Employee Relations 12/10/2010
California Congressman Introduces Public Pension Transparency Bill
Representative Devin Nunes (R-CA) last Thursday introduced H.R.
6484, the “Public Employee Pension Transparency Act.” The
legislation finds that nationwide, state and local pension
benefit plans have a total unfunded liability of about $3.23
trillion, but that current government accounting rules obscure
the actual underfunded amount. The bill proposes requiring state
and local pension plans to disclose specific funding information
to the Department of the Treasury based on the market value of
assets and liabilities that are calculated with United States
Treasury obligation yield curve rates.
The specific requirements proposed within H.R. 6484 that must be reported to the Secretary of the Treasury are as follows:
- A schedule of funding status, including the current liability of the plan, the net unfunded liability amount and the funded percentage of the plan.
- A schedule of contributions by the plan for the plan year
- Alternative projections, to be specified in regulations made by the Secretary of the Treasury, for the next 20 plan years. These include the amount of annual contributions and the fair market value of assets.
- A statement of actuarial assumptions used for the plan year.
- A statement of the number of participants who have retired and are receiving benefits as well as those who are retired and entitled to future benefits and those active under the plan.
- A statement of the plan’s investment returns for the plan year and the five previous plan years.
- How the plan sponsor expects to eliminate the current unfunded liability.
- The amount of outstanding pension obligation bonds.
H.R. 6484 also states that failure to comply with the reporting
requirements would result in a suspension of all federal tax
benefits on the state or local government’s issued bonds until
the state or local government comes into compliance.
Additionally, the bill specifies that the report must be
submitted to the Secretary of the Treasury for each plan year no
later than 210 days after the end of the plan year.
CSAC will keep you apprised of the status of H.R. 6484 as it moves through the process.
Public Safety Employee Cooperation Act Meets Its Fate in Senate
As we reported in last week’s The CSAC Bulletin, Senate
Majority Leader Harry Reid was expected to introduce a cloture
vote last week on legislation implementing the Public Safety
Employee Cooperation Act (Act). The Act essentially establishes
minimum requirements for collective bargaining laws for
firefighters and police officers.
The cloture motion failed to garner the necessary number of votes on the Senate Floor this past Wednesday and will not move forward this legislative year.