Finance panel aims to finish pension overhaul this week; bill raises blended employer rate to 24%

Reporters asked senators on the finance committee about a pending pension bill that would change employer-contribution rules. A committee member summarized the change as a blended-rate increase to 24% (from a prior non-state cap of 22%), saying the actuary recommended the adjustment so state and non-state employers share the cost and the plan remains funded.

The sponsor said the plan ‘‘begins 100 percent funded’’ and requires maintaining 90% funding; sponsors told reporters an actuarial analysis suggested a multi-year worst-case (a three-year period of no returns) would be required to breach the 90% threshold. Lawmakers acknowledging the bill said some non-state employers and communities worry about the affordability of a higher employer rate, while others support the change to clear long-term liabilities.

What happens next: finance members said they expect to finish committee work this week and could place the bill on the Senate floor as soon as next week, pending rules-scheduling and any further committee votes.