| April 2, 2003 |
2nd Meeting |
| Room 400 South, State Office Building |
LEGISLATIVE COMMISSION ON PENSIONS AND RETIREMENT
MINUTES
Call to order:
Representative Steve Smith, Chair of the Legislative Commission on Pensions and Retirement, called the meeting to order at 7:25 p.m.
Commission Members Present:
Representatives Sondra Erickson, Philip Krinkie, Eric Lipman, Mary Murphy, and Steve Smith
Senators Don Betzold, Keith Langseth, Cal Larson, Geoff Michel, and Lawrence Pogemiller
Agenda items
H.F. 841 (Fuller); S.F. 843 (Ruud): PERA: Authorizing a Bemidji City Council Member to Terminate Plan Coverage
Rep. Fuller presented and testified in support of the bill.
Ms. Nancy L. Erickson, the person affected by the bill, testified in support of the bill.
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 amendment LCPR03-079.
Rep. Smith moved H.F. 841/S.F. 843 for consideration.
Sen. Betzold moved amendment LCPR03-079. MOTION PREVAILED.
Ms. Mary Vanek, Executive Director, PERA, testified that she agreed with the facts as presented, that the PERA Board has not taken a position, and responded to Rep. Murphy’s question that the fund would not be harmed.
Rep. Smith moved H.F. 841/S.F. 843, as amended, be laid over for further consideration and possible inclusion in the Omnibus Pension Bill. MOTION PREVAILED.
Sen. Betzold assumed the chair.
H.F. 856 (Dempsey); S.F. 786 (Murphy): TRA; Deadline Extension for Retirement Coverage Election by Recently Hired MnSCU Faculty Member
Sen. Murphy presented and testified in support of the bill.
Mr. Jack LaValla, the person affected by the bill, testified in support of the bill and responded to questions from members.
Mr. Gary Austin, Executive Director, TRA, testified that TRA has no problem with the bill.
Rep. Murphy moved H.F. 856/S.F. 786 be laid over for further consideration and possible inclusion in the Omnibus Pension Bill. MOTION PREVAILED.
H.F. 947 (Dempsey); S.F. 947 (Murphy): PERA-General; Continued Membership for Employees of the Red Wing Environmental Learning Center
Rep. Dempsey presented and testified in support of the bill.
Mr. Kelly Smith, Red Wing School District, testified in support of the bill.
Mr. Jason Jech, Director of the Red Wing Environmental Learning Center, testified in support of the bill and responded to questions from members.
Mr. Lawrence Martin, Executive Director, Legislative Commission on Pensions and Retirement, reviewed the staff memo and policy issues raised by the bill, and discussed potential amendment LCPR03-094.
Ms. Mary Vanek, Executive Director, PERA, testified that she had consulted PERA’s legal advisor, and because employees of the Red Wing Environmental Learning Center have been reported to PERA for over 30 years, to discontinue participation would be unfair to those employees.
Rep. Smith resumed the chair.
Sen. Pogemiller moved H.F. 947/S.F. 947 for consideration.
Sen. Pogemiller moved amendment LCPR03-094. MOTION PREVAILED.
Sen. Pogemiller asked staff to draft language to clarify that this is a unique situation. Mr. Martin recommended the following:
_____________ moves to amend H.F. 947; S.F. 947, as follows:
Page 2, line 12, before "Notwithstanding" insert
"(a) The legislature finds that the Red Wing learning center has a long an very close relationship with independent school district No. 256, Red Wing, that Red Wing learning center employees have been treated as independent school district No. 256, Red Wing, employees for retirement program for 33 years, and that the current learning center employees would suffer a significant loss in their pension benefit coverage if their membership in the general employees retirement plan of the public employees retirement association was disrupted.
(b)"
Sen. Pogemiller moved H.F. 947/S.F. 947, as amended, and further amended to include the additional language as directed to staff, be laid over for further consideration and possible inclusion in the Omnibus Pension Bill. MOTION PREVAILED.
H.F. 740 (Hilstrom); S.F. 801 (Scheid): PERA-General; Authorizing a Certain Retiree to Revoke a Retirement Annuity and Apply for a Disability Benefit
Rep. Smith moved H.F. 740/S.F. 801 for consideration.
Rep. Hilstrom testified in support of her bill.
Ms. Kathy Simmons, the person affected by the bill, testified in support of the bill and explained her situation. Ms. Simmons’ daughter, Ms. Helen Spears, was also present.
Mr. Martin reviewed the staff memo and policy issues raised by the bill.
Ms. Mary Vanek, Executive Director, PERA, explained PERA’s process for disability applications. Ms. Vanek said that Ms. Simmons was given the right to appeal and that she did not, and that Ms. Simmons did reapply for disability benefits but the physical reports did not support disability.
The bill was laid over.
