The Public Employees’ and Retirees’ Benefit Sustainability Commission met yesterday to review the pension and retiree health actions approved during the 2011 General Assembly Session, the Republican Caucus pension reform legislation, and funding policy issues. An overview of approved pension changes and the Republican Caucus pension legislation can be found on the MACo Blog.
With respect to funding policy issues, the Executive Director of the State Retirement Agency Dean Kenderdine and its actuary, Gabriel Roeder Smith & Company, presented an overview of policy changes for consideration by the Commission. These recommendations are the result of a Board of Trustee review and were presented to the General Assembly’s Joint Committee on Pensions as a part of the Board’s request for legislation, but were not acted upon. The recommendations include a 10-year phase out of the corridor funding methodology and a change in the amortization policy from the current 25-year closed policy to a 20-year open policy. The Commission will decide whether to include these proposals in its final recommendations.
At the end of the meeting, Commission chair and former Speaker of the House of Delegates Casper Taylor, explained the “time frame dilemma” the members face. The Commission must have a final report by July 2011. To meet this deadline, Commission staff from the Department of Legislative Services and Chairman Taylor will be holding a series of individual conference calls with members to discuss remaining issues of importance. Chairman Taylor applauded the General Assembly’s actions, but said that not all of the Commission’s recommendations were adopted.
Once conference calls are completed, DLS staff will prepare a draft final report for discussion and a vote on substance during a meeting the 3rd week of June.
Meeting Handouts –
2011 Pension and Retiree Health Reform – Presented by DLS
House Republican Pension Reform – Presented by Delegate Andrew Serafini
Funding Policy Review – Presented by Executive Director Dean Kenderdine and Brian B. Murphy, F.S.A.
Funding Status Current Funding Policy and Proposed Funding Policy