I_PensionRevewSubComm_2022A 07/28/2022 09:02:41 AM Committee Summary PUBLICSTAFF SUMMARY OF MEETINGINTERIM 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 hPresentation on House Bill 22-1029 Committee Discussion Only hPresentation from PERA on Direct Distribution Committee Discussion Only hReview of Subcommittee Questions for PERA Committee Discussion Only hRecommendations for Pension Review Commission Committee Discussion Only hDiscussion 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.
