I_PensionRevew_2022A 08/08/2022 09:01:24 AM Committee Summary PUBLICSTAFF SUMMARY OF MEETINGINTERIM 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 hPresentation from the Fire and Police Pension Association (FPPA) Committee Discussion Only hPresentation from the Public Employees' Retirement Association (PERA) Committee Discussion Only hReview Recommenations from the Pension Review Subcommittee Committee Discussion Only hBill Draft Requests Committee Discussion Only Presentation from the Fire and Police Pension Association (FPPA) - Committee Discussion Only Attachment Tag File Name Attachment A http://www2.leg.state.co.us/CLICS/CLICS2022A/commsumm.nsf/0/D344ACEBA949...$File/Attachment A.pdf?OpenElement Attachment A.pdf 09:01:59 AM Senator Kolker called the meeting to order. 09:04:10 AM Mr. Kevin Lindahl, representing Colorado Fire and Police Pension Association (FPPA), provided an overview of FPPA and introduced the other presenters. Their presentation may be found in Attachment A and online here:https://leg.colorado.gov/content/ipensionrevew2022ascheduleandmeetingmaterials 09:06:07 AM Mr. Chip Weule, FPPA Chief Benefit Manager, discussed the the plans administered by the FPPA, plan membership, and breakouts of various plans. 09:11:00 AM Mr. Adam Franklin, FPPA General Counsel, came to the table to discuss the plans' COLA, contribution rates, and funded ratios. 09:15:17 AM In response to committee question, Mr. Franklin discussed how the FPPA Board handles COLA and the limits in statute. 09:17:10 AM Mr. Franklin continued by discussing FPPA's investment program. 09:33:36 AM Mr. Tim O'Donnell and Mr. Lindahl came to the table to answer a committee question about investments and long-term pools. 09:42:23 AM Mr. Weule continued by highlighting FPPA's net performance annual returns since inception and net fund performance relative to market indices. 09:43:23 AM Mr. Dale Martin, representing FPPA, answered a committee question about private equity investments. Presentation from the Public Employees' Retirement Association (PERA) - Committee Discussion Only Attachment Tag File Name Attachment B http://www2.leg.state.co.us/CLICS/CLICS2022A/commsumm.nsf/0/79318F5A546B...$File/Attachment B.pdf?OpenElement Attachment B.pdf 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.