LEGISLATIVE COMMISSION ON PENSIONS AND RETIREMENT

Representative Steve Smith, Chair of the Legislative Commission on Pensions and Retirement, called the meeting to order at 4:35 p.m.

Representatives Sondra Erickson, Philip Krinkie, Eric Lipman, Mary Murphy, and Steve Smith
Senators Keith Langseth, Cal Larson, Geoff Michel, and Lawrence Pogemiller

Senator Don Betzold

Mr. Edward Burek, Deputy Director, Legislative Commission on Pensions and Retirement, reviewed the staff memo and policy issues raised by the bill.

Rep. Hornstein presented and testified in support of the bill.

Mr. Stephen Schwandt, the person affected by the bill, testified in support of the bill and provided background information on his situation.

Mr. Gary Austin, Executive Director, TRA, testified that the proposal would cost the fund $11,000, that Mr. Schwandt appealed to the TRA Board and the Board upheld the denial, and that the next step would be the Court of Appeals but that the time for that option has expired.

There was no action on the bill.

Mr. Lawrence Martin, Executive Director, Legislative Commission on Pensions and Retirement, reviewed the staff memo and policy issues raised by the bill.

A memo from Ms. Karen Kilberg, Executive Director, MTRFA, was distributed. Ms. Kilberg was unable to attend the meeting.

Rep. Smith moved HF 1856/SF 1819.

Rep. Gerlach testified in support of the bill.

Ms. Laura K. Myers, the person affected by the bill, testified in support of the bill.

Mr. Jim Grathwol, Minneapolis Public Schools, testified in opposition to the bill and distributed two documents.

Rep. Gerlach said that the intent of the legislation was to have Ms. Myers pay both the employee and employer portions of the cost. Mr. Martin recommended amending the bill as follows: page 2, line 3, after "member" insert "and employer" and delete "amount" and insert "amounts".

Sen. Pogemiller moved to amend HF 1856/SF 1819, incorporation Mr. Martin’s suggested amendment and further amended by deleting the last sentence on page 2, line 14. MOTION DID NOT PREVAIL.

Rep. Smith withdrew his motion and the bill was laid over.

Mr. Martin reviewed the staff memo and policy issues raised by the bill, and discussed amendment LCPR04-069.

Rep. Erickson moved SF 1856.

Sen. Larson moved amendment LCPR04-069.

Mr. Glenn Mills, Mayor of Marine on Saint Croix, testified in support of the bill, noting that the 10-year figure represents what is done by most private plans.

Sen. Larson withdrew his motion.

Rep. Erickson renewed her motion that SF 1856 be recommended to pass. MOTION PREVAILED.

Mr. Burekreviewed the staff memo and policy issues raised by the bill, and distributed a demographics handout.

Ms. Mary Vanek, Executive Director, PERA, testified in support of the bill. Ms. Vanek informed members that PERA has several months working on this issue with employee representatives and they would like to move forward with the legislation this year.

Mr. Ron Gilfoil, Risk Manager for the City of St. Paul, distributed and read a statement from Mayor Randy Kelly in support of the bill.

Sen. Pogemiller moved SF 1616.

Sen. Pogemiller moved amendment LCPR04-054. MOTION PREVAILED.

Sen. Pogemiller moved SF 1616, as amended, be recommended to pass.

Rep. Erickson asked Ms. Vanek to comment on PERA’s stand on the amendments. Ms. Vanek responded as follows: they would be opposed to LCPR04-055, have no issues with LCPR04-056, LCPR04-058, and LCPR04-059, and would be in support of LCPR04-057 if "three years" was replaced by "one year."

Rep. Erickson moved amendments LCPR04-057, inserting "one year" into the blanks on lines 4 and 5, LCPR04-058, and LCPR04-059.

Mr. Doug Gillespie, Minnesota Police and Peace Officers Association (MPPOA), and Mr. Mike Stockstead, Minnesota Professional Fire Fighters Association (MPFF), testified in opposition to the amendments.

Rep. Erickson withdrew her motion.

Sen. Pogemiller renewed his motion that SF 1616, as amended, be recommended to pass. MOTION PREVAILED.

Dr. Julie Archer-Kath, the person affected by the bill, testified in support of the bill and provided handout materials. Dr. Archer-Kath noted that both Sen. Betzold and her attorney were unable to be present.

The bill was continued.

The meeting adjourned at 7:12 p.m.