RETIREMENT REVALUATION

House Bill 4766

Sponsor:  Rep. Lee Gonzales

Committee:  Appropriations

Complete to 5-16-07

BRIEF SUMMARY:

           

            Consistent with Executive Order 2007-3, this bill amends the Retirement Investment Act that affects FY 2006-07 employer contributions for both the State Employees Retirement System (SERS) and the State Police Retirement System (SPRS).

                        It allows for a one-time actuarial revaluation of each system's assets to their actual market value as of September 30, 2006 instead of doing a five-year smoothed valuation.  The five-year smoothing would begin again in FY 2007-08.

FISCAL IMPACT:

            The state's contractual actuary has determined that the reduced employer contributions resulting from this one-time asset revaluation change will reduce gross employer contributions by $69.5 million (of which $37.2 million is 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.