HB 22-1029

House Bill 22-1029, which has been signed into law, compensates PERA (Public Employees' Retirement Association) for a missed payment by adding an extra $380 million payment. This bill also adjusts future payments in 2023 and 2024 to account for the additional funds provided, reducing those amounts based on how well the new money is invested. The law affects PERA and its beneficiaries directly, ensuring that any missed financial support from previous years is made up with a larger payment now, while adjusting future payments accordingly. Since it has been signed into law, this bill is now in effect and will be implemented as planned.

Official Summary

In order to recompense the public employees' retirement association (PERA) for the cancellation of a previously scheduled July 1, 2020, direct distribution of $225 million, the act requires an additional direct distribution to PERA of $380 million to be made on the effective date of the act or as soon as possible thereafter. The act also reduces the $225 million July 1, 2023, direct distribution to PERA that is scheduled under current law by at least $155 million but no more than $190 million, depending upon the amount of investment income earned by PERA on the additional $380 million direct distribution so that the July 1, 2023, direct distribution will be between $35 million and $70 million. Finally, the act reduces the $225 million July 1, 2024, direct distribution to PERA that is scheduled under current law by the lesser of an amount equal to 7.25% multiplied by $380 million or an amount equal to PERA's annual rate of return on investments as reported in PERA's 2022 annual report multiplied by $380 million; except that there is no reduction if the rate of return is zero or less. (Note: This summary applies to this bill as enacted.)

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