Regular Session News #16: Bills seek to change TRSL Board structure and authority

Mar 1, 2016

The House retirement committee is scheduled to meet at 9 a.m., Thursday, May 5. The following bills, which could impact TRSL, are on the agenda for consideration and are all sponsored by Rep. Barry Ivey:

• House Bill 48 (Ivey) would add five citizen trustees unaffiliated with TRSL to the TRSL Board to be chosen by the Senate president, House speaker, and legislative auditor.

• House Bill 52 (Ivey) would add four new members to Public Retirement Systems’ Actuarial Committee (PRSAC) including the Senate and House retirement committee chairs or their designees and two additional members appointed by the Senate and House retirement committee chairs.

• House Bill 62 (Ivey) would set a minimum employer contribution rate of 20% of payroll for any state retirement system that is less than 100% funded, or if the system was 100% funded but later dropped below 90%; would also create an account for each system into which excess employer contributions would be deposited under certain conditions for the purpose of reducing the unfunded accrued liability (UAL) or paying employer contributions.

• House Bill 917 (Ivey) would remove the investment authority of the TRSL Board and create a consolidated investment committee for all state retirement systems with one member representing TRSL; other members would be appointed by the Senate president, House speaker, governor, and state treasurer

• House Bill 1092 (Ivey) would require PRSAC to set uniform inflation assumptions to be used by all state retirement systems in their annual valuation reports.