Transcript Highlights:

• If you ask any actuary, there's a paper from the Society of Actuaries that says 100% is the goal. 100%
• So Tier 2's population requires a $13 million pre-funding but has a true valuation of actuarial impact
• of about Million-dollar pre-funding but has a true valuation of actuarial impact of about $64 million
• of actuarial impact of about million dollar pre-funding but has a true valuation of actual impact of
• refer to as the true valuation cost is different than that.

Committee: Senate Senate Public Safety Committee of Reference

Summary: The committee approved the February 4 minutes and announced several bills would be held, including SB 1317, SB 1416, SB 1419, SB 1490, and SB 1493. It then heard SB 1579, which would appropriate about $4.7 million from the general fund to expand a law enforcement data-sharing pilot through the Department of Administration, with funding for DPS, county sheriffs, university police, city/town police, and an amendment adding $125,900 for Scottsdale Police. Supporters, including the Flagstaff mayor, the Eloy police chief, and Maricopa County Sheriff’s Office staff, said the system improves real-time information sharing, officer safety, and efficiency. The committee adopted the amendment and gave SB 1579 a do pass as amended recommendation by a 6-0 vote with one not voting. The committee next heard SB 1581, which would use the Peace Officer Training Equipment Fund for pepper ball equipment and public safety training simulators. The amendment increased the Nogales Police Department’s pepper ball appropriation and expanded simulator funding so Yavapai County could buy two simulators with a three-year warranty. Testimony from the Navajo County Sheriff’s Office, Phoenix Police, Glendale Police, Flagstaff, and Cochise County emphasized pepper ball’s de-escalation value and the simulators’ role in crisis-response and scenario-based training, including interactions involving autism, mental illness, and hearing impairments. The committee adopted the amendment and passed SB 1581 as amended on a 7-0 vote. SB 1673 was then heard to appropriate $8.2 million from the general fund to the Law Enforcement Crime Victim Notification Fund, with the sponsor and witnesses describing the automated victim-notification system as constitutionally required and already reducing workload while keeping victims informed through texts and other alerts. The committee passed SB 1673 with no amendment on a 7-0 vote. SB 1544, which would make adult probation records public on request subject to redactions and appeal procedures, drew mixed testimony over transparency versus privacy concerns, especially around risk assessment tools and sensitive records; the committee passed it 4-3, with several members explaining no votes pending amendments. SB 1376, a civic leadership development special plate bill directing funds to a nonprofit focused on youth civic education and leadership, passed unanimously 7-0. Finally, SB 1550, a three-year Queen Creek pilot program to address runaway youth and exploitation through specialized police work, received support from local officials and anti-trafficking advocates but drew a no vote from one member over concerns about how runaway youth are treated in other legislation; it passed 5-1 with one not voting. The committee also heard SB 1504, a public safety retirement bill changing normal retirement and COLA timing for Tier 2 and Tier 3 members, with strong support from police and fire groups and opposition from local government and pension reform advocates, but no vote was taken in the portion provided.

Transcript Highlights:

• The pension systems have retained actuaries responsible for preparing annual valuation reports, experience
• As the LCPR's actuary, we provide independent actuarial advice and another perspective to the LCPR.
• Each year we replicate the actuarial valuations for a subset of the statewide plans.
• </c><00:41:31.079><c> of</c><00:41:31.200><c> the</c> Actuarial valuations for a subset of the Actuarial
• for each system use in their actuaries for each system use in their valuations<00:46:03.160><c> to</

Transcript Highlights:

• We'll now go to our actuarial update from Michael Harbor. Thank you, Mr.
• Again, for the record, Michael Harbor, actuary for OSA.
• So last month, during the presentation on the updated actuarial valuation results, there was some discussion
• So I think the question then is, Ken, is the actuary office prepared?
• Ken, is the actuary office prepared to move forward with the bill next session?

