the employer rate paid by state agencies to the ERS will increase by 0.99% of payroll for state employees, and the employer rate paid by state agencies will increase by 1.18% 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 September 30, 2022, shall receive the bonus if the employer elects to bear the cost of the bonus. This bill also provides that the bonus shall be paid to eligible recipients of cities, towns, counties, or public or quasi-public organizations in October 2022.