HB 24-1427 Summary

• State Auditor must retain a nationally recognized actuarial firm with public sector pension plan experience to conduct a comprehensive study of the Public Employees' Retirement Association (PERA) by October 31, 2024.

• The study must compare PERA's current hybrid defined benefit plan design to alternative plan designs in the public and private sectors, analyzing benefits, costs, portability, transition costs, and impacts on retirement benefits and unfunded liabilities.

• The study must include analysis of how different job classifications and salary levels benefit from defined benefit versus defined contribution plans and the extent to which the defined benefit plan attracts state employees.

• Study findings must be delivered to the Governor, Joint Budget Committee, Legislative Audit Committee, and Finance Committees of both chambers by August 15, 2025.

• $380,750 is appropriated from the general fund to the Office of the State Auditor for fiscal year 2024-25 to conduct the study.