Simple is Put aside X amount of money for future payouts and the legislature 'cant easily' touch it.  That is PERA

HARD is figure out X amount of money that will keep employees happy but that might not get past the legislature because they will now be actively looking to steal that money for their own pet projects just like money for COLAs and Merit pay increases are currently.  What you are telling the state departments and the state employees is that the one mostly unchanging thing in their budgets should now be looked on as a non budgetable item because the legislature can and will move it somewhere else (aka steal it) immediately.  It means than rather than having a long term view of things as you should have for retirement PERA and the employer and the employee are going to start having to look short term (like you would day trading) and make decisions off the day to day changes in the legislature for planning retirement every single legislative session. That or plan on getting 0