BILL SUMMARY for SB09-066
HOUSE COMMITTEE ON FINANCE
|Votes: View--> ||Action Taken: |
|Refer Senate Bill 09-066 to the Committee on Appro||PASS|
09:52 AM -- Senate Bill 09-066 - Concerning the Consolidation of Public Employees' Retirement Plans (PERA)
Representative Primavera, prime sponsor, explained the provisions of the bill that applied to the merger of defined contribution plans under Senate Bill 09-066 and turned the presentation over to Department of Personnel & Administration (DPA) officials.
The following persons testified:
09:54 AM -- Mr. David Kaye, Department of Personnel & Administration (DPA), testified in support of the bill and responded to committee questions.
09:55 AM -- Ms. Suzanne Kubec, DC Plan Administrator, Department of Personnel & Administration, testified in support of the bill and spoke to the decision to consolidate the defined contribution and defined benefit plans. Ms. Kubec discussed the choices state employees have in terms of choosing retirement plans and noted that there is a significant amount of duplication in the administration of the plans that PERA and DPA offer. She continued saying that Senate Bill 09-066 reduces the duplication of efforts by both PERA and DPA. Ms. Kubec noted that offering two plans are confusing and that recent audits point out that the department does not have the internal controls to administer the plans. She closed by saying that the state defined plans are outdated and a single provider is more efficient.
10:05 AM -- Mr. Greg Smith, discussed the consolidation of the defined contribution and defined benefit plans. These plans will be managed by outside mutual providers and no longer be managed by PERA.
The committee discussed the administration of the state defined contribution plans. Mr. Smith discussed the audit and the choice of selecting a defined benefit plan or a defined contribution plan. Mr. Smith closed by discussing the portability of the plans and the ability to change plans once during the first 60 months of employment. The committee continued the discussions on the plan.
10:27 AM -- Ms. Michelle Colin, Office of the State Auditor, responded to committee questions regarding the audit.
|TIME: || 10:29:06 AM|
|MOTION:||Refer Senate Bill 09-066 to the Committee on Appropriations. The motion passed on a 8-1 vote.|
Final YES: 8 NO: 1 EXC: 2 ABS: 0 FINAL ACTION: PASS