PERA is seeking legislation that would require an entity that leaves PERA to be assessed a withdrawal liability. The proposed legislation requires a privatizing entity to pay a withdrawal liability. The withdrawal liability is the unfunded actuarial accrued liability for an entity’s eligible active members determined using current actuarial assumptions and the plan’s funding ratio from the most recent market valuation. That amount would be amortized using current plan assumptions to develop an annual contribution sufficient to reduce the unfunded actuarial accrued liability attributable to that entity to zero over a period of not more than ten years.
Pre-Retirement Survivor Benefits Recodification
The purpose of the pre-retirement survivor benefit recodification is to use a standard format and consistent language for each Plan’s survivor benefits. The proposed changes to pre-retirement survivor benefits achieves the desired consistency and equitability for the Plans. The changes provide the same options for active and inactive vested members with the exception of Police & Fire active members.
Administrative Changes
PERA’s administrative changes addresses the membership salary threshold, provisions within the Defined Contribution Plan, and other administrative clarifications.
