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I_PensionRevew_2023A 09/13/2023 01:02:35 PM Committee Summary

PUBLIC
STAFF SUMMARY OF MEETING
INTERIM COMMITTEE  PENSION REVIEW COMMISSION
Date 09/13/2023
Attendance
Hamrick X
Hansen X
Liston E
Snyder X
Sullivan X
Taggart X
Van Winkle X
Wilson X
Kolker X
Kipp X
Time 01:02:35 PM to 05:18:54 PM
Place HCR 0112
This Meeting was called to order by Kipp
This Report was prepared by Katie Ruedebusch
Hearing Items Action Taken
Opening Remarks Committee Discussion Only
Presentation from the FPPA Committee Discussion Only
Presentation from PERA Committee Discussion Only
Review Recommendations from the Pension Review Subcommittee Committee Discussion Only
Public Testimony Committee Discussion Only
Bill Draft Requests Committee Discussion Only

Opening Remarks - Committee Discussion Only
01:02:54 PM  
Chair Kipp welcomed
the committee and made some opening remarks.



Presentation from the FPPA - Committee Discussion Only
01:03:18 PM  
Executive Director Kevin Lindahl, representing the Fire and Police Pension Association (FPPA), provided an overview of the FPPA. The presentation may be found in Attachment A.
01:10:07 PM  
Mr. Lindahl continued
by discussing FPPA membership, plan organization, funded status, and contribution
rates.  Committee discussion ensued regarding full funding and cost
of living adjustments (COLA).
01:15:25 PM  
Mr. Scott Simon,
representing FPPA, continued by discussing FPPA's investment assets and
allocations as well as noting the last 20 years of annual returns.  He
also discussed FPPA's performance vs. benchmarks.  
01:21:09 PM  
In response to committee questions, Mr. Simon discussed the definitions of various terms.
01:29:41 PM  
Mr. Adam Franklin, representing FPPA, discussed 2023 COLA legislation and FPPA's updated COLA policy.
01:35:36 PM  
He continued by discussing some examples of the new policy in 2023 and 2024.
01:41:34 PM  
Mr. Franklin continued by discussing additional saving opportunity for members.
01:42:19 PM  
Mr. Franklin continued by discussing possible 2024 legislation.
01:50:33 PM  
In response to a
committee question, Mr. Lindahl discussed the history of the death and
disability plan pre-1997.
01:56:47 PM  
Mr. Scott Simon returned to discuss the Pension Review Commission's request for passive vs. active approach.
01:57:36 PM  
Mr. Simon discussed managing risks and comparison to other funds.
02:09:10 PM  
Mr. Simon continued by discussing transition costs and fees.
02:34:11 PM  
Committee discussion with FPPA continued.



Presentation from PERA - Committee Discussion Only
02:47:24 PM  
Executive Director
Amy McGarrity, representing the Public Employees' Retirement Association
(PERA), provided an update to the committee on PERA.  Mr. Micheal
Steppat, representing PERA, discussed PERA's governance.  PERA's presentation
may be found in Attachment B.
02:49:05 PM  
Ms. McGarrity continued
by discussing PERA's summary of valuation highlights and the automatic
adjustment provision.
02:55:39 PM  
Director McGarrity continued by discussing PERA's 2022 investment performance, asset allocation, and market performance.
02:59:15 PM  
Mr. Steppat continued by discussing 2023 legislation related to PERA.
03:01:35 PM  
Director McGarrity
continued by discussing PERA's action moving forward and noted that they
will kick on the proxy policy in 2025.
03:03:55 PM  
Ms. McGarrity continued by discussing PERA's analysis of active vs. passive investment.
03:13:54 PM  
Ms. McGarrity continued
by discussing PERA's historical performance in relation to the public market
as well as PERA's peer group ranking and performance.  She also highlighted
PERA's current strategic asset allocation implemenation and the value-add
of PERA's active public market approach.
03:21:56 PM  
She continued by discussing historical expenses and PERA's investment fees vs. peer plans.
03:28:28 PM  
Committee discussing continued with PERA about the 70/30 passive portfolio, PERA's investments in extractive industries, PERA's investment management policy, and other topics.
03:51:58 PM  
Committee discussion continued with PERA.
04:00:20 PM  
Committee discussions continued on third-party staffing for substitute teachers and PERA contributions, several teacher shortage statutory changes, and the automatic adjustment.



