Said in CommitteeBeta

Exactly as spoken.

Public Retirement & Social Security Programs-Joint

May 10, 2019 ·8:30 AM ·Room B, MAC ·37:16
Video Transcript 13 documents

Bills discussed (4)

Bill Title Sponsor Status
HB1295 · 1 mention in agenda
Matched: “…curity Programs from the 92nd General Session ISP 2019-073 (HB1295) by Representative Les Warren “TO ESTABLISH THE EVERY ARKAN…”
TO ESTABLISH THE EVERY ARKANSAN RETIREMENT PLAN OPPORTUNITY ACT. Warren Recommended for study in the Interim by Joint …
SB234 · 1 mention in agenda
Matched: “…RETIREMENT PLAN OPPORTUNITY ACT” [Exhibit E] ISP 2019-074 (SB234) by Senator Mark Johnson “TO PROVIDE FOR THE GARNISHMENT OF…”
TO PROVIDE FOR THE GARNISHMENT OF PUBLIC RETIREMENT BENEFITS AFTER THE COMMISSION OF CERTAIN CRIMES. M. Johnson Sine Die adjournment
SB238 · 1 mention in agenda
Matched: “…HE COMMISSION OF CERTAIN CRIMES” [Exhibit E1] ISP 2019-075 (SB238) by Senator Mark Johnson “TO PROVIDE FOR INELIGIBILITY FOR…”
TO PROVIDE FOR INELIGIBILITY FOR CERTAIN RETIREMENT BENEFITS UPON CONVICTION OF A FELONY ARISING OUT … M. Johnson Sine Die adjournment
SB52 · 1 mention in agenda
Matched: “…signating areas as 'Members and Staff Only'. ISP 2019-082 (SB52) by Senator Mark Johnson “TO PROHIBIT THE COLLECTION OF RET…”
TO PROHIBIT THE COLLECTION OF RETIREMENT BENEFITS BY PERSONS CONVICTED OF A FELONY OFFENSE ARISING … M. Johnson Sine Die adjournment

