Public pensions regulator asks committee to approve narrow technical fixes to Chapter 32

Bill Keefe, executive director appearing for the Public Employee Retirement Administration Commission (PERAC), told the Joint Committee on Public Service that PERAC seeks legislative fixes to several Chapter 32 provisions to address administrative and actuarial issues.

Keefe asked the committee to favorably report bills H22 through H25 and described three bills in detail. H22 would provide flexibility for statements of financial interest (SFIs) filed by retirement board members under Chapter 32, including an exemption for members who serve fewer than 30 days in a calendar year and authority for the PERAC commissioner to waive penalties in extenuating circumstances. “This is not a common occurrence, but it has happened where an individual had a compelling case,” Keefe said.

H23 would require employees who join the retirement system after long prior service to purchase that prior service (creditable service) at cost plus interest, addressing what Keefe called an unintended loophole where some employees could receive decades of credit without contributions. H24 would amend Chapter 32’s definition of wages to clarify that sick, vacation, and personal time used with partial workers’ compensation constitute wages going forward; Keefe said the governor had included similar language in the FY26 budget.

Committee members asked clarifying questions about how regional transit authorities joined local systems in the past; Keefe said those determinations depend on geography and the largest city or county in the service area. No committee action on the PERAC bills is recorded in the provided transcript.