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2021 House Bill 4263: Revise school pension calculations
Introduced by Rep. Brad Paquette (R) on February 18, 2021
To require managers of the state-run school pension system to use a “layered amortization" method for repaying the debt accumulated by failing to contribute enough to meet the system’s pension promises. This requires officials to amortize (pay back) each “layer” of underfunding accumulated in a given period over not more than 10 years. The bill would also permit and require pension managers to assume 6.8% annual growth in pension fund assets when determining the amount needed to make good on future pension promises.   Official Text and Analysis.
Referred to the House Appropriations Committee on February 18, 2021
Reported in the House on March 24, 2021
With the recommendation that the substitute (H-5) be adopted and that the bill then pass.
To require managers of the state-run school pension system to use a “layered amortization" method for repaying the debt accumulated by failing to contribute enough to meet the system’s pension promises. This requires officials to amortize (pay back) each “layer” of underfunding accumulated in a given period over not more than 10 years or 15 years depending on the specific pension plan. The bill would also permit and require pension managers to assume 6.8% annual growth in pension fund assets when determining the amount needed to make good on future pension promises, and to assume 6.95% for retiree health benefits.
Received in the Senate on April 21, 2021
Referred to the Senate Appropriations Committee on April 21, 2021

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