HB 4533 Summary

• Reduces the assumed interest rate and discount rate cap from 8% to 6% annually for calculating present value of retirement allowances and distribution amounts under Section 20g.

• Changes contribution rate calculation methodology for health benefits from entry age normal cost to cash disbursement method when actuarial accrued liability is underfunded, reverting to entry age normal when 100% funded.

• Implements layered amortization for unfunded actuarial liability beginning fiscal year 2021, with fixed closed periods not exceeding 10 years using level dollar amortization method.

• Modifies discount rate assumptions for actuarial equivalent retirement allowances under Section 49 to not exceed 6% and requires use of most recent Actuarial Standards Board mortality assumptions beginning fiscal year 2021.

• Adjusts tax-deferred account contribution calculations in Section 68b, including revised mortality assumptions and interest discount rates not exceeding 6% beginning fiscal year 2021.