By December 15 of each year, PERAC is required to send an appropriation letter to each board for the fiscal year beginning the following July 1. The required appropriation in the letter is based on the funding schedule that was previously adopted by the board. The funding schedule is determined as part of the most recent actuarial valuation of the system. As part of the letter the appropriation is allocated to each governmental unit of the retirement system.
Often, boards complete another actuarial valuation as of the January 1 following the submission of the letter and adopt an updated funding schedule. Depending on how the schedule is determined, it is possible the appropriation letter may be revised. The appropriation letters that are posted reflect the original letters and any subsequent revisions for the most recent five fiscal years.