Bill > S1813

This bill modifies provisions related to the public employee retirement system's evaluation and performance standards. Specifically, the legislation changes the criteria for declaring a pension system as "underperforming" by establishing that any system with a funded ratio below 50 percent and an annual rate of return during the previous ten years that is at least three percentage points less than the PRIT (Pension Real Investment Trust) Fund's rate of return will be considered underperforming by the commission. Additionally, the bill alters the duration of an underperforming designation, changing the language from a designation that was previously "in perpetuity" to one that "may not be revoked for five years." These changes aim to provide a more precise and time-limited framework for assessing and managing pension systems that are not meeting expected financial performance standards, potentially giving underperforming systems a clearer path to improvement and a defined period to address their financial challenges.

Labor and Employment

https://malegislature.gov/Bills/194/S1813