(a) The board, notwithstanding Section 10231.5, shall provide the Legislature, the Governor, and the Chair of the California Actuarial Advisory Panel, established pursuant to Section 7507.2, with an annual report that includes all of the following, as these items apply to state employee retirement plans:

1. (1)

   1. (A) A description of the investment return assumption utilized by the board when determining the contribution rates.
   2. (B) A calculation of the contribution rates utilizing an investment return assumption 2 percentage points above and 2 percentage points below the investment return assumption utilized by the board.

2. (2)

   1. (A) A description of the amortization period for any unfunded liabilities utilized by the board when determining the contribution rates.
   2. (B) A calculation of the contribution rates based on an amortization period equal to the estimated average remaining service periods of employees covered by the contributions.

3. (3)

   1. (A) A description of the discount rate utilized by the board for reporting liabilities.
   2. (B) A calculation of those liabilities based upon a discount rate that is 2 percent below the long-term rate of return actually assumed by the board.
4. (4) The market value of the assets controlled by the board and an explanation of how the actuarial value assigned to those assets differs from the market value of those assets.

(b) Each legislative session, the Chair of the California Actuarial Advisory Panel, or his or her designee, shall, during a publicly noticed joint hearing of the Senate Committee on Public Employment and Retirement and the Assembly Committee on Public Employees, Retirement and Social Security, do all of the following based on information received in the report required by subdivision (a):

1. (1) Explain the role played by the investment return assumption and amortization period in the calculation of the contribution rates.
2. (2) Describe the consequences for future state budgets should the investment return assumption not be realized.
3. (3) Report whether the board’s amortization period exceeds the estimated average remaining service periods of employees covered by the contributions.