ARIZONA HOUSE OF REPRESENTATIVES
Forty-ninth Legislature – First Regular Session
COMMITTEE ON PUBLIC EMPLOYEES,
RETIREMENT AND ENTITLEMENT REFORM
Minutes of Meeting
House Hearing Room 3 -- 2:00 p.m.
Chairman Boone called the meeting to order at 2:08 p.m. and attendance was noted by the secretary.
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Mr. Ash |
Mrs. Pancrazi |
Mrs. Burges, Vice-Chairman |
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Mrs. Lesko |
Mr. Williams |
Mr. Boone, Chairman |
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Mr. Heinz |
Mr. Lopes (excused) |
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Chairman Boone announced that HB2110 would be held.
Introduction of Members and Staff
Chairman Boone introduced himself and asked each Member of the Committee to introduce themselves for the record. Chairman Boone introduced the House Research Analyst Stacy Weltsch, and Majority Intern Azra Hafizovic; Democratic Policy Analyst Alan Eder and Democratic Policy Intern Fareed Bailey; Committee Secretary Sarah Griffith, House Pages Justin Bohall and Meg McIver.
Chairman Boone announced that Committee Rules were distributed to the Members prior to Committee and that there were no significant changes from the Committee from last year (Attachment 1).
Stacy Weltsch, House Research Analyst, explained that there was only one rule that was different from the model Committee Rules and that was the amendment deadline, rule seven, which states that any amendments more than one page in length or substitute amendments must be turned in by noon the day before the Committee in which it will be offered.
Vice-Chairman Burges moved that the Committee adopt the Committee Rules as printed. The motion carried by a voice vote.
Appointment of Committee of Reference
Chairman Boone announced his appointment of Representatives Burges (Chairman), Ash, Lesko, Lopes and Pancrazi to the Committee of Reference.
Overview of Committee Purpose
Chairman Boone continued by explaining that this new Committee took the place of last Session's Public Institutions and Retirement Committee and that they, as a committee, would be dealing with reform issues for public employees, retirement and entitlement. He gave examples of possible issues for each area and invited Members to bring any issues to him for consideration for the Committee.
Overview of the Four State Retirement Systems
Chairman Boone introduced Paul Matson, Director, and Lesli Sorenson and Pat Klein of the Arizona State Retirement System (ASRS). He also introduced James Hacking, Director, of the Public Safety Personnel Retirement System (PSPRS), Corrections Officer Retirement Plan (CORP), and Elected Officials Retirement Plan (EORP).
Tami Stowe, Majority Policy Advisor, introduced herself and presented to the Members, a comparison chart (Attachment 2) of the four different retirement systems, giving examples of the membership of each system. She reviewed the benefit package of each system. A Comprehensive Annual Financial Report for Fiscal Year Ending June 30, 2008 was provided to the Members (Attachment 3).
Ms. Stowe explained that a defined benefit plan guarantees a retired member a benefit for life which also passes your benefits to your survivors when you die. Discussion ensued.
Paul Matson, Director, Arizona State Retirement System, responded to Mr. Ash’s question regarding unfunded situations. Chairman Boone said that they will be spending more time looking into issues such as that.
James Hacking, Administrator, Public Safety Personnel Retirement Systems, stated that there are differences from one plan to another regarding benefit design and benefit reserves.
Mr. Matson stated that ASRS will be providing a document of key issues for policy makers that will be sent to the Governor’s office and the House and Senate. Chairman Boone requested that Members of the Committee receive that outline.
HB2007 - CORP; return to work - DO PASS
Vice-Chairman Burges moved that HB2007 do pass.
Stacy Weltsch, House Research Analyst, stated that HB2007 allows a retired member to return to work while still receiving a pension so long as the member returns at least twelve months after retirement and returns in a position involving substantial direct inmate contact (Attachment 4).
Chairman Boone stated that from a school district governing board member’s point of view, when positions are vacated in the school district they are sometimes difficult to fill and the return of a retired employee is a great benefit.
Representative Bill Konopnicki, Sponsor, stated that with the Department of Corrections (DOC), people who have contact with inmates are highly specialized employees. Mrs. Lesko asked if there was anything in this legislation that would prevent a third party vendor from hiring an employee for that twelve month period, similar to what Smart School does with teachers. Mr. Konopnicki stated that he would not be opposed to that action and deferred to the DOC.
