The Public Employees’ Retirement System.

Plain English Breakdown

The official source material does not specify how long audits will take after these changes are made, nor does it mention funding for additional costs from implementing these changes.

Public Employees' Retirement System Changes

This law requires more transparency in audits of public employees' retirement benefits by posting information online and providing written notices to affected parties.

What This Bill Does

• Requires the Board of Administration to post specific information about an audit on their website before starting it.
• Needs the board to give written notice to employers who might be audited, including school districts.
• Asks affected employers to share the written notice with employee representatives and members who may be impacted by the audit.
• Requires employers to provide a list of employees affected by the final audit report to both the Board of Administration and employee representatives.

Who It Names or Affects

• Public employees who are part of the Public Employees’ Retirement System (PERS).
• Employers like state agencies and school districts that participate in PERS.
• Employee representatives or unions involved with PERS members.

Terms To Know

Board of Administration

The group that manages the Public Employees’ Retirement System (PERS).

Audit

A review to check if something is correct or fair, in this case for retirement benefits.

Limits and Unknowns

• Does not specify what happens if an employer does not follow the new requirements.
• The bill summary and text do not provide details on how long audits will take after these changes are made.
• It is unclear who will fund any additional costs from implementing these audit changes.

Official Summary Text

SB 1038, as amended, Laird.
The Public Employees’ Retirement System.
The Public Employees’ Retirement Law (PERL) creates the Public Employees’ Retirement System (PERS) for the purpose of providing pension benefits to specified public employees and prescribes the rights and duties of members and annuitants of the system. PERL vests management and control of PERS in the Board of Administration. PERL authorizes the board, during the course of an audit, to require each state employer, school employer, including each school district represented by a school employer, and contracting agency to provide information as deemed necessary by the board to determine eligibility for, and the correctness of, retirement benefits, reportable compensation, enrollment in, and reinstatement to this system. PERL requires the board, before initiating an audit, to notify the subject of the audit of the estimated time required to completion.
This bill would require the board, before initiating an audit, to list specific information about the audit on its internet website and provide written notice to the affected state employer, school employer, including each school district represented by a school employer, or contracting agency.
The bill would require an affected employer to forward the written notice of the intended audit to the exclusive representative or representatives, if any, of members that may be affected by the audit, and provide the names of any members affected by the final audit, as specified, to the board and the exclusive representative or representatives, if any. The bill would specify the distribution and certification of the distribution of the final audit report between these entities.
The bill would specify the
distribution of the notice, the final audit report, and a list of members affected by the final audit report, between the board, a state employer, school employer, or contracting agency, and any exclusive representative.

Current Bill Text

Download Bill PDF