ADMINISTRATIVE LEGISLATION SUBCOMMITTEE
OF THE
LEGISLATIVE COMMISSION ON PENSIONS AND RETIREMENT

Representative Steve Smith, Chair of the Legislative Commission on Pensions and Retirement, called the meeting to order at 9:15 a.m.

Representative Steve Smith, Senator Don Betzold, and Senator Geoff Michel

Representative Eric Lipman

Mr. Lawrence Martin, Executive Director, Legislative Commission on Pensions and Retirement, reviewed the items in members’ packets.

Senator Betzold moved approval of the July 29, 2003, Subcommittee minutes. MOTION PREVAILED.

Mr. Edward Burek, Deputy Director, Legislative Commission on Pensions and Retirement, reviewed the article and related policy issues.

Sen. Betzold moved Article 19 for inclusion in the Subcommittee work product. MOTION PREVAILED.

Mr. Burek reviewed Article 20, stating that the article raised no significant policy issues.

Sen. Betzold moved Article 20 for inclusion in the Subcommittee work product. MOTION PREVAILED.

Mr. Burek reviewed Article 21 and the related policy issues.

Mr. David Bergstrom, Executive Director, MSRS, testified that MSRS would like to be able to use psychologists and chiropractors for all of the plans they administer and that the omission of the Correctional Plan was an oversight. Mr. Bergstrom said that MSRS would require a physician’s report in addition to a report from a chiropractor.

Mr. Cory Bennett, representing the Minnesota Psychologist Association, testified in support of the provision. Mr. Bennett also noted that all psychologists practicing in Minnesota need to be licensed, and that they are licensed at the Ph.D. level since 1991.

Ms. Mary Vanek, Executive Director, PERA, testified that PERA is looking for the expansion of medical evidence, primarily to support and augment a primary physician’s report.

Mr. Gary Austin, Executive Director, TRA, testified in support of the provision regarding psychologists, and while TRA has not had occasion to utilize a chiropractor’s report, they would not be opposed to it.

Mr. Philip Kapler, Executive Director, SPTRFA, testified that the Board has not taken an official position but that a chiropractor’s report being used as the sole basis for a determination could be a problem.

Sen. Betzold moved Article 21, amended by appropriated language to clarify that a chiropractor report be for augmentation, not primary, for inclusion in the Subcommittee work product. MOTION PREVAILED.

Mr. Burek reviewed Article 22 and the related policy issues.

Mr. David Bergstrom, Executive Director, MSRS, testified in support of the provision and that MSRS would be happy to provide the additional counseling the provision would require.

Sen. Michel moved Article 22 for inclusion in the Subcommittee work product. MOTION PREVAILED.

Sen. Betzold assumed the chair. There was not a quorum present at this time.

Mr. Burek reviewed Article 23, stating that the article raised no significant policy issues.

Mr. Burek reviewed Article 24 and the related policy issues.

A quorum was now present.

Sen. Betzold moved Article 23 for inclusion in the Subcommittee work product. MOTION PREVAILED.

Ms. Mary Vanek, Executive Director, PERA, testified that this was a recommendation from PERA’s legal advisor from the Attorney General’s Office who also works in the area of worker’s compensation benefits.

Sen. Betzold moved Article 24, Section 2, and Section 3 as it relates to the effective date for Section 2, for inclusion in the Subcommittee work product. MOTION PREVAILED.

Mr. Burek reviewed Article 25 and the related policy issues.

Mr. David Bergstrom, Executive Director, MSRS, testified that the provision is intended to encourage people to get off disability, which would save the program money.

Ms. Mary Vanek, Executive Director, PERA, testified that the PERA Board also looked at this issue and they have an interest in initiating a trial work period, noting that Social Security has a trial work period.

Sen. Betzold moved Article 25 for inclusion in the Subcommittee work product. MOTION PREVAILED.

Mr. Burek reviewed Article 26, stating that the article raised no significant policy issues.

Sen. Betzold moved Article 26 for inclusion in the Subcommittee work product. MOTION PREVAILED.

Mr. Burek reviewed Article 27 and the related policy issues.

Mr. Gary Austin, Executive Director, TRA, testified that TRA’s federal compliance experts advised TRA that this needs to be added to TRA law for federal plan qualification compliance.

Mr. Ed Emerson, Oppenheimer Wolff and Donnelly, testified in support of the provision and provided additional information regarding the federal compliance requirements.

Mr. David Bergstrom, Executive Director, MSRS, said that MSRS is comfortable with their current policy.

Sen. Betzold moved Article 27 for inclusion in the Subcommittee work product. MOTION PREVAILED.

Mr. Burek reviewed Article 28 and the related policy issues.

Mr. Gary Janikowski, Assistant Director Personnel, MnSCU, testified that this proposal is intended to correct an oversight on their part when the provision was enacted during the 2001 First Special Session, and that Mr. Burek’s recommendation to repeal this section of law would be acceptable.

Sen. Betzold moved Article 28 for inclusion in the Subcommittee work product. MOTION PREVAILED.

Mr. Burek reviewed Article 29 and the related policy issues.

Mr. Philip Kapler, Executive Director, SPTRFA, testified that the IRS has stated in correspondence to SPTRFA that the retroactive provisions are necessary for federal compliance.

Mr. Ed Emerson, Oppenheimer Wolff and Donnelly, clarified that the 401(a)(8) forfeiture issue only applies to defined benefit plans and provided additional information regarding retroactivity.

Mr. Martin recommended putting those provisions in Article 29 that are of an outdated nature into a separate uncoded section.

Mr. Kapler testified in support of Mr. Martin’s recommendation.

Sen. Betzold moved Article 29, amended so as to incorporate Mr. Martin’s suggestion, for inclusion in the Subcommittee work product. MOTION PREVAILED.

Mr. Martin reviewed amendment LCPR03-236 and distributed amendment LCPR03-237, which would amend and clarify LCPR03-236.

Sen. Michel moved amendment LCPR03-236, as amended by LCPR03-237, for inclusion in the Subcommittee work product. MOTION PREVAILED.

The meeting adjourned at 11:00 a.m.