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Representative Les Warren Chair Unverified 7:00
This meeting to order. It's good to see everybody after adjourning the session. Senator Sample sends his regrets. He is unable to be with us this morning. We don't have a long agenda, so we'll just get right into it. First item is a review of rule changes proposed by APERS. first of all it's good to see Duncan here good to have you on board I'll let you and Jay come to the table introduce yourselves and the rules are in your packet so if you would introduce yourselves and then proceed with your presentation I'm Duncan Bayard. I'm
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Speaker 7 7:52
the executive director of the Arkansas Public Employees Retirement
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Speaker 8 7:54
System. Good morning. I'm Jay Wills, and I'm the deputy
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Speaker 9 7:58
director, and I'll be presenting the rule. May I proceed? This is a very simple change. It dovetails with the new enhanced driver's license. APERS has always required strict proof of identity, such as birth certificates and that, in order to sign up trigger benefits and all that. With the new enhanced driver's license, all this rule change is is adding that as another form of identification that APERS will accept and I'm happy to answer any questions you may have about that.
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Representative Les Warren Chair Unverified 8:30
Does anyone have any questions? Is that your only
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Speaker 13 8:35
change? Hey I'm from the government I'm here to
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Representative Les Warren Chair Unverified 8:47
help you. Oh, wait, wait, wait. We do have a question. It's surprising. It's from Senator Hammer.
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Senator Kim Hammer Unverified 8:54
Senator, you're recognized. Thank you. So this is for the new enhanced license, but that's not available in all the Department of Motor Vehicle locations yet, correct? That is
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Speaker 23 9:07
correct, sir, yes. This is just anybody that has this, all the others they can still use, but as they get out, this will simply be another form that our membership can use for us. Okay, all right, thank you. Yes, sir. All right, any other questions?
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Representative Les Warren Chair Unverified 9:27
Okay, this is a little bit different. All we do here is a motion to review. All right, so I've got a motion. Second. All right. Any discussion? All those in favor, say aye. Aye. Any opposed? Same sign. All right, motion carries. Thank you. Appreciate you guys. Next up will be a review of rule changes proposed by ATRS. Mr. Roden, you guys would please introduce yourselves and then you're recognized to proceed with your presentation. Good morning. Thank you.
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Speaker 28 10:19
And I am Clint Roden, the executive director of the Arkansas Teacher Retirement System. general counsel
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Speaker 30 10:30
arkansas teacher retirement system okay so
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Senator Joyce Elliott Unverified 10:33
we have four we have five rules that are in front of you the uh and i know it's a lot of paper but it's a very but really is a little little change uh so basically a little history about what we're trying to do here is this is a project that we're trying to consolidate and get our rules in a consistent professional manner particularly in preparation for the rules codification project that blr is preparing to do in the future so the the rules that we promulgated in the last decade basically were nice substantive rules where we had one rule for each large section um you know like a seven or eight page rule that covered everything, had a nice definition section and all that. The rules that we had before those 10 years were really done in a piecemeal fashion where each rule, each section of the rule basically had its own document, could have its own definition section, etc. And we really wanted to consolidate these two different types of rules into one type of rule so that it was easy and consistent for our members to understand. And this is the beginning stages of that project. So what this is, is, you know, I can go through each one of these rules, but essentially each one of the rules does pretty much the same thing. It takes four or five rules and then combines them into one section, trying to keep the language almost 100% the same as the prior rules as to not create a lot of confusion during this step. But at the same time, if there were some technical corrections like due to the 2017 session changes, we didn't want to promulgate something that was clearly wrong. So with that I'll take any questions. I can go through each one of these five rules and you know one at a time or however
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Speaker 28 12:25
y'all want to do it. This is kind of a new
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Representative Les Warren Chair Unverified 12:30
process so I'll let y'all guide me. Senator
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Senator Kim Hammer Unverified 12:32
Hammer you're recognized for a question. Thank you. Mr. Robin would you just help me understand is this the result of legislation from 2017 did you say or is this being initiated by your agency um without being pushed by legislation or which one is it most
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Senator Joyce Elliott Unverified 12:49
i mean all the changes that are real that are different from the prior consult rules that we're consolidating come from the 2017 session the uh this is the this is the process we started back last summer this is the end of that process so the 2019 changes that we will have to promulgate will come in the next step. Okay and follow up Mr.
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Senator Kim Hammer Unverified 13:11
Chair. Follow up. If I remember right a piece of legislation was passed this time around that kind of set a higher standard as far as when rules would be you know presented to committees and everything so does this clean up everything from the 2017 session are we going to expect to see more rules coming that were generated out of the 2017
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Senator Joyce Elliott Unverified 13:33
session? This this round that we're doing should clean up all the 2017 uh legislation changes absolutely and and what just
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Senator Kim Hammer Unverified 13:41
came out 2019 do you anticipate any difficulties meeting the deadlines that were enacted in that piece of legislation i do
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Speaker 28 13:49
i do not in fact we're we are going we're a lot more aggressive this legislative session than we were in the 2017 and uh obviously the number
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Senator Joyce Elliott Unverified 13:58
of changes we've had in the 2019 session was a lot less than 2017. So we should not have any problem with that at all. So we're
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Representative Les Warren Chair Unverified 14:07
starting with a clean slate pretty much after this is done, right? Absolutely. All right. That's the objective. Thank you, Mr. Representative Deffenball,
