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April 22, 2003 |
6th Meeting |
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Room 10, 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 5:15 p.m.
Commission Members Present:
Representatives Sondra Erickson, Philip Krinkie, Eric Lipman, Mary Murphy, and Steve Smith
Senators Don Betzold, Cal Larson, and Geoff Michel
Commission Members Absent:
Senators Keith Langseth and Lawrence Pogemiller
Agenda Items
FINAL ACTION ON PROPOSED LEGISLATION LAID OVER FOR POTENTIAL INCLUSION IN THE 2003 OMNIBUS RETIREMENT BILL (DELETE EVERYTHING AMENDMENT LCPR03-143)
Mr. Lawrence Martin, Executive Director, Legislative Commission on Pensions and Retirement, summarized the documents before the Commission and reviewed the action previously taken by the Commission.
Article 2: Fire State Aid Changes
Sen. Larson moved that Article 2, previously acted upon by the Commission, be laid over for interim study. MOTION FAILED.
Article 3, Item 2: State Government Executive and Legislative Branch Early Retirement Incentive Provided (H.F. 1432/S.F. 858)
Mr. Martin reviewed the provisions of Article 3, Item 2.
Sen. Larson moved Article 3, Item 2 be laid over for interim study. MOTION PREVAILED.
Article 4, Item 1: PERA-General Membership for St. Paul Port Authority Employees (H.F. 828/S.F. 811)
Rep. Murphy indicated that she received communication from the Duluth Port Authority and that they are not interested in being included in this legislation.
Rep. Murphy moved H.F. 828/S.F. 811 be recommended to pass and be included in the omnibus pension bill.
Ms. Mary Vanek, Executive Director, PERA, testified that PERA did an actuarial analysis and there would be no additional impact to the fund. Ms. Vanek also said that PERA worked closely with the St. Paul Port Authority staff and the Board supports the provision.
Rep. Lipman asked Ms. Vanek if she had a recommendation as to an appropriate time limit for the service credit purchases. Ms. Vanek replied that 18 months would be sufficient.
Rep. Murphy moved to amend her motion so as to include an 18-month time limit for the service credit purchases, and moved H.F. 828/S.F. 811, so amended, be recommended to pass and be included in the omnibus pension bill. MOTION PREVAILED.
Article 4, Item 2: Continued PERA-General Membership for Red Wing Environmental Learning Center Employees (H.F. 947/S.F 947) – previously acted upon by the Commission
Ms. Mary Vanek, Executive Director, PERA, testified that PERA did research on the Red Wing Environmental Learning Center and learned that the individuals are treated as school employees and have been reported to PERA for over 30 years.
Article 4, Item 3: Authorized Revocation of PERA-General Exclusion Election by City Managers (H.F. 839/S.F. 485)
Ms. Mary Vanek, Executive Director, PERA, testified that the Board did support allowing city managers to choose to come back to PERA prospectively, no provision to purchase service.
Sen. Larson moved Article 4, Item 3, be recommended to pass and be included in the omnibus pension bill. MOTION FAILED.
Article 6, Item 1: Hennepin County Supplemental Plan Hardship Distribution Request Approval Authority Change (H.F. 656/S.F. 190)
Mr. Martin reviewed the provisions of Article 6, Item 1.
Rep. Lipman moved Article 6, Item 1, be recommended to pass and be included in the omnibus pension bill. MOTION FAILED.
Article 6, Item 2: Eveleth Police and Fire Trust Fund Ad Hoc Post Retirement Adjustment (H.F. 91/S.F. 55)
Mr. Martin reviewed the provisions of Article 6, Item 2.
Rep. Murphy moved Article 6, Item 2, be recommended to pass and be included in the omnibus pension bill. MOTION FAILED.
Article 7, Item 1: Subsidized PERA-General and PERA-P&F Vietnam-Era Military Service Credit Purchase (H.F. 947/S.F. 947)
Mr. Martin reviewed the provisions of Article 7, Item 1.
Rep. Erickson moved Article 7, Item 1, be laid over for interim study. MOTION PREVAILED.
Amendment LCPR03-133: PERA-General Service Credit Purchase for St. Louis Park City Council Members
Mr. Martin reviewed the provisions of amendment LCPR03-133.
Rep. Rhodes testified in support of the amendment.
Sen. Larson moved amendment LCPR03-133 be recommended to pass and be included in the omnibus pension bill. MOTION FAILED.
Reconsideration of Article 6, Item 2: Eveleth Police and Fire Trust Fund Ad Hoc Post Retirement Adjustment (H.F. 91/S.F. 55)
Rep. Murphy, having voted on the prevailing side of the failed motion to include Article 6, Item 2, in the omnibus pension bill, requested reconsideration of the motion that Article 6, Item 2, be recommended to pass and be included in the omnibus pension bill.
