An Act relative to the funding ratio of the public employee retirement system

This bill modifies the rules for the Massachusetts Public Employee Retirement System (PERS) by establishing a specific definition for "underperforming" pension systems. It directs the state commission to label a system as underperforming if its funded ratio drops below 50% and its ten-year annual rate of return is at least three percentage points lower than the PRIT Fund's return. Additionally, the legislation changes the status of these underperforming systems so they cannot be revoked for a period of five years, replacing the previous rule that they would remain in place permanently. These changes directly affect public employee pension plans and the state commission responsible for overseeing them.