Uniform Management of Public Employee Retirement Systems Act Law and Legal Definition

The Uniform Management of Public Employee Retirement Systems Act ( UMPERSA ) is one of the uniform acts prepared and sponsored by the National Conference of Commissioners on Uniform State Laws in 1997. This act modernizes, clarifies, and makes uniform the rules governing the investment and management of public retirement systems’ assets. It provides legal rules that permit public employee retirement systems to invest their funds in the most productive and secure manner. Public retirement systems become trusts operated under rules of prudent investment. A trustee or other fiduciary who breaches a duty imposed by UMPERSA is personally liable for any loss or for any profit made through use of trust assets. No agreement may exonerate a trustee or fiduciary from liability. The retirement system or the fiduciary may insure against such losses. Further, the act requires each retirement system to provide three information resources: a summary plan description, annual disclosure of financial and actuarial status and an annual report. The summary plan description is a brief disclosure of the benefits the plan provides, how one qualifies for benefits, and how a member may become disqualified. The annual disclosure of financial and actuarial status is a comprehensive compilation of financial and actuarial information. The "annual report" is a brief summary of the "annual disclosure of financial and actuarial status."