HB 24-1427

House Bill 24-1427 requires the state auditor and PERA (Public Employees' Retirement Association) to hire an expert actuarial firm to study PERA's current retirement plan. The study will compare the costs and effectiveness of PERA’s existing hybrid defined benefit plan with other plans in both public and private sectors, focusing on aspects like benefits and contributions. The findings must be reported to state officials for review. This bill was signed into law by the governor on April 18, 2024, meaning it is now active and being implemented.

Official Summary

The state auditor, in cooperation with the public employees' retirement association (PERA), is required to contract with a nationally recognized and enrolled actuarial firm with experience in public pension plans to conduct the following analyses of PERA: A comprehensive study (comprehensive study) comparing the cost and effectiveness of the current hybrid defined benefit plan design currently administered by PERA to alternative plan designs in both the public and private sector; and As part of the comprehensive study, an analysis regarding specified aspects of the defined benefit plan and the defined contribution plan currently administered by PERA. PERA and the state auditor are required to confer with the office of state planning and budgeting regarding the scope of the comprehensive study and are required to provide a report detailing the findings of the comprehensive study to the governor, the joint budget committee, the legislative audit committee, and the finance committees of the senate and the house of representatives, or any successor committees. PERA is required to provide access to anonymized member information and data under a confidentiality agreement with the retained firm for the comprehensive study. For the 2024-25 state fiscal year, $380,750 is appropriated from the general fund to the legislative department for use by the office of the state auditor. APPROVED by Governor April 18, 2024 EFFECTIVE April 18, 2024(Note: This summary applies to this bill as enacted.)

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