Public Retirement & Social Security Programs-Joint

All right if everybody take your seat we'll get going here in just a minute. The phone number those people love me on the program okay. Yeah. Yeah. Okay. The. I'll call this meeting to order. See a core am so at this time. So the repayton is not here so we're going to the next in line center to mark johnson is going to. Be here to serve as my co chair today. There are a couple of other senators I know or here but they're not in the room yet so will make adjustments as needed. At this time i'll entertain a motion for the minutes from our march fourth meeting. Motion all right and discussion. All right second all right i'll in favor say I oppose the same sign nor motion carries. All right we don't have a huge agenda today so we'll just move right into it we've got a review of rules from the arkansas teacher retirement system we better executive director here if you want to come to the table and. Bring my former. Build drafter I still have a little bar under my sattle here so if you get it because would introduce yourself and then you recognize to present thing was chairman more quiet executive direct teacher retirement system and sorry but I won't apologize for taking her she's to to too much of a value for us go ahead. Jennifer you are opposite teacher retirement. I remember well okay you recognize to present things chairman are members we have one of our rules before you today if your call we have brought a whole set of rules to you a few months back with it a pretty much a comprehensive rewrite of the system as the rules for several reasons we were implementing changes and legislation is while some changes from ourselves on the regulations also change in the rules so that they are consistent in the format for the forthcoming code of arkansas rules are making some changes to just clarifying easier understand as well as do some clean up work and some renumbering. For one of those rules rule six we got through that you'll have some questions there is one piece of that rule that can't attention of several members in particular and i'll put his page none of the proposed rule there is one place where we had put this language implementing a an act. And in an effort to take for a belts built a suspender's approach weird so but we added a word to it we thought they'd be just helped to clarify it and make sure we had a full flexibility to fulfill the less live in ten and it relates to what we do when a member is hard by district in the middle of the year and whether not that member becomes contributor and not contributory simple it where it says if member enters into contract the cover employer it says the system may provide the number of contracted days and we had said now it's just to make pro rate or adjust the number of days. I just not in the act and I don't get some members from concern so we agree with take it back look at it again we did that website that adjusts it is not necessary we can implement this and do just find with the same just pro rate which is the language out of the act so we made that one change everything else in here is the same as it was the previous time that you saw it and saw that we have to injury questions or address any concerns. Ok you've heard from teacher retirement are there any questions alright searcher you recognized thank you mister chairman a was quite good to see you again this is not about the part you just described this is over on page one it talked about membership and it says employee who is. An active member. Of his of the system through his or her employment with the education related agency and I only recently learned that there were some I will call them settle out organizations that they're employees are members of of atrius the way the coops which you know may or may not make good senate though but then there are some others are they all just i'm not a pickup on i'm just gonna use every example better worse anybody but is that statutory or which is done by rule that they were included under that definition it is what's all statutory now will do a distinguished one thing so for belay in particular they are explicitly named in statute that they are an employer and atrs but statute also provides for other education related organizations to become a part of atrs and the thinking it behind it is that these organizations that type of their employees are people who have service in the system either their teachers are administrators and so the thought was to allow them to continue to crew service but ask you to pay the contributions and employed that other organization are we've got to say four or five organizations right now that fall in that category it's strange you numerate those forming and i'm sorry general old hello if you know II just curious and if not ungive to me later sure let me know there's architects school wards association so association of school administrators economics are concerned the arkansas school school bad and orchestra association. I believe that's all in addition to and and of course all of those I presume are a. Not public employees in a sand stuff they work for a governmental interest that they work for a private nonprofit is correct that is correct okay well I have had some people bring this to my attention and that question the appropriate new service and I won't believe that you follow the law is we appear right good better in different and i'm grateful for there but I didn't want to clarify that that was whether it was statutory or by rules so thank you very much thank you mister chair. All right any other questions. Okay. All right i'll entertain emotion at this time. The. Move for adoption or it. Second all right. The other discussion. All those in favor say I opposed same sign. All right your motion carries thank you to share thank you members. The. The. The. All right we will move on to. Yeah. Review of rules for from arkansas date police retirement system. And alaska the executive director from apers director fetcher to please come forward and law gifts and with their few guys would introduce yourselves and I think a director you have a couple of other people you want to introduce to the group yes sarah felt your executive director of apers. And i'm laura gilson and general calculators thank you I just want to take a quick liberty to introduce you alter two of our interns that started yesterday they're in the arkansas internship program the state internship program if they'll stand out. We have yana eddie and lucky gill more with this this summer. It's great to have you guys. We have recognized to present as you know we have the three systems the apers for public employees the state are state police retirement system and the judicial retirement system and so today we're bringing at before you some rules that are really absolute based on things that have changed since that time we've been working with blr they don't want to caught if I rules that are really obsolete as they're doing that their process so just going to go through some of those with you. Okay. Let's look at. The first absolute rule so I don't know how it shows up in your materials today but I notice that there is an exhibit number on everything in if if we could start with exhibit d two d two it'll make bill just builds me for a minute. Everybody got the two. All right. This is a rule repeal of rule too which allowed termination refunds but the termination refund applied of course to contributory member in aspers and there haven't been contributory members and asked for since nineteen seventy eight. So as you know in a retirement system sometimes we have to wait a while as is people you know matriculate through the system. So. Now let's go back to d one okay this rule of the d two is obsolete because. You can ask for termination refund we researched there were fourteen inactive members that could have gotten that refund and they all have. Allows you to repurchase. A termination refund. So that's why II wanted to to handle it you know next because that's what happens you get a termination refund and maybe you get rehired. And then you want to pay back your termination refund that's also obsolete because we don't have contributory members in aspers any longer again we've researched those fourteen all those fourteen members are in in their late seventies or eighties none of