HB 1414 would ask the State Retirement and Pension System to evaluate various provisions that would accompany a county decision to alter the pension offerings to the teachers in its school system.
During the 2012 legislative session, the widely-debated teacher pension shift placed a substantial new funding responsibility onto county governments, to support the normal costs of pensions for teachers in the county’s public schools. This cost is applied as an add-on above the state-mandated maintenance of effort funding levels, and is effectively a new cost burden on county governments. Currently, all teachers across the state are part of the statewide teachers pension system run by the state.
HB 1414 would ask for an evaluation of some potentially difficult transitions that might arise if counties were granted authority to change this pension offering. Among the charges in the bill are to study the accounting for unfunded liabilities attributable to the employees affected, portability for employees who would change plans, and other considerations that would arise from different replacement plan options such as a defined contribution offering.
HB 1414 has been assigned to the House Rules Committee, and has not yet been scheduled for a public hearing.