H.F. 91 (Rukavina); S.F. 55 (Tomassoni): Eveleth Police and Fire Trust Fund; Ad Hoc Post-Retirement Increase
Rep. Smith moved H.F. 91/S.F. 55 for consideration.
Rep. Rukavina testified in support of his bill.
Rep. Murphy moved H.F. 91/S.F. 55 be laid over for further consideration and possible inclusion in the Omnibus Pension Bill. MOTION PREVAILED.
H.F. 404 (Kelliher); S.F. 536 (Dibble): MTRFA; Permitting a Certain Teacher to Participate in the Qualified Part-Time Teacher Program Despite Failure to Execute Forms
Sen. Betzold moved H.F. 404/S.F. 536 for consideration.
Sen. Dibble testified in support of his bill.
Mr. John Kantar, the person affected by the bill, testified in support of the bill and explained his situation.
Mr. Burek reviewed the staff memo and policy issues raised by the bill, and discussed several potential alternatives to the legislation.
Sen. Dibble expressed his preference for amendment LCPR03-081.
Ms. Linda Sandvig, Minneapolis Public Schools, testified that the agreement states the need to complete a job-share application, but that the school district does bear some responsibility.
Ms. Karen Kilberg, Executive Director, MTRFA, testified that Mr. Kantar should have been able to participate, but that the statute is clear that MTRFA cannot accept the paperwork if it is not received by the deadline.
Mr. Norman Moen, representing the union, testified that in the past they had followed through, but that in 2001 the Human Resources administrator left and the ball was dropped.
Sen. Pogemiller moved amendment LCPR03-082. MOTION PREVAILED.
Sen. Betzold moved H.F. 404/S.F. 536, as amended, be laid over for further consideration and possible inclusion in the Omnibus Pension Bill. MOTION PREVAILED.
H.F. 666 (Murphy); S.F. 670 (Solon): DTRFA; Deadline Extension for Inclusion in Part-Time Teaching/Full-Time Service and Salary Credit Program
Sen. Betzold moved H.F. 666/S.F. 670 for consideration.
Sen. Solon testified in support of the bill.
Mr. J. Michael Stoffel, Executive Secretary, DTRFA, testified in support of the bill and provided a handout acknowledging a mistake on their part in this case.
Sen. Larson moved H.F. 666/S.F. 670 be laid over for further consideration and possible inclusion in the Omnibus Pension Bill. MOTION PREVAILED.
H.F. 776 (Davnie); S.F. 499 (Skoglund): MFRA: Benefit for a Certain Surviving Spouse
Sen. Betzold moved H.F. 776/S.F. 499 for consideration.
Sen. Skoglund and Rep. Davnie testified in support of their bill.
Mrs. Pamela Thompson, the person affected by the bill, testified in support of the bill and explained her situation.
Mr. Burek reviewed the staff memo and policy issues raised by the bill.
Sen. Larson moved H.F. 776/S.F 499 be laid over for further consideration and possible inclusion in the Omnibus Pension Bill. MOTION DID NOT PREVAIL.
H.F. 839 (Nelson, M.); S.F. 485 (Rest): PERA; Permitting City Managers to Revoke the Irrevocable Election to be Excluded from the PERA-General Plan
Sen. Betzold moved H.F. 839/S.F. 485 for consideration.
Sen. Rest testified in support of the bill.
Mr. Daniel Donahue, MCMA (State City Manager Association) and City Manager of New Hope, testified in support of the bill.
Mr. Burek reviewed the staff memo and policy issues raised by the bill, and discussed technical amendment LCPR03-097.
Ms. Mary Vanek, Executive Director, PERA, testified that the PERA Board is not opposed to the proposal prospectively.
Sen. Larson moved LCPR03-097. MOTION PREVAILED.
Sen. Larson moved H.F. 839/S.F. 485, as amended, be laid over for further consideration and possible inclusion in the Omnibus Pension Bill. MOTION PREVAILED.
H.F. 1334 (Smith); S.F. 1171 (Pogemiller): MFRA; Providing Increased Interest on Minneapolis Firefighter Relief Association Death Refunds
Rep. Smith moved H.F. 1334/S.F. 1171 for consideration.
Mr. Burek reviewed the staff memo and policy issues raised by the bill. Mr. Burek noted that LCPR staff received a memo and a letter from the MFRA, but that staff was unable to find any indication of local approval, and that the Commission may wish to request a certified copy of that approval.
Mr. Brian Rice, General Counsel, Minneapolis Firefighters Relief Association (MFRA), testified in support of the bill.
Sen. Betzold moved to change the retroactivity date from October to September. MOTION PREVAILED.
Rep. Smith moved H.F. 1334/S.F. 1171, as amended, be laid over for further consideration and possible inclusion in the Omnibus Pension Bill. MOTION PREVAILED.
Adjournment
The meeting adjourned at 10:35 p.m.