2009 Regular Legislative Session
 

Act 247

Allows the Board of Trustees to create a funding deposit account and grants authorization to credit and charge the account as follows:

· If the Board elects to set the employer contribution rate higher than the minimum recommended rate, all surplus funds collected shall be placed in the funding deposit account.

· The account shall earn interest at the approved valuation interest rate and the interest be credited at least once per year.

· Beginning June 30, 2009, the Board has the option to charge the account by:

1.  Reducing the unfunded accrued liability

2.  Reducing the present value of future normal costs

3.  Paying all or a portion of future net direct employer

           contributions

· The funds charged from the account are not allowed to exceed the outstanding account balance.           

Effective  07/01/09

Act 270

Creates a new retirement option - automatic cost-of-living adjustments - for future retirees. 

· The new option would provide an actuarially reduced benefit in order to fund an annual 2.5 percent COLA.  The decision to retire under this option is irrevocable.  Retirees electing this option would also be entitled to receive any COLAs paid by the system.          

Effective  07/01/09