Committee: Joint Select Committee on Pension Policy

Summary: The Executive Committee of the State Committee on Pension Policy approved the June minutes and received updates from staff and counsel. The attorney reported on two class action matters: the Fowler/Probst Fowler teacher interest case, where a court ordered the state to pay $118 million and the state has appealed and sought a stay, and the Dawson case challenging last year’s HB 2034 related to the LEOFF 1 plan, where the complaint was amended and the state plans to move to dismiss. The actuary also provided a brief update on asset smoothing and offered to provide additional education on the topic. The committee then focused on interim work planning and the September agenda. Members discussed an ad hoc COLA for PERS and TRS Plan 1 retirees, with staff explaining options for making a COLA part of the base budget or otherwise structuring it. The committee agreed to move forward with a bill for a Plan 1 ad hoc COLA and to have it considered in October, with a request for fiscal analysis. The committee also heard from a Washington State Patrol Troopers Association representative about survivor medical benefits, and staff said a cost estimate could be prepared for October if the proposal included retroactive coverage. For September, the committee set the agenda to include PERS eligibility for animal control officers, a LEOFF 1 medical study update with possible action, and the Plan 1 ad hoc COLA item. Staff said the work plan would also add the ongoing Plan 1 COLA and survivor medical topics to October, along with preliminary 2027 meeting dates. The meeting ended with informal approval of the September agenda and adjournment.

Transcript Highlights:

• Sarah Baker, actuarial update. Sarah Baker, actuarial update. Thank you, Chair.
• You did just hear about one of the biggest projects, which is the actuarial valuation report on the DRS
• Lastly, we will be preparing an actuarial valuation of the volunteer firefighters pension plan, which
• Is there anything on the actuarial valuation results that the members want to talk about?
• Do you, and you might not have actuarial numbers at this... Capped?

Committee: Joint Select Committee on Pension Policy

Transcript Highlights:

• independent living communities that make no promise to provide future care and therefore do not have actuarial

Bills: SB500 , SB1522 , SB1137 , SB1266

Committee: House Human Services

Keywords: SB 500, Texas adoption law, Family Code, DFPS, Department of Family and Protective Services, child-placing agency, prospective adoptive parents, adoption records, confidential information, nondisclosure agreement, child history report, health history, social history, educational history, genetic history, termination of parental rights, permanency plan, single source continuum contractor, privacy, redaction

Summary: The Committee on Human Services met with a quorum and first voted out Senate Bill 1589, relating to contract requirements between a single-source continuum contractor and DFPS. The motion to report the bill favorably to the full House with a recommendation that it do pass and be printed prevailed on a 7-0 vote. The committee then heard Senate Bill 500, which would set deadlines for providing foster care adoption records, including health, social, educational, and genetic history reports, to speed adoptions. The bill’s author and witnesses from Addie’s Hope Social Services supported it, saying delays in redacted files can take months, slow permanency for children, and increase costs to the state. Members asked about redactions and sibling/family information, and witnesses explained the bill would mainly speed the preliminary file used to decide whether to proceed with placement. SB 500 was left pending. Members also heard Senate Bill 1266, which would require regular reevaluation of the Medicaid provider support team and add written notice of provider disenrollment at least 30 days in advance. There were no witnesses, no questions, and the bill was left pending. Senate Bill 1522, concerning continuing care retirement communities, was then laid out and supported by LeadingAge Texas and counsel, who said it updates outdated definitions, clarifies licensing and disclosure rules, and strengthens consumer protections for seniors. It was also left pending. After a brief recess, the committee heard Senate Bill 1137, which would prohibit group home consultants from referring people to unlicensed or unpermitted group homes except in limited circumstances, require disclosure of complaints, and create a Class B misdemeanor for violations. Members discussed whether consultants are regulated and noted concerns about unlicensed referral practices. The bill was left pending, and the committee adjourned after completing its agenda.

Transcript Highlights:

• My office has worked directly with... to create a program that preserves actuarial stability.
• To preserve the actuarial soundness of the program, the bill authorizes TRS to impose a risk stabilization
• The fund's actuary has reviewed the bill, and it's confirmed that the bill would have no effect on the
• Fund's unfunded actuarial liability.

Bills: HB3014 , HB3109 , HB3126 , HB3474 , HB3594

Committee: House Pensions, Investments & Financial Services

Keywords: gift card fraud, counterfeit gift card, gift card tampering, gift card theft, prepaid card, stored value card, retail fraud, financial crimes, consumer protection, organized retail crime, gift card skimming, magnetic stripe, chip card, redemption information, gift card packaging, Penal Code, felony theft, state jail felony, third-degree felony, second-degree felony

Transcript Highlights:

• All right, we're going to move on to Michael Harbor, the actuary, for the actuarial update.
• Again, for the record, Michael Harbor, actuary for OSA.
• You know, on actuarial updates, of course, we heard some in the previous comments about the actuarial
• You know, we have our new valuation out.
• The actuary representative made recommendations for changes, right? Correct. State actuary amounts.