Mr. Martin reviewed the provisions of Article 6, Item 2, and the Commission’s history regarding previous post-retirement adjustments for the Eveleth Police and Fire Trust Fund.
Rep. Murphy renewed her motion for reconsideration and on the reconsideration vote that Article 6, Item 2, be recommended to pass and be included in the omnibus pension bill. MOTION PREVAILED.
Article 7, Item 2: Sunset Date Extension for Various 1999 and 2000 Session Service Credit Purchases (related to H.F. 844; S.F. 667; and H.F. 247/S.F. 400)
Mr. Martin reviewed the provisions of Article 7, Item 2.
Mr. Gary Austin, Executive Director, TRA, testified that there were 325 teachers who utilized this provision last year and a number of those (25-30) made their payments and retired during the same year, so there could be some individuals who are planning to purchase service and retire who would not be able to do so if the provisions were not extended.
Rep. Murphy asked Mr. Austin if there would be any damage done by extending the sunset. Mr. Austin replied that the actuarial report indicates that the funds are not being hurt and may come out ahead.
Rep. Murphy moved Article 7, Item 2, be recommended to pass and be included in the omnibus pension bill. MOTION FAILED.
Article 8, Item 1: Plumbers’ and Pipefitters’ Union Pension Fund Restriction Exception Expanded to Include Local Funds (H.F. 997/S.F. 847)
Rep. Smith moved Article 8, Item 1, be recommended to pass and be included in the omnibus pension bill. MOTION FAILED.
Article 9, Item 1: Correction of Monthly Benefit Flexible Service Pension Maximum Financing Levels (H.F. 1224/S.F. 1332)
Rep. Erickson moved Article 8, Item 1, be recommended to pass and be included in the omnibus pension bill. MOTION FAILED.
Article 9, Item 2: Additional Interest Option on Deferred Service Pensions (H.F. 1293/S.F. 1390)
There was no motion on this item.
Article 9, Item 3: Conformity of Plymouth Volunteer Firefighter Relief Association Special Law Ancillary Benefits with General Ancillary Benefit Limit (H.F. 253/S.F. 1452)
Rep. Smith moved Article 9, Item 3, be recommended to pass and be included in the omnibus pension bill. MOTION FAILED.
Article 9, Item 4: Statewide Volunteer Firefighter Retirement Plan Study (H.F. 489/S.F. 449)
Sen. Larson moved Article 9, Item 4, be recommended to pass and be included in the omnibus pension bill. MOTION FAILED.
Article 10, Item 1: Minneapolis Firefighters Relief Association; Increasing the Salary of the Executive Secretary (H.F. 520/S.F. 618)
Sen. Larson moved Article 10, Item 1, be recommended to pass and be included in the omnibus pension bill. MOTION FAILED.
Article 10, Item 2: Minneapolis Firefighters Relief Association; Increased Interest on Death Refunds (H.F. 1334/S.F. 1171)
Rep. Erickson moved Article 10, Item 2, be recommended to pass and be included in the omnibus pension bill. MOTION FAILED.
Article 11, Item 1: MnDOT Temporary Employment MSRS-General Service Credit Purchase (H.F. 63/S.F. 47)
Sen. Larson moved Article 11, Item 1, be recommended to pass and be included in the omnibus pension bill. MOTION FAILED.
Article 11, Item 2: Minneapolis Temporary Employment PERA-General Service Credit Purchase (Commission Amendment accompanying H.F. 308/S.F. 616)
There was no motion on this item.
Article 11, Item 3: Expiration Date for 2000 MTRFA School Social Worker Service Credit Provision (Commission Amendment related to H.F. 911/S.F. 889)
Rep. Erickson moved Article 11, Item 3, be recommended to pass and be included in the omnibus pension bill.
Mr. Burek indicated that Rep. Carlson, the author of H.F. 911, requested an amendment be considered to give the individual until December 31 rather than July 1.
Rep. Erickson renewed her motion, amended to incorporate Rep. Carlson’s request. MOTION FAILED.
Article 11, Item 4: Minneapolis Temporary Employment MERF Service Credit Purchase (H.F. 308/S.F. 616)
Sen. Larson moved Article 11, Item 4, be recommended to pass and be included in the omnibus pension bill. MOTION FAILED.
Article 11, Item 5: Metropolitan Airports Commission Public Safety Director Prior Service Credit Purchase (Michel Commission Amendment, S.F. 1467)
Sen. Michel moved Article 11, Item 5, be recommended to pass and be included in the omnibus pension bill. MOTION FAILED.
