|Posted:||June 8, 2021 11:11 AM|
|From:||Representative Dawn W. Keefer|
|To:||All House members|
|Subject:||Pension Reform Legislation - Eliminating Collar Provisions|
|The Public Pension Management and Asset Investment Review Commission (PPMAIRC) was established by the General Assembly to study the operations of the Commonwealth’s statewide pension systems and issue a report of its findings and recommendations. In researching and formulating its recommendations, PPMAIRC benefitted from the invaluable expertise of a wide array of national and international leaders and experts in the fields of institutional investing, finance, actuarial science and public pension plan administration and numerous other resources.
Because the legislature is responsible for enacting and amending the systems’ enabling laws, it is both the purview and responsibility of the General Assembly to respond to the effectiveness of these systems, establish mechanisms for independent examination and ultimately consider legislation to implement meaningful reform.
During the course of its hearings and deliberations, the PPMAIRC commended the Commonwealth for its current commitment to full funding of the statewide pension systems and its success in paying the annual required contribution (ARC) over the past three years. The statutory employer contribution collars which artificially suppressed the SERS and PSERS contribution rates for a number of years are no longer in effect. However, statutory language implementing the collars remains in both the SERS and PSERS codes.
This bill will amend the State Employees’ Retirement Code and the Public School Employees’ Retirement Code to clearly establish that the contribution collars are no longer in effect and ensure that the Commonwealth pay the ARC each year.
Introduced as HB1578