Introduced
by
To require the unfunded liabilities accumulated by the state-run school employee pension system be amortized (paid off) by the end of Sept. 2038 using a straight-line amortization formula. This defined benefit pension system was closed by 2017 legislation to new school employees hired starting Feb. 1, 2018.
Referred to the Committee on Financial Liability Reform
Reported without amendment
With the recommendation that the substitute (H-2) be adopted and that the bill then pass.
Amendment offered
by
To revise details of the definition of "payroll" in the formula used to calculate annual school pension contributions.
The amendment passed by voice vote
Passed in the House 108 to 0 (details)
To gradually reduce the future payroll growth assumptions in the formula used by school employee pension system managers to determine how much money must be aside amortize the system's unfunded liabilities. Under the bill the formula would no longer assume any future payroll growth starting in 2028. This would eventually result in using level-dollar amortization formula rather than a percent-of-payroll formula, which would pay-off the unfunded pension liability debt more quickly. The bill would also revise details of how "payroll" is defined for these purposes, and the method used to set a minimum annual pension contribution floor for school employers.
Referred to the Committee on Education
Reported without amendment
With the recommendation that the bill pass.
Substitute offered
by
To replace the previous version of the bill with one that revises details but does not change the substance as previously described.
The substitute passed by voice vote
Passed in the Senate 36 to 0 (details)
To gradually reduce the future payroll growth assumptions in the formula used by school employee pension system managers to determine how much money must be aside amortize the system's unfunded liabilities. Under the bill the formula would no longer assume any future payroll growth starting in 2028. This would eventually result in using level-dollar amortization formula rather than a percent-of-payroll formula, which would pay-off the unfunded pension liability debt more quickly. The bill would also revise details of how "payroll" is defined for these purposes, and the method used to set a minimum annual pension contribution floor for school employers.
Passed in the House 106 to 0 (details)
To concur with the Senate-passed version of the bill.
