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F3ED3FE58A4074E2872584350053972A Hearing Summary




PUBLIC
BILL SUMMARY For PRESENTATION FROM THE PUBLIC EMPLOYEES' RETIREMENT ASSOCIATION ON MATTERS PERTAINING TO THE SUBCOMMITTEE'S OVERSIGHT

INTERIM COMMITTEE  PENSION REVIEW SUBCOMMITTEE
Date Jul 12, 2019      
Location HCR 0112



Presentation from the Public Employees' Retirement Association on Matters Pertaining to the Subcommittee's Oversight - Committee Discussion Only


09:14:22 AM  

Mr. Tim O'Brien, representing the PERA Board of Trustees, came to the table to give some introductory remarks regarding PERA, it's current performance, and it's future.

09:15:19 AM  

Executive Director Ron Baker, representing PERA, came to the table to provide an overview presentation on PERA (Attachment A).  In addition, Mr. Baker distributed a copy of PERA's Comprehensive Annual Financial Report (Attachment B).  Attachment B can be viewed at Legislative Council by request or can be found here:

09:20:15 AM  

Mr. Baker continued by giving an overview of PERA membership and noted its current membership is 609,804. He also discussed PERA's impact on the Colorado economy.

09:22:00 AM  

Mr. Baker continued by discussing changes related to Senate Bill 18-200 and PERA's unfunded liability.

09:23:34 AM  

Mr. Baker continued by discussing employer and employee contribution rates, as well as recent changes under Senate Bill 19-200. He discussed the automatic adjustment increase for current PERA members in 2019.

09:29:25 AM  

Mr. Baker continued by discussing the automatic adjustment provision and the SB 18-200 amortization period.

09:38:21 AM  

Chief Investment Officer Amy McGarrity, representing PERA, came to the table to discuss PERA's investments and financial managment.

09:39:29 AM  

Ms. McGarritty continued by discussing returns by asset class compared to benchmarks. She noted that PERA is focused on long-term benchmarks rather than short-term gains. She discussed the factors that led to PERA's negative 3.0 percent return in 2018.

09:45:09 AM  

Ms. McGarritty continued by discussing the PERA's policy benchmarks in relation to PERA's asset classes. She noted that each asset class serves specific roles and are expected to work together to create returns that meet benchmarks.

09:48:21 AM  

Ms. McGarritty continued by discussing PERA's policy benchmarks in relation to PERA's asset classes.

09:51:17 AM  

Treasurer Dave Young, representing the PERA Board of Trustees, came to the table to discuss his service as a PERA member and his serve on the board.

09:53:05 AM  

Treasurer Dave Young, representing the PERA Board of Trustees, came to the table to discuss his service as a PERA member and on the board.

09:53:52 AM  

Mr. Baker answered several questions regarding the defined benefit and defined contribution plans.  He also discussed hybrid plan options.  Mr. O'Brien also discussed persons who leave PERA employers, but leave their money in PERA.

09:57:25 AM  

Mr. Baker answered several questions regarding the defined benefit and defined contribution plans.  He also discussed hybrid plan options.  Mr. O'Brien also addressed questions regarding employees who leave PERA employers, but leave their money in PERA.

10:04:13 AM  

Mr. Baker answered several questions regarding the mobile workforce and persons who leave service before vesting. He noted the stair-step contribution and vesting schedule.

10:15:11 AM  

Mr. Baker answered several questions regarding the automatic- adjustment factor and reduced expected rates of return.  Mr. Baker noted that any new liabilities post-Senate Bill 18-200 are reflected in the board's funding policy, but may not be included in the 30 year fully funded period.

10:18:49 AM  

Mr. Baker answered several questions regarding the automatic adjustment factor and reduced expected rates of return.  Mr. Baker noted that any new liabilities post-Senate Bill 18-200 are reflected in the board's funding policy, but may not be included in the 30 year fully funded period.  Committee discussion on this topic ensued. 

10:25:46 AM  

In response to a committee question, Ms. McGarrity stated that PERA's investment expenses are included in total funds reported and also by asset class. She noted that legal expenses, accounting, non-investment IT, and non-benefit areas are not included, but are listed seperately from investment expense reporting.

10:32:52 AM  

Treasurer Young responded to a question regarding public perceptions of PERA and retirement benefits and discussed the board's efforts.

10:44:35 AM  

Mr. Baker continued to answer committee regarding PERA's financial heath, employee communication, and PERA's unfunded liability.

10:48:52 AM  

Responding to a committee question, Mr. Baker discussed the judicial division and it's difference from other PERA divisions.