Publicly Funded Retirement Plans (Oppose – Mandate)

Publicly Funded Retirement Plans (Oppose – Mandate)

SB 980 (Brandes) and HB 1363 (McClure) make numerous changes to the reporting requirements for publicly funded retirement plans. The bills revise the minimum requirements for actuarial reports for retirement systems or plans to include a list of pre-retirement and post-retirement benefits provided to employees. The bills expand the requirements of the statement by the enrolled actuary to include an analysis of the assumed rate of return established by the plan’s governing body, and specific recommendations regarding the assumed rate of return. For a retirement system or plan that comes into existence after October 1, 2018, the unfunded liability must be amortized within 30 years of the first plan year. The bills require the recommended contribution rates be stated as a percentage of the annual revenue of the plan sponsor. The bills also provide that it fulfills an important state interest. (Hughes)