FAQ: HB 282 benefit changes for Group II, Tier B

Created: October 2025 

What does the new law change for Group II, Tier B members?

Eligibility Dates:
This chart shows when current Tier B members will be eligible for the enhanced benefits provided under HB 282.

Expanded Definition of Earnable Compensation:

Once the member’s eligibility date for enhanced benefits is reached, Earnable Compensation now includes:

• Holiday Pay
• Vacation Pay
• Pay for Unused Vacation Time
• Severance Pay
• Additional Pay for Instructional Activities

Simplified Retirement Eligibility & Enhanced Multiplier:

• Retirement eligibility is reduced to age 45 with 20 years of creditable service, replacing the previous tiered system of ages 46-49 with 21-24 years of service.
• The benefit multiplier increases to 2.5% for all years of creditable service once the member’s eligibility date for enhanced benefits is reached.
• These changes became effective July 1, 2025, for members vested by January 1, 2013.

Average Final Compensation (AFC):

• AFC will continue to be calculated using the highest five years of earnable compensation. However, the types of wages included in the AFC have changed.
• Once member reaches their eligibility date for enhanced benefits, any Compensation Over Base reported will be calculated as Base Pay.
• As of January 1, 2026, Extra or Special Duty Pay (ESDP) will be reported separately from Compensation Over Base and shall be limited in the calculation. ESDP is now included, but only for the five highest years of creditable service. 

Increased Maximum Retirement Benefit:

• The maximum benefit is now the lesser of 100% of AFC or $145,000.
• Applies to all members who began service before July 1, 2011, but were not vested before January 1, 2012.

Reemployment Restriction for Retirees:

• Any member who has already retired prior to July 1, 2025, cannot return to service and re-retire to qualify for enhanced benefits.