Committee: Joint Select Committee on Pension Policy

Summary: The executive committee approved the October minutes and received brief updates from the Assistant Attorney General and the committee actuary. The actuary reminded members that OSA prepares actuarial fiscal notes during session and said staff would begin work soon on analysis for the upcoming session, including updates related to the COLA bill and other pension measures. Senator Conway asked that updated actuarial materials be shared with committee members as they are completed, and staff agreed to do so. Most of the meeting focused on committee discussion of pension policy issues, especially the ad hoc COLA for Plan 1 retirees and the broader study work on Left 1/Plan 1 topics, including merger and termination-restatement bills such as Senate Bill 5084. Members discussed the need for a COLA, the overfunding of some pension plans, the role of the legislature versus the committee, and the importance of keeping the State Investment Board separate from pension policy recommendations. Several members said the interim work had clarified many questions and would make future legislative decisions easier, while also noting that the committee’s study role had been completed. The committee also reviewed constituent correspondence, which included 15 items, with substantial public interest in the ad hoc COLA and related pension bills. Staff presented the draft interim work plan and proposed December agenda items, including possible education on excess compensation and an update on demographic experience studies. After discussion, members agreed not to hold a December meeting, with the understanding that any remaining informational items could be sent by email. The motion to skip the December meeting passed unanimously, and the committee then adjourned.

Transcript Highlights:

• This hearing is required by law to hear an independent report from the California Actuarial Advisory
• This hearing is required by law to hear an independent report from the California Actuarial Advisory
• and is also the Chief Actuary at CalPERS.
• I'm Chief Actuary for CalPERS. I'm also a member of the California Actuarial Advisory Panel.
• The presentation for the CAP, or the California Actuarial Advisory Panel meeting.

Summary: The Assembly Committee on Public Employment and Retirement and the Senate Committee on Labor, Public Employment, and Retirement held a joint hearing required by law to receive an independent report from the California Actuarial Advisory Panel on CalPERS. Chair McKinnor and Senator Smallwood-Cuevas opened by emphasizing CalPERS’ importance to retirement security for public employees and to the state budget. Scott Tarando, CalPERS Chief Actuary and a CAP member, presented on the statutory disclosure requirements in Government Code Section 2029, including the use of CalPERS’ 6.8% discount rate and the need to show how changes in investment return assumptions and amortization periods affect liabilities, contribution rates, and budgets. Tarando explained that lower investment returns increase contribution rates and unfunded liabilities, while higher returns reduce them. He also described CalPERS’ 20-year amortization period for new unfunded liabilities, comparing it to a mortgage and noting that shorter periods raise near-term costs but reduce long-term interest costs. He said the CAP has recommended a 15- to 20-year range and that CalPERS’ current approach is intended to smooth volatility for a large, ongoing plan. Members asked about the meaning of average service lifetime, the timing of valuation data, whether more current data could be used, the effect of AI and workforce changes on assumptions, and whether contribution changes affect retiree benefits. Tarando said retiree benefits do not change with annual valuations, that CalPERS uses audited year-end data because it is the most reliable basis for rates, and that AI impacts are being monitored but are too early to quantify. Committee members also discussed CalPERS’ funded status, with Tarando saying it had improved from the mid-60% range about 10 years ago to around 79% at fiscal year-end and over 80% more recently, reducing pressure on employers and the state budget. Michael Cohen, CalPERS’ investment operations chief, said CalPERS had complied with federal information requests and that its annual audits are publicly available, but no formal federal review had been released. In public comment, a representative of the California State Association of Counties praised the improved funded status and the role of PEPRA reforms. The chairs closed by reaffirming CalPERS’ fiduciary duty and the goal of protecting retirement security for public workers; no votes were taken.

Transcript Highlights:

• For example, a property valuation dispute between Valero Energy, Flint Hills Resources, and Reeves County
• This created a major issue with the tax valuation.
• Increased valuations and the affected property owner pursuing a protest is not merely hypothetical.
• The property valuation, as determined by the appraisal district, impacts the effective tax rate. and
• They are exploiting this loophole and taking property taxes and valuations off your property.

