TAPE/#

Speaker

Comments

TAPE 20, A

005

Chair Brown

Calls the meeting to order at 8:33 a.m.  Opens as subcommittee.  Opens public hearing on SB 54, SB 108, SB 109, SB 110, and SB 111.

SB 54, SB 108, SB 109, SB 110, and SB 111 – PUBLIC HEARING

010

Tiffany Harris

Committee Administrator.  Presents overview of SB 54, SB 108,
SB 109, SB 110 and SB 111.

025

Paul Cleary

Executive Director, Public Employees Retirement System (PERS).  Testifies in support of all measures.  Explains that due to PERS reform, improving market conditions and decisions of the PERS Board, unfunded liability has been reduced from $15 billion two years ago to $2 billion today.  Discusses measures used to reduce risks.  Describes unfunded liability.

050

Chair Brown

Asks how 92 percent funding level compares to other state pension systems.

055

Cleary

Explains Fortune 500 average is 84 percent and public sector systems range from mid-80 percent to mid-90 percent.  Describes continued risks, including pending court decisions and market conditions.  Discusses increases in employer rates.

080

Steve Delaney

Deputy Director, PERS.  Testifies in support of all measures.  Submits written testimony (EXHIBIT A).  Discusses activities of the PERS Board Legislative Advisory Committee.

105

Chair Brown

Gavels in full committee.  Asks for comparison between the PERS Advisory Committee and the Management Labor Advisory Committee (MLAC).

110

Delaney

Discusses differences in directives and appointment procedures for the two committees.  Describes proposed changes under SB 54. 

135

Delaney

Continues and discusses proposed changes under SB 108.  Explains definition changes and modifications to Individual Account Program.

175

Delaney

Continues and discusses proposed changes under SB 109.  Explains earnings distribution rate and proposed rule-making authority.

195

Delaney

Continues and discusses proposed changes under SB 110.  Describes changes to beneficiary designations.

215

Chair Brown

Asks about beneficiary changes during divorce proceedings.

220

Delaney

Responds the courts now inform PERS of divorces.  Continues and discusses proposed changes under SB 111.  Discusses proposed -1 amendments (EXHIBIT B).

250

Cleary

Adds that the changes improve the stability of the PERS program. 

270

Chair Brown

Closes public hearing and opens work session on SB 54, SB 108, SB 109, SB 110 and SB 111.

SB 54, SB 108, SB 109, SB 110, and SB 111 – WORK SESSION

280

Sen. Atkinson

MOTION:  Moves SB 54 to the floor with a DO PASS recommendation.

285

VOTE:  4-0-1

EXCUSED:  1 - Ferrioli

Chair Brown

Hearing no objection, declares the motion CARRIED.

SEN. BROWN will lead discussion on the floor.

290

Sen. Atkinson

MOTION:  Moves SB 108 to the floor with a DO PASS recommendation.

295

VOTE:  4-0-1

EXCUSED:  1 - Ferrioli

Chair Brown

Hearing no objection, declares the motion CARRIED.

SEN. BROWN will lead discussion on the floor.

300

Sen. Atkinson

MOTION:  Moves SB 109 to the floor with a DO PASS recommendation.

305

VOTE:  4-0-1

EXCUSED:  1 - Ferrioli

Chair Brown

Hearing no objection, declares the motion CARRIED.

SEN. BROWN will lead discussion on the floor.

310

Sen. Shields

Comments about consensus on all the measures.

320

Chair Brown

Affirms.

325

Sen. Atkinson

MOTION:  Moves SB 110 to the floor with a DO PASS recommendation.

330

VOTE:  4-0-1

EXCUSED:  1 - Ferrioli

Chair Brown

Hearing no objection, declares the motion CARRIED.

SEN. BROWN will lead discussion on the floor.

335

Sen. Atkinson

MOTION:  Moves to ADOPT SB 111-1 amendments dated 2/22/05.

340

VOTE:  4-0-1

EXCUSED:  1 - Ferrioli

Chair Brown

Hearing no objection, declares the motion CARRIED.

345

Sen. Atkinson

MOTION:  Moves SB 111 to the floor with a DO PASS AS AMENDED recommendation.

350

VOTE:  4-0-1

EXCUSED:  1 - Ferrioli

Chair Brown

Hearing no objection, declares the motion CARRIED.

SEN. BROWN will lead discussion on the floor.

355

Chair Brown

Closes work session.  Adjourns the committee at 8:58 a.m.