I_PensionRevew_2021A 09/14/2021 01:00:24 PM Committee Summary PUBLICSTAFF SUMMARY OF MEETINGINTERIM 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 http://www2.leg.state.co.us/CLICS/CLICS2021A/commsumm.nsf/0/56C7DFBD4C17...$File/21PenReviewComm0914AttachA.pdf?OpenElement 21PenReviewComm0914AttachA.pdf 01:01:18 PM Director Dan Slack, Mr. Kevin Lindahl, and Mr. Scott Simon, representing the Fire and Police Pension Association (FPPA), came to the table provide an update on the association. Their presentation may be found in Attachment A and at https://leg.colorado.gov/sites/default/files/images/fppa_presentation_to_the_pension_review_commission.pdf. 01:04:01 PM Mr. Slack continued by discussing the variety of plans offered and the funded status of those plans. In response to a committee question, Mr. Slack described a combined contribution rate. 01:14:50 PM Mr. Lindahl continued by discussing possible legislation or bill draft requests. 01:29:16 PM Mr. Lindahl discussed several ideas, including: merge the assets and liabilities of the Statewide Hybrid Plan and the Statewide Defined Benefit Plan including the Social Security Supplemental Plan; apply special multiplier adjustment to Statewide Hybrid Plan benefits accrued prior to merger; increase the required minimum contributions into the Hybrid Defined Benefit and Money Purchase Components by 2 percent; implement the Rule of 80 - allow Hybrid Defined Benefit Component members whose age and years of service totals 80 to elect a normal retirement benefit; provide additional private information protections for FPPA members; extend Death & Disability Application Deadline from 180 to 365 days; and seek additional state funding for unfunded death and disability liabilities for members hired prior to 1997. 01:38:14 PM Mr. Simon continued by discussing FPPA's investments and asset allocation. Presentation from the Public Employees' Retirement Association - Committee Discussion Only Attachment Tag File Name Attachment B http://www2.leg.state.co.us/CLICS/CLICS2021A/commsumm.nsf/0/B18362E88A26...$File/21PenReviewComm0914AttachB.pdf?OpenElement 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 http://www2.leg.state.co.us/CLICS/CLICS2021A/commsumm.nsf/0/01A5DB939D8E...$File/21PenReviewComm0914AttachC.pdf?OpenElement 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.
