S.F. No. 4201 Summary

• Defines "executive director," "medical facility," and "privatization" for purposes of Public Employees Retirement Association (PERA) regulations governing privatized medical facilities, effective July 1, 2020.

• Requires governmental subdivisions to submit resolutions to PERA's executive director before medical facility privatization and to reimburse PERA for withdrawal liability calculations, effective July 1, 2022.

• Establishes withdrawal liability calculation formula based on present value of accrued benefits attributable to privatizing active employees minus the product of accrued benefits and plan funding ratio, with privatized employers required to pay within six months or elect a ten-year payment plan with annual compounding interest.

• Modifies augmentation rates for privatized former public employees to 2% compounded annually from July 1, 2020 through December 31, 2023, after which no additional augmentation is applied; excludes privatizations occurring after June 30, 2020 from enhanced augmentation provisions.

• Requires PERA to maintain public records of withdrawal liability calculations and associated reports, and to list privatized former employers with original and remaining withdrawal liability amounts in comprehensive annual financial reports and on the association's website.