I_PensionRevew_2021A 09/14/2021 01:00:24 PM Committee Summary

PUBLIC
STAFF SUMMARY OF MEETING
INTERIM COMMITTEE PENSION REVIEW COMMISSION

Date

09/14/2021

Attendance
Garcia	E
Hisey	X
Kipp	X
Kolker	X
Priola	E
Sandridge	E
Sirota	X
Van Winkle	X
Danielson	E
Bird	X

Time

01:00:24 PM to 02:45:26 PM

Place

HCR 0112

This Meeting was called to order by

Bird

This Report was prepared by

Katie Ruedebusch

Hearing Items	Action Taken
hPresentation from the Fire and Police Pension Association	Committee Discussion Only
hPresentation from the Public Employees' Retirement Association	Committee Discussion Only
hPresentation from the Pension Review Subcommittee	Committee Discussion Only
hBill Draft Requests	Committee Discussion Only

01:00:26 PM

Chair Bird called the meeting to order.

Presentation from the Fire and Police Pension Association - Committee Discussion Only

Attachment Tag

File Name

Attachment A

21PenReviewComm0914AttachA.pdf

01:01:18 PM

Director Dan Slack,
Mr. Kevin Lindahl, and Mr. Scott Simon, representing the Fire and Police
Pension Association (FPPA), came to the table provide an update on the
association. Their presentation may be found in Attachment A and
at https://leg.colorado.gov/sites/default/files/images/fppa_presentation_to_the_pension_review_commission.pdf.

01:04:01 PM

Mr. Slack continued
by discussing the variety of plans offered and the funded status of those
plans. In response to a committee question, Mr. Slack described a
combined contribution rate.

01:14:50 PM

Mr. Lindahl continued by discussing possible legislation or bill draft requests.

01:29:16 PM

Mr. Lindahl discussed
several ideas, including: merge the assets and liabilities of the Statewide
Hybrid Plan and the Statewide Defined Benefit Plan including the Social
Security Supplemental Plan; apply special multiplier adjustment to Statewide
Hybrid Plan benefits accrued prior to merger; increase the required minimum
contributions into the Hybrid Defined Benefit and Money Purchase Components
by 2 percent; implement the Rule of 80 - allow Hybrid Defined Benefit Component
members whose age and years of service totals 80 to elect a normal retirement
benefit; provide additional private information protections for FPPA members;
extend Death & Disability Application Deadline from 180 to 365 days;
and seek additional state funding for unfunded death and disability liabilities
for members hired prior to 1997.

01:38:14 PM

Mr. Simon continued by discussing FPPA's investments and asset allocation.

Presentation from the Public Employees' Retirement Association - Committee Discussion Only

Attachment Tag

File Name

Attachment B

21PenReviewComm0914AttachB.pdf

01:55:00 PM

Director Ron Baker,
Ms. Amy McGarrity, and Board Chair Marcus Pennell, representing the Public
Employees' Retirement Association (PERA), came to the table to provide
the commission with an update. Their presentation may be found in
Attachment B and here: https://leg.colorado.gov/sites/default/files/images/pera_pension_review_commission_9.14.21.pdf.

01:58:52 PM

Mr. Baker discussed PERA's governance, PERA's 2020 in review, the automatic adjustment provision, and PERA's funded status.

02:11:56 PM

Ms. McGarrity continued by discussing PERA's investment program, performance, and asset allocation. Ms. McGarrity stated that PERA's rate of return over 10 years is 9.4 percent. She noted that the PERA Board of Trustees is responsible for the association's asset allocation.

02:16:44 PM

Mr. Baker continued by discussing upcoming website updates and that the DC plan is moving over to Empower.

02:20:22 PM

Committee discussion with PERA continued.

Presentation from the Pension Review Subcommittee - Committee Discussion Only

Attachment Tag

File Name

Attachment C

21PenReviewComm0914AttachC.pdf

02:28:47 PM

Rep. Shannon Bird,
Chair of the Pension Review Commission, came to the table to discuss the
2021 recommendations of the Pension Review Subcommittee. The recommendations
may be found in Attachment C.

Bill Draft Requests - Committee Discussion Only

02:33:25 PM

Mr. Gregg Fraser, Legislative Legal Services, provided information on the bill draft request process.

02:38:52 PM	Motion	Draft a bill based on FPPA's legislative proposals
	Moved	Kipp
	Seconded	Van Winkle

	Garcia	Excused
	Hisey
	Kipp
	Kolker
	Priola
	Sandridge	Excused
	Sirota
	Van Winkle
	Danielson	Excused
	Bird
		YES: 0 NO: 0 EXC: 3 ABS: 0 FINAL ACTION: Pass Without Objection

02:42:42 PM	Motion	Draft a bill for FPPA's $32 million unfunded liability in the death and disability plan.
	Moved	Bird
	Seconded	Kipp

	Garcia	Excused
	Hisey
	Kipp
	Kolker
	Priola
	Sandridge	Excused
	Sirota
	Van Winkle
	Danielson	Excused
	Bird
		YES: 0 NO: 0 EXC: 3 ABS: 0 FINAL ACTION: Pass Without Objection

02:43:14 PM	Motion	Draft a bill based on the Pension Review Subcommittee's recommendations.
	Moved	Priola
	Seconded	Kipp

	Garcia	Excused
	Hisey
	Kipp
	Kolker
	Priola
	Sandridge	Excused
	Sirota
	Van Winkle
	Danielson	Excused
	Bird
		YES: 0 NO: 0 EXC: 3 ABS: 0 FINAL ACTION: Pass Without Objection

02:45:26 PM

The committee adjourned.

Presentation from the Fire and Police Pension Association - Committee Discussion Only

Presentation from the Public Employees' Retirement Association - Committee Discussion Only

Presentation from the Pension Review Subcommittee - Committee Discussion Only

Bill Draft Requests - Committee Discussion Only

Colorado General Assembly