Financial obligations; government

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  • (a) Upon the basis of each annual actuarial valuation and appraisal provided for in this chapter, the Administrator, on or before the fifteenth day of September of each year shall prepare and file with the Budget Director and the Chairperson of Legislature's Committee on Finance and itemized estimate of the amounts necessary to be appropriated by the government to the Government Employees Retirement System for the next fiscal year. Such amounts shall be sufficient to provide for payment in full for (i) the estimated obligations of the government to the retirement system for such respective fiscal years; and (ii) any actual obligations of the government to the retirement system remaining unpaid from the prior fiscal year on such amount to be paid in the next fiscal year. If, the government overpaid its actual obligation to the retirement system for the prior fiscal year, such amount shall be credited as a reduction in amounts that would otherwise be estimated to be due the retirement system from the government. The estimate provided by the Administrator shall reflect the most recent data on annual salary and other related components, and be calculated in accordance with pension benefits authorized as of that time. Such estimate shall be provided by the Administrator within fifteen days of a request by the Budget Director.

  • (b) Such estimated amounts provided in subsection (a) of this section shall be revised to reflect updated information, including trends in salary growth and investment earnings through September thirtieth of the current fiscal year and resubmitted to the Budget Director and the Chairperson of the Legislature's Committee on Finance on or before December fifteenth of the current fiscal year. A revised actuarial estimate, including an explanation of any changes from the estimates submitted on September fifteenth of the current fiscal year, shall also accompany such re-submission.

  • (c) By January seventh of the current fiscal year, the Administrator shall notify the Budget Director and the Chairperson of the Legislature's Committee on Finance of his revised estimate of the government's contribution to the retirement system for the current and next fiscal years based on updated information through January thirty-first of the current fiscal year. Such notification shall be accompanied by a revised actuarial estimate, including an explanation of any changes from the estimate submitted on December fifteenth of the current fiscal year.

  • (d) The estimates provided in subsections (a), (b) and (c) of this section shall be accompanied by an actuarial report stating the assumptions used in calculating each of the estimates, including but not limited to:

    • (1) projected growth in the billable salary base from the prior fiscal year, in total and by tier for the government and instrumentalities;

    • (2) composition of the portfolio;

    • (3) return on common stock investments, expressed as a percentage;

    • (4) calculation of the actuarial value of common stock;

    • (5) return on investments other than common stock, expressed as a percentage; and

    • (6) itemization of the change from the government's prior year contribution, either actual or estimated, due to legislative changes in benefits, tier shift, salary base growth, investment return, and any other factors deemed appropriate for explaining such change.

  • (e) In addition to the above mentioned reporting requirements, the actuarial report shall also include the following information for the current fiscal year and estimated amounts for the next fiscal year.

    • (1) the market value and actuarial asset value of equities.

    • (2) a government reconciliation of the amounts paid and the final amounts for the two prior fiscal years.

  • (f) The System shall not provide any new increases in benefits to members or beneficiaries unless the Government has deposited the funding for the prior fiscal year into the bank account of the System and concurrently makes a provision for the funding of all future benefit improvements on a sound actuarial basis in the budget.


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