FISCAL NOTE

House Bill 352 (Act 2022-349) as enacted creates the "State Employee Retirees' Trust Fund" to be managed and controlled by the members of the State Employees' Retirement System (ERS) Board of Control for the purpose of providing periodic bonus checks to state employee retirees and their beneficiaries. This act provides that contributions to the trust may include the following: (1) investment income; (2) proceeds of any gifts, grants, or contributions; (3) revenue sources as directed by the Legislature; and (4) revenue sources other than direct appropriations by the Legislature. This act also prohibits State General Fund revenue as sources of funding to the trust fund. This act further provides that in addition to providing periodic bonus checks, funds of the trust may only be used to (1) acquire permitted investments; (2) pay administrative expenses; and (3) pay the expenses of making and disposing of investments, legal expenses referable to a particular transaction, transfer taxes, and other customary transactional expenses with respect to a trust.

In addition, this act provides that upon certification from the ERS actuary that the assets of the trust fund are sufficient to fund periodic bonus checks, as provided for by legislation granting the periodic bonus checks, the trustees shall transfer the amount certified by the board of control to the ERS to fund those bonuses or increases.

This act further provides that: (1) the Legislature may not appropriate the assets of the trust fund and (2) all assets and income of the trust are exempt from state taxation.

This act will not otherwise directly affect state or local funding.