At a meeting of the Select Committee on Pension Policy executive committee, members pressed staff to secure written analysis from and a public appearance by the law firm Ice Miller to clarify Internal Revenue Service (IRS) implications for proposed changes to the LEFT‑1 pension plan. The committee discussed options that have circulated — a termination/restatement approach, a merger with another plan, and other approaches to manage overfunding — and sought outside counsel help to resolve tax questions before the 2026 short legislative session.

The request came after committee staff and the Office of the State Actuary reviewed recent analyses and raised that IRS review could be determinative for the path forward. Committee members said they want a clear understanding of whether plan changes would require an IRS determination letter and when that determination should be sought.

Committee members emphasized that LEFT‑1 is unusually large and that the overfunded status raises policy and legal questions. One committee member asked Ice Miller to address whether overfunding that accumulated after contributions ceased in 2001 would create IRS issues and what options other states have used when systems became overfunded. Staff committed to obtain a written response from Ice Miller in the coming weeks and, unless the committee objects, to arrange for the firm to appear in October for Q&A.

Members also discussed the two legislative approaches already circulating: (1) a termination/restatement approach that could move assets through a pension stabilization fund, and (2) a merger-style option that would combine LEFT‑1 and Plan 1. Several members said those two proposals are prominent but not necessarily exhaustive and asked staff to identify any additional feasible legal approaches.

The committee noted that written materials received from external parties are included in meeting materials, including a private letter ruling made available to the committee and correspondence about how LEFT‑1 benefits are treated when a member dies intestate. Staff said they would circulate Ice Miller's written analysis as soon as it is available and follow with an appearance for additional questions.

The committee did not take a formal policy vote on LEFT‑1 at this meeting; members directed staff to pursue the written analysis and to schedule Ice Miller for a future meeting.