Showing posts with label HB 1305. Show all posts
Showing posts with label HB 1305. Show all posts

A revision to HB1305 states:

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A revision to HB1305 states:
2. (2) the contribution for unfunded accrued liabilities currently payable by the plan, which cost is expressed as a percent of active employee payroll and shall be over a period not to exceed [forty] thirty years.
What does this mean?
The State amortizes (pays off) any unfunded liabilities in a manner similar to paying off a home mortgage. In our case, the payment is computed as part of the contribution rate due from the State. Under this legislation, the amortization period could not be longer than 30 years. (The law presently allows the payoff period to be as long as 40 years). This change is required as the result of a change in the accounting and financial reporting standards of the Governmental Accounting Standards Board (GASB). However, it will not have any impact on MOSERS since the amortization period presently being used is 30 years. Print Friendly and PDF