fully recompense the public employees' retirement association (PERA) for the cancellation of a previously scheduled July 1, 2020, direct distribution of $225 million, the bill requires an additional direct distribution to PERA of $303.57 $380 million to be made on July 1, 2022. $303.57 million is the sum of $225 million plus an estimate of investment gains that would have accrued on that amount from July 1, 2020, through June 30, 2022, based on PERA's actual one-year total fund policy benchmark return from July 1, 2020, through June 30, 2021, plus PERA's assumed one-year rate of return of 7.25% from July 1, 2021, through June 30, 2022. The bill also reduces the $225 million July 1, 2023, direct distribution to PERA that is scheduled under current law by at least $155 million but no more than $190 million, depending upon the amount of investment income earned by PERA on the additional July 1, 2022, $380 million direct distribution so that the July 1, 2023, direct distribution will be between $35 million and $70 million. Finally, the bill reduces the $225 million direct distribution to PERA that is scheduled under current law by the lesser of an amount equal to 7.25% multiplied by $380 million or an amount equal to PERA's annual rate of return on investments as reported in PERA's 2022 annual report multiplied by $380 million; except that there is no reduction if the rate of return is zero or less.
(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)