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I_PensionRevewSubComm_2022A 07/28/2022 09:02:41 AM Committee Summary

PUBLIC
STAFF SUMMARY OF MEETING
INTERIM COMMITTEE  PENSION REVIEW SUBCOMMITTEE
Date 07/28/2022
Attendance
Gary Arnold X
Michael Johnson X
Jim Mantele X
Carole Partin X
Priola E
Trey Rogers X
Patrick Roybal X
Joshua Sharf X
Lang Sias X
Jack Tate E
Will E
Earl Wright X
Bird X
Kolker X
Time 09:02:41 AM to 12:50:05 PM
Place HCR 0112
This Meeting was called to order by Kolker
This Report was prepared by Anne Wallace
Hearing Items Action Taken
Presentation on House Bill 22-1029 Committee Discussion Only
Presentation from PERA on Direct Distribution Committee Discussion Only
Review of Subcommittee Questions for PERA Committee Discussion Only
Recommendations for Pension Review Commission Committee Discussion Only
Discussion of Future Meeting Agendas and Other Business Committee Discussion Only

09:02:45 AM
Senator Kolker, Chair,
called the meeting to order and made remarks about the agenda.



Presentation on House Bill 22-1029 - Committee Discussion Only


09:04:53 AM  
Representative Bird
presented regarding House Bill 22-1029, Compensatory Direct Distribution
to Public Employees' Retirement Association (PERA).  She discussed
the background and negotiations behind HB 22-1029 and summarized the contents
of the signed act. Representative Bird responded to questions.
09:20:09 AM  
Robin Smart, Joint
Budget Committee, summarized recent legislation that impacts the PERA direct
distribution and described the status of the PERA Payment Cash Fund. Representative
Bird responded to committee questions. The committee discussed the $380.0
million direct distribution to PERA in HB 22-1029.  

09:38:05 AM  
Ms. Smart continued
her presentation and discussed lost investment gains from the reduced direct
distribution, estimated interest earned in future years, and required reserves
in the state budget. Ms. Smart responded to committee questions regarding
the state budget. Committee discussion ensued.



Presentation from PERA on Direct Distribution - Committee Discussion Only


10:02:37 AM  
Ron Baker, Executive
Director, PERA, presented regarding direct distributions from the state
budget and the impact to PERA. Mr. Baker provided an update on PERA's unfunded
liability. Mr. Baker and Ms. Smart responded to committee questions.  
10:21:05 AM  
The committee recessed.



Review of Subcommittee Questions for PERA - Committee Discussion Only


10:31:53 AM  
The committee returned to order.
10:32:31 AM  
Mr. Baker commented
on the questions submitted to PERA from the subcommittee. Committee discussion
with Mr. Baker ensued.



Recommendations for Pension Review Commission - Committee Discussion Only


10:55:07 AM  
The committee discussed
a recommendation to the Pension Review Commission to fund PERA with an
additional $97.0 million, and adjusting the $225.0 million annual distribution.
Committee discussion ensued regarding including investment returns in PERA
funding.
11:01:30 AM  
Representative Bird
made the following motion: move to recommend a bill to the Pension Review
Commission that would true-up the financial condition of PERA to be consistent
with the original intent of Senate Bill 18-200 and identifying the source
of funding as the PERA Payment Cash Fund and state reserves.

The motion passed on a vote of 11-0, with three excused.
11:08:34 AM  
Committee members
discussed the recommendation.
11:12:18 AM  
Mr. Sharf discussed
a recommendation to the Commission to require PERA to issue a request for
proposal to adjust their acturarial modeler to add a variable. Committee
members discussed the recommendation.
11:12:19 AM  
Mr. Sharf made the
following motion: move to recommend a bill to the Pension Review Commission
to require the PERA Board to release a Request for Proposals to conduct
a sensitivity analysis on inflation, inflation-related scenarios, and how
inflation will affect PERA between now and 2047.

The motion failed on a vote of 1-10, with three excused.



Discussion of Future Meeting Agendas and Other Business - Committee Discussion Only


11:30:10 AM  
The committee discussed
future obligations and meetings.


12:50:05 PM   The committee adjourned.






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