SENATE SPECIAL COMMITTEE ON

PERS STABILIZATION

 

September 7, 2002   Hearing Room H-170

9:00 a.m. Tape  6

 

MEMBERS PRESENT:            Sen. Roger Beyer, Chair

Sen. Ryan Deckert

Sen. Charles Starr

 

STAFF PRESENT:                  Cara Filsinger, Committee Administrator

Nancy Massee, Committee Assistant

 

MEASURE/ISSUES HEARD:            SB 1028 – Public hearing

 

These minutes are in compliance with Senate and House Rules.  Only text enclosed in quotation marks reports a speaker’s exact words.  For complete contents, please refer to the tapes.

 

TAPE/#

Speaker

Comments

TAPE 6, A

004

Chair Beyer

Convenes meeting at 9:22 a.m.  Opens public hearing on SB 1028.

SB 1028 – PUBLIC HEARING

013

Chair Beyer

Describes SB 1028-A5 and SB 1028-A6 amendments, both dated 9-7-02 (EXHIBITS A, B).  Emphasizes the -A5 amendments.  Asks for testimony.

012

Jim Green

Oregon School Boards Association.  Discusses parts of -A5 amendments recommended by public employers.  Discusses the eight percent guarantee, and payment of earnings after the deficit is repaid.  Recommends parameters for new system, especially portability of retirement accounts.  Discusses responsibility for damages if courts decide against the bill in a lawsuit.

069

Green

Continues discussing -A6 amendments.  Recommends elimination of money match for new hires.  Asks for ten year term for payback instead of five years.

137

Chair Beyer

Points out this Legislature cannot bind the next Legislature.  Explains the -A5 amendments say that there will be a new system, and the -A6 amendments establish a third tier.

150

Green

Explains more about ramifications of -A6 amendments.

173

Chair Beyer

Discusses the -A5 amendments and legislative intent.

181

Brian DeLashmutt

Oregon Nurses Association, Oregon Council of Police Associations, Association of Oregon Corrections Employees, Federation of Oregon Parole and Probation Officers, PERS Coalition.  Testifies in opposition to the -A5 and -A6 amendments.  Clarifies there have been three years of negative earnings but not three years of deficit.  Opposes ending the system without establishment of a new system.  Expresses concern that the Public Employees Retirement System (PERS) problems are dissuading public employment.

220

Dallas Weyand

Legislative Fiscal Office.  Presents fiscal statement on SB 1028-A2 amendments (EXHIBIT C), which is substantially the same as for the  -A5 and -A6 amendments.  Clarifies the -A6 amendments add processing costs by adding Tier 3 and keeping everything in the existing PERS system, while the -A5 amendments allow a new plan outside of PERS.

254

Chair Beyer

Asks about changing payback from five to ten years.

257

Steve Delaney

PERS Legislative Liaison.  Discusses payback of deficit accounts and re-funding of gain-loss reserves.

294

Dave Heynderickx

Legislative Counsel.  Refers to page 3 of SB 1028-A5 amendments.  Describes prerequisites for earnings in excess of assumed rate and raises questions about what would happen after five years in a deficit.

337

Chair Beyer

Refers to Section 3 of the SB 1028-A5 amendments, and asks for language to reference what this Legislature anticipates would be the structure of the successor plan. 

350

Sen. Deckert

Comments that doing reform in pieces produced unintended consequences.  Asks whether the existing task forces are in a better position to make comprehensive changes.

377

Delaney

Discusses the many changes to PERS by the Legislature over the years.  Confirms PERS will continue to administer whatever system the Legislature chooses.

385

Sen. Deckert

Asks whether the Attorney General has reviewed the amendments.

390

Heynderickx

Responds no.

400

Chair Beyer

Recesses the committee at 9:50 a.m. to review amendments.

405

Chair Beyer

Reconvenes at 10:05 a.m.  Decides to have more changes made to the bill by Legislative Counsel before voting.

410

Chair Beyer

Adjourns the meeting at 10:06 a.m.

 

Submitted By,                        Reviewed By,

 

 

 

Patricia Nielsen,                        Cara Filsinger,

Committee Assistant                        Committee Administrator

 

EXHIBIT SUMMARY

 

A – SB 1028-A5 amendments dated 9-7-02, staff, 12 pp

B – SB 1028-A6 amendments dated 9-7-02, staff, 14 pp

C – SB 1028-A2 fiscal impact statement, staff, 2 pp