|
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 |
| hOpening Remarks |
Committee Discussion Only |
| hPresentation from the FPPA |
Committee Discussion Only |
| hPresentation from PERA |
Committee Discussion Only |
| hReview Recommendations from the Pension Review Subcommittee |
Committee Discussion Only |
| hPublic Testimony |
Committee Discussion Only |
| hBill 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. |
