Date: 04/18/2012

Final
BILL SUMMARY for SB12-149

HOUSE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Moved Amendment L.002 (Attachment B). The motion p
Refer Senate Bill 12-149, as amended, to the Commi		Pass Without Objection
PASS



01:35 PM -- Senate Bill 12-149 - Concerning Local Government Pension Plans

Representative Priola, prime sponsor, explained that Senate Bill 12-149 authorizes the board of a defined benefit plan or system created by a local government to modify the benefits and the service requirements for the plan when the board determines the modification is necessary to ensure the plan's sustainability. He closed by saying that modifications that affect vested benefits already accrued by members of defined benefit plans, include members who are retired or eligible to retire as of the effective date of the modifications.

The committee discussed the differences between the statutory requirements of the Public Employees' Retirement Association of Colorado (PERA) and local defined pension benefits plans.

The following persons testified:

01:48 PM -- Ms. Vicki Johnson, an attorney representing the Adams County Retirement Plan, spoke in support of the bill and distributed a handout on the Adams County Retirement Plan (Attachment A). Ms. Johnson explained the difference between defined benefit plans and defined contribution plans, and stated that this bill does not impact counties with PERA, defined contribution plans, or home-rule cities. She stated that currently, pension boards have a very limited number of options to increase plan solvency, and this bill provides an additional tool for these boards to help secure plans that are in jeopardy. She concluded by stating that the bill will not affect benefits that are already accrued and vested or those benefits of retired members. Amendment L.002 (Attachment B) was distributed to the committee.

HseFin0418AttachA.pdf HseFin0418AttachB.pdf

02:21 PM -- Ms. Pamela Mathisen, representing the Adams County Retirement Plan, spoke in support of the bill. She talked about the history of the Adams County Retirement Plan and explained some problems the plan is currently facing. Ms. Mathisen talked about some details of the Adams County Plan, including employer and employee contribution rates, tiered benefits structure, vesting requirements, and benefits calculations. She concluded by stating that none of the other counties that are impacted by the bill are opposed to the changes made by the legislation.

02:30 PM -- Mr. Joseph Pacyga, representing the Adams County Retirement Plan, spoke in support of the bill and responded to committee questions about local government pension plans.

02:38 PM -- Ms. Cindy Birley, an attorney representing the Adams County Retirement Plan, spoke in support of the bill. Ms. Birley responded to committee questions about local government benefits under the pension plan systems.

02:45 PM -- Ms. Diane Hunt, representing Gabriel, Roeder & Smith, spoke in support of the bill and discussed the need for reform.

02:51 PM -- Sheriff Doug Darr, representing Adams County and Adams County Employees, spoke in support of the bill.

02:52 PM -- Mr. Frank Weddig, former state legislator and former Arapahoe County Commissioner, spoke in support of the bill.
BILL:SB12-149
TIME: 02:56:16 PM
MOVED:Hullinghorst
MOTION:Moved Amendment L.002 (Attachment B). The motion passed without objection.
SECONDED:Labuda
VOTE
Acree
Beezley
Conti
Holbert
Hullinghorst
Kagan
Kefalas
Labuda
McCann
Pabon
Swalm
Swerdfeger
DelGrosso
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:SB12-149
TIME: 02:57:42 PM
MOVED:Holbert
MOTION:Refer Senate Bill 12-149, as amended, to the Committee of the Whole. The motion passed on a vote of 11-0, with 2 members excused.
SECONDED:Kefalas
VOTE
Acree
Yes
Beezley
Yes
Conti
Yes
Holbert
Yes
Hullinghorst
Yes
Kagan
Excused
Kefalas
Yes
Labuda
Yes
McCann
Yes
Pabon
Excused
Swalm
Yes
Swerdfeger
Yes
DelGrosso
Yes
Final YES: 11 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS