HB2381: Changes to local board, employer and PSPRS processes

The changes brought to local board and employer duties by House Bill 2381 are intended to add efficiency to the retirement application process for members of PSPRS-managed plans and mandate training for local board members. HB2381 (Laws 2021, Chapter 34) was supported by member and employer organizations and the PSPRS Board of Trustees.

PSPRS will work with employers and local boards to implement the following process changes. PSPRS has provided summary information, educational videos, and a downloadable reference chart that outlines the revised duties of local boards, employers and PSPRS. Employer human resources and local board officials and secretaries are encouraged to read the legislation carefully. 

Retirement and disability retirement provisions

All retirement applications with the exception of disability retirement and line-of-duty death applications will be sent by employers to PSPRS, which maintains official credited service and contribution records used to determine benefit amounts.

Please note that PSPRS has implemented a 3-month “transition period” in which it will accept normal retirement applications the “old way” before requiring full compliance through the use of an updated, single-page benefits application form starting April 1, 2022. For convenience, PSPRS will also accept normal retirement applications from members and share information with employers.

Local boards will continue to determine the membership eligibility of new hires and consider and take action on disability retirement and line-of-duty-death benefit applications. PSPRS will continue to review approved disability and line-of-duty death applications to ensure compliance with state law.

The law also requires employers to submit members’ completed normal retirement applications to PSPRS within 10 days upon receiving applications from retiring members. Similarly, local boards must submit a copy of disability retirement and line-of-duty death benefit applications within 10 days upon receipt. Please note that this may require local boards to submit applications prior to local board consideration and action.

PSPRS will contact employers if there is a need to resolve discrepancies related to credited service, salary or other employment-related records of retiring members. PSPRS reviews of disability and line-of-duty death benefit determinations may result in local board rehearings, and, if necessary, judicial review.

Local board training

Under HB2381, PSPRS is obligated to provide training to local boards for open meeting laws, ethics, legal reviews, and fiduciary responsibilities and duties. This training is required for all local board secretaries and members elected or appointed after December 31, 2021. Training is encouraged – but not mandatory – for those appointed or elected prior to December 31, 2021.

Those required to undergo training must do so within 180 days of their appointment or election. The training curriculum playlist is available on the PSPRS YouTube channel.

Additional PSPRS oversight

To ensure that PSPRS-plan member benefits are uniformly and promptly administered, employers and local boards will be required to comply with all PSPRS requests for documentation and information related to PSPRS-managed plans.

Non-compliance with state law and model uniform rules and failure to take corrective action may result in PSPRS assuming local board duties until uncorrected matters are resolved.

Voluntary local board consolidation

HB2381 also allows for local boards to consolidate through intergovernmental agreements (IGAs). Consolidation is voluntary and does not alter the duties, makeup and requirements for members and secretaries to serve on local boards. Local boards are responsible for the drafting of IGAs.

Miscellaneous provisions, application and forms library

Forms are also available on the employer forms and resources page

• Local boards must adopt updated rules for adjudicating claims and disputes. At a minimum, local boards must incorporate the Model Uniform Rules adopted by the Board of Trustees.
• Click here for public safety local board Model Uniform Rules
• Click here for corrections local board Model Uniform Rules
• Notice of normal retirement and other benefit applications that do not require local board determinations must be submitted to PSPRS through a simplified, one-page Request for Retirement Estimate and Application Form.
• Employers, members seeking to retire are encouraged to send the benefits application form 60 days prior to anticipated retirement date
• Form is also used for public safety deferred retirement (DROP), corrections reverse deferred retirement (RDROP) and deferred annuity benefit applications
• PSPRS will accept applications filed directly by members/beneficiaries and local boards and coordinate with employers as needed
• Submit completed form to [email protected]
• Local boards may transmit meeting minutes to PSPRS by emailing [email protected]. Local boards are still permitted to send meeting minutes through certified mail.
• Local boards must notify PSPRS of outgoing and new board members, secretaries and legal counsel within 10 days. This notification can be completed by emailing the Local Board Member Employer Information Update Form to [email protected].
• Attorneys hired by local boards must be independent of the employer, system members and other beneficiaries. 

Educational Videos