Bills: SB467 , SB325 , SB867 , SB994 , SB1052 , SB1237 , SB1449 , SB1531 , SB2063 , SB2172 , SB2173 , SB2520 , SB2529 , SB2538 , SB2541 , SJR46 , SJR84

Committee: Senate Local Government

Keywords: SB 467, Texas property tax, ad valorem tax, homestead exemption, residence homestead, fire damage, house fire, destroyed home, temporary tax relief, appraisal district, chief appraiser, local taxing unit, tax rollback, tax refund, Tax Code Chapter 11, prorated exemption, homestead improvement, disaster relief, property tax exemption, residential property

Summary: The committee heard several local government and property tax bills, with most testimony focused on appraisal disputes, tax administration, and development rules. Senate Bill 1052 by Senator Hinojosa would address coastal county appraisal litigation by requiring property owners in certain large-value disputes to report an uncontested taxable value while appeals are pending, so taxing units can base truth-in-taxation calculations on more realistic revenue. Nueces County, Del Mar College, and Corpus Christi ISD testified in support, describing major budget shortfalls caused by refinery valuation disputes; the committee substitute narrowed and clarified the bill’s scope. No opposition was heard, public testimony closed, and SB 1052 was left pending. The committee also heard Senate Bill 1531, which would require local tax collectors to accept common electronic property tax payments such as credit cards, debit cards, and e-checks. Witnesses supported modernizing payment options and the committee substitute removed ACH/electronic funds transfer language to avoid bank-account disclosure concerns. Public testimony closed and the bill was left pending. Senate Bill 325, by Senator Perry, would restore platting and groundwater-certification requirements that were unintentionally weakened by prior legislation; supporters from county government, water groups, and builders’ representatives debated whether the real issue was groundwater protection or road standards for private roads. The bill was left pending after extensive testimony and no vote. The committee then took up Senate Bill 994 and SJR 46, which would exempt certain livestock feed inventory from property tax and provide the constitutional amendment needed for that change. Feed store and Farm Bureau witnesses supported the measure as relief for seasonal inventory taxes, and the bills were left pending. Senator Paxton presented SB 467 and SJR 84 to create a temporary property tax exemption for homes completely destroyed by fire, with refunds or corrected bills based on the date of loss; both were left pending. SB 1237 would clarify charitable property tax exemptions for senior housing and retirement communities, with testimony from Catholic and Baptist retirement organizations and a resident describing rising costs and exemption revocations; it was also left pending. The committee later voted 6-0 to report SB 2073, a pending bill on appraisal district authority to purchase or finance real property, and recommended it for the local and uncontested calendar. Finally, the committee heard SB 2172, SB 2173, and SB 2063, all related to property tax administration. SB 2172 would limit when appraisal districts can require homeowners to reapply for homestead exemptions, requiring a specific reason and written notice; SB 2173 would protect new homeowners from surprise tax liabilities caused by prior owners’ erroneous homestead exemptions, with testimony describing large back-assessment bills; both were left pending. SB 2063 would bar appraisal districts from using market-value evidence in unequal appraisal protests, and testimony sharply divided between taxpayer advocates, who said market data improperly overwhelms equity claims, and appraisal district representatives, who argued market value is inherently tied to equal-and-uniform taxation and cited a recent Texas Supreme Court decision; the bill was left pending after testimony.

Transcript Highlights:

• This hearing is required by law to hear an independent report from the California Actuarial Advisory
• Today, we're going to hear from Scott Tarando, who is a member of the California Actuarial Advisory Panel
• and is also the Chief Actuary at CalPERS.
• I'm Chief Actuary for CalPERS. I'm also a member of the California Actuarial Advisory Panel.
• We create a new layer every year as we do these valuations.

Transcript Highlights:

• This hearing is required by law to hear an independent report from the California Actuarial Advisory
• and is also the Chief Actuary at CalPERS.
• I'm Chief Actuary for CalPERS. I'm also a member of the California Actuarial Advisory Panel.
• This is a presentation for the CAP, or the California Actuarial Advisory Panel meeting.
• Give some historical background for the California Actuarial Advisory Panel, or CAP, as we call it.

