H168 Summary

• Local government employers may establish irrevocable trusts to pre-fund contribution-based benefit cap liabilities to the Local Governmental Employees' Retirement System (LGERS).

• Payment deadlines for contribution-based benefit cap liabilities are set at 12 months after a member's retirement effective date or six months after invoice date, whichever is later, for purposes of state appropriation interceptions.

• Clarifies withdrawal procedures and liabilities for employers ceasing participation in LGERS and Teachers' and State Employees' Retirement System (TSERS), including entities changing business form under federal law.

• Standardizes the definition of "actuarial equivalent" under LGERS and TSERS to reference "actuarial assumptions" adopted by the Board of Trustees rather than "mortality tables."

• State departments, agencies, and local governments must adopt written policies requiring law enforcement officers to accept special separation buyouts either as cash or transferred to retirement systems, but not both options.

• Department of State Treasurer and Supplemental Retirement Board of Trustees may adopt administrative fees capped at 0.025% of assets for supplemental and deferred compensation plans and 0.05% for teachers' investment plans.

• Optional Retirement Program participants with Disability Income Plan overpayments must pay the full amount within six months of earliest unreduced retirement age or lose health plan enrollment eligibility until paid or payment arrangements are made.

• Clarifies special retirement allowance payments when designated beneficiaries under Options 2, 3, or 6 die before guaranteed payment periods end, allowing one-time payments to members' legal representatives.