An Act to establish the Pension Innovation Fund for intergenerational equity

194th Legislature (2025-2026) Introduced by Erika Uyterhoeven

Summary of HD 3886: Pension Innovation Fund for Intergenerational Equity OverviewHD 3886, titled "An Act to establish the Pension Innovation Fund for intergenerational equity," is

Referred to the committee on Public Service

Overview

HD 3886, titled "An Act to establish the Pension Innovation Fund for intergenerational equity," is a proposed bill that aims to address concerns about the long-term sustainability and fairness of public pension systems. The bill was introduced in the state legislature on May 12, 2025 and has been referred to the committee on Public Service for consideration.

Purpose and Intent

The primary purpose of this bill is to establish a new "Pension Innovation Fund" that would be used to explore and implement strategies to promote intergenerational equity in public pension systems. The bill is motivated by the recognition that current pension funding models may place undue burdens on younger generations of taxpayers, and seeks to find ways to more equitably distribute pension costs and risks across different age cohorts.

Key Provisions

The key provisions of HD 3886 include:

Creation of the Pension Innovation Fund: The bill would establish a dedicated fund, overseen by a board of trustees, to finance research, pilot programs, and the implementation of new pension funding approaches.

Intergenerational Equity Mandate: The fund would be required to develop and implement strategies that "fairly distribute the costs and risks of public pension systems across current and future generations of taxpayers."

Funding Mechanisms: The bill proposes to seed the Pension Innovation Fund with an initial $500 million appropriation, as well as the ability to accept additional public and private contributions over time.

Reporting and Evaluation: The fund would be required to regularly report on its activities and outcomes, and undergo periodic independent evaluations to assess its effectiveness in promoting intergenerational equity.

Affected Stakeholders

The primary stakeholders affected by this bill would be:

Current and future public sector employees who participate in state and local pension systems

Taxpayers who fund public pension obligations through state and local taxes

Policymakers and pension system administrators responsible for ensuring the long-term sustainability of public retirement benefits

Timeline and Next Steps

If enacted, HD 3886 would require the Pension Innovation Fund to be established within 6 months of the bill's effective date. The fund would then have 1 year to develop an initial strategic plan and begin implementing pilot programs. Annual progress reports and independent evaluations would be required starting 2 years after the fund's creation.