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D66A6D4053822D73872587360053F993 Hearing Summary




PUBLIC
BILL SUMMARY For REVIEW INITIAL FINDINGS OF INDEPENDENT PERA AUDIT

INTERIM COMMITTEE  PENSION REVIEW SUBCOMMITTEE
Date Aug 19, 2021      
Location HCR 0112



Review Initial Findings of Independent PERA Audit - Committee Discussion Only


09:17:19 AM  
Dana Woolfrey, GRS,
and Joe Newton, GRS, presented on initial findings of their independent
Colorado Public Employees' Retirement Association (PERA) assumption review.
 A copy of their presentation is available here:
http://leg.colorado.gov/sites/default/files/images/lcs/aug19meeting_pera_assumptionreview.pdf.
 Ms. Woolfrey described actuarial terms, definitions, and assumptions.
 She explained the mechanism and impact of PERA's automatic adjustment
provisions.
09:34:23 AM  
Ms. Woolfrey and Mr. Newton responded to committee questions about Senate Bill 18-200, the PERA funding ratio, and the different PERA divisions.
09:50:06 AM  
Mr. Newton continued
with the presentation and discussed material bias in PERA's liability determinations
and projections.  He responded to committee questions about PERA's
specific material biases.  Ms. Woolfrey explained PERA's investment
return assumption.  She discussed PERA's mortality assumption and
salary and payroll growth assumption.  Mr. Newton and Ms. Woolfrey
responded to committee question about assumptions.
10:20:41 AM  
Mr. Newton described
PERA's non-investment actuarial experience from 2012 to 2019, and the 2016
Experience Study.  He responded to committee questions.  The
committee recessed.  The committee came back to order.  
10:44:02 AM  
Mr. Newton discussed
additional PERA assumptions, including the withdrawal assumption, and responded
to questions.  He discussed the retirement assumption and responded
to questions.  Mr. Newton summarized possible changes in PERA's assumptions
after the 2020 Experience Study.  He discussed the impact of new hires
on actuarial assumptions, and responded to questions.
11:21:10 AM  
Mr. Newton discussed
a recommendation that the timing of the 2024 experience study be accelerated
into 2022.  He explained a recommendation that the signal light report
include a historical reconciliation of gains and losses by source.  Ms.
Woolfrey discussed a recommendation that PERA shorten amortization periods
used for future layers.  Mr. Newton discussed a recommendation for
PERA to use a consistent single term and projection model.  They responded
to questions regarding the recommendations.
11:48:17 AM  
Mr. Newton and Ms.
Woolfrey discussed next steps for their report and analysis.  Representative
Bird discussed future meetings with the committtee.