CA SB84

Controller shall transfer up to $6,000,000,000 from the Surplus Money Investment Fund to the Public Employees' Retirement Fund as a cash loan to supplement state employer contributions for the 2017–18 fiscal year.

Supplemental payment is apportioned among state employee categories: $3,600,000,000 to miscellaneous members, $1,500,000,000 to peace officer/firefighter members, $500,000,000 to patrol members, $300,000,000 to safety members, and $100,000,000 to industrial members.

Loan principal and interest must be fully repaid by June 30, 2030, with interest calculated quarterly using the two-year constant maturity United States Treasury rate and paid from General Fund and other funds required to fund state employer contributions to PERS.

Department of Finance shall devise a tracking mechanism, develop a repayment schedule allocating costs to each fund based on its share and fund availability, and ensure each fund pays its proportionate share of principal and interest.

Department of Finance must submit a report to the Joint Legislative Budget Committee by September 1, 2017, describing the actuarial impact on contribution rates for each state employee member category receiving the supplemental payment.