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Bill

S 8361

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 Robert Jackson

Bill S 8361 extends the 7% interest rate for valuing retirement system liabilities for four years, stabilizing employer contributions and aiding financial planning.

SUBSTITUTED BY A7428
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Bill Summary · S 8361

Summary of Bill S 8361

Overview

Bill S 8361 aims to extend the current statutory interest rate of 7% per annum, which is used for valuing retirement system liabilities. This extension is specifically for the purpose of calculating employer contributions to retirement systems. The bill was introduced on June 5, 2025, and has since been substituted by A7428.

Purpose and Intent

The primary intent of Bill S 8361 is to maintain the existing 7% interest rate for an additional four fiscal years. This rate is crucial for determining the financial obligations of employers regarding their contributions to retirement systems. By extending this rate, the bill seeks to provide stability and predictability in employer contribution calculations, which can impact budgeting and financial planning for both employers and retirement systems.

Key Provisions

  • Extension of Interest Rate: The bill proposes to extend the 7% per annum statutory interest rate for an additional four fiscal years.
  • Application: This interest rate is specifically applied in the valuation of retirement system liabilities, which affects how much employers are required to contribute to these systems.

Affected Parties

  • Employers: The bill directly impacts employers who contribute to retirement systems, as it affects their financial obligations and planning.
  • Retirement Systems: The stability of the funding for retirement systems is also influenced by this bill, as it affects the valuation of their liabilities.

Legislative Actions

  • June 5, 2025: Bill S 8361 was introduced and referred to the Rules Committee.
  • June 9, 2025: The bill was ordered to third reading.
  • June 10, 2025: Bill S 8361 was substituted by A7428, which is its companion bill.

Related Legislation

  • S 7372: A related bill from the prior session that may address similar issues regarding retirement system funding.
  • A 7428: The companion bill that has substituted S 8361, likely containing similar provisions or amendments.

Conclusion

Bill S 8361 is a legislative effort to ensure the continuity of the 7% interest rate used in calculating employer contributions to retirement systems for an additional four years. This extension is intended to provide financial stability for employers and retirement systems alike, impacting budgeting and long-term financial planning. The bill has been substituted by A7428, which will carry forward its provisions.

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

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