2016 House Bill 5768

Mandate schools contribute to pension system for non-covered workers and expenses

Introduced in the House

July 13, 2016

Introduced by Rep. Kristy Pagan (D-21)

To no longer base public school pension contribution rates on the amount paid to employees who are enrolled in the pension system, but instead base it on this plus the amount a school district or charter school pays for “purchased services,” meaning functions that have been outsourced, or payments to contractors for specific tasks (like painting, refinishing floors, etc.). This would force regular school districts to pay pension assessments on functions that have been outsourced to private vendors (like buses, janitors and food service), and force charter schools to pay assessments on most of their operating expenses. Schools would essentially be paying into the state-run school pension system for individuals who are not employees and do not get retirement benefits from it.

Referred to the Committee on Financial Liability Reform