I_PensionRevewSubComm_2021A 09/10/2021 01:14:01 PM Committee Summary PUBLICSTAFF SUMMARY OF MEETINGINTERIM COMMITTEE PENSION REVIEW SUBCOMMITTEE Date 09/10/2021 Attendance Gary Arnold X Michael Johnson X Jim Mantele X Carole Partin X Priola X Trey Rogers X Patrick Roybal X Joshua Sharf X Lang Sias X Jack Tate X Van Winkle X Earl Wright X Danielson E Bird X Time 01:14:01 PM to 05:05:57 PM Place HCR 0112 This Meeting was called to order by Bird This Report was prepared by Anne Wallace Hearing Items Action Taken hPresentation from PERA on the GRS Independent Audit Committee Discussion Only hSubcommittee Recommendations for Commission Committee Discussion Only Presentation from PERA on the GRS Independent Audit - Committee Discussion Only 01:14:21 PM Marcus Pennell, Board Chair, Colorado Public Employees Retirement Association (PERA), Ron Baker, Executive Director, PERA, and Amy McGarrity, Chief Investment Officer, PERA, presented to the committee regarding the GRS recommendations and PERA updates. The presentation may be accessed here: http://leg.colorado.gov/sites/default/files/images/pera_presentation_pension_review_subcommittee_9.10.21_0.pdf. The presenters described how PERA sets assumptions and responded to a GRS recommendation to accelerate an experience study. The presenters responded to committee questions. 01:38:31 PM The presenters continued and responded to a GRS recommendation to shorten amortization periods. They discussed GRS recommendations related to communication with stakeholders and changes to PERA public reports. 01:49:35 PM Brad Ramirez, Vice President and Actuary, Segal, and Matt Strum, Senior Vice President and Actuary, Segal, presented to the committee regarding actuarial evaluations of PERA. A copy of the presentation may be found here: http://leg.colorado.gov/sites/default/files/images/segal_colorado_pera_-_pension_review_subcommittee_presentation_0.pdf. The presenters provided an update on PERA membership, assets, and valuation results. The presenters discussed 40 year projections of PERA assumptions and signal light reporting. The presenters responded to committee questions. 02:28:36 PM The presenters described PERA's asset allocation and responded to committee questions. 02:38:16 PM The committee recessed. 02:50:24 PM The committee came back to order. The presenters responded to questions that were prepared by the Subcommittee regarding employee burden of unfunded liability, issuing pension bonds, and policy recommendations for PERA to achieve full funding. Committee discussion with the presenters ensued. Subcommittee Recommendations for Commission - Committee Discussion Only 03:55:52 PM The subcommittee discussed recommendations for the Pension Review Commission. Mr. Roybal discussed a recommendation regarding increasing the state annual contribution to the PERA pension fund. Representative Bird discussed a one time state payment to the PERA pension fund. Committee discussion ensued. PERA representatives commented. 04:23:35 PM Erin Reynolds, Legislative Council Staff, responded to committee questions. 04:26:19 PM Motion Move to forward a recommendation to the Pension Review Commission to introduce a bill to make a one-time additional contribution to the PERA pension fund. Moved Lang Sias Seconded Gary Arnold Gary Arnold Michael Johnson Jim Mantele Carole Partin Priola Trey Rogers Patrick Roybal Joshua Sharf Lang Sias Jack Tate Van Winkle Earl Wright Danielson Excused Bird YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection 04:26:21 PM Mr. Sias discussed a recommendation regarding signal light reporting. PERA representatives and committee members discussed the recommendation. 04:34:01 PM Motion Move to forward a recommendation to the PERA Board to revise the signal light process to reflect a 67 percent likelihood of reaching full funding by 2048. Moved Lang Sias Seconded Van Winkle Gary Arnold Michael Johnson Jim Mantele Carole Partin Priola Trey Rogers Patrick Roybal Joshua Sharf Lang Sias Jack Tate Van Winkle Earl Wright Danielson Excused Bird YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection 04:41:14 PM Committee discussion ensued regarding a recommendation proposed by Mr. Roybal. 04:42:12 PM Motion Move to forward a recommendation to the Pension Review Commission to introduce a bill to increase the annual state contribution. Moved Patrick Roybal Seconded Carole Partin Gary Arnold No Michael Johnson No Jim Mantele No Carole Partin Yes Priola Excused Trey Rogers No Patrick Roybal Yes Joshua Sharf No Lang Sias No Jack Tate No Van Winkle No Earl Wright Excused Danielson Excused Bird No YES: 2 NO: 9 EXC: 3 ABS: 0 FINAL ACTION: FAIL 04:50:31 PM Mr. Sias discussed a GRS recommendation and made a motion. Committee discussion ensued. 04:51:29 PM Motion Move to forward a recommendation to the Pension Review Commission to introduce a bill regarding a GRS recommendation to adjust the timing of PERA's next experience study. Moved Lang Sias Seconded Jim Mantele Gary Arnold No Michael Johnson No Jim Mantele Yes Carole Partin No Priola Excused Trey Rogers No Patrick Roybal No Joshua Sharf Yes Lang Sias Yes Jack Tate Yes Van Winkle Yes Earl Wright Excused Danielson Excused Bird No YES: 5 NO: 6 EXC: 3 ABS: 0 FINAL ACTION: FAIL 04:51:37 PM The committee discussed additional GRS recommendations. Mr. Sharf made a motion. 05:00:07 PM Motion Move to forward a recommendation to the PERA Board to shorten amortization periods for future layers to 2048. Moved Joshua Sharf Seconded Lang Sias Gary Arnold Yes Michael Johnson Yes Jim Mantele Yes Carole Partin No Priola Excused Trey Rogers No Patrick Roybal No Joshua Sharf Yes Lang Sias Yes Jack Tate Yes Van Winkle Yes Earl Wright Excused Danielson Excused Bird No YES: 7 NO: 4 EXC: 3 ABS: 0 FINAL ACTION: PASS 05:00:35 PM Mr. Sharf made a motion. Committee members commented. 05:04:19 PM Motion Move to forward a recommendation to the PERA Board to include a historical reconciliation of gains and losses in their signal light report. Moved Joshua Sharf Seconded Van Winkle Gary Arnold No Michael Johnson Yes Jim Mantele Yes Carole Partin No Priola Excused Trey Rogers Yes Patrick Roybal Yes Joshua Sharf Yes Lang Sias Yes Jack Tate Yes Van Winkle Yes Earl Wright Excused Danielson Excused Bird Yes YES: 9 NO: 2 EXC: 3 ABS: 0 FINAL ACTION: PASS 05:05:11 PM Representative Bird gave concluding remarks. 05:05:57 PM The committee adjourned.
