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I_PensionRevew_2022A 08/08/2022 09:01:24 AM Committee Summary

PUBLIC
STAFF SUMMARY OF MEETING
INTERIM COMMITTEE  PENSION REVIEW COMMISSION
Date 08/08/2022
Attendance
Danielson E
Exum *
Hansen X
Hisey *
Priola X
Sandridge X
Sirota *
Will *
Bird *
Kolker X
Time 09:01:24 AM to 11:41:27 AM
Place HCR 0112
This Meeting was called to order by Kolker
This Report was prepared by Katie Ruedebusch
Hearing Items Action Taken
Presentation from the Fire and Police Pension Association (FPPA) Committee Discussion Only
Presentation from the Public Employees' Retirement Association (PERA) Committee Discussion Only
Review Recommenations from the Pension Review Subcommittee Committee Discussion Only
Bill Draft Requests Committee Discussion Only

Presentation from the Fire and Police Pension Association (FPPA) - Committee Discussion Only
09:01:59 AM  
Senator Kolker called
the meeting to order.
09:04:10 AM  
Mr. Kevin Lindahl,
representing Colorado Fire and Police Pension Association (FPPA), provided
an overview of FPPA and introduced the other presenters. Their presentation
may be found in Attachment A and online here:https://leg.colorado.gov/content/ipensionrevew2022ascheduleandmeetingmaterials
09:06:07 AM  
Mr. Chip Weule, FPPA
Chief Benefit Manager, discussed the the plans administered by the FPPA,
plan membership, and breakouts of various plans.
09:11:00 AM  
Mr. Adam Franklin,
FPPA General Counsel, came to the table to discuss the plans' COLA, contribution
rates, and funded ratios.
09:15:17 AM  
In response to committee
question, Mr. Franklin discussed how the FPPA Board handles COLA and the
limits in statute.
09:17:10 AM  
Mr. Franklin continued
by discussing FPPA's investment program.
09:33:36 AM  
Mr. Tim O'Donnell
and Mr. Lindahl came to the table to answer a committee question about
investments and long-term pools.
09:42:23 AM  
Mr. Weule continued
by highlighting FPPA's net performance annual returns since inception and
net fund performance relative to market indices.
09:43:23 AM  
Mr. Dale Martin,
representing FPPA, answered a committee question about private equity investments.



Presentation from the Public Employees' Retirement Association (PERA) - Committee Discussion Only
10:00:54 AM  
The committee took
a short break.
10:11:01 AM  
The committee came
back to order.
10:11:23 AM  
Mr. Ron Baker and
Ms. Amy McGarrity, representing the Public Employees' Retirement Association
(PERA), came to the table to discuss PERA. He began by discussing the various
PERA plans. Their presentation may be found in Attachment B and online
here: https://leg.colorado.gov/content/ipensionrevew2022ascheduleandmeetingmaterials
10:12:57 AM  
Mr. Baker continued
by discussing PERA's governance.
10:16:57 AM  
Mr. Baker continued
by highlighting PERA's 2021 year in review.
10:17:20 AM  
Mr. Baker continued
by discussing PERA's funded period progress.
10:21:00 AM  
Mr. Baker discussed
the automatic adjustment provisions and answered several committee questions
regarding the auto adjustment.
10:35:41 AM  
Ms. Amy McGarrity,
PERA Chief Investment Officer, came to the table to discuss PERA's investment
program, rate of returns over 10 years, and PERA's asset allocation.
10:41:19 AM  
In response to committee
questions, Ms. McGarrity noted that PERA Board has not taken an official
position on the conversation regarding ESG and the PERA Board's philosophy
that there are many factors that go into investment divisions or that are
financially material.
10:44:40 AM  
In response to committee
questions, Mr. Baker noted that cost-of-living increases are based on statute
and same across all the divisions based on tiers based on start date. He
also discussed when other public pension plans allow cost-of-living adjustments.



Review Recommenations from the Pension Review Subcommittee - Committee Discussion Only
11:08:27 AM  
Chair Kolker and
Vice-Chair discussed the recommendation from the Pension Review Subcommittee.



Bill Draft Requests - Committee Discussion Only
11:10:59 AM  
The committee discussed
various bill draft ideas.


11:35:07 AM
 Motion Draft a bill passed on the recommendation from the Pension Review Subcommittee
Moved Priola
Seconded
Danielson Excused
Exum Yes
Hansen No
Hisey Excused
Priola Yes
Sandridge Yes
Sirota Yes
Will Yes
Bird Yes
Kolker Yes
YES: 7   NO: 1   EXC: 2   ABS:  0   FINAL ACTION:  PASS


11:35:41 AM
 Motion Draft a bill to increase non-taxable to PERA retirees
Moved Hansen
Seconded
Danielson Excused
Exum
Hansen
Hisey Excused
Priola
Sandridge
Sirota
Will
Bird
Kolker
YES: 0   NO: 0   EXC: 2   ABS:  0   FINAL ACTION:  Pass Without Objection


11:37:01 AM
 Motion Draft a bill on independent analysis on passive retirement funds
Moved Hansen
Seconded
Danielson Excused
Exum
Hansen
Hisey Excused
Priola
Sandridge
Sirota
Will
Bird
Kolker
YES: 0   NO: 0   EXC: 2   ABS:  0   FINAL ACTION:  Pass Without Objection


11:41:27 AM   The committee adjourned.






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