A new legislation regarding pension plans is set to be approved by the State Senate on June 27, 2011, Pensions & Investments reports. As per the proposed rule, public employees, including teachers, police and government workers, will have to contribute more to their pension plans. The bill will also remove cost-of-living adjustments for current and future retirees and increase certain public employee retirement ages.

The legislation is expected to save about $120 billion over the next 30 years in state and local government pension contributions. The law will also raise the funding ratio of state and local pension plans to about 88% from the current 62% over the next 30 years.

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