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Representative Gary Deffenbaugh Unverified 14:16
you recognize for a question? Thank you, Mr. Chair. Mr. Rode-Loner, I appreciate you very much on your work with the teacher retirement system. Glad to have you on board. So with that, I just wanted to make that statement. But rule 10, can you explain that?
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Senator Joyce Elliott Unverified 14:33
you don't mind okay so rule 10 the predominant rule 10 basically dealt with our t-drop specifications you know the details t-drop and return to service this rule 10 it basically combines the two rules the t-drop and the return to service into one rule 10 and some of the minor changes that we had to technical correction changes that involved in this particular rule change deal with our cash balance account uh the board made some tweaks to the cash balance account over the last year
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Speaker 28 15:08
and this just brings all those resolutions into this rule follow
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Representative Gary Deffenbaugh Unverified 15:15
up you're recognized for follow up thank you um okay so uh what what uh what was the pre was the past rule that uh that this was change to in other words I don't I don't even remember on the return to service as it as it pertained to t-drop can you tell me what the rule oh rule was right the return to service was the
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Senator Joyce Elliott Unverified 15:38
rule 10-3 and there's there's no changes to the return to the service section that that 10-3 excuse me it's just rolled into the new rule 10 that
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Speaker 28 15:47
is a comprehensive rule well what I'm getting at is if I, I still,
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Speaker 49 15:51
I guess I'm dense. I still don't get it. They retire. Is that right? And then return
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Representative Gary Deffenbaugh Unverified 16:01
to service? Right. So they continue to draw T drop or not? No, you do not continue
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Representative Les Warren Chair Unverified 16:10
to draw T drop. Okay. I didn't think so.
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Senator Joyce Elliott Unverified 16:20
That is correct. That's correct. All right. I appreciate No problem. Okay, Senator Elliott, you're recognized for a question. Thank you. I have just not been able to go from what's stricken to what's in there and make sure I understand what happened. So question number one, I'm assuming there is no substantive changes in here. If there are, would you point them out? The changes that are different as we merge them together, particularly if you have a I think the printout that y'all have doesn't have the color coding to it but the version that we sent to BLR we had the text that we were just merging together in a blue color and then the changes that really did not match up at all were in a black italics so you still got the black italics in this version but they're essentially technical changes Okay, that's what I'm getting at. There's nothing that's substantive. No. For example. And it's technical changes to make sure that it doesn't conflict with statutory or board resolution language that we already have in place. We just didn't want to simply merge the rules together with the wrong language because that would not be an efficient process. And so, for example, for people who know we're going to work on these rules today, if you are a T-drop person right now, Right. Substantively, nothing happens to that process. And I can apply that same logic to the other rule changes that are all basically technical, not substantive. Yes, ma'am. Okay. And any of these rules that we, I mean, changes that we've done, we have, you know, extensively communicated to our members these changes through updates, e-mails. They're all on our website. You know, we're not trying to hide anything, just literally trying to consolidate those rules. Have you gotten any feedback from anybody?
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Speaker 64 18:07
No. Any of the members out there? Not at this point. we have
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Speaker 28 18:10
one week left on our open comment period and uh we haven't received any comments at this point and telling me i mean i
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Senator Joyce Elliott Unverified 18:16
haven't either which i usually will hear something that's that's yes that's all right thank you i appreciate
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Senator Kim Hammer Unverified 18:22
that thank you okay senator hammer you're recognized
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Representative Les Warren Chair Unverified 18:27
thank you a couple points on that comment you just made that you're one week
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Senator Kim Hammer Unverified 18:31
till the open comment period closed are we getting the cart before the horse that we're getting these promulgated before the public comment period is closed? I
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Senator Joyce Elliott Unverified 18:40
addressed that question that basically we needed to make sure that the public comment was done before we could go before the ALC, but we basically asked the committee to come a week ahead of time for some efficiency purposes. So we think we're, I mean, BLR agrees. I think that we are perfectly fine with
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Senator Kim Hammer Unverified 19:02
that schedule. Okay. And then you'll make us aware at ALC if in the next week you get any public comments so we can address those. And we'll also address those before our board on June 3rd if there are any. Okay. And then these rules that are being the modifications, which what I understand you'd say, it's just kind of cleaning up, simplifying it, taking care of some technical corrections. Right. Nothing substantive. Is there anything that we passed in 2019 that you're going to have to come back with the same set of rules and we're going to have to modify what's in front of us again. I know there's
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Senator Joyce Elliott Unverified 19:38
at least a couple of these rules that we will have to tweak, you know, but that will look like a very similar rule change that y'all are used to where, you know, it's a red line markup of just a little bitty section. And, you know, so, yes, I do anticipate there are some changes. But like I said, this is at the end of the process for the 2017 session. Okay. So we should have a nice, clean, consolidated set of rules to modify for the 2019.
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Senator Kim Hammer Unverified 20:05
Including the 2019, so we're going to do it all at one time? Correct. Okay. So, Mr. Chair, I'd like to request you to get a copy of the color-coded one. And if you don't mind, Mr. Roden, would you go ahead and send, with the Chair's permission, I'd like to see what the changes coming down the road are. That way, next time we're up, we've got a little bit more head start on getting it absorbed. if you don't mind. Absolutely. That'd be all right, Mr. Chair.
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Representative Les Warren Chair Unverified 20:31