Review Recommendations from the Pension Review Subcommittee - Committee Discussion Only
04:11:33 PM  
Rep. Hamrick, Chair
of the Pension Review Subcommittee, provided information on the subcommittee's
legislative recommendation to PERA. The Subcommittee's recomendations may
be found in Attachment C.
04:16:48 PM  
Committee discussion ensued on the means-testing language in the Subcommittee's recommendation.



Public Testimony - Committee Discussion Only
04:20:53 PM  
Mr. Gordon East, representing himself, testified to the committee. Mr. James Lipscomb, representing himself, testified. Bret Miles, representing the Colorado Association of School Executives, testified. Chuck Gray, representing themself, testified. Mark Qualy, representing themself, testified.



Bill Draft Requests - Committee Discussion Only
04:46:31 PM  
Ms. Nicole Myers and Ms. Jessica Herrera, Legislative Legal Services, came to the table to discuss the interim bill process.
04:46:36 PM  
Committee discussion
on bill drafts ensued.


04:58:23 PM
 Motion Draft a bill concerning the number of days that retired teachers may work as substitutes and other issues related to substitute teachers as a percentage of active teachers.
Moved Kolker
Seconded Hamrick
Hamrick
Hansen
Liston Excused
Snyder
Sullivan
Taggart
Van Winkle
Wilson
Kolker
Kipp
YES: 0   NO: 0   EXC: 1   ABS:  0   FINAL ACTION:  Pass Without Objection


05:05:02 PM
 Motion Draft a bill related to the Pension Review Subcommittee recommendation that also includes all public pensions
Moved Hamrick
Seconded Kolker
Hamrick No
Hansen Yes
Liston Excused
Snyder No
Sullivan No
Taggart No
Van Winkle No
Wilson No
Kolker No
Kipp Yes
YES: 2   NO: 7   EXC: 1   ABS:  0   FINAL ACTION:  FAIL


05:06:29 PM
 Motion Draft a bill related to the Pension Review Subcommittee recommendations
Moved Hamrick
Seconded Kolker
Hamrick Yes
Hansen Yes
Liston Excused
Snyder Yes
Sullivan Yes
Taggart Yes
Van Winkle No
Wilson No
Kolker Yes
Kipp Yes
YES: 7   NO: 2   EXC: 1   ABS:  0   FINAL ACTION:  PASS


05:07:29 PM
 Motion Draft a bill related to a clean-up of FPPA statutes
Moved Kolker
Seconded Snyder
Hamrick
Hansen
Liston Excused
Snyder
Sullivan
Taggart
Van Winkle
Wilson
Kolker
Kipp
YES: 0   NO: 0   EXC: 1   ABS:  0   FINAL ACTION:  Pass Without Objection


05:08:17 PM
 Motion Draft a bill related to funding the state share of FPPA death and disability plan.
Moved Kolker
Seconded Snyder
Hamrick Yes
Hansen Yes
Liston Excused
Snyder Yes
Sullivan Yes
Taggart Yes
Van Winkle Yes
Wilson No
Kolker Yes
Kipp Yes
YES: 8   NO: 1   EXC: 1   ABS:  0   FINAL ACTION:  PASS


05:12:04 PM
 Motion Draft a bill to fund the PERA shortfall related to the 2020 missed direct distribution payment
Moved Kolker
Seconded Hamrick
Hamrick
Hansen
Liston Excused
Snyder
Sullivan
Taggart
Van Winkle
Wilson
Kolker
Kipp
YES: 0   NO: 0   EXC: 1   ABS:  0   FINAL ACTION:  Pass Without Objection


05:13:17 PM
 Motion Draft a bill related to the PERA contributions of third party substitute teachers
Moved Kolker
Seconded Wilson
Hamrick Yes
Hansen Yes
Liston Excused
Snyder No
Sullivan No
Taggart Yes
Van Winkle Yes
Wilson Yes
Kolker Yes
Kipp Yes
YES: 7   NO: 2   EXC: 1   ABS:  0   FINAL ACTION:  PASS
05:13:19 PM  
The committee wrapped up its discussion on bill requests.


05:18:54 PM   The committee adjourned.






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