them are vested in the system so if they were to ask to repay that termination refund not only would they pay back the amount of the contributions but they have to for interest in as well and then they would have to vest in the system so yet and none of them would be eligible that's an obsolete are there any questions about do you want to do too and why did those t. So do you honest go on in boat on d one in detail okay. Okay we have a motion to approve d one indeed too. Second all right you need discussion. There being no discussion all in papers say I in the opposed please say. The one indeed too are approved alright are the third obsolete rule for repeal is rule five and that defined final average salary but at the time that that rule was promoted in only applied to final ever salary of contributory members once again. There are no activities contributory members of of aspers they're only inactive members that group I talked about the. And none of them are going to be able to come back and we don't need a definition of final ever salary because none of them will ever. Are there any questions. I'll entertain a motion. The. The motion second alright. Okay. A discussion. All right all those in favor say I oppose indicate all right. Yeah. Rule number five is approved. The. All right. The next rule up for repeal is obsolete rule. And this rule was passed in nineteen seventy eight also applied but but it applied to their one non contributory members and part of the reason for that is that we needed to address identify who were commissioned personnel there are twelve active tier one non contributory members who services credited as a public safety member that there is no reason to refer to commission personnel any more because the definition of public safety member already. Okay any questions alright you recognized thank you mister first form was girls who was featured thank you for being here this might not be a irrelevant question but it's one that's come up to me but have some my local officials and I use a foreign instance for instance you might have a a sheriff who used to be a state trooper. Would would that be someone that would be considered a public safety member and if that person head retired from state police could they as a nine contributory member would they be able to for like a word of word go back is there any this rule wouldn't really affect them at all but I wanted to verify that just by asking thank you that your question packed a lot of punches there with a lot of different scenarios anybody that was it had already earned service as a public safety member that would be in their record or I and but that definition you nineteen seventy eight so we hold the definition on the books because there are people that have better categories as public safety numbers but they can no longer earn as public safety members the switching between you know being sure they're working for aspers we just hold and in manage those services differently. Did that answer yes where I think so and III try to think of it instead where someone you know forty what forty six years later would be warning to come back in or whatever I obviously the odds of the other extreme but still I just didn't would want to leave someone completely out in a inadvertently and I think you're doing right to to repeal these things in the rules that are that are obsolete but I guess we could come in with special legislation chairman if there was any weird scenario that we may ask that well I mean let me just ask with the two of you right now if we had some situation. Occur it would go before you're poored and if we need it action here you would bring it before us to make sure we did not. Treat someone in properly yes that's correct thank you thank you mister okay any other questions. All right i'll entertain emotion to repeal this rule number six got emotion second all right any discussion all those in favor say I any opposed please say so. Alright the rule number six is repealed. That's moved to the next one please. And this is the proposed rule of appeal of absolute rule eight. And this rule was promigated effective in june of nineteen eighty eight now at the time that was passed it said that you're retirement date was the last day for your employment but that may or may not be the case we have laws on the books that that show that you're retirement date is going to be when you actually fill out that application and you put your retirement date on there and the laws also say it has to be at least thirty days but no more than ninety days after you file that application so the rule is obsolete because it could be that your last day of employment because you've planned for it to be your last day and the office that that you know co went side and with your your retirement application so that they meet exactly but it may not be that could harm a member who had a later retirement date. So the the rule is obsolete because it's only a it's if it does not accurately reflect what the retirement date is in the law. Give an example of when. The two would not match. Yeah. You could. Qualify be eligible for retirement. From aspers and then decide not to perhaps you have some april service you have some superbowl service. And you know that this rule suggests that your retirement date would be the last state of employment with state please but it would not be because the latter the retirement date is up to the member. To specify in their application according to that window. Okay. So when I want to lock anybody into. Okay. Everything else have a question. Okay. I would entertain emotion to repair all right we have emotion second. Any discussion. All those in paper say i. In your post indicate please alright rule number eight is refilled all right the last one then. And this is obsolete rule number nine regarding the application of ad hoc when you apply the ad hoc increase to the members retirement benefit I should mention the previous rule also applied to the adhark benefit and and we we research the history and could exactly figure out but it must have applied to a certain situation back then this also was passed about the same time and dealt with this ad hawk increased as you know and harkers one time and after the law passed the law didn't say it do you do you figure the additional on the ad hoc increase before a color. Or after the color. And so the board felt like they needed to probably get a rule to specify what that is since it only applied to their attack increase it's obviously we can't apply and in the other situation however. We feel it's important it try to pay attention there if if the legislature ever does another ad hoc increase that that we put in the law as well because the retirement system has to bring an actuaries to check on what the cost will be to the system and if we don't know whether that increase is going to be applied before after a color it's hard for our actuaries to know what the the significance er montana would be to the. All right any questions. All right if not all entertain emotion. Got a motion. They have a second all right a discussion. All those in favor say I opposed please indicate. All right motion the repeal of rule number nine has been approved all right you recognize for question synerge johnson thank you miss chairman was fetcher and skills and thank you being here you heard my question to his require injuries for on the. A. Outside orientations that are members of the system do you have any equivalents with the aspers a person are they in the funds the charlotte best we we denied we have a county employees some of the city employees it's optional if they choose to be a part of april from nine we have some municipalities and water authorities but we do not have any any nine government thank you so much thank you mister chairman. All right does ebay have any other business that needs to come before us. Appreciate you being here today this allows us to get these rules before alc the smart aaaand before the fiscal year. So thank you for your presence today appreciate your retirement. Directors being here today good to have our internet here I hope you're internships or beneficial and that you get to see a real good picture of what it's like maybe come back and work at the state capital one day so thank you all for being here we are adjourned. Thank you so thank you I still