Eliza Hamrick

The public employees' retirement association (PERA) board (board) conducts or causes to be conducted an actuarial experience study of PERA and a periodic actuarial audit of PERA. Both the actuarial experience study and the periodic actuarial audit, neither of which were referenced in law prior to passage of the act, are conducted approximately once every 5 years, but the timing of the actuarial experience study and the periodic actuarial audit is not aligned.

The act requires the board to conduct or cause to be conducted the actuarial experience study every 4 years, beginning with the actuarial experience study that the board conducted in the 2024 calendar year, rather than every 5 years. In addition, the act requires the board to conduct or cause to be conducted the periodic actuarial audit of PERA in the 2026 calendar year and every 4 years thereafter , rather than every 5 years, and to ensure that each periodic actuarial audit takes into consideration the results and findings of the most recent actuarial experience study that was conducted or caused to be conducted by the board.

For several years, the pension review commission has been required to commission an independent review of the economic and investment assumptions used to model PERA's financial situation. The act requires the commission to commission the independent review every 4 years, rather than every 3 years, within 3 months of the release of the periodic actuarial audit of PERA conducted or caused to be conducted by the board.
(Note: This summary applies to this bill as enacted.)