PERS sets up rules for $100 million in side-account matching funds
Tuesday, August 20, 2019
The Public Employees Retirement System Board approved Friday temporary rules for public employers to apply for side-account matching funds.
Side accounts help lower employers’ PERS rates, and Senate Bill 1049 allocated $100 million for the Employer Incentive Fund. The fund will match up to 25% of an employer’s lump sum deposit up to the greater of either 5% of the employer’s unfunded actuarial liability or $300,000.
The board held a special meeting Friday to pass the rules so that employers, including school districts, can apply in time for the funds to be included in the end-of-the-year PERS Fund valuation. The 2019 valuation is used to set the 2021-23 rates.
PERS staff recommended accepting applications starting Sept. 3 for employers with liabilities more than twice the size of their payrolls. The application period for the rest of employers is expected to start Dec. 2. The applications will be processed first come, first served.