Yes, sir. Thank you. I will, if you would, get that to Karen and we'll get that out. That'll be perfect. Thank you. Thank you. Okay. Representative Murdoch, you're recognized for a question. Thank you,
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Representative Reginald Murdock Unverified 20:45
Mr. Chairman. Thank you, Mr. Roden. Communication of the information that's available for review now by retired teachers i spoke to a group in my district and thanks to chairman warren thank you for that information he was able to help me with but how are you getting information to retired teacher groups across the state it seems to me to be a disconnect in them assessing the information i guess they're retired now and there may not be as i don't know what's the method for reaching those retired people that these rules and the comments that you're seeking probably will
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Senator Joyce Elliott Unverified 21:27
affect right the the primary method that we use to communicate to all of our members is an executive director update that we send out periodically and currently that goes out to like 20,000 members we have 130,000 so that's not a complete uh coverage but it's one of the things that the members actually have to be proactive to sign up for uh because obviously we don't have the all 130,000 email addresses to at this point that is a project we're working on to make that communication a lot more seamless and easy uh but predominantly you know it's the website posting the information that's on the website is uh you know the predominant source for our members to you know have these changes communicated so follow up please mr
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Representative Reginald Murdock Unverified 22:15
chairman you're recognized for a follow-up thank you so in in the future is it possible feasible that there can be some type of outreach to these uh retirement groups because in the i know in my district there are several in our counties we have retirement teacher retirement groups and they have a lot of questions and they seem to be very much disconnected then they're relying on me to be able to properly inform them and again And I reached out to the chair the other day because I was getting ready to speak to them, but just kind of not knowing if you're not on the committee or whatever, you may not be as aware. Also, can I get everything that you're sending to Senator Hammer? Please send it to me, whatever you send to him, because he always asks for good information. So I appreciate that as well as I try to inform.
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Speaker 73 23:03
But is there a way maybe to outreach to those groups? Well, and I was, as I should
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Senator Joyce Elliott Unverified 23:08
have had to been reminded, because I'm currently in the process of going and visiting all the retired teacher associations. They're currently doing their area meetings and all the corners of the state. You know, I've done six over the last two weeks. I've got a couple more to do next week. And that's essentially what I'm doing is going out there and making myself available to let any of those people that show up to those meetings ask questions and then take that back to their membership, you know, for
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Representative Reginald Murdock Unverified 23:34
the ones that didn't attend. Were you sitting at schedule? Is that schedule posted where I can possibly attend or have them meet you somewhere? Or
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Senator Joyce Elliott Unverified 23:43
you come see them? Yes, yes. That would be really great. Absolutely. Okay. And I believe the state convention for the Retired Teacher System or Retired ARTA, Arkansas Retired Teachers Association, is going to be October 28th, I believe. 29th. 29th, excuse me. So October 29th in Benton Convention Center, all the retired teachers, you know, will basically be in one spot. And I am planning to be there and make myself available to answer any of their questions. So that's probably the most important one. Thank you.
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Speaker 40 24:19
All right. Are there any other
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Representative Les Warren Chair Unverified 24:24
questions from the committee? Okay. again what we'll do there are multiple rules here so what we'll do is a motion to review all of these collectively so can i get a motion okay and a second all right any discussion all those in favor say aye any opposed same sign motion carries thank you guys thank you all right next up uh review of uh sorry discussion and consideration for adoption interim study proposals we have three items the first one is mine this was a deal that i got approached on i think we've got a lot of people who are entering retirement years without enough money put back for retirement. A lot of those are people who come from jobs where there were no retirement options available to them. The treasurer's office is one who approached me on this. I'm not necessarily advocating for the treasurer's office on this. I would like to have an interim study. I would like to visit with our banking community to see if possibly I worked in trust for 10 years, administered 401k plans, and I would like the opportunity to visit with the banking community to see if perhaps they would like to look at starting some type of 401k plan for anyone in their communities that are not in or working for a company that offers them. Maybe just like a Regions 401k for any of their customers or a Simmons 401k. I don't know. I'd just like to explore that opportunity. I know that there are IRAs. I know that there are other investment opportunities, but it's just one of those things that if you have it through your work, it's much easier to do. An employer sometimes avoids this because of the cost of setting up a retirement plan, and it is substantial for businesses to do this sometimes. But if they can get it through another source and the business does not have to pay for it and a business owner could actually contribute to a plan, I just would like to explore that option. So that's what I'm trying to do here. Yes, ma'am. You're recognized for a question, Senator Elliott. Mr. Chair, I'm just
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Senator Joyce Elliott Unverified 27:34
wondering if it would be proper to make a motion to adopt all of these as interim study reports, since that's what they are. They're studies, and I don't imagine it would be controversial. If it is, I bet somebody will tell me.
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Senator Jason Rapert Unverified 27:49
I have no problem with that. Any? Yes. Thank you. Obviously, you and I had a lot of discussion on this. We have. So one thing that I would just ask as a chair, if we're going to have a robust discussion on what I think is basically socializing an aspect of private business, then we have all the parties at the table, including business from the banking industry, the retirement, financial services industry and insurance industry. Because really, as you know, you got you got asked to carry this. Right. And when you carried it, I think when the details really rolled out, you halted. And I want to thank you for sending this to interim study. And I absolutely think that we are to educate the entire body on what's going on out here. Because really this is affecting, in my opinion, what private business already provides in a substantial way. And that can be demonstrated with real numbers. And so I just want to make that mention to you that I'd appreciate it if you'd allow me to possibly get some folks in to testify on the issue. because there are a lot of national associations that speak to us at NCOIL as well. Have them come in here and be able to really educate the body on this issue because this absolutely would put Arkansas in direct competition with banks and insurance companies
