“When you’re in a hole, the first
thing you need to do is stop digging. As a new member of the House, I am
choosing to refuse General Assembly pension and health insurance benefits that
would, in effect, dig our state deeper in debt,” McDermed said.
Currently, legislators who
participate in the pension program contribute 11.5 percent of their annual
salary to the General Assembly Retirement System (GARS). A legislator’s base
annual salary is $67,836. Members with committee chairmanships and/or leadership
positions earn more.
Under pension reform legislation
enacted in 2010 that applies to new members who have entered the General
Assembly since 2011, legislators can retire at age 67 with a minimum of eight
years of service (or at age 62 with reduced benefits) and earn up to 60 percent
of their final average salary after 20 years of service. Legislators who took
office prior to 2011 remain eligible to retire at age 62 with a minimum four
years of service (or age 55 with a minimum eight years of service) and earn the
maximum 85 percent of their final average salary after 20 years, with annual
cost-of-living adjustments.
“I know refusing these benefits
won’t single-handedly solve our pension and budget crises, but it’s an
important first step to show that I am ready to lead by example as we work
toward solutions,” McDermed said.
Representative McDermed’s decision
is final and irrevocable; as administrative rules within the state pension
system do not allow her to ever opt back in.
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