Assembly Bill No. 2328, as amended, enhances the PFRS
retirement and survivors’ benefits. Currently, PFRS members may retire at 55 or more years of age with a total retirement allowance of 1/60th of average final compensation
multiplied by the number of years of creditable service…
This bill allows such a member retiring after 20 years of
creditable service to choose instead to receive a total retirement allowance of 50 percent of “final compensation.”
Final compensation means the compensation received by
the member in the last 12 months of creditable service preceding retirement. In addition, this bill entitles a member,
as of the effective date of the bill, to a retirement allowance
of 50 percent of final compensation plus an additional 3
percent of final compensation for every additional year of
creditable service up to 25 years.
This bill changes the basis on which the PFRS ordinary disability retirement allowance, the deferred retirement
allowance and the pensions for a surviving spouse and
children are calculated from average final compensation
to final compensation. The bill also changes the service eligibility for ordinary disability retirement from five years to
four years of creditable service.
The bill provides that a PFRS member with more than 20
but less than 25 years of service who is required to retire
upon application by the employer will receive an ordinary
disability retiremen [