SB2203 Summary

• Changes the funding target for 5 State-funded retirement systems from 90% to 100% of actuarial liabilities by fiscal year 2043.

• Requires pension system boards to incorporate and follow State Actuary recommendations when certifying annual required State contributions, eliminating discretionary deviations.

• Modifies contribution formulas for fiscal years 2014-2043 to achieve 100% funding through equal annual percentage-of-payroll increases, using projected unit credit actuarial cost method.

• Establishes State Actuary review process starting in 2013: Board submits proposed certification by November 1, State Actuary reviews by January 1, Board certifies final amount by January 15.

• Takes effect immediately upon enactment.