Public Retirement & Social Security Programs-Joint

When it comes down to a vote so if you have any further questions about that talk to me to represent of Warner Blake after the meeting and we'll try to make sure we get that straightened out we only have three bills on the agenda this morning of and they're in your pack it along with the actuarial studies. Chair sees a quorum I guess I should so that at the beginning but will handle business at this time uh anybody wishing to speak for against the bill in the audience please sign in so we can hear from you. And I guess that'll start us off here with house bill eleven ten by representative warned representative warm Warren you are recognized to present your bill. Thank you Mr chairman committee members I'm going to ask David Clark with lot three if you would to please join me. What hi everyone David Clark executive director of lawfully good morning you are recognized. You're ready you're recognized for senate bill thank you a house bill eleven ten is a farm police pension review board technical change bill. The change changes removed obsolete mapping task for premium tax distribution as mapping information is no longer a part of the premium tax allocation process. A new formula it's been adopted that does not require mapping the amendments will save the pension review board and UALR resources UAR has been the this one that has been doing the mapping work for us and moneys from pension premium read a premium tax used to pay for mapping cost. Basically over the last the ten year period we paid out one point four three million for mapping cost that's no longer needed I've got Mr Clark here if anyone wants to ask any questions about that mapping but just because we don't need so we're removing that from the legislation. Thank you are there any questions by the committee. We have a question if you don't mind holding that motion ferment representative right you're recognized to ask you questions thank you Mr chairman can you explain that mapping portion just a little bit. Absolutely of the what the mapping of requirement was back in twenty eleven there was a change in the insurance premium tax sections of code insurance premium tax by the way it a portion of those monies collected by the state go back to the employers covered by law fee to defray their or their employer contributions costs and that also to the local fire police pension funds of the state to help shore up their funding there's other carve outs in the premium taxes well well the formula back in twenty eleven had a provision that required mapping of the various police and fire districts to get their size of the area was covered as well as the population and over the years there was a transition period to move away from the having the area and the population part of the premium tax formula we've moved through that transition period that's no longer necessary so therefore we don't need to continue to have a contract to do mapping that doesn't really provide any aid to premium tax. Yes Sir and I will add one thing the contract to the reason that you see the amount going through two thousand twenty three is that the contract goes through June of this year so the contract will end as of June this year. Are there any other questions representive Andrews you're recognized for a question. About how much money is going to save seating thank you Mr the. Go ahead the of total that our chairman Warren talk about the one point four three million that is over the most recent ten year cycle it's about a hundred and thirty thousand a year this will save so you know each year it's not a great deal of money and in terms of the total premium tax but after we get a few years into this process if you approve this there will be savings and stays in the premium tax formula to go back out to the other needs. Thank you. Any other questions by the committee are there anybody in the anybody in the audience it wants wishes to speak for against this bill. Senator Hickey you're recognized for a question just just one thing just to make sure I heard you said Mr warned or represent warned entity in our contract currently ends on June thirtieth. Does because this law all the way we have it written is going to probably going to affect before then. Do you have we got anything in here or do we need anything in here where it would be where it would end on June thirtieth at the same time as that or cited questions. But no Sir we've already does with you A. L. R. and the agreement when the pension review board and you L. R. as if they would honor this or they would complete the work under this existing contract that was signed last summer and once that work is done we would not enter into a new agreement because we're hoping that this would be in effect at that point okay so doing away with this is not going to. Affect the. Any aspects of that contract whatsoever no Sir okay thank you so payment will be made for this contract year swat that is correct yes thank you. Represented one would you like to close for your bill I am close for a bill I would appreciate a good vote. And we have a motion from center Chesterfield do pass. Well we have a second by Charlene Fite representative fights or. Any discussion on the motion. All those in favor say aye hi any opposed. Motion carries in the bill has passed. Representive warn you are recognized to present house bill eleven eleven. Thank you Mr chair house bill eleven eleven is a lot B. and P. R. B. technical change bill as well the changes amend the maximum age for distribution