SENATE COMMITTEE ON GENERAL GOVERNMENT

 

 

January 22, 2003                                                                                                     Hearing Room B

3:00 PM                                                                                                                            Tapes 3 - 4

 

MEMBERS PRESENT:         Sen. Tony Corcoran, Chair

Sen. John Minnis, Vice-Chair

Sen. Bruce Starr

Sen. Vicki Walker

 

STAFF PRESENT:                 Celia Núñez-Flores, Committee Administrator

Heather Gravelle, Committee Assistant

 

MEASURE/ISSUES HEARD:           Informational Meeting

      Chairman’s Report House Special Task Force on PERS Sustainability and Accountability

 

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 3, A

010

Chair Corcoran

Calls the meeting to order at 3:10 PM. Opens Informational meeting.

INFORMATIONAL MEETING

020

Rep. Tim Knopp

District 54. Gives overview on the Chairman’s Report from the House Special Task Force on PERS Sustainability and Accountability. Provides written report (EXHIBIT A).

045

Rep. Knopp

Refers committee members to January 9, 2003 letter to Speaker Mark Simmons, urging the legislature to fix the PERS problem to protect retirement funds.

075

Rep. Knopp

States it would be beneficial to implement the current mortality tables as soon as legally possible.

085

Rep. Knopp

Suggests directing the Oregon Investment Council to partition Tier 1 active accounts for a more conservative investment strategy.

090

Rep. Knopp

Explains there needs to be a better definition of the “Call” in statute.

095

Rep. Knopp

Requests committee members work with the House committee to ensure there is consistency.

300

Sen. Minnis

Requests a definition of the PERS problem.

350

Rep. Knopp

Explains.

480

Chair Corcoran

Ask about benefit plans in other states.

485

Rep. Knopp

Explains PERS staff can supply that information.

TAPE 4, A

005

Jim Voytko

PERS Director. Discusses PERS agency background and current issues. Provides written testimony (EXHIBIT B).

130

Chair Corcoran

Inquires about complexity of problem.

165

Voytko

Responds and continues to elaborate.

170

Sen. Minnis

Asks if it is strategically possible to create a simpler solution.

190

Voytko

Responds

345

Sen. Minnis

Asks about the health care issue.

370

Voytko

Responds.

TAPE 3, B

005

Sen. Minnis

Asks for comparison of other states.

015

Voytko

Responds no other states compare to current PERS plan.

025

Sen. Minnis

Requests director to identify where PERS problem began.

040

Voytko

Answers.

070

Sen. Minnis

Inquires if PERS problem is due to decisions previously made by legislation.

080

Chair Corcoran

Responds it is a combination of many elements.

140

Jim Green

Oregon School Boards Association; representing the PERS Employer Coalition.

160

Green

Comments the Employer Coalition would like immediate implementation of the mortality tables.

175

Chair Corcoran

Inquires if other states have reviewed the mortality tables.

210

Green

Responds.

358

Green

States the Employer Coalition is working closely with Rep. Knopp and the Governor’s office.

390

Greg Hartman

Employee’s Coalition. Comments there is nothing unique about Oregon and the PERS issue.

TAPE 4, B

40

Hartman

States the market has been the major factor leading to the current PERS problem.

060

Chair Corcoran

Inquires if HB 2001 will have a significant impact on rate increases for the employer.

065

Hartman

Responds.

190

Chair Corcoran

Closes informational meeting. Adjourns the committee meeting at 4:50 p.m.

 

 

EXHIBIT SUMMARY

 

A – Informational, PERS Report, Rep. Tim Knopp, 42 pp

B – Informational, PERS 2003 Agency background, Jim Voytko, 40 pp