September 13, 2001

Room 112 Capitol

9th Meeting

LEGISLATIVE COMMISSION ON PENSIONS AND RETIREMENT

MINUTES

Senator Dean E. Johnson, Chair of the Legislative Commission on Pensions and Retirement, called the meeting to order at 9:12 a.m.

Commission members present:

Representatives Philip Krinkie, Harry Mares, Mary Murphy, and Steve Smith
Senators Don Betzold, Dean Johnson, Lawrence Pogemiller, Dan Stevens, and Roy Terwilliger

Agenda items discussed:

  1. Approval of Minutes of the Commission Meeting of August 23, 2001

Senator Pogemiller informed members that in the pension legislation that was passed during the Special Session, there was a major error made regarding the proration of service credit; there had been an agreement not to include this language but it ended up in the bill. He noted that during the Special Session, the Revisor’s Office was in control of the bill and that the Commission staff was not involved as it normally is. Senator Pogemiller said that this matter needs to be addressed in the future to avoid similar mistakes.

Senator Betzold moved approval of the minutes for the Commission meeting of August 23, 2001. MOTION PREVAILED.

Senator Johnson announced the dates for the next three Commission meetings: October 9, November 13, and December 11, 2001.

  1. Designated Commission Interim Project; Potential Expansion of the PERA-Correctional Plan Coverage Group (First Consideration)

Mr. Lawrence Martin, Executive Director, Legislative Commission on Pensions and Retirement, reviewed the staff memo and the various bills. Mr. Martin informed members that the Association of Minnesota Counties is requesting information from the counties on behalf of the Commission for its consideration.

Mr. Keith Carlson, Metropolitan Inter-County Association, testified to the Association’s concerns regarding the expansion of PERA-Correctional coverage and provided handout materials.

Mr. Patrick Guernsey, President of AFSCME Local 552, testified in support of the bill on behalf of Hennepin County probation and parole officers, providing information about the nature of their caseloads and the offenders involved.

Mr. Robert Johnson, Teamsters Local 320, testified in support of the bill, noting the need for recruitment and retention.

Ms. Mary Jo Balzart, a 911 telecommunicator with the Hennepin County Sheriff’s Office, testified in support of the bill, attesting to the stressful nature of the position and high burnout.

Mr. Terrence Wagner, Teamsters Local 320, testified in support of the bill on behalf of Ramsey County probation and parole officers, describing the responsibilities of the position and their caseloads.

Ms. Terryl Arola, Pine County Court Services, testified in support of the bill and provided materials from her research on probation officer safety.

Ms. Diana Borash, APCO (Association of Public-Safety Communications Officials International), testified in support of the bill on behalf of 911 dispatchers.

Mr. Roger Kruze, AFSCME, Hennepin County Medical Center protection officer, and Mr. Chris Cowen, Political Action Director, AFSCME, testified in support of the bill. Mr. Kruze referred to materials in support of the bill previously provided to Commission members.

Mr. Paul Cegla, Hennepin County Benefits Manager, testified that the County has not yet developed a position on the bill. Senator Pogemiller asked if their research would include communication with the workers and Mr. Cegla replied that they are obligated by their union agreement to discuss the matter with the employees.

Mr. Bob Peterson, Washington County Sheriff’s Office, testified in support of the bill and provided information regarding the duties and responsibilities of the bailiffs in Washington County and compared them to those of bailiffs in other counties.

Senator Pogemiller said that the Commission should get input from the County on the matter.

  1. Designated Commission Interim Project; Potential Expansion of the MSRS-Correctional Plan Coverage Group (First Consideration)

Mr. Lawrence Martin, Executive Director, Legislative Commission on Pensions and Retirement, reviewed the staff memo and the history behind the MSRS-Correctional Plan.

Mr. Steve Borough, Department of Corrections Sentencing-to-Service Crew, testified in support of the bill.

Ms. Julie Blehyl, Legislative Director, AFSCME Council 6, testified in support of the bill.

Senator Hottinger and Mr. Linn Ford, the individual affected by the legislation, testified in support of the bill and provided background information on the situation.

Mr. David Bergstrom, Executive Director, MSRS, testified that the cost of the purchase would be $2,000 and the cost to the fund would be $13,500.

Representative Goodwin and Senator Chaudhary testified in support of their bills.

Mr. Richard Kaufman, the individual affected by the legislation, testified in support of the bill.

Mr. David Bergstrom, Executive Director, MSRS, testified that the bill would require the Department of Corrections to pay $104,000 to MSRS.

Senator Johnson recommended that the affected parties get together to come to an understanding about their expectations on the issue.

Mr. Eric Skon, Assistant Commissioner, Department of Corrections, provided testimony on the three above-mentioned bills. He said that the Department of Corrections has reviewed both S.F. 1548 and S.F. 804, and determined that the individuals involved did not meet the required criteria. The Department has not yet done an analysis of S.F. 1738.

  1. Designated Commission Interim Project; Consideration of Service Credit Purchase Requests Recommended By the Service Credit Purchase Subcommittee For Interim Study (First Consideration)

Mr. Edward Burek, Deputy Director, Legislative Commission on Pensions and Retirement, reviewed the staff memo and the bills involved.

Representative Mares asked what the potential financial impact would be if the full actuarial value payment were not required.

Mr. David Bergstrom, Executive Director, MSRS, testified that the impact could be very large, potentially in the tens of millions of dollars. He said that at this time they have no way of determining the costs because the affected individuals are not currently eligible, but that they could survey their members to gather information.

Mr. Gary Austin, Executive Director, TRA, testified regarding the potential federal law conflict addressed by S.F. 611.

There was no public testimony on these bills.
  1. Designated Commission Interim Project; Draft Proposed Legislation Recodifying Minnesota Statutes, Chapter 355: Social Security Referenda and Coverage (First Consideration)

Mr. Lawrence Martin, Executive Director, Legislative Commission on Pensions and Retirement, reviewed the staff memo and the draft proposed legislation, in the form of LCPR01-213.

The meeting adjourned at 11:37 a.m.