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Representative Les Warren Chair Unverified 29:13
and financial services. Well, and that's why I'm saying I'd like to get banks to the table. Yeah. Thank you. Absolutely. I appreciate the comments. Senator
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Senator Kim Hammer Unverified 29:22
Hammer? Thank you. I'd just like to also add that you would, in your interim study, I request that the credit unions be invited into that circle as well. Absolutely. And just make it as comprehensive. And I'm ready to second Senator Elliott's motion whenever you're ready to recognize. Okay. I'll take
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Representative Les Warren Chair Unverified 29:41
that. Does anyone have any questions of Senator Johnson? Okay. All right. I'll take that second, Senator Hammer. Any discussion? All those in favor, say aye. Aye. Any opposed? Same sign. All right.
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Speaker 85 30:03
Okay. If you'll turn over. Okay, is this it? Go to this one. All
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Representative Les Warren Chair Unverified 30:19
right. Okay. Okay, brief review of the summary of public retirement system bills passed during the 92nd general session. Mr. Carrero. All right, now you have this in your packet.
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Chair Unverified 30:38
It's exhibit F. Good morning, Jody Carrero, actuary for the committee. No real discussion needed unless you have a question. I've just provided you in your packet a summary. this has been useful to folks in the past uh when they go and visit with them and they say what did you do to my system and you could say well here's the bills that were passed for my your system right here and and uh so there's two lists one that's sorted by system so if you want to say what did we do to apris you can look at apris and see the bills that were passed on apris etc and then another one that's just a listing of the bills in act order. So for your use, happy to answer any questions. Senator Elliott, you recognize for a question? Thank you. Mr. Carrow,
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Senator Joyce Elliott Unverified 31:27
I was wondering if, could you send us a link that would just link to all of these changes that we could like post on social, just post the link on social media? So if anybody wanted to look at that, that's a quick way to do
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Chair Unverified 31:44
it. Well, I mean, I think the packet is attached. I mean, this is attached to the electronic. So we can just use that. It is attached to
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Senator Joyce Elliott Unverified 31:52
it. So we can just use that link and just post it. It's attached to
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Chair Unverified 31:56
your agenda today. So you could just post this. Okay. Or, you know, I'm sure we can email it to folks, however you want to do that. Well, if that's going to be linkable
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Senator Joyce Elliott Unverified 32:06
and it comes up, I just couldn't remember if it's, yeah, they'll have that little icon at the top, but we'll be able to link it to something else, a little rectangular thing, and we can link it to Facebook or wherever. I know what I'm talking about. You can just nod. Okay. Okay. Yeah. I'm
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Senator Kim Hammer Unverified 32:28
nodding. I got it. Thank you. Senator Hammer, you're recognized for a question. Jody, on page one down there where it deals with Loffy. Yes. On the list. On the list. Act 638 changes the disability eligibility that certain cancers are presumed to be duty-related disability. Was that word presumed what was actually used in legislation? Because if we're going to send this out, I could see it creating a little bit of a firestorm just by the word presumed. Was that the word used in the legislation, or do we want to tighten that up to say? I think it is. I think that is the word that we
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Chair Unverified 33:08
used, yeah. Yeah, it's presumed to be a duty. It's not presumed to be a disability. It's clearly a disability. But those type of disabilities, when that list of cancers that were in that act, they are presumed to be a duty disability.
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Senator Kim Hammer Unverified 33:22
Okay, I'm not arguing the merits of the bill. I agree with the bill. It's just that word opens up a lot of concepts. Okay, all
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Representative Les Warren Chair Unverified 33:40
right, thank you. Any other questions? Mr. Carrero, we appreciate you. All right. Last item is the adoption of the motion authorizing the co-chairs to approve expenditure of committee funds for special expenses incurred by the joint committee. What this is, is if the chairs think that we need to bring someone in for a special study or for a presentation, we're allowed to go ahead and make the necessary arrangements, pay for hotel, mileage, whatever expenses to get them here to do the presentation. that just allows us to be authorized to go ahead and make those arrangements so all right senator hammer motion no Brian second question oh you have a question I don't mind making a motion but okay well I'll back up then okay what's the budgeted amount for this committee it varies it's about forty thousand dollars okay just been in a
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Senator Kim Hammer Unverified 34:54
situation before where a committee started and we had to go back and ask for more money later historically is that going to meet the needs of the committee Karen or Mr. Chair if Karen says yes I
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Representative Les Warren Chair Unverified 35:05
say yes okay very good all right thank you Mr. Chair uh
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Representative Gary Deffenbaugh Unverified 35:15
represent deffenball you recognize for a question thank you
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Speaker 95 35:18
mr chair motion at the proper time okay any other discussion questions okay i'll take that
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Representative Gary Deffenbaugh Unverified 35:27
motion thank you i move that we grant the authority for approval of special expenses to the co-chairs of the retirement committee all right we have a
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Representative Les Warren Chair Unverified 35:39
motion do we have a second all right any discussion all those in favor say aye any opposed same sign motion carries any other comments from the committee members if not we stand adjourned
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Speaker 100 36:02
I'll send out the color copies of your notes. I'll also include a PDF of Jody's summary in the email.
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Unknown speaker 36:32
. You
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Agenda

