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Senate Bill 0587


Senate Bill 0587

ARCHIVE (2005)

Latest Information

 

DIGEST OF INTRODUCED BILL


Sheriff's department pension plans. Authorizes a county legislative body to: (1) establish a defined contribution plan for employee beneficiaries of the county sheriff's department; and (2) terminate the pension trust of the sheriff's department and transfer the assets to the defined contribution plan. Provides that a pension trust may not be terminated unless assets in the trust fund are sufficient to fully fund the accrued benefits for all active and retired employee beneficiaries. Provides that, if a defined contribution plan is established upon the termination of a pension trust, the contribution rate to be paid by the sheriff's department equals the percentage calculated by determining: (1) the annual contribution necessary to fully fund accrued benefits under the pension trust as of the termination date, as calculated by the actuaries for the pension trust; divided by (2) the total wages paid to the department's employee beneficiaries during the 12 months preceding the termination of the pension trust. Provides that a sheriff's department may implement a defined contribution plan only if the department has received from the Internal Revenue Service a ruling or determination letter stating that the defined contribution plan is a qualified plan. Requires the report of the trustees and actuaries of a sheriff's pension trust to be current through the end of the last full calendar quarter before the county holds a budget hearing. (Current law requires the report to be current through the end of the county's fiscal year.) Makes conforming changes.
    Current Status:
     In Committee - first House
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