Pension Review Commission. For members of the fire and police
pension association hired before January 1, 1997, death and disability benefits are paid from state money in the statewide death and disability trust fund (trust fund). State funding for this benefit discontinued in 1997 based on an assumption that the last payment had fully funded all the benefits to be paid. An actuarial analysis from 2021 determined that the payment in 1997 was not sufficient to cover the benefit obligations associated with members hired prior to January 1, 1997. The 2021 actuarial analysis indicated a shortfall of $33.191 million. The state made 2 payments of $6.65 million on July 1, 2022, and July 1, 2023, to cover a portion of this shortfall. Based on the 2023 actuarial calculation, the remaining shortfall is now $27.39 million.
The bill requires the state treasurer to pay a total of $27.39 million,
in 3 equal payments of $9.13 million, to be made on July 1, 2024, July 1, 2025, and July 1, 2026, to the fire and police pension association for it to deposit into the trust fund so that there will be sufficient money to pay future death and disability benefits to these members.
