House Committee on Finance (04/28/2009)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:	04/28/2009	ATTENDANCE

Time:	12:11 PM to 01:28 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		Witness Testimony and/or Committee Discussion Only

12:12 PM -- Senate Bill 09-282 - Concerning the Merger of the Denver Public Schools (DPS) Retirement System with the Public Employees' Retirement Association (PERA)

Representative Andy Kerr, prime sponsor, explained the provisions of the bill. He noted that the bill will allow DPS teachers more "portability" in terms of transferring pension benefits. Representative Kerr continued by saying that the bill merges the assets, liabilities, and obligations of the DPS retirement system into PERA as of January 1, 2010. He continued by saying that the bill is meant to correct inequity's at no cost to PERA members. This bill is not intended as a "bail-out" bill for either group of the pension systems. The legislation will provide better health care for DPS workers and overall, provide a better education system for all children in Denver. He closed by saying that the merger in the bill is the result of years of work between both pension systems. After a brief committee discussion, testimony was heard.

The following persons testified.

12:23 PM -- Mr. Dan Daly, representing the Colorado Education Association, testified in support of the bill. He explained that the association supports the legislation because it increases portability between different school districts in the state. He also stated the bill represents a deal brokered between the major parties affected by the merger. Mr. Daly continued saying that there are 3,000 members in the DPS system and about 35,000 members in the PERA system. This bill establishes a stand-alone pension system that will benefit all members of both pension systems. The bill allows teachers in all districts to move freely between districts without loosing their pension benefits. He closed by urging the committee to support the bill.

12:38 PM -- Ms. Kim Ursetta, representing the Denver Classroom Teachers Association (DCTA), testified in support of the bill. She provided background information about DPS's school enrollment and funding ratio. She stated the bill would also help employees gain access to more competitive health care insurance rates and reduce administrative costs for DPS.

12:50 PM -- Mr. Rich Wenning, representing the Colorado Department of Education, testified in support of the bill. He stated the bill increases portability for teachers and creates a level playing field. Mr. Wenning responded to questions about state mandates, and he said the bill would create a free flow of human capital in the state. Discussion ensued about years of service requirements and retirement benefits.

12:54 PM -- Ms. Jane Urschel, Colorado Association of School Boards, testified in support of the bill.

12:59 PM -- Mr. Tom Boasberg, Superintendent, Denver Public Schools, testified in support of the bill and distributed a document about the proposed merger to the committee (Attachment A). He stated that DPS would support potential amendments to the bill that state the responsibilities for the debt is the obligation of DPS and not the state, and that Colorado would have no contingent liabilities. He provided background information about DPS's costs per student, wages, and retirement benefits. He also provided information about the ratio between employees and retirees, and discussed the inclusion of hourly employees to the plan. Mr. Boasberg closed by urging the committee to support the bill.

01:28 PM

The Chair laid the bill over to Wednesday, April 28, 2009, and testimony remained open. Adjourn.