House Bill No. by Representative Bacala amends the Municipal Police Employees' Retirement System (MPERS) and the Firefighters' Retirement System (FRS) to address the issue of partial dissolution of police and fire departments. The bill introduces new definitions and criteria for determining partial dissolution, increasing the minimum number of participating employees required for MPERS from two to three, effective from the June 30, 2024, valuation, while maintaining a minimum of three employees for FRS. It also establishes a "target employee count" to assess compliance with the 70% requirement for determining partial dissolution, based on the number of participating employees over specific valuation dates.

Furthermore, the bill outlines the payment obligations of employers regarding unfunded accrued liabilities in the event of a partial dissolution, specifying different rules for payment timing based on actuarial valuations dated June 30, 2023, or earlier, and those dated June 30, 2024, or later. It modifies the timeline for payment initiation from the second fiscal year to the third fiscal year after a determination of partial dissolution for withdrawals based on valuations dated June 30, 2024, or later. The bill also clarifies that delinquent employers will not be subject to certain provisions regarding payment timing and calculations, and mandates that actuaries will redetermine withdrawals based on the June 30, 2024, and June 30, 2025, actuarial valuations, with exclusions for employers not previously identified as having partially dissolved their departments.

Statutes affected:
HB49 Original: 11:4(A)(2), 11:1(A)(2)