House Committee on Finance (04/29/2009)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:	04/29/2009	ATTENDANCE

Time:	11:14 AM to 04:22 PM	Apuan	X
		Benefield	X
Place:	LSB A	Gerou	X
		Kagan	X
This Meeting was called to order by		Kefalas	X
	Representative Judd	Lambert	X
		Roberts	X
This Report was prepared by		Summers	X
	Ron Kirk	Swalm	X
		Frangas	X
		Judd	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
SB09-282		Referred to the Committee of the Whole

11:15 AM -- Senate Bill 09-282 - Concerning the Merger of Denver Public Schools Retirement System with the Public Employees' Retirement Association

The committee initially heard testimony on Senate Bill 09-282 on Tuesday, April 28, 2009. Testimony continued as follows.

The following persons testified:

11:16 PM -- Mr. Tom Boasberg, Superintendent, Denver Public Schools, continued testimony and responded to committee questions on portability. The committee discussed the question of whether employer contributions would increase with the merger. Mr. Boasberg commented on the merger saying that there would have to be significant changes to the new retirement systems both on the benefits an payor side. The discussion continued on the benefits of teacher portability and the question of whether the merger would add to PERA's unfunded liability.
11:45 AM -- Mr. Norman Ruggles, DPSRS, testified in support of the bill. He provided background information about DPSRS and the reasons for the Board's support of the bill. Mr. Ruggles further discussed the provisions in the bill related to funding DPS's retirement plans. He also explained that DPSRS has not yet completed its final actuarial analysis for 2008. He continued by discussing the funding levels for the DPS retirement plan and closed by responding to questions about the potential for contingent liabilities should the merger go forward.

11:59 AM -- Mr. Meredith Williams, Colorado PERA, testified in support of the bill. He distributed a copy of a letter from Mark Anderson, Chair of the Colorado PERA Board of Trustees (Attachment A). Mr. Williams provided background information about the letter and the Board's views. He said the Board recognizes the General Assembly's authority to set contribution levels, and that the Board is concerned that the current funding levels for DPSRS are not adequate. He explained that while the Board supports the merger, it does not support the funding provisions in the bill. Mr. Williams responded to questions from the committee about the funding for DPSRS and other teacher retirement plans in PERA. Discussion ensued about these funding issues, and Mr. Williams explained that PERA school division employees have access to more benefits than DPS employees.

The committee discussed the changes in Board membership under the merger.

12:36 PM -- Ms. Bernie Jiron, Denver Paraprofessionals, testified in support of the legislation.

12:38 PM

Recess.

04:15 PM

The meeting continued.


BILL:	SB09-282
TIME:	04:17:14 PM
MOVED:	Benefield
MOTION:	Refer Senate Bill 09-282 to the Committee of the Whole. The motion passed on a 10- 1 vote.
SECONDED:	Summers
		VOTE
	Apuan	Yes
	Benefield	Yes
	Gerou	Yes
	Kagan	Yes
	Kefalas	Yes
	Lambert	No
	Roberts	Yes
	Summers	Yes
	Swalm	Yes
	Frangas	Yes
	Judd	Yes

Final YES: 10 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS

04:22 PM

Adjourn.