ACTUARIAL EFFECTS
The actuarial review notes the actuarial analysis provided by the Employees Retirement System (ERS) includes the combined effect of the current versions of House Bill 1, Senate Bill 1245, and House Bill 2779. The combined effect of these bills represents an overall decrease in pension costs.
According to the actuarial review, the effect of House Bill 2779 alone would be a minimal increase in pension costs, but the cost cannot be precisely determined because the actuarial analysis does not provide information on the impact of House Bill 2779 in isolation. Actuarial impact statements are generally provided to evaluate the impact of a single legislative proposal in isolation, not multiple bills combined.
The bill would add a new tier of salary for a district court judge of 130 percent after 12 years of service. Currently there are only two tiers: 110 percent after four years of service and 120 percent after eight years of service. It would also change the salaries for any other positions with salaries calculated based on the pay for a district judge. Already retired elected class and Judicial Retirement System Plan 1 retiree benefits would no longer be adjusted from time to time. The bill would also change longevity pay to be payable after 14 years instead of 12 years.
SOURCESActuarial Analysis by Dana Woolfrey, FSA, EA, MAAA, Joe Newton, FSA, EA, MAAA, May 19, 2023.
Actuarial Review by David Fee, ASA, EA, Staff Actuary, Pension Review Board, May 19, 2023.