Transcript Highlights:

• That will be a board decision in consultation with the actuary.
• That is just simply how an actuarial reduction works.
• I'd rather do this than an actuarial reduction. So with that respect, yes.
• Otherwise, we do tell them it is an actuarial reduction for the term of life.
• We did, I think, resubmit our actuarial valuation or supplemental valuation that we submitted last year

Committees: House Pensions , House Local Government, Elections and Pensions

Summary: The Pensions Committee met with a quorum present, welcomed new members and staff, and observed a moment of silence in remembrance of former chair Representative Ken Waller. The committee then took up its only bill, House Bill 1655, which the sponsor said would strengthen public pension systems by improving recovery of overpayments, restoring a limited deferred annuity or lump-sum buyout option, and prohibiting pension funds from being used for political advocacy or campaign activity. Members asked about how overpayments happen, how repayment plans would work, the fairness of suspending survivor benefits upon a criminal charge, and whether the bill’s political-spending language might interfere with routine member education. The sponsor and witnesses from MOSERS and EMPERS said overpayments can occur through administrative errors or changes in eligibility, that the bill would give systems more tools to correct errors, and that lump-sum buyouts are intended to be optional and actuarially based. Witnesses also said their systems already avoid political spending and try to provide only factual educational information to members. MOSERS testified that the bill would expand correction options, revive a buyout program for terminated vested members, and that a prior buyout reduced liabilities and contribution rates. EMPERS gave similar neutral testimony, saying the bill largely reflects current practice, would help reduce long-term liabilities, and that its board already interprets existing law to prohibit political contributions. No vote was taken during the meeting, and after testimony and questions, the chair adjourned the committee after a brief session.

Transcript Highlights:

• It was 89% funded at the last actual valuation for the year ending June 30th, 2025.
• Again, this is, um, this really is an actuary would say that this is part of the AD deck.
• Uh, and this actuarial approach, called level amortization, it's a common tool in the actuarial world
• :08.320><c> projections</c> our actuary provides 30-year projections our actuary provides 30-year projections
• </c><00:25:40.400><c> has</c> early years, but it is our actuary has early years, but it is our actuary

Summary: The House Budget Review Subcommittee on Personnel, Public Retirement, and Finance heard testimony from Bo Barnes, deputy executive secretary and general counsel for the Teachers’ Retirement System (TRS), on the TRS budget request for the upcoming biennium and how it compares with House Bill 500 as introduced. Barnes emphasized that the bill fully funds the system’s additional funding request to pay down TRS’s legacy unfunded pension liability, which he described as critical to the system’s long-term funding plan. He also explained that the pension and health insurance requests are broken into several line items, including legacy benefit items, state shared-responsibility payments for retiree health insurance, and reconciliation items that adjust for prior over- or underpayments. Barnes said the state portion of shared responsibility for retiree health insurance was funded below the request in House Bill 500, but he described the health insurance trust as a success story under the post-2010 shared-responsibility model. He said the trust is projected to be fully funded in about two years if medical inflation and federal subsidies remain stable, and he noted that any shortfall in the current budget would be reconciled later and could reduce investment income. In response to questions, he explained that the legacy benefit items are treated as part of the total actuarially determined employer contribution and that unpaid legacy benefits would have the same impact on the retirement trust as unpaid ADC amounts. Barnes also addressed questions about whether the $47.2 million SEEK-related teacher contribution reconciliation could be split between fiscal years, saying it could be done but would reduce investment income and potentially increase future contribution needs. He said the pension fund is currently about 61% funded and that TRS has received full funding for the pension for 10 straight years, with the state having provided full additional funding and more in recent budgets. He concluded by asking the committee to consider TRS’s original budget request, warning that underfunding now would be reflected in future actuarial calculations and could cost the Commonwealth more over time.

Transcript Highlights:

• This hearing is required by law to hear an independent report from the California Actuarial Advisory
• and is also the chief actuary at CalPERS.
• I'm Chief Actuary for CalPERS. I'm also a member of the California Actuarial Advisory Panel.
• This presentation is for the CAP, or the California Actuarial Advisory Panel meeting.
• And we create a new layer every year as we do these valuations.

