I_PensionRevewSubComm_2021A 08/19/2021 09:05:53 AM Committee Summary PUBLICSTAFF SUMMARY OF MEETINGINTERIM COMMITTEE PENSION REVIEW SUBCOMMITTEE Date 08/19/2021 Attendance Gary Arnold E Michael Johnson X Jim Mantele X Carole Partin X Priola E Trey Rogers E Patrick Roybal X Joshua Sharf X Lang Sias X Jack Tate E Van Winkle E Earl Wright E Danielson E Bird X Time 09:05:53 AM to 11:51:49 AM Place HCR 0112 This Meeting was called to order by Bird This Report was prepared by Anne Wallace Hearing Items Action Taken hReview Initial Findings of Independent PERA Audit Committee Discussion Only 09:05:57 AM Representative Bird, Chair, gave opening remarks and asked committee members to introduce themselves. She discussed the charge of the Pension Review Subcommittee. Review Initial Findings of Independent PERA Audit - Committee Discussion Only 09:17:19 AM Dana Woolfrey, GRS, and Joe Newton, GRS, presented on initial findings of their independent Colorado Public Employees' Retirement Association (PERA) assumption review. A copy of their presentation is available here: http://leg.colorado.gov/sites/default/files/images/lcs/aug19meeting_pera_assumptionreview.pdf. Ms. Woolfrey described actuarial terms, definitions, and assumptions. She explained the mechanism and impact of PERA's automatic adjustment provisions. 09:34:23 AM Ms. Woolfrey and Mr. Newton responded to committee questions about Senate Bill 18-200, the PERA funding ratio, and the different PERA divisions. 09:50:06 AM Mr. Newton continued with the presentation and discussed material bias in PERA's liability determinations and projections. He responded to committee questions about PERA's specific material biases. Ms. Woolfrey explained PERA's investment return assumption. She discussed PERA's mortality assumption and salary and payroll growth assumption. Mr. Newton and Ms. Woolfrey responded to committee question about assumptions. 10:20:41 AM Mr. Newton described PERA's non-investment actuarial experience from 2012 to 2019, and the 2016 Experience Study. He responded to committee questions. The committee recessed. The committee came back to order. 10:44:02 AM Mr. Newton discussed additional PERA assumptions, including the withdrawal assumption, and responded to questions. He discussed the retirement assumption and responded to questions. Mr. Newton summarized possible changes in PERA's assumptions after the 2020 Experience Study. He discussed the impact of new hires on actuarial assumptions, and responded to questions. 11:21:10 AM Mr. Newton discussed a recommendation that the timing of the 2024 experience study be accelerated into 2022. He explained a recommendation that the signal light report include a historical reconciliation of gains and losses by source. Ms. Woolfrey discussed a recommendation that PERA shorten amortization periods used for future layers. Mr. Newton discussed a recommendation for PERA to use a consistent single term and projection model. They responded to questions regarding the recommendations. 11:48:17 AM Mr. Newton and Ms. Woolfrey discussed next steps for their report and analysis. Representative Bird discussed future meetings with the committtee. 11:51:49 AM The committee adjourned.
