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-2- he f0110tqing ~ changes in ihe Local ~ystem have already een mgde in the State System by ~he 197" General Assembly: ' (1) ificre~se the basic ~enefit rate to 1.55% of'four year averag6 final compensa[ion (tip ~r0m 1.50%); (2] Prov'ide a 7% increase effective 7/1/78 or'0~her date set'by the,Legislature, to pre 7/1/76 reti~'e~s and benefic{aries; (5) Provide'an additional 2~%~ ~Ost~of-living increase, effective 7/1/78 Or other date set'by'the Legislature, to retirees Covered as 6f 7/1/77; and (4) b~ake the follolving Changes in the opti6nal.death benefit (many local uhits dq provid~ the death benefit): (a) increase maximum death benefit to $20,000, up from cnrrent ~15,000, (b) extend death benefit coverage period to 366 days following disabilit? retirement, up from current 90 day period, (c) extend lump sum death benefit coverage to end of fi}cal year in which age~65 attaihed (cnrrentl), cog~rage end~ on dh're of 65th birthday). If al/the proposed changes outlined in the preceding paragraph are adopted, there wilt be a resulting increase in the "normal" p0rti0n of the employe~'s coiitribution rate. (Note that the normal contribution rate is separate and distinct from the "accrued liability" contribution rate. The normal contribution rate also does nor include the death benefit or the special provisions adopted in 1973 Session [,aws Chapter 1510 (Second Session 1974), all of which are optiohal and have separate rates in addition to the normal contribution rate.) The normal contribution rate payable by employers is currently 3.61% of payroll. 'However, based on the latest actuarial valuation of the Local System, the normal rate for employers will automatically be raised to 5.67% of payroll, effective July 1, 1978. If and when the pronosed changes are approved by the General Assembly, the normal rate will increase,above this' 5.67% level. The added costs Of the proposed changes will be identical for each unit insofar as the normal contribution rate is concerned, except that nroposal #4 will apply only to those units ~hiCh have adopted the death benefit provisions. The following new rates for normal liability will result if ali. proposals are adopted but are Subject to'change:depending on whether le~i~latioh is adopted in 1978 or 1979 (exception: the 4% cogt-of-living increase has been approved effective 7/1/78):