Summary: The Assembly Committee on Public Employment and Retirement and the Senate Committee on Labor, Public Employment, and Retirement held a joint hearing required by law to receive an independent report from the California Actuarial Advisory Panel on CalPERS. Opening remarks emphasized CalPERS’ role in providing retirement security for about two million members and the importance of pension funding to the state budget, especially amid economic uncertainty, market volatility, federal policy changes, and concerns about future fiscal pressure. Scott Tarando, CalPERS chief actuary and a CAP member, presented on the statutory disclosure requirements in Government Code Section 2029. He explained that CalPERS’ current discount rate is 6.8%, that lower investment returns increase contribution rates and unfunded liabilities, and that the plan uses a 20-year amortization period for new unfunded liabilities. He said CAP has recommended a reasonable amortization range of 15 to 20 years and that CalPERS’ longer smoothing period helps reduce volatility in employer contributions. He also explained the timing of actuarial data: the valuation used for current contribution rates is based on the prior fiscal year’s audited data, with the next year’s rates developed later in the annual cycle. Members asked about the relationship between average employee service life and amortization, whether current market and AI-related changes could justify using more current data, whether pension benefits change when valuations are updated, and how CalPERS’ funded status has changed over time. Tarando said retiree benefits do not change based on annual valuations, that the system’s funded status has improved from roughly the mid-60% range about a decade ago to around 80% or higher more recently, and that CalPERS is monitoring possible long-term workforce effects from AI but sees no immediate need to change assumptions. Michael Cohen of CalPERS said the system complies with information requests and is independently audited annually, but there has been no formal federal review released. In public comment, a representative of county governments praised the improved funded status and PEPRA reforms. The hearing concluded with remarks reaffirming fiduciary responsibility and the importance of protecting CalPERS beneficiaries.

Transcript Highlights:

• This hearing is required by law to hear an independent report from the California Actuarial Advisory
• Today, we're going to hear from Scott Tarando, who is a member of the California Actuarial Advisory Panel
• and is also the chief actuary at CalPERS.
• I'm Chief Actuary for CalPERS. I'm also a member of the California Actuarial Advisory Panel.
• This is a presentation for the CAP, or the California Actuarial Advisory Panel meeting.

Summary: The Assembly Committee on Public Employment and Retirement and the Senate Committee on Labor, Public Employment, and Retirement held a joint hearing required by law to receive an independent report from the California Actuarial Advisory Panel on CalPERS. Opening remarks emphasized CalPERS’ role in providing retirement security for roughly two million members and the importance of actuarial assumptions to state budgeting and long-term pension health. Scott Tarando, CalPERS chief actuary and a CAP member, presented the report with Michael Cohen of CalPERS’ investment office available for questions. Tarando explained the statutory disclosure requirements under Government Code Section 2029, including sensitivity analysis around CalPERS’ 6.8% discount rate, and discussed how investment return assumptions and the 20-year amortization period affect contribution rates, unfunded liabilities, and budget volatility. He said shorter amortization periods would raise near-term costs but reduce long-term interest costs, and noted that CalPERS’ current approach is intended to smooth contribution changes over time. He also described the timing of the annual valuation process, explaining that contribution rates for a given fiscal year are based on the most recently audited year-end data and are approved by the board before being used in the budget process. Members asked about the relationship between average employee service life and amortization, whether more current data could be used, the effect of AI and labor-market changes on future assumptions, whether retirees’ benefits change with annual valuations, and CalPERS’ funded status. Tarando said the average expected working lifetime is about 11 to 12 years, while CalPERS uses a 20-year amortization period; he also said retiree benefits are set at retirement and do not change based on later valuations. He estimated CalPERS’ funded status had risen from the mid-60% range about 10 years ago to around 79% at June 30 and above 80% more recently. Cohen said CalPERS had complied with federal information requests and that no formal federal review had been released. During public comment, a county association representative praised the improved funded status and PEPRA reforms. The chairs closed by reiterating fiduciary responsibility and the need to protect CalPERS’ long-term stability, and the meeting adjourned.

Bills: HF1698 , HF632 , HF1352 , HF2197 , HF618 , HF1248 , HF1697

Committee: Senate Taxes

Keywords: property tax, exemption, leased land, public use, commercial property, HF632, Minnesota property tax, conservation easement, conservation restriction, assessed value, property valuation, tax assessment, real property, land conservation, farmland preservation, natural areas, riparian buffer, water quality, water quantity, county assessor

Transcript Highlights:

• And so they're also the valuation.
• So we do full funding valuations every other year. So our most recent was in 2023.
• </c><00:18:45.679><c> So,</c><00:18:45.919><c> our</c> valuations every other year.
• So, our valuations every other year.
• > could</c> systems actuary that that actuary could systems actuary that that actuary could recommend

