Retirement Monitor - Legislative Special Edition - August 2016

<p>In this issue:</p> <p>Digest of Legislative Action Affecting Members of the Legislative Retirement System</p>

 

 

 

 

 

Table of Contents

  • Digest of 2016 Legislative Action Affecting Members of the Legislative Retirement System

 

Contributions to the Retirement System for the 2016-2017 Fiscal Year
Included in Section 36.20.(a) and (b) of the 2016 Appropriations Act - House Bill 1030 (Session Law 2016-94)

Employer contribution rate for LRS members from July 1, 2016, to December 31, 2016 = 35.06%

Retirement System Pension Fund 18.22%
Retiree Health Benefit Fund  5.60%
  23.82% from July 1, 2016, to December 31, 2016

Employer contribution rate for LRS members from January 1, 2017, to June 30, 2017 = 35.48%

Retirement System Pension Fund 18.22%
Retiree Health Benefit Fund  6.02%
  24.24% from January 1, 2017, to June 30, 2017

One-Time Pension Supplement Payment for LRS Benefit Recipients
Included in Section 36.21.(c) of the 2016 Appropriations Act - House Bill 1030 (Session Law 2016-94)

Provides, on or before October 31, 2016, a one-time pension supplement payment to LRS benefit recipients whose retirement began on or before September 1, 2016, equal to 1.6% of the recipient’s annual retirement allowance as of September 1, 2016. To determine the amount of the one-time supplement, the benefit recipient’s September 2016 regular monthly benefit amount will be multiplied times 12 to determine the annual retirement allowance, and then multiplied times 1.6%. This one-time, non-recurring pension supplement will be included in the October 2016 retirement benefit payment.

Other Legislation Affecting Retirement System Members

Treasurer’s Investment and Administrative Changes
Included in House Bill 1137 (Session Law 2016-55)

Provides, effective January 31, 2017, updates and clarifications to investment statutes, including third-party audits of investments and detailed fee and performance reporting, to ensure that the State Treasurer's investment programs operate under a strong governance framework with rigorous internal controls and a high degree of operational transparency and are managed with the highest ethical and professional standards and in the most efficient and effective manner possible.

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