LEGISLATIVE COMMISSION ON PENSIONS AND RETIREMENT

Senator Dean E. Johnson, Chair of the Legislative Commission on Pensions and Retirement, called the meeting to order at 9:45 a.m.

Representatives Ann Lenczewski, Harry Mares, Mary Murphy, and Steve Smith

Senators Don Betzold, Dean Johnson, and Roy Terwilliger

Representative Philip Krinkie

Senators Lawrence Pogemiller and Dan Stevens

Mr. Lawrence Martin, Executive Director, Legislative Commission on Pensions and Retirement reviewed the staff memo on the subject, outlined potential coverage groups, and outlined options for data collection and the formulation of a specific proposal.

Senator Betzold commented that while only half of the counties responded to the survey conducted by staff, the counties that did respond were consistently opposed to an expansion of correctional plan coverage and it appears little would be gained from directing staff to conduct another questionnaire to try to get better participation.

Representative Mares recommended moving forward with better identification of what the issues are but do it through the various plans and lobbying groups coming together.

Mr. Martin reviewed Amendment LCPR02-083, which would set up an advisory task force. Mr. Martin said that the amendment was offered but not recommended during one of the final meetings of the Commission during the Session, and that there was concern that the proposed group was too large and that it did not pick up the right entities to be included in the task force.

Mr. Robert Johnson, representing Teamsters 320, asked the Commission to consider union representation on the task force as well as individual dispatchers and probation/parole officers. He recommended reducing the number of state, city, and county emergency dispatchers from two to one each and to include one union representative each from Teamsters 320, AFSCME, and MAPE.

Representative Mares suggested that the Commission not determine the size of the task force, but that the group identified get together to make a recommendation on the formulation of the task force.

Representative Murphy moved that we have a task force and that those who are interested in participating meet to make a recommendation on the membership of the task force.

Ms. Sherry Munyon, representing the Minnesota Association of County Probation Officers (MAPCO) and the Minnesota Corrections Association (MCA), suggested that a member of the Pension Commission also serve on the task force. Senator Betzold said that he would serve as a liaison, but expressed his concern that the size of the task force be kept small.

Senator Johnson clarified that the Commission recommends a task force be established, that interested parties meet to make a recommendation as to the size and membership of the task force, that they report back to the Commission at its next meeting with their recommendation, and that the established task force report its findings to the Commission during the 2003 Legislative Session.

Mr. Martin informed members that there is a contract with Milliman USA for two years with two option years; but at the time of the contract extension, additional negotiations will most likely be needed.

Mr. David Bergstrom, Executive Director, MSRS, Mr. Gary Austin, Executive Director, TRA, and Ms. Mary Vanek, Executive Director, PERA, provided a PowerPoint presentation and printed report on the possible consolidation of administrative efforts.

Senator Johnson announced that the Commission would next meet in August, most likely on August 22.

Mr. Edward Burek, Deputy Director, Legislative Commission on Pensions and Retirement, referred members to the staff memorandum and also to two items of correspondence from MERF and MTRFA. The documents from the two funds concern a recent development dealing with an investment manager employed by both funds who may have violated state and federal law. Mr. Burek noted that Ms. Johnson (Executive Director, MERF) indicated that she intends to notify the Securities and Exchange Commission about the situation and he assumes that both of the pension organizations are looking into lawsuits. Mr. Burek then began to review the staff memo on the topic of pension plan investment performance, ending his review after a discussion of asset mix.

Senator Johnson announced that this topic would be continued at the next Commission meeting.

The meeting adjourned at 11:15 a.m.