Legislature(2001 - 2002)
05/07/2001 02:23 PM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
May 07, 2001
2:23 PM
TAPES
SFC-01 # 100, Side A
CALL TO ORDER
Co-Chair Pete Kelly convened the meeting at approximately 2:23 PM.
PRESENT
Senator Pete Kelly, Co-Chair
Senator Loren Leman
Senator Gary Wilken
Senator Alan Austerman
Senator Donald Olson
Also Attending: MELANIE LESH, Staff to Representative Bill Hudson;
GUY BELL, Director, Division of Retirement and Benefits, Department
of Administration
SUMMARY INFORMATION
HB 198-PUB OFFICERS RETIREM'T COLA/COMPENSATION
The Committee heard from the sponsor and the Department of
Administration. The bill moved from Committee.
CS FOR HOUSE BILL NO. 198(RLS)(efd add)
"An Act relating to a post-retirement pension adjustment for
certain persons receiving benefits under the Elected Public
Officers Retirement System, and establishing and relating to a
Compensation Commission for State Officials; and providing for
an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
MELANIE LESH, Staff to Representative Bill Hudson, testified that
the sponsor considers this matter an equity issue regarding the
difference between the Elected Public Officers Retirement System
(EPORS), the retirement systems of several state leaders and the
Public Employees Retirement System (PERS). She stressed there has
been no cost of living adjustments for some former governors since
they left office, while all other retirees do receive such
adjustments.
Co-Chair Kelly reiterated this is an equity issue.
Senator Olson asked the number of people this legislation would
affect.
Co-Chair Kelly listed: Governor Jay Hammond, Former First Lady,
Hammond, in the event of her husband's death, Former Lieutenant
Governor Terry Miller's widow, and Former Lieutenant Governor
Lowell Thomas, Jr.
Ms. Lesh affirmed and noted this would apply in the future, to all
former governors and lieutenant governors and their survivors, once
they have been retired for ten years.
Co-Chair Kelly asked, "Is this actuarially sound?"
GUY BELL, Director, Division of Retirement and Benefits, Department
of Administration, testified the retirement system is funded on a
"pay as you go basis." He referenced the fiscal note indicating the
costs of implementing this legislation.
Senator Wilken asked if there was any expectation on the part of
these office-holders that when they retired there would be any
inflation proofing of their retirement benefits.
Ms. Lesh surmised that since there has been no increase in the
salaries for almost 20 years, there was probably no such
expectation by these retirees.
Co-Chair Kelly spoke of the increased rate of inflation that was
not anticipated when these retirees served. He explained that the
inflation rate had been approximately three percent annually
compared to the current 17 to 18 percent and he informed that this
has adversely affected retirement benefits for those plans that do
not include cost of living increases.
Senator Leman moved to report from Committee, CS HB 198 (RLS)(efd
add) with accompanying fiscal notes: $57,400 from the Department
of Administration and zero from the Office of the Governor, and a
new zero fiscal note from the Legislative Council.
There was no objection and the bill MOVED from Committee.
RECESS TO THE CALL OF THE CHAIR AT 2:27 PM.
RECONVENED AT 6:01 PM, Tuesday, May 08, 2001
ADJOURNMENT
Co-Chair Pete Kelly adjourned the meeting at 06:01 PM, Tuesday,
May 08, 2001.
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