Article 11, Item 6: ISD No. 191 Unreported Sabbatical Leaves Service Credit Purchase (H.F. 1343/S.F. 1235)
Rep. Erickson moved Article 11, Item 6, be recommended to pass and be included in the omnibus pension bill. MOTION FAILED.
Article 12, Item 1: MSRS-General Refund for Long-Term Medical Leave (H.F. 191/S.F. 206)
Rep. Erickson moved Article 12, Item 1, be recommended to pass and be included in the omnibus pension bill. There was no action because there was not a quorum present at the time.
Sen. Betzold moved amendment LCPR03-168 at the request of Sen. Dibble and Rep. Hornstein.
Rep. Hornstein presented the amendment and introduced his constituent, Ms. Teresa Graham.
Ms. Teresa Graham testified in support of the amendment and provided handout materials.
Ms. Karen Kilberg, Executive Director, MTRFA, testified that the Board of Trustees reviewed Ms. Graham’s request and Ms. Graham has included the Board’s response in her materials. Ms. Kilberg provided additional historical information regarding the situation.
The amendment was laid over until a quorum was present.
Recess/ Call to order:
Rep. Smith called a recess at 6:35 p.m. Rep. Smith called the meeting back to order at 7:00 p.m. A quorum was present.
There was no action on amendment LCPR03-168.
Article 12, Item 1: MSRS-General Refund for Long-Term Medical Leave (H.F. 191/S.F. 206)
Rep. Erickson renewed her motion that Article 12, Item 1, be recommended to pass and be included in the omnibus pension bill. MOTION FAILED.
Article 12, Item 2: Authority to Revoke a PERA-General Retirement Annuity Application (H.F. 740/S.F. 801)
Sen. Larson moved Article 12, Item 2, be recommended to pass and be included in the omnibus pension bill. MOTION FAILED.
Article 12, Item 3: Retirement Coverage Change for Bemidji City Council Member (H.F. 841/S.F. 843)
Sen. Michel moved Article 12, Item 3, be recommended to pass and be included in the omnibus pension bill. MOTION FAILED.
Article 12, Item 4: Time Extension for Retirement Coverage Election for Riverland Technical College Faculty Member (H.F. 856/S.F. 786)
Rep. Krinkie moved Article 12, Item 4, be recommended to pass and be included in the omnibus pension bill. MOTION FAILED.
Article 12, Item 5: MFRA Surviving Spouse Benefit for Certain Survivor (H.F. 776/S.F. 499)
Rep. Krinkie moved Article 12, Item 5, and New Item 8 (PERA-P&F Survivor Benefit), be laid over for interim study. MOTION PREVAILED.
Article 12, Item 6: Retroactive Coverage in the Qualified Part-Time Teacher Program for Certain Minneapolis Public School Teacher (H.F. 404/S.F. 536)
Rep. Kelliher testified in support of amendment LCPR03-137.
This item was postponed to allow time to provide copies of the amendment to members.
Article 12, Item 7: Retroactive Coverage in the Qualified Part-Time Teacher Program for Certain Duluth Public School Teacher (H.F. 666/S.F. 670)
Rep. Smith moved Article 12, Item 7, be recommended to pass and be included in the omnibus pension bill. MOTION FAILED.
Article 3, New Item 4: TRA Extended Leave of Absence Provisions (H.F. 780/S.F. 664)
Rep. Smith moved Article 3, New Item 4.
Rep. Lipman moved amendment A03-0559, further amended on page 2, line 4, to insert "on or before December 31, 2003" before the period. MOTION PREVAILED.
Rep. Smith moved Article 3, New Item 4, as amended, be recommended to pass and be included in the omnibus pension bill. MOTION FAILED.
Article 3, New Item 5: Temporary TRA Rule of 85 (H.F.1433/S.F. 1323)
There was no action on this item.
Article 9, New Item 1: Required Actuarial Study of Restructured Statewide Teacher Retirement Plan (H.F. 1466/S.F. 1304)
Rep. Krinkie moved Article 9, Item 1, be recommended to pass and be included in the omnibus pension bill. MOTION PREVAILED.
Article 12, Item 6: Retroactive Coverage in the Qualified Part-Time Teacher Program for Certain Minneapolis Public School Teacher (H.F. 404/S.F. 536)
Mr. Burek reviewed amendment LCPR03-137.
Rep. Smith moved amendment LCPR03-137. MOTION FAILED.
Non-Agenda Item
Sen. Larson distributed a Commission staff memorandum regarding the MTRFA funding situation and asked members to study for Commission consideration at a later date.
Adjournment
The meeting adjourned at 7:30 p.m.