STATE EMPLOYEES RETIREMENT DEFERRAL

House Bill 4512 as introduced and reported from committee

Sponsor:  Rep. Lee Gonzales

Committee:  Appropriations

First Analysis (3-22-07)

BRIEF SUMMARY: This allows for a one-time interest-only payment on the Unfunded Actuarially Accrued Liability (UAAL) for FY 2006-07 for the State Employees Retirement System (SERS).  The state's contractual actuary has recommended that the minimum interest charge is 4.5%.

FISCAL IMPACT:    The state's contractual actuary has determined that the reduced employer contributions from this one-time payment deferral of the UAAL principal payment is $83.7 million (Gross), $44.8 Million (GF/GP).

 

 

 

                                                                                                   Fiscal Analyst: Al Valenzio

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.