NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature. The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.
Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.
| SPONSOR: | Gorham | DATE TYPED: | 02/14/00 | HB | |||
| SHORT TITLE: | Educational Retirement Contribution Rates | SB | SJM 52 | ||||
| ANALYST: | Eaton | ||||||
| Recurring
or Non-Rec |
Fund
Affected | ||||
| FY00 | FY01 | FY00 | FY01 | ||
| NFI | |||||
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
SUMMARY
Synopsis of Bill
This joint memorial requests that the Public Employees Retirement Board and the Educational Retirement Board conduct a study of the actuarial and practical feasibility of offering a variety of choices to public employees whereby an employee can elect to make higher or lower contributions into a retirement system in return for eventual lower or higher retirement benefits. The memorial requests that the results of the study including the findings and recommendations be submitted to the first session of the forty-fifth legislature.
Significant Issues
Both the educational retirement plan and the public employee retirement plans are defined benefit plans. Changes in contributions may necessitate changes in benefit calculations to remain actuarially sound. A suggested amendment would be to request both defined benefit and defined contribution scenarios.
JBE/gm