Opinion ID: 2151564
Heading Depth: 2
Heading Rank: 2

Heading: Accelerated Distribution of Money from the TAA

Text: ถ 45. Two of the components of the public employee trust fund are the variable retirement investment trust. [128] As noted above, the transaction amortization account is one of the 12 accounts and reserves within the fixed trust. The TAA is maintained and used to smooth out fluctuations in unrecognized gains and losses in the value of fixed trust assets. [129] The balance of the TAA closely parallels the difference between market value and the adjusted book value of the assets. [130] Each year, 20 percent of the balance of the TAA is distributed to participating accounts in the fixed trust. [131] ถ 46. Act 11 provides that on December 31, 1999, $4 billion is to be distributed from the TAA to the reserves and accounts in the fixed trust in amounts equal to the percentage of the total distribution determined by dividing each reserve's and account's balance on January 1, 1999, by the total balance of the fixed trust on January 1, 1999. [132] Most of the $4 billion distribution is to be sent arithmetically into the employee, employer, and annuity reserves. [133] ถ 47. A portion of the $4 billion distribution will fund the benefit improvements created by Act 11. Hence, the $4 billion distribution helps both employers and participating employees. Money distributed to the employee reserve will enhance the individual accounts of some of the inactive participants in the reserve. Money distributed to the annuity reserve will produce a substantial increase in annual annuity payments.