Key differences between Cross/Nekritz pension bill and real reform

Key differences between HB3411 and HB3303 HB3411: Rep. Tom Cross, Rep. Elaine Nekritz bill HB3303: Rep. Tom Morrison bill to be introduced on Thursday (Institute supported) PENSION RAMP HB3411: Keeps pension ramp, so pension contributions increase each and every year. HB3303: Eliminates pension ramp, so pension contributions remain level. RETIREMENT CONTROL HB3411: Keeps politicians in...

HB3411: Rep. Tom Cross, Rep. Elaine Nekritz bill
HB3303: Rep. Tom Morrison bill to be introduced on Thursday (Institute supported)

PENSION RAMP
HB3411: Keeps pension ramp, so pension contributions increase each and every year.
HB3303: Eliminates pension ramp, so pension contributions remain level.

RETIREMENT CONTROL
HB3411: Keeps politicians in control over workers’ retirement savings.
HB3303: Empowers workers with control over their own retirement savings.

BENEFIT DESIGN
HB3411: Maintains outdated defined benefit model for current and future workers.
HB3303: Modernizes retirement systems with new defined contribution model for all future work.

INVESTMENT FREEDOM
HB3411: Puts politician-controlled retirement systems in control of workers’ investment decisions, even for the small defined contribution element.
HB3303: Gives workers full control over their investment decisions for all future retirement savings.

CONTRIBUTIONS
HB3411: Forces current workers to contribute more of their money to the failed pension plans.
HB3303: Liberates workers from contributing to the failed pension plans and instead gives them full control over their future contributions.

BALANCING PRIORITIES
HB3411: Prioritizes pensions above all else, including education, health care and public safety.
HB3303: Reduces the pension crowd-out of core services by eliminating pension ramp, making sure state pension contributions gradually consume a smaller and smaller share of the overall budget each year.

COST SHIFT
HB3411: Shifts large risks of the defined benefit plan, including investment returns, life expectancy, etc., to school districts, community colleges and public universities.
HB3303: Provides accountability by setting employer contributions at a fixed percentage of payroll, with zero risk for investment returns, actuarial assumptions or future unfunded liabilities.