AR SB218

Changes the effective date for employer contribution rate modifications from July 1, 2015 to July 1, 2018, allowing the board to increase rates above 14% in 0.25% increments per fiscal year up to a maximum of 15%.

Reduces the amortization period threshold from 30 years to 18 years, requiring the system to have greater than an 18-year amortization period to justify employer contribution rate increases above 14%.

Requires that any employer contribution rate increase must be accompanied by equal or greater cost savings from member benefit program changes or increased member contributions, implemented before or simultaneously with the rate increase.

Allows the system to set a minimum contribution rate of 14% or the rate required to amortize unfunded liabilities over 30 years, whichever is higher, when the amortization period is 30 years or less.

Declares an emergency effective upon Governor approval (approved April 3, 2017), stating the system needs immediate authority to make changes to maintain and improve its actuarial status.