Senate Finance advances bill to align PERA data collection with actuarial audits

Senate Bill 28, an interim measure from the Pension Review Subcommittee, advanced from the Senate Finance Committee on unanimous voice vote after two amendments that remove an added state-auditor role and align the committee—s review timing with the Public Employees' Retirement Association's actuarial audit.

Senator Kolker, the bill sponsor, said, "This, bill is a very simple bill, my first bill of the year, so please be kind to me. This is an interim bill from, sub from the pair excuse me, the pension review commission. And the original intent of this bill is to line up the data gathering, that PERA does with the audit that the sub the commission does." The committee adopted two technical amendments, L001 and L002, before approving the bill as amended and placing it on the consent calendar.

The measure seeks to synchronize the Pension Review Subcommittee—s independent review schedule with PERA—s periodic actuarial audits so the subcommittee—s work uses more timely data. Senator Kolker described the change as "very simple" and said the amendments make the language clearer.

Amendment L001 struck language that would have added the state auditor as an additional reviewer; Senator Kolker described L001 as removing that provision