5 Points Informed Intel. LBB Presentation on ERS.

The LBB made these points to the Appropriations Committee about ERS 2016-2017 appropriations, House Bill 9, and cost of living adjustments? 

• ERS state contribution rate for 2016-2017 is 9.5% per year
• ERS state + agency contribution rate for 2016-2017 is 10%, the Constitutional maximum
• ERS member contribution rate for 2016-2017 is 9.5%
• In 2013, the state & member contribution rate to ERS was 6.5%

How were the changes to ERS made?

• Appropriations within HB 1 and HB 9

What statutory changes did HB 9 require?

• Increases ERS member contribution rate
• Lowers ERS membr contribution rates, if the state contributes less than 9.5%
• The increase ERS member contribution is offset, with salary increases in HB 1
• Eliminates 90 day waiting period for ERS Retirement

What were the goals fo the changes to ERS Retirement?

• Improve the infinite funding period to 32 years
• Improve the actuarial sound contribution rate to 19.57%

What’s improved in ERS so far?

• As of 8/31/2015, the funding period is 33 years
• As of 8/31/2015, the actuarial sound contribution rate is 19.62%

LBB | ERS Retirement Program April 2016