HB-5298 Summary

• Establishes the "Protecting Local Government Retirement and Benefits Act" to oversee local government retirement systems and address underfunded pension and health benefit plans through uniform actuarial standards and corrective action plans.

• Requires local governments offering retirement health benefits to pay normal costs for new employees hired after June 30, 2018, and retiree premiums, while submitting annual summary retiree health care reports to the state treasurer and conducting actuarial experience studies every 5 years.

• Creates a Municipal Stability Board within the Department of Treasury with three members appointed by the governor to review underfunded status determinations, approve corrective action plans, and monitor compliance with the act.

• Authorizes the state treasurer to determine underfunded status based on funding ratios (less than 40% for health benefits, less than 60% for pensions) and contribution percentages exceeding 12% for health benefits or 10% for pensions relative to general fund operating revenues.

• Allows underfunded local governments to submit corrective action plans including options such as closing defined benefit plans, implementing benefit caps, requiring employee cost sharing, and capping employer costs, with 180 days to implement approved plans.