Friday, March 23, 2001     4^th Meeting
Room 107 Capitol

LEGISLATIVE COMMISSION ON PENSIONS AND RETIREMENT

Senator Dean Johnson, Chair of the Legislative Commission on Pensions and Retirement, called the meeting to order at 12:15 p.m.

Commission members present:

Representatives Harry Mares, Mary Murphy, Steve Smith, and Stephen Wenzel
Senators Don Betzold, Dean Johnson, Lawrence Pogemiller, and Dan Stevens

Commission members absent:

Representative Philip Krinkie and Senator Roy Terwilliger

Senator Betzold and Representative Haas testified in support of the bill and provided background information.

Mr. Lawrence Martin, Executive Director, Legislative Commission on Pensions and Retirement, referred members to the staff memo concerning the bill.

Senator Betzold moved S.F. 1231; H.F. 1295 for inclusion in the omnibus pension bill. MOTION PREVAILED.

Senator Betzold explained the bill.

Mr. Eric Willette, League of Minnesota Cities, testified in support of the bill and gave background information on the situation that prompted the legislation.

Mr. Edward Burek, Deputy Director, Legislative Commission on Pensions and Retirement, reviewed the staff memo and policy issues raised by the bill, and discussed potential amendments.

Mr. Mark Antheson, Minnesota Newspaper Association, testified in support of the bill.

Mr. Brian Rice, attorney representing the Minneapolis Fire Relief Association, testified in opposition to the bill.

Senator Pogemiller moved amendment LCPR01-118. MOTION PREVAILED. The bill was laid over.

Senator Murphy explained his bill and introduced Commissioner Joe Harris, Dakota County, who is also the president of the Metropolitan Inter-County Association.

Senator Betzold moved amendment LCPR01-129, with the following verbal amendments: page 3, line 3, before "employees" insert "full time" and page 4, line 16, after "that" insert "full time". MOTION PREVAILED.

Senator Betzold moved S.F. 1553; H.F. 1350, as amended, for inclusion in the omnibus pension bill. MOTION PREVAILED.

Senator Pogemiller presented his bill and provided background information.

Mr. Jim Genia, attorney representing the Mille Lacs Reservation, the Leech Lake Reservation, and the Grand Portage Reservation, clarified that these officers are state licensed peace officers who are enforcing state law.

Senator Pogemiller moved amendment LCPR01-117. MOTION PREVAILED.

Senator Pogemiller moved amendment LCPR01-120. MOTION PREVAILED.

Senator Pogemiller moved S.F. 1536; H.F. 1743, as amended, for inclusion in the omnibus pension bill. MOTION PREVAILED.

Senator Johnson began the discussion by saying that he knows that the PERA issue is a huge issue, and that we need to move in a positive direction. He stated that the public has the right to offer their opinions and to lobby legislators, but many of the recent phone calls and communications have been quite rude. He asked on behalf of legislative staff members that everyone who represents a pension fund to encourage their members to be more polite and courteous to staff.

Senator Pogemiller referred members to the memo in summary of draft amendment LCPR01-130, which represents a possible direction the Commission could take to address the PERA funding situation. He reviewed the provisions of the amendment and asked the various fund administrators to review the amendment for further discussion.

Mr. Martin reviewed the budget proposal.

Senator Pogemiller suggested the inclusion of funds allowing for staff professional development and travel expenses. Senator Betzold moved to add $5,000 to line 29 for staff professional development.

The budget was laid over for the next meeting.

Senator Johnson asked Ms. Mary Vanek, Executive Director, PERA, for a brief response to the suggestions in draft amendment LCPR01-130.

Ms. Vanek said that although she needs to look at the provisions more closely, her initial concerns are with respect to defining the actuarial value of assets at market value and in charging an administrative expense to retirees. She will provide further comments at the next Commission meeting.

The meeting adjourned at 2:00 p.m.