Federal Legislation & Regulations

Unlike private-sector pensions that are preempted from State and local laws and subject solely to federal regulation, state and local retirement systems are creatures of state constitutional, statutory and case law and must comply with a vast landscape of public statutes, regulations, standards, policies, and procedures.

For this reason, many of the federal requirements for corporate pensions do not apply to plans of state and local government. However, public plans must still comply with various Federal tax qualification, investment, age discrimination, and other requirements. Congress sets the federal laws in these areas, and various federal agencies issue and enforce the corresponding regulations. 

Key Congressional Committees and Federal Agencies
 

NASRA RESOURCES

Other Resources


Become A Member

Becoming a member of NASRA offers a unique opportunity to join a community committed to the sound, efficient, and innovative stewardship of public retirement systems. Membership connects you with a network of professionals and experts, providing valuable insights into managing public retirement systems with a focus on sustainability and risk-averse strategies.

By joining NASRA, you gain the tools and resources to enhance the management of public retirement systems, ensuring their long-term success and reliability for generations to come.


 

What's New at NASRA: Public Pension Investment Return Assumption Brief Updated

NASRA’s latest update to standing issue briefs, Public Pension Plan Investment Return Assumptions underscores the critical role the investment return assumption plays in the financial health of public pension plans. Of all actuarial assumptions, it has the greatest impact on plan funding levels and cost. This brief traces how a decade of low interest rates and inflation, beginning in 2009, prompted many plans to reduce their long-term expected returns in line with more modest capital market projections. However, since inflation began rising in early 2021, the trend toward lowering return assumptions has largely paused. While reducing a plan’s assumed return can increase both costs and unfunded liabilities, setting this assumption is a careful, thorough process. It draws on expert input from actuaries and investment professionals and is guided by actuarial standards of practice.