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SF 3355

Public Employees Retirement Association expansion of coverage governing privatization to include governmental subdivisions provision, administrative changes provision, withdrawal liability calculation method revision provision, and annual reporting requirement expansion provision

2025-2026 Regular Session Introduced by Sandy Pappas

Expands PERA coverage to privatization deals with governmental subdivisions, refines withdrawal-liability calculations, and broadens annual reporting requirements.

Referred to State and Local Government
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Bill Summary · SF 3355

SF 3355 — Summary

Overview

SF 3355 proposes expanding the Public Employees Retirement Association (PERA) coverage and making related administrative and reporting changes. The bill focuses on privatization contexts involving governmental subdivisions, adds administrative changes to PERA operations, revises how withdrawal liabilities are calculated, and expands annual reporting requirements. It was introduced on April 9, 2025, and referred to the State and Local Government committee (first reading on the same date).

Purpose and intent

  • Expand PERA coverage to include privatization scenarios involving governmental subdivisions.
  • Introduce administrative changes to PERA processes and governance related to the expanded coverage and new provisions.
  • Revise the method used to calculate withdrawal liabilities for employers that exit PERA coverage.
  • Expand the scope of annual reporting requirements to require additional information or data from relevant entities.

Key provisions (as described)

  1. Coverage expansion for privatization involving governmental subdivisions

    • Broadens PERA applicability to certain privatization arrangements tied to governmental subdivisions (e.g., local governments).
    • Clarifies which employers and participants would fall under PERA in privatization contexts.

  2. Administrative changes provision

    • Implements changes to PERA administration, governance, or procedures pertinent to the expanded coverage and scope of the program.
    • Aims to improve efficiency, oversight, or compliance in light of the new provisions.

  3. Withdrawal liability calculation method revision

    • Alters how withdrawal liabilities are computed when an employer leaves PERA.
    • Potentially affects the timing, amount, or calculation basis of liabilities assessed to former or current contributing employers.

  4. Annual reporting requirement expansion provision

    • Requires additional or expanded annual reporting from employers or PERA-related entities.
    • Enhances transparency, oversight, or data collection related to funding, liabilities, or participant information.

Who would be affected

  • Local government subdivisions (cities, counties, school districts, and other governmental units) that participate in or interact with PERA, especially in privatization arrangements.
  • Employers and entities that contribute to or withdraw from PERA, due to changes in withdrawal liability calculations.
  • PERA and its administrative staff, due to new administrative processes and expanded reporting requirements.
  • PERA participants (public employees) indirectly, through potential changes in coverage, funding, and protections.

Procedural and timeline aspects

  • Introduced: April 9, 2025
  • Status: Referred to State and Local Government (first reading completed on introduction date)
  • Next steps: Would progress through the committee with potential hearings, amendments, and votes, then to the full chamber for consideration.

Potential implications

  • Funding and liabilities: Expanded coverage and revised withdrawal liability calculations could affect the funding requirements for some employers and the overall financial stability of PERA.
  • Administrative workload: Administrative changes and expanded reporting obligations may increase compliance and reporting responsibilities for employers and PERA staff.
  • Coverage scope: Broader PERA coverage in privatization contexts could extend retirement benefits to additional participants or alter eligibility in certain privatization arrangements.

Next steps for readers

  • Monitor updates from the State and Local Government committee for hearings, amendments, and potential floor votes.
  • Review any amended bill text for precise definitions (e.g., which governmental subdivisions are covered, exact scope of privatization provisions) and the specific data required in expanded annual reports.

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

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