SS/SCS/SB 980 - This act provides that the retirement plan for employees of certain higher education institutions shall contribute five and a half percent of payroll to the plan and that employees shall contribute two percent of pay.
The effective date for this provision is July 1, 2017, and the provision is identical to SB 1090 (2016).
Under current law, public retirement plans must provide plan participants, upon request, an annual pension benefit statement which includes certain information including the participant's contributions, total benefits accrued, and the date first eligible for a normal retirement benefit. Beginning on January 1, 2017, the act adds that additional information regarding the plan's financial details must also be included in the pension statement and states that each plan shall provide the annual statement to active participants regardless of whether the statement is requested. A plan failing to provide an annual pension statement to active participants must submit in writing to the Joint Committee on Public Employee Retirement the reasons for not complying with the law.
Under current law, a plan is deemed delinquent when the plan's funded ratio is below sixty percent, the plan has had a descending funded ratio for five years, and the political subdivision has failed to make the actuarially required contribution payment for five years. This act repeals the descending funded ratio requirement and provides that to be considered delinquent a plan's funded ratio must fall below seventy percent and the political subdivision must miss the actuarially required contribution payment for two years, rather than five years.
These provisions are identical to provisions in SS/HB 1472 (2016).
SA 1 - MODIFIES THE RETIREMENT ALLOWANCE CALCULATION FOR MEMBERS OF THE PUBLIC SCHOOL RETIREMENT SYSTEM WITH THIRTY-ONE OR MORE YEARS OF SERVICE