SB 1063 Summary

• Establishes a public safety employer risk pool for members hired on or after July 1, 2017, consisting of employers with 250 or fewer active members hired before that date for actuarial purposes and contribution rate determination.

• Employers in the risk pool pay 50% of normal costs and unfunded accrued liability amortization on a consolidated basis, while members contribute an equal percentage of compensation for the remaining 50% of costs.

• Creates a retiree pool account funded by transfers from employer accounts when members retire or become disabled, calculated as the actuarial present value of future benefit payments, maintained at 100% funding.

• Divides costs of future benefit increases between employers and members (hired on/after July 1, 2017) equally, calculated using the 10-year Treasury rate as discount rate and expected return on assets rather than actuarial assumptions.

• Provides Indian tribes the option to opt out of the risk pool before January 1, 2018, and establishes procedures for new employers joining the system to participate in the risk pool.