Connecticut Senate Bill SB00312

Connecticut 2013 Regular Session

• Introduced: 1/23/13
• Refer: 1/23/13

Caption

An Act Concerning The State Employees Retirement Commission.

Impact

The introduction of SB00312 is expected to significantly affect how the State Employees Retirement Commission operates, ensuring that the assumed rates of return are more aligned with realistic investment expectations. This is particularly important in addressing the sustainability of the pension funds and ensuring that they can meet their future obligations to state employees. By requiring annual reporting to the legislature, the bill enhances accountability and allows for more informed decision-making regarding public employee pensions.

Summary

SB00312 aims to enhance the oversight and transparency of the State Employees Retirement Commission by instituting more rigorous requirements for the adoption of assumed rates of return on investments. The bill mandates that the Commission must review reports issued by the National Association of State Retirement Administrators before making decisions about assumed rates. Furthermore, it stipulates that the Commission is to provide annual status reports to the relevant joint standing committee of the General Assembly, addressing the fiscal health of the retirement system and examining actual return rates on the state of Connecticut's pension funds.

Contention

While the bill has clear intentions to improve financial oversight, it may face some contention from those who feel it could impose additional bureaucratic processes or from stakeholders who are concerned about the implications that might arise from altering the current review practices. The requirement for regular reporting could also lead to discussions about investment strategies and any necessary adjustments in funding, raising potential debates about state budget allocations and the future of public employee benefits.