LEGISLATIVE COMMISSION ON PENSIONS AND RETIREMENT

Representative Steve Smith, Chair of the Legislative Commission on Pensions and Retirement, called the meeting to order at 5:20 p.m.

Representatives Sondra Erickson, Eric Lipman, Mary Murphy, and Steve Smith
Senators Don Betzold, Keith Langseth, and Lawrence Pogemiller

Representative Philip Krinkie, and Senators Cal Larson and Geoff Michel

Mr. Lawrence Martin, Executive Director, Legislative Commission on Pensions and Retirement, reviewed the staff memo and policy issues raised by the proposed legislation, and reviewed amendment LCPR04-053.

Sen. Pogemiller offered amendment LCPR04-052.

Mr. David Kunz, Director of Governmental Relations, Minnesota Chiropractic Association, testified in support of the amendment.

Ms. Mary Vanek, Executive Director, PERA, testified that PERA requires two reports and that their attorneys do not have an issue so long as a chiropractor’s report is not the primary report.

Sen. Betzold informed members that the Administrative Legislation Subcommittee had concerns about a chiropractor’s report being definitive.

Rep. Erickson asked Ms. Vanek if there would be sufficient accountability. Ms. Vanek replied that PERA relies on the advice of their medical experts and they are comfortable with the proposal.

Sen. Pogemiller moved amendment LCPR04-052.

Mr. Philip Kapler, Executive Director, SPTRFA, testified that they feel they have not had sufficient time to review the proposal and would further time to study the issue and that the Commission move forward with caution.

Sen. Pogemiller suggested acting on the proposal, and that if various funds are uncomfortable with the provision it can be removed at a later date.

Sen. Pogemiller renewed his motion on amendment LCPR04-052. MOTION PREVAILED.

Sen. Betzold moved LCPR04-053. MOTION PREVAILED.

Sen. Betzold moved delete-everything amendment LCPR03-253 be recommended to pass and be included in the omnibus pension bill.

Rep. Erickson asked who incurs the cost of including survivor benefit coverage to privatized employees. Ms. Mary Vanek, Executive Director, PERA and Mr. David Bergstrom, Executive Director, MSRS, testified that the cost was factored into the actuarial calculations and is already covered.

Mr. Gary Austin, Executive Director, TRA, testified that valuing the survivor benefit (Art. 9, Sec. 22) at the time of the benefit provides a more true actuarial cost and that TRA supports the provision.

Ms. Sandra Neren, representing the Minnesota District Judges Association, testified in support of the Judges Retirement Plan provisions (Art. 9, Sec. 23).

Rep. Smith moved amendment LCPR04-043. MOTION PREVAILED.

Sen. Betzold renewed his motion that delete-everything amendment LCPR03-253, as amended, be recommended to pass and be included in the omnibus pension bill. MOTION PREVAILED.

Mr. Edward Burek, Deputy Director, Legislative Commission on Pensions and Retirement, reviewed the staff memo and policy issues raised by the bill, and discussed delete-everything amendment LCPR04-061.

Sen. David Senjem presented and testified in support of the bill.

Ms. Kathy Claassen, the person affected by the bill, testified in support of the bill and provided background information on the situation.

Ms. Mary Vanek, Executive Director, PERA, testified that PERA does not support the delete-all amendment, that the PERA Board would request that the Commissioner of Health review the autopsy report, and that the final decision return to the Board.

Ms. Claassen expressed concern about confidentiality issues and her reluctance to make the autopsy report public.

The parties involved agreed to further study and discuss the issue. The bill was laid over.

Mr. Martin reviewed the staff memo and policy issues raised by the bill.

Rep. Peter Nelson presented and testified in support of the bill.

Ms. Bonita Holt, the person affected by the bill, testified in support of the bill.

Ms. Mary Vanek, Executive Director, PERA, testified that PERA would seek verification as to whether the service should have been covered and, if so, PERA would not oppose the legislation.

Ms. Holt noted that the school district records/archives are sketchy and that she would attempt to get relevant information from co-workers at that time.

Rep. Smith moved HF 1586/SF 1579 be recommended to pass and be included in the omnibus pension bill.

Ms. Holt responded to further questions from members.

Rep. Smith renewed his motion that HF 1586/SF 1579 be recommended to pass and be included in the omnibus pension bill. MOTION PREVAILED.

This agenda item was continued.

The meeting adjourned at 7:30 p.m.