[BLANK_AUDIO] [SOUND] May we go ahead and call the meeting of the Pension and Retirement Committee to order. Wanna welcome everyone here this morning. First I'd like to recognize a few people. I'd like to recognize and house pages that we have present. We have Bryan Cooper, Bryan over here. Kailey/g Hughes, all right. And Jonathan Johnson in the back, welcome. Also wanna recognize our sergeant at arms Bill bass/g over, Mark Cone, Joe Crook, and Russel Sausprey/g. Purpose for out meeting this morning is to have a presentation on the 2016 appropriations act, at this time I'm gonna call up Call up Representative Nelson Nobler for presentation on the 2016 appropriations act. >> [BLANK_AUDIO] Thank you Mr. Chairman, if you would look at the materials point out probably the easiest way to get through this is just the two Two pages of the language from the budget bill, house bill 1030, if you would look on page 129, 129 said we'll start there and the first section I think we have is 36.21 and that is to provide Cost of living increase for retirees, the teachers in stadium 40 retirement system, then the judicial system in legislative retirement system. We have fully funded the arc for this year as the general assembly is done I think for 49 out of 50 years as I recall something along that line We have also since the last time that we met as the general assembly there was the five year update in people from treasures office can correct later if I got the phrasing incorrect, but basically they did the The re-evaluation of the pension assumptions and the like, I guess I do once every five years. In that probably one of the key findings is they found that people are simply living longer, retirees are living longer and that is a good thing. But it also means that whereas last year We were looking at doing up to a 1.1% collar with no additional appropriation, that is not true this year with that re-evaluation. So in addition to obviously funding the ark, we also had to fully fund any increase that we provided so the budget provides low Over $67 million I believe for 1.6% collar/g for our retirees and as many of you know when you consider the tax valuation that's essentially equal to a 2% increase for them. The next Section is dealing with enhanced benefits for probation parole officers, actually what we're doing there is for probation parole officers and we had this in the bill last time, it's a $2 million item, and that is to treat them as law enforcement officers so that they can They can be in that retirement category. So it would certainly assist them, boost them and their retirement and what is changed over the years I remember back when I was in Governor Mart's administration, probation pro officers who were not armed at the time, it was really a very different Scenario, and now courses community corrections, they are armed, they go into much more challenging situations and some of you recall a few years ago it was quite a bit of reform that was done with probation parole And supervision, there were a number of issues that were all over the papers at the time. But the general assembly addressed in addition to providing quite the number of additional officers around the state for their case logs, so in my mind this is a very natural aggression They are armed. They do have to go in with their redefined duties, and are much more challenging situations today. So we propose to give this another opportunity in conference as we again similar provision that we presented last time.
The other time that you'll see there on page 130 qualified excess benefit arrangement. This is an extension, there was a cutoff. I'm trying to remember this correctly. There was a time cutoff for some participants in terms of participating in this program. It was really designed to cut off what some folks viewed as a greater benefit than maybe they should get There was a sunset provision that was extended I believe last year as I recall and the view this time was simply just take off at sunset. What it does do is it maintains the controls Control on those payouts for the new hires that are being hired on. And for those who were hired prior to the policy change it allows them, I guess extra time basically to be the employed before they retire and benefit from the provisions of the plan before it was changed a few years ago. And I would probably call on staff if you've got any more detail on that but essentially what's being done is there was a sunset Sunset was extended or the time, not sunset sorry I'm saying that incorrectly. Those time period that was extended now the time period cap is being removed all together. But it will continue to apply to new members. Into the system. And that's principally a university, I don't think exclusively but principally it's been an issue for the university system and this is something that they have requested. So wit that Mr. Chairman I'll be happy to attempt to Answer any questions as you direct or have staff answer any detailed questions. >> All right, as Representative Dollar indicated staff is here, are there any questions or comments? Representative Michelle. >> Representative Dollar let get this clear a 1.6 being paid out of retirement benefits [INAUDIBLE] >> Representative Shiraz/g, it's coming out of the retirement fund, but we have to put in additional money to cover that additional cost. >> How much more >> Sixty 67 million, and I believe that's on top of the ark. They required contribution which I believe is 38 million. >>Okay I don't know why I thought that, that earning in the retirement system [INAUDIBLE] >> Well you're probably part thinking about last year because last year based on, I guess the actuarial at the time said that we could do 1.1% without from gains of the fund but that is not the case in the new five year look. The parameters are such that people are living longer and it's been re-calibrated so that was not an option for us this year. We had to pay for anything that we wanted to give as collar/g, we had fully funded. >> [BLANK_AUDIO] Other questions or comments Comments? >> [INAUDIBLE] >> Represent Mitchell. [LAUGH] Represent Langdon >> I wanted to comment on the probation and parole [INAUDIBLE] [INAUDIBLE] she is retired with [COUGH] I think this really could [INAUDIBLE] [INAUDIBLE] >> Thank you. Other comments? Another comment or a Representative Ellmor >> [INAUDIBLE] >>. All right I've got two, I think, I've got two competing representing Michelle. All right is there a second? All right all those in favor signify by saying aye.
>> Aye >> Any oppose? All right motion carries, this will move to the floor I believe. >> Thank you Sir. >> All right. Just one other piece of announcement, the Pension and Retirement Committee will meet again next week To take up some regular business, so be looking for your schedules, we don't know the time yet, so sometime probably about the middle of next week. All right, no further questions, this meeting is adjourned. [SOUND] [BLANK_AUDIO]