This bill amends section 79-958 of the School Employees Retirement Act to modify the employee contribution rate for the School Retirement Fund. The current requirement for employees to deposit nine and seventy-eight hundredths of one percent of their compensation will remain in effect until July 1, 2025. Starting on that date, the employee contribution rate will be determined annually based on the funded ratio of the actuarial value of assets in the School Retirement Fund. The bill introduces a new structure for the contribution rates, which will vary depending on the funded ratio, with specific percentages outlined for different ranges of the funded ratio.

Additionally, the bill includes provisions for the timing of the contribution rates, specifying that the rate calculated as of July 1 will apply for the following year. The new legal language clarifies that the contribution rates will be adjusted based on the funded ratio, with rates ranging from seven and one-quarter percent to nine and three-quarters percent depending on the financial status of the fund. The original section 79-958 is repealed, and the bill is declared to take effect immediately upon passage due to the existence of an emergency.

Statutes affected:
Introduced: 79-958