as allowed by federal law federal law was revised during the last Congress to increase the age limitations over a multi year to a time frame we're just simply matching that members will be able to defer to anywhere from age seventy three to seventy five once we put this into law. Are there any questions by the committee. Is there anybody in the audience who wishes to speak for against this bill. Representative warned you're recognized to close for your bill I am close for my bill I would appreciate a good vote we have a motion by representative ferries do pass I assume. Thank you is there any discussion on the motion. All within a second. Second by Senator Chesterfield there any discussion on the motion. All those in favor say aye hi any opposed. Motion carries your bill has passed thank you Mr chairman thank you Committee representative Warren you're recognized to present House Bill I don't have the number eleven ninety three okay. Thank you. I would like to ask robin Smith if she would please come to the table with me. Mr chairman may I wanted if I could ask yes please Smith the identifier self. Robin Smith Asher's executive secretary you're recognized thank you representative one you're recognized to present your bill thank you before I do that I would just like to say aye these guys worked very hard during the offseason to we get here and reviewing all the the. Laws that govern their retirement funds and this is the culmination of that when we get to the session and they've done a great job and this time there's not anything that I've seen that's been really huge issue but these are pretty much clean up bill so this is another one of those house bill eleven ninety three. Has two purposes to it the first is to specify a board member who will be serving in an ex officio capacity on the board. There are now two chief engineers at Asher's the chief engineer over operations will be the one to serve in the board role as this person has more employees under their supervision the bill will specified that it will be the chief engineer operations. The second part of this bill is to make it where the code clearly backs up actual practices of Asher's retirement system nothing is really changing I just wanna make sure that everything is clear clearly spelled out in the laws that govern them this clarifies benefits for survivor in the case of the death of a member prior to retirement. There are a few additional elections set forth for there's fiber in this bill and the requirement that any non spousal beneficiary payouts be subject to a waiver being signed by the deceased members spouse no surprises for the spouse. Thank you representative Warner there any questions by the committee. There anybody in the audience it wishes to speak for or against the bill hold on we have a question sorry didn't see that Senator Hickey you're recognized just just one thing in our what representative Warren said so your practice has been to refund the contributions of non vested members that's what you've been doing so. Right. There was a lot different than that. Currently okay. Waiver for the can you turn your microphone on please it's just that waiver for the the spouse in that situation what we find is a lot of times people sign this up when they first come to work at the department so they may not have been married if the parents on it even though we constantly say you need to update your information they don't and so you get to this point where it's twenty years later and they're married and still showing their parents as their beneficiary so it's just to add that the current spouse should have the marital right to the benefit. Is that even if they've got somebody else listed is that what you're telling me so they still have their parents listed on there. What you're saying and then it and then they die. That is going to go to the spouse instead. Even even if they've. Even if they have them on the. By simply. But that would be up to the courts at that point I would believe. Well somebody listed somebody's a beneficiary. For whatever the reason I mean. that's that's their that's their obligation I would think to to actually remove them to take them off I don't know how we just automatically put in wall that we're going to change the beneficiary without their. You know without them saying that we should. That. I'm guess I'm a little more information on that. So. Please identify yourself for the record. And you may proceed. Thank you good morning Jody Carreiro actually for the committee Senator Hickey aye the easiest way for me to think about it is if the person had divorced the day before they died. Then the spouse before at that point would have. No matter who was named beneficiary would be the beneficiary and I would have to sign off before someone else was the beneficiary for pension benefits I mean life insurance and other things you can name whatever beneficiary but when it comes to what you are pension. Because of federal law and our state law to the that would be there there would have to be a sign off by the spouse. But we're not requiring a sign all we're just doing it in legislation. Correct. Know what we're saying is that we would require sign off. We're adding that waiver requirement into the code. That's the addition what what lands at If you don't want to. So. Give us a second. Sorry to put you on the spot is okay I'm on cold medications thank. Help others. The line was. Yes. Senate. Yes yes. Page three line nine starting a line nine. If you don't see that so and based on the subject of means