Senate Bill 1178 Summary

• State Treasurer must annually establish uniform actuarial assumptions for local government retirement systems including investment returns, salary increases, mortality tables, discount rates, and health care inflation.

• Unfunded actuarial liabilities must use closed amortization schedules with maximum 20-year periods for pension benefits and 30-year periods for health benefits, using level dollar amortization.

• Salary increase assumptions capped at 3.5% based on actual historical trends; assumed investment returns cannot exceed 200 basis points above 20-year U.S. Treasury bond rates.

• State Treasurer determines underfunded status when health systems are less than 40% funded (or pension systems less than 60% funded) and required contributions exceed 12% of general fund revenues for health or 10% for pensions.

• Local governments must submit annual reports within 6 months of fiscal year-end showing funded ratios, required contributions, and general fund revenues; all data posted publicly by State Treasurer and local governments.