HB 5703 Summary

• Revises the definition of "statement value" for retirement plan funding to allow retirement systems with 90% or greater actuarial funding ratio in 2008 to exclude corridor limits on asset valuations for fiscal years 2010-2012, with required disclosure in actuarial valuations.

• Limits total contributions for well-funded retirement systems (90% or greater funded ratio in 2008) to the greater of the previous year's contribution rate or normal cost for plan years beginning in 2010-2011-2012, while prohibiting amortization of unfunded liabilities beyond existing schedules.

• Requires employers to contribute the unfunded actuarial liability portion of normal employer contributions for reemployed retirees, elected officers in DROP programs, employees withdrawn from Senior Management Service Class, and community college optional retirement program participants, effective July 1, 2010, except where alternative contribution rules apply.

• Prevents retirees initially reemployed after July 1, 2010 from renewing system membership or participating in certain retirement classes while maintaining employer unfunded liability contributions.

• Declares that protecting retirement benefits for state and local government employees serves an important state interest in actuarially sound, fair, and adequate retirement systems.