of. Definition I won't throw some else I just want to stand so. So I work for you will not been there and I had my parents is the beneficiary and of. My. So that I get married after that. Then I get divorced. Six months ago so my parents are still on their. Okay. And I and spouses not signed anything I've not done anything different. Who gets who gets that benefit is if the parents or is it the spouse in that six month example. the the parents would without anybody else's permission because there's no longer a spouse to to deal with it on that situation is it not the is issue we're not dealing that we're dealing with the fact that we're marital intrastate. So. Spouse has an interest right if the spouse the spouse has a current interest and all these retirement benefits there's unless they sign off there has to be assigned office sometime yeah. So there's not a current spouse there's no one to sign object because they have like a dower and curtesy interest in it orders or some other term army are. Or do you know okay. I guess I'll stop thank you. Well we have a couple other questions Senator Chesterfield you're recognized for a question thank you Mr chairman on page hold on a lost art okay Am I down enough that's okay. Page two. Starting with mine son. This is what we'll we'll start at the top was one line in the case of death of a member prior to retirement the members accumulated contributions in any life insurance policy proceeds shall become payable to the designated beneficiary. All to the estate of the person having the deferred benefits a beneficiary has not been designated or is deceased and then you go over here and tell me that even though this happened. And I designated my parents as that as the beneficiary. My husband to come along and take the money anyway. Which doesn't make real good sense to me because the put it may be that I have provided for him in another plant and want to make sure that my parents. Would be okay as well so help me understand it better. And it also says a member with five or more years of credible service may designate a beneficiary other than the members current spouse. So I don't quite understand what you're trying to do. Thank what our thought was that we're trying to also protect the rights of the spouse because generally when we come to this committee that seems to have been an emphasis not to leave somebody behind Rogers because there was a form on file I suppose that's their intent. And. That you're coming along and you going to tell them no matter what your intent is they don't have a right to leave so as a beneficiary the individual that they would want to would you like for us to start that one I'm okay with striking that from the from the bill. Hold on just a representative worn is what I'm responses I would be okay with. Represent is. I would you like to maybe pull this for now and study it the. I have to get all those answers for it okay and we can let are there other questions yes we can go ahead and get the other questions there to fill on Q. by the employees. Representative right you're recognized for a question Sir thank you Mr chairman represented less I'm glad that you brought even though you're going to have to make an amendment to the US I'm glad you did this because you know with a first I don't think that there's any designation of anything in this until you retire. You know with diapers so I think it's a good thing to bring that out Sir because this is the first I've really thought about it. And if something needs to be straightened out. I'll I'll follow up with a person that thank you Sir. Members this early in the session and we have the opportunity to get this thoroughly vetted and I appreciate representive warned being willing to pull it down for now. What we'll do that and then come back next week or whenever we can get it amended and With more clarity to it thank you. This there any other business to come before the committee. Yes Senator Chesterfield with questions thank you Mr chair The direct direct dispatchers here was the apers. And we just recently and I'd like to ask a question if I might want to read can you come to the table to answer questions please. Please identify yourself for the record you are recognized. Good morning Amy Thatcher executive director vapors. Go ahead Senator Chesterfield right thank you Mr chair dispatcher. There was a recent death of an individual that I knew. And the family had me reaching out to the various. Entities that would possibly help them to for cost of death. What I found was that there is no death benefit. A person is a death benefit H. E. R. S. I assume there's one eight Lafayette there's wanted eight years but there's not one eighty first could you tell me why not. I really don't know the entire historical reason it's just not in code that way currently I don't know all the factors that went into building the system that way so if we were asked to look at that as a. As a body as a retirement body because it's kind of disturbing to have loved ones think that because you work somewhere for a while you have a death benefit unless it's clearly stated to them. We need to look at that and ask your board to look at that as well certainly all right thank you Mr thank you for your indulgence thank you senator thank you Amy Irma's better. This was passed also we have a handout that should have been on your desk from the teachers association retired teachers association please read that when you have a chance and I thank you all for showing up bright and early this morning we are done.