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Bill

A 7428

Extends for four fiscal years the current 7% per annum statutory rate of interest used in valuing retirement system liabilities for the purpose of computing the amount of employer contributions

2025 Regular Session Introduced by Stacey Pheffer Amato

Bill A 7428 extends the 7% interest rate for valuing retirement liabilities for four years, stabilizing employer contributions and supporting public sector retirement systems.

SIGNED CHAP.139
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Bill Summary · A 7428

Summary of Bill A 7428

Overview

Bill Number: A 7428
Title: Extends for four fiscal years the current 7% per annum statutory rate of interest used in valuing retirement system liabilities for the purpose of computing the amount of employer contributions
Status: Signed into law as Chapter 139
Introduced: March 26, 2025

Purpose and Intent

The primary purpose of Bill A 7428 is to extend the existing statutory interest rate of 7% per annum for an additional four fiscal years. This rate is crucial for valuing retirement system liabilities, which directly affects the calculation of employer contributions to retirement systems. By maintaining this interest rate, the bill aims to provide stability and predictability in the funding of retirement systems.

Key Provisions

  • Extension of Interest Rate: The bill extends the 7% per annum statutory interest rate for four more fiscal years.
  • Impact on Employer Contributions: The continued use of this interest rate will influence how employer contributions are calculated, potentially affecting budgetary allocations for public sector employers.

Affected Parties

  • Public Sector Employers: The bill primarily impacts state and local government employers who contribute to retirement systems.
  • Retirement System Participants: Employees and retirees who benefit from these retirement systems may also be indirectly affected, as the stability of employer contributions can influence the overall health of the retirement funds.

Legislative Timeline

  • March 26, 2025: Bill introduced and referred to the Governmental Employees Committee.
  • April 30, 2025: Reported and referred to the Ways and Means Committee.
  • June 4, 2025: Passed in the Assembly and delivered to the Senate.
  • June 10, 2025: Passed in the Senate and returned to the Assembly; substituted for S8361.
  • June 18, 2025: Delivered to the Governor and signed into law as Chapter 139.

Related Legislation

  • A 7644: A related bill from the prior session that may have addressed similar issues.
  • S 8361: A companion bill that was substituted for A 7428 during the legislative process.

Conclusion

Bill A 7428 plays a significant role in ensuring the continued viability of retirement systems by extending the statutory interest rate used for calculating employer contributions. This extension is expected to provide necessary stability for public sector employers and the employees relying on these retirement systems.

Compiled from official sources — confirm details with the bill’s official record.

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