LEGISLATIVE COMMISSION ON PENSIONS AND RETIREMENT

Representative Steve Smith, Chair of the Legislative Commission on Pensions and Retirement, called the meeting to order at 5:10 p.m.

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

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

Rep. Thissen and Sen. Ranum presented and testified in support of the bill and provided handout materials. Rep. Thissen informed members that Mr. Jacquith, the person affected by the bill, was unable to attend the meeting, that Mr. Jacquith has previously bought University of Minnesota-Duluth teaching assistant services for full actuarial value, and that Mr. Jacquith is within one year of retiring.

Ms. Karen Kilberg, Executive Director, MTRFA, testified to MTRFA’s concerns regarding the legislation. Ms. Kilberg stated that MTRFA encourages full actuarial value purchases and that the documentation is problematic, as documents no longer exist. She also noted that the service does not appear to be a full year and that duties included managing an area research center.

There was no action on the bill.

Mr. Burek reviewed the staff memo and policy issues raised by the bill, and reviewed amendments LCPR04-098, LCPR04-100, and LCPR04-101.

Rep. Smith moved HF 2030/SF 2080.

Rep. Lipman moved amendment LCPR04-100, amended on line 7 by deleting "… percent of".

Mr. Brian Rice, General Counsel, Minneapolis Firefighters Relief Association (MFRA), testified regarding the MFRA Board’s concern with the proposed amendments.

Rep. Lipman renewed his motion. MOTION PREVAILED.

Rep. Smith moved HF 2030/SF 2085, as amended, be recommended to pass and be included in the omnibus pension bill. MOTION PREVAILED.

Mr. Lawrence Martin, Executive Director, Legislative Commission on Pensions and Retirement, reviewed the staff memo, the policy issues raised by the bill, and amendment LCPR04-097.

Sen. Kiscaden testified in support of the bill and suggested making a general law change.

Ms. Marilyn Thompson-Hoerl, the person affected by the bill, testified in support of the bill. Ms. Thompson-Hoerl noted that if she were married she would be able to designate her children as beneficiaries.

Mr. Gary Austin, Executive Director, TRA, testified that there would be no new actuarial cost until 2007; after that date, there could be an actuarial cost if Ms. Thompson-Hoerl were still teaching. In response to Rep. Murphy’s question, Mr. Austin said that TRA would be in support of a general law change, noting that it seems unfair that married individuals can specify beneficiaries while divorced individuals can not.

Rep. Murphy moved SF 2297.

Sen. Betzold moved amendment LCPR04-097, incorporating an immediate effective date. MOTION PREVAILED.

Rep. Murphy moved SF 2297, as amended, be recommended to pass and be included in the omnibus pension bill. MOTION PREVAILED.

Mr. Martin reviewed the staff memo, the policy issues raised by the bill, and amendment LCPR04-084.

Sen. Betzold presented the bill and reviewed the situation addressed by the legislation.

Mr. Richard Williams, attorney, and Dr. Julie Archer-Kath, 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 is not at fault on this issue. Mr. Austin said that the actuarial cost would be $88,130 if the $19,000 salary in another school district were included, or $66,431 if it were not included.

Sen. Larson assumed the chair, and the bill was laid over.

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

Sen. Kubly testified in support of the bill.

Rep. Lipman asked Sen. Kubly if he would be opposed to amendment LCPR04-104. Sen. Kubly replied that he would not be opposed to the amendment.

There was no action on the bill; a quorum was not present.

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

Sen. Tomassoni testified in support of the bills and read and distributed a letter from Ms. Carol Oja, the daughter of the individuals affected by the bill.

Ms. Mary Vanek, Executive Director, PERA, testified in opposition to both bills, noting that a joint-and-survivor optional annuity provides a reduced benefit to offset the additional cost. Ms. Vanek said that a larger issue is the question of the appropriateness of the 60-day window from the date of retirement.

The bill was laid over.

The meeting adjourned at 7:35 p.m.