The Senate Workforce Committee wrapped up hearings on the various proposals to reform the Public Employee Retirement System (PERS) yet again, with an eye toward reducing some of the $22 billion in Unfunded Actuarial Liability (UAL) that is anticipated to drive public employer PERS rates upward at the maximum permitted increases (the “collared rate”) over the next few biennia. The Committee is now in the process of evaluating those proposals in light of the key criteria established by the Chair and Vice-Chair of the Committee at the beginning of the session. For its part, AOC has adopted those same key criteria, and is closely monitoring these developments through AOC Legal Counsel and a Policy Specialist hired for that purpose.
It remains to be seen if further PERS reform legislation will play a part toward balancing the current state budget deficit.
Contributed by: Rob Bovett | AOC Legal Counsel