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Finance panel aims to finish pension overhaul this week; bill raises blended employer rate to 24%
Summary
Senators on finance said they expect the committee to conclude work on the pension bill this week and that an actuary-recommended blended employer contribution of 24% (up from a 22% cap affecting non-state employers) should stabilize costs over a decade; sponsors acknowledged uneven support among non-state employers.
Reporters asked senators on the finance committee about a pending pension bill that would change employer-contribution rules. A committee member summarized the change as a blended-rate increase to 24% (from a prior non-state cap of 22%), saying the actuary recommended the adjustment so state and non-state employers share the cost and the plan remains funded.
The sponsor said the plan ‘‘begins 100 percent funded’’ and requires maintaining 90% funding; sponsors told reporters an actuarial analysis suggested a multi-year worst-case (a three-year period of no returns) would be required to breach the 90% threshold. Lawmakers acknowledging the bill said some non-state employers and communities worry about the affordability of a higher employer rate, while others support the change to clear long-term liabilities.
What happens next: finance members said they expect to finish committee work this week and could place the bill on the Senate floor as soon as next week, pending rules-scheduling and any further committee votes.
