Date: 12/11/2015

Final
Public Employees' Retirement Association

COMMITTEE ON JOINT FINANCE

Votes: View--> Action Taken:
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09:23 AM -- Public Employees' Retirement Association

Mr. Greg Smith, Executive Director, PERA, presented about PERA's financial health and agency goals. Mr. Smith walked the committee through the information included in a packet of information provided to the committee (available upon request to Legislative Council Staff). He discussed the annual audit of PERA and said no concerns were raised in the audit. Committee members received a copy of Mr. Smith's presentation (Attachment B). He spoke to recent studies completed either by or about PERA, including studies required under Senate Bill 14-214 and published by the Office of the State Auditor.

JTFIN1211ATTACHB.pdfJTFIN1211ATTACHB.pdf

09:37 AM

Mr. Smith continued to present from Attachment B. He provided a legislative update regarding bills passed during the 2015 legislative session that impacted PERA. Mr. Smith addressed a question about the number of inactive members listed in a graph in page 8 of Attachment B. He also responded to a question about whether the Denver Public Schools division will be rolled into the public school division. Discussion continued on the topic of the Denver Public Schools division. Mr. Smith next addressed a question about reporting obligations related to new Governmental Accounting Standards Board (GASB) standards.


09:55 AM

Discussion turned to the ratio of active to retired members and how this ratio affects PERA's solvency. Mr. Smith continued to present from Attachment B.


10:11 AM

Mr. Smith addressed a question about reporting associated with private equity fees. Discussion ensued on the fees paid by PERA and how this information is disclosed to PERA members. Mr. Smith spoke about the returns for individual investment asset categories. Discussion ensued on the assumed rate of return on PERA's investments and the long term expectations for solvency. In response to a question for the committee, Mr. Smith said that if the expectation for the return on investment is changed, it will likely have an immediate impact on employee and employer contributions.


10:32 AM

Mr. Smith addressed questions about short term investments made by PERA. He also answered a question about the PERA policy regarding investing in companies active in Iran. Mr. Smith continued to present from Attachment B. Mr. Smith explained the difference between the various types of retirement plans available to members. He addressed a question about the target date for fund solvency.


10:54 AM

Mr Smith continued to present from Attachment B. In response to a question from the committee, Mr. Smith said that based on the results of the Senate Bill 10-001 study, the PERA Board does not think any changes are needed to its current approach to managing its investments.