James Hacking, Administrator, Public Safety Personnel Retirement System, answered that he was not aware of any third party vendors that are being used by the penal institutions in Arizona and that ultimately it is at the discretion of the employer whether they take retirees back. He continued that in 2006, the DOC had many vacancies that they could not fill and several employees were being paid overtime. Being allowed to make use of this resource enabled the department to save money.
Leslie Sorensen, Government Relations Officer, Arizona State Retirement System, explained the impact on ASRS.
Mr. Hacking stated that ASRS was neutral on the bill and agreed with Chairman Boone that there is no adverse financial impact on the system that they can see. He added that every single employer or group is different within the system and the employer is responsible for the liability of that group so if anything happens that results in increased liability, the employer is responsible.
Vice-Chairman Burges recognized people who were in favor of HB2007, who did not speak:
Jennifer Bowser, Arizona Department of Corrections
Dale Norris, Executive Director, Arizona Police Association
Vice-Chairman Burges recognized people who were neutral on HB2007, who did not speak:
James Hacking, Public Safety Personnel Retirement System
Jennifer Kraham, Public Safety Personnel Retirement System
John Kaites, Public Safety Personnel Retirement System
Question was called on the motion that HB2007 do pass. The motion carried by a roll call vote of 6-0-0-2 (Attachment 5).
HB2109 - retirement systems and plans; amendments - DO PASS
Vice-Chairman Burges moved that HB2109 do pass.
Azra Hafizovic, Majority Intern, explained that HB2109 updates protocol for current address notification of alternative payee (Attachment 6).
Vice-Chairman Burges recognized people who were in favor of HB2109, who did not speak:
James Hacking, Administrator, Public Safety Personnel Retirement System
Jennifer Kraham, Attorney, Public Safety Personnel Retirement System
John Kaites, Public Safety Personnel Retirement System
Dianne McCallister, Public Policy Partners, Public Safety Personnel Retirement System
Doug Cole, Lobbyist, Public Safety Personnel Retirement System
James Mann, Chairman, Arizona Fraternal Order of Police Pension and Benefits
Nick Simonetta, Government Affairs Consultant, Public Safety Personnel Retirement System
Dale Norris, Executive Director, Arizona Police Association
Don Isaacson, Arizona Fraternal Order of Police
Question was called on the motion that HB2109 do pass. The motion carried by a roll call vote of 6-0-0-2 (Attachment 7).
HB2117 - ASRS; public service credit; purchase - DO PASS
Vice-Chairman Burges moved that HB2117 do pass.
Stacy Weltsch, House Research Analyst, summarized that HB2117 permits the purchase of public service worked for the government of US commonwealths, insular areas, and overseas possessions (Attachment 8).
Vice-Chairman Burges recognized people who were in favor of HB2117, who did not speak:
Charles Foy, Political Director, Arizona State Employees Association
Lesli Sorensen, Government Relations Officer, Arizona State Retirement System
Question was called on the motion that HB2117 do pass. The motion carried by a roll call vote of 6-0-0-2 (Attachment 9).
HB2118 - ASRS; LTD amendments - DO PASS
Vice-Chairman Burges moved that HB2118 do pass.
Stacey Weltsch, House Research Analyst, stated that HB2118 makes technical, clarifying and conforming changes to the Long Term Disability Program statutes (Attachment 10).
Vice-Chairman Burges recognized people who were in favor of HB2118, who did not speak:
Charles Foy, Political Director, Arizona State Employees Association
Lesli Sorensen, Government Relations Officer, Arizona Sate Retirement System
Question was called on the motion that HB2118 do pass. The motion carried by a roll call vote of 6-0-0-2 (Attachment 11).
HB2119 - ASRS; service credit transfers - DO PASS
ice-Chairman Burges moved that HB2119 do pass.
Stacy Weltsch, House Research Analyst, explained that HB2119 modifies members’ retirement system rights after member transfer (Attachment 12).
Vice-Chairman Burges recognized people who were in favor of HB2119, who did not speak:
Charles Foy, Political Director, Arizona State Employees Association
Lelsi Sorensen, Government Relations Officer, Arizona Sate Retirement System
Question was called on the motion that HB2119 do pass. The motion carried by a roll call vote by 6-0-0-2 (Attachment 13).
Without objection, the meeting adjourned at 3:35 p.m.
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___________________________________ Sarah Griffith, Committee Secretary January 28, 2009 |
(Original minutes, attachments and audio on file in the Chief Clerk’s Office: video archives available at http://www.azleg.gov).
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COMMITTEE ON PUBLIC EMPLOYEES,
RETIREMENT AND ENTITLEMENT REFORM
2
January 20, 2009
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