BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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                                 THIRD READING


          Bill No:  SCR 105
          Author:   Negrete McLeod (D)
          Amended:  As introduced
          Vote:     21

           
           SUBJECT  :    State Teachers Retirement System

           SOURCE  :     Author


           DIGEST  :    This resolution encourages the State Teachers 
          Retirement System (STRS) to develop and submit to the 
          Legislature, before 
          February 15, 2013, three options that would address the 
          long-term funding needs of the Defined Benefit Program 
          (DBP); and also states the intent of the Legislature to 
          enact legislation to address the long-term funding needs of 
          the DBP of the State Teachers' Retirement Plan.

           ANALYSIS  :    The DBP of the State Teachers' Retirement Plan 
          has an unfunded liability primarily as a result of market 
          downturns in the last 10 years and the total contributions 
          made by members of the DBP, school employers, and the state 
          have been insufficient since the 2001-02 fiscal year to 
          reduce the unfunded liability in accordance with 
          governmental accounting standards.  Any change in 
          contributions to the DBP requires the enactment of 
          legislation.  This resolution encourages STRS, in 
          consultation with affected stakeholders, including, but not 
          limited to, the Department of Finance and organizations 
          representing members and school employers, to develop at 
          least three options to address the long-term funding needs 
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          of the DBP in a manner that allocates any increased 
          contributions among members of the system, school 
          employers, and the state, consistent with the contractual 
          rights of existing members, and submit those options to the 
          Legislature before February 15, 2013, and states that it is 
          the intent of the Legislature to enact legislation during 
          the 2013-14 Regular Session that addresses the long-term 
          funding needs of the DBP of the State Teachers' Retirement 
          Plan. 

           FISCAL EFFECT  :    Fiscal Com.:  Yes


          DLW:m  8/27/12   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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