According to a press release from the governor’s office, the money would help stave off a significant increase in the underfunded actuarial accrued liability of the two funds that has been predicted by recent actuarial reports.
“The state made a promise to these employees and teachers and we must keep that promise,” Fletcher said, in the press release. “As I traveled around the commonwealth gathering the thoughts of our citizens, honoring our commitments to the public employee pension systems was a high priority in almost every case.”
The state funneled $24 million into the two pension systems last year, with $12 million going into each.
Fletcher also signed an executive order Monday setting up a 23-member Blue Ribbon Commission on Public Employees Retirement Systems to study methods of dealing with the underfunded systems and how to help them meet their obligations to current retirees, employees and future employees.
The commission will make its report to the governor no later than December 1, 2007.