The retirement age for Massachusetts state workers would be raised to 67 for new state employees and incentives for early retirement would be eliminated as part of a pension reform package announced by Gov. Deval Patrick.
The proposal, announced Tuesday, would also reduce by 0.5% each the 9% contribution rate for new employees and 11% contribution rate for teachers, according to a news release from Mr. Patrick.
The current retirement age for state employees is 60; current employees' retirement age would not be affected.
Also included is an anti-spiking rule to limit annual salary increases that would count toward a pension to no more than 7% of the average earnings over the last two years plus inflation.
The proposal would ban elected officials who previously retired as state employees and are receiving a state pension from collecting the pension while in office.
“The changes Gov. Patrick is proposing today will ensure the public employee pension system is fair, credible and fiscally sustainable,” Jay Gonzalez, administration and finance secretary, said in the news release. “Doing nothing is not an option. If we don't take action now, there will not be a pension system for retirees in the future.”
Heather Johnson, a spokeswoman for Mr. Patrick, could not be reached for comment.