(1) (a) Except as otherwise provided in subsections (6), (7), and (8) of this section, on July 1, 2018, on July 1, 2019, on July 1, 2021, and on July 1 each year thereafter until there are no unfunded actuarial accrued liabilities of any division of the association that receives the distribution pursuant to this section, the state treasurer shall issue a warrant to the association in an amount equal to two hundred twenty-five million dollars. Such amount shall be paid to the association from the general fund, or any other fund, subject to section 24-51-413. (b) The state treasurer shall not issue a warrant to the association pursuant to subsection (1)(a) of this section during the 2020-21 state fiscal year. (2) For the purpose of allocating appropriate indirect, cash funded, or federal costs for the direct distribution pursuant to subsection (1) of this section, the office of state planning and budgeting may include funding sources other than the general fund in the governor's annual budget request for the 2019-20 fiscal year and each fiscal year thereafter to satisfy the funding amounts of the direct distribution. (3) The distribution pursuant to subsection (1) of this section shall end when there are no unfunded actuarial accrued liabilities of any division of the association that receives such distribution. By September 1, 2019, and by September 1 of each year thereafter, until the distribution pursuant to subsection (1) of this section is no longer required, the board shall determine whether the sum of the employer and member contributions pursuant to section 24-51- 401 (1.7)(a), the contributions pursuant to section 24-51-411, and the distribution pursuant to subsection (1) of this section, is greater than the amount necessary to eliminate the unfunded actuarial accrued liability of each division of the association that receives the distribution in the next fiscal year. If the board determines that the total amount of the distribution pursuant to subsection (1) of this section will not be required to eliminate the unfunded actuarial accrued liability of each division of the association that receives the distribution, the board shall notify the office of state planning and budgeting and the joint budget committee of the general assembly by September 1 of the applicable year. (4) The association shall allocate the direct distribution to the trust funds of each division of the association as it would an employer contribution, in a manner that is proportionate to the annual payroll of each division as reported to the association; except that the association shall not allocate any portion of the direct distribution amount to the local government division of the association. (5) (a) Beginning with the annual general appropriation act for the 2019-20 state fiscal year, and for each annual general appropriation act thereafter, money distributed to the association pursuant to subsection (1) of this section shall be included for informational purposes in the annual general appropriation bill or in supplemental appropriation bills for the purpose of complying with the limitation on state fiscal year spending imposed by section 20 of article X of the state constitution and section 24-77-103. The information included in the annual general appropriation bill shall include an estimate of the amount of the distribution pursuant to subsection (1) of this section that is attributable to the state and the amount that is attributable to public education from kindergarten through the twelfth grade. (b) Subsection (5)(a) of this section does not apply for the 2020-21 state fiscal year. (6) In order to recompense the association for a distribution in an amount equal to two hundred twenty-five million dollars that it had been scheduled to receive on July 1, 2020, pursuant to subsection (1)(a) of this section but did not receive due to the enactment of House Bill 20-1379, which amended subsection (1)(a) of this section and added subsection (1)(b) of this section to eliminate the distribution, in addition to the warrants issued pursuant to subsection (1)(a) of this section, on June 7, 2022, or as soon as possible thereafter, the state treasurer shall issue a warrant to the association in the amount of three hundred eighty million dollars. The warrant shall be paid to the association from the PERA payment cash fund created in section 24- 51-416. (7) The amount of the warrant to be issued on July 1, 2023, to the association pursuant to subsection (1) of this section is reduced by the sum of one hundred fifty-five million dollars and an amount equal to seven and one-quarter percent multiplied by three hundred eighty million dollars; except that, if the 2021 annual rate of return on investments as reported in the association's annual report for 2021 exceeds seven and one-quarter percent, then the reduction shall be the sum of one hundred fifty-five million dollars and an amount equal to the association's rate of return on investments multiplied by three hundred eighty million dollars. If the annual rate of return is less than seven and one-quarter percent but greater than zero, then the reduction shall be the sum of one hundred fifty-five million dollars and an amount equal to the annual rate of return in the association's annual report for 2021 multiplied by three hundred eighty million dollars. In no event shall the total reduction be less than one hundred fifty-five million dollars or be greater than one hundred ninety million dollars. (8) The amount of the warrant to be issued on July 1, 2024, to the association pursuant to subsection (1) of this section is reduced by the lesser of an amount equal to seven and one- quarter percent multiplied by three hundred eighty million dollars or an amount equal to the association's annual rate of return on investments as reported in the association's annual report for 2022 multiplied by three hundred eighty million dollars; except that there shall be no reduction if the rate of return is zero or less. (9) In addition to any other distributions to the association pursuant to this section, on June 2, 2023, or as soon as possible thereafter, the state treasurer shall issue a warrant to the association that consists of the balance of the PERA payment cash fund created in section 24-51- 416, as of the date the payment is made, plus ten million dollars paid from the general fund. The amount paid to the association pursuant to this subsection (9) is to recompense the association, in addition to the amount already paid to the association as partial recompensation pursuant to subsection (6) of this section, for the distribution that it was scheduled to receive on July 1, 2020, pursuant to subsection (1)(a) of this section, that the association did not receive due to the enactment of House Bill 20-1379.
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