Summary: The meeting opened with the Pledge of Allegiance and prayer, followed by a roll call confirming a quorum and approval of the prior minutes. A special guest, Dave Eager, was welcomed before the committee moved to presentations from retirement system officials. Bo Craycraft, executive director of the Judicial Form Retirement System, gave a quarterly update on investment performance, asset allocation, and cash flow. He said the plans had held up well amid market volatility, with fiscal year-to-date returns above benchmark and long-term returns remaining strong. He explained that the plans are targeted to a 70% equity/30% fixed-income allocation, that some cash is being held for cash-flow management, and that negative cash flow is expected because of funding and contribution levels. He also said Senate Bill 183, dealing with proxy voting and economic analysis for certain votes, was not expected to materially affect the plans because of their small number of holdings and Bear Trust’s long-term investment approach. Ryan Barrow and Erin Surrod then presented for the Kentucky Pension Authority. They reported positive quarterly performance across the retirement and insurance funds, though results varied by period and remained tied to broader market conditions. They said recent asset-allocation changes had been completed and the funds were now within target ranges. On cash flow, they noted some plans remained negative or near zero, with one plan benefiting from a large appropriation. In the legislative update, they described House Bill 30 as codifying an exclusion from pension-spiking calculations for across-the-board raises, and Senate Bill 10 as increasing retiree health insurance subsidies and changing employee health insurance contribution rules for certain CERS members beginning in 2026. They also said Senate Bill 183 would likely have limited impact, though the agency would review voting policies and incorporate any required economic-analysis procedures.

Transcript Highlights:

• Most of that has been actuarial changes to methodology, which I think are very positive changes.
• We would definitely want to make sure we have zero unfunded actuarial liability.
• But long term, our objective is to have no unfunded actuarial liability, but I don't know exactly the
• The experience study is conducted by Milliman, the actuary for DMS.
• I expect that at some point this month, we will have enough information coming in from our actuary...

Summary: The Government Operations Subcommittee met with a quorum and began with member introductions and remarks from the chair emphasizing the committee’s focus on government efficiency, accountability, and oversight of executive branch agencies. Members shared their districts and backgrounds, with several noting hurricane recovery in their communities and a shared interest in reducing bureaucracy and improving service to Floridians. The committee’s only presentation was from Chris Spencer, Executive Director of the State Board of Administration, who gave an overview of the SBA’s governance structure, investment responsibilities, and divestment policies. He explained the SBA’s management of more than $257 billion in assets, including the Florida Retirement System, the Florida Hurricane Catastrophe Fund, and Florida PRIME, and reviewed the Protecting Florida’s Investments Act restrictions covering Northern Ireland, Cuba, Venezuela, Israel, Sudan, Iran, and China. He also described the implementation of HB 7071, including the required divestment from direct holdings in Chinese companies, and said the SBA had reduced its direct Chinese holdings from 33 companies totaling over $172 million to 13 companies totaling about $64 million, with completion expected ahead of the September 1, 2025 deadline. Members asked detailed questions about the Israel boycott list, Morningstar and MSCI, how the SBA gathers information, whether Cuba’s federal designation changes affect Florida law, how companies are removed from scrutinized lists, and whether divestment timing could affect returns. Spencer said the SBA uses public and paid research sources, gives companies a 90-day cure period in some cases, and brings list changes to the trustees for approval. He also explained that the China benchmark change is intended to reduce passive exposure while still allowing active investment decisions, and said the PFIA restrictions have had a modestly positive overall effect on pension performance. The chair also asked about the Florida Retirement System funded ratio and the CAT Fund’s capacity; Spencer said the pension fund is at 80.7% funded, that actuarial assumptions are reviewed regularly, and that the CAT Fund currently has more than $10.5 billion in liquid claims-paying capacity and is expected to remain well positioned for hurricane losses. No votes were taken, and the meeting adjourned after the presentation and questions.

Transcript Highlights:

• </c> board has recommended and the actuaries board has recommended and the actuaries have<00:06:58.479
• </c> you you re you referenced actuarial you you re you referenced actuarial funding<00:20:47.440><c>
• In 2017, the actuaries...
• </c> actuarial liability. actuarial liability.
• And the actuaries recommended &gt;&gt; All right. And the actuaries recommended it. it. it.

Committee: Joint Finance

Transcript Highlights:

• But we have had a recent decline in the last valuation that I really want to spend some time talking
• So, every year, all the actuarial tables were going to hit 8%.
• We've made some of the hard adjustments and the actuarial assumptions, with lowering the rate, assuming
• As far as this five-year period that we look at, the people are living longer, the actuaries say you.
• Are living longer, the actuaries say you know you're just going to have to pony up more each year as

Committee: Senate Finance and Taxation Education