TO: | Honorable Robert Duncan, Chair, Senate Committee on State Affairs |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | HB2870 by Truitt (Relating to member contributions to certain retirement, disability, and death benefit systems provided by certain cities and towns.), As Engrossed |
HB 2870 as engrossed would authorize certain cities with a population of 500,000 or more that provide a retirement, disability, and death benefit system to require each member of the system to contribute an amount that may exceed 10 percent of their annual compensation. If the member contribution were increased with no change to benefits, the funding status of the retirement fund would improve. To the extent the city increases its matching contribution, the funding status would further improve. No plan details were provided as to current benefits or funding needs, nor were explicit proposals for increases in contributions provided. Hence the sole actuarial impact of the bill would be a potential improvement in any affected plan's funding status, with likely reductions in amortization periods.
Source Agencies: | 338 Pension Review Board
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LBB Staff: | JOB, WM
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