A. Call to Order

7:46

B. Opening Remarks by Committee Co-Chairs

8:02

C. Review of Rule Change Proposed by the Arkansas Public Employees Retirement System (APERS) Rule 201--1957 (5) – Age of Members - How Established [Exhibit C]

8:12

D. Review of Rule Changes Proposed by the Arkansas Teacher Retirement System (ATRS)

10:40

E. Discussion and Consideration for Adoption--Interim Study Proposals (ISPs) Referred to the Joint Committee on Public Retirement & Social Security Programs from the 92nd General Session

25:54

F. Brief Review of the Summary of Public Retirement System Bills Passed During the 92nd General Session [Exhibit F]

31:57

G. Consideration of Adoption of the Motion Authorizing the Co-Chairs to Approve the Expenditure of Committee Funds for Special Expenses Incurred by the Joint Committee on Public Retirement & Social Security Programs [Exhibit G]

36:04

H. Adjournment

36:47

Speakers

Representative Les Warren Chair Unverified
33 segments
Speaker 7
1 segment
Speaker 8
1 segment
Speaker 9
2 segments
Speaker 13
1 segment
Senator Kim Hammer Unverified
18 segments
Speaker 23
1 segment
Speaker 28
7 segments
Speaker 30
1 segment
Senator Joyce Elliott Unverified
37 segments
Representative Gary Deffenbaugh Unverified
8 segments
Speaker 49
1 segment
Speaker 64
1 segment
Representative Reginald Murdock Unverified
6 segments
Speaker 73
1 segment
Speaker 40
1 segment
Senator Jason Rapert Unverified
3 segments
Speaker 85
1 segment
Chair Unverified
7 segments
Speaker 95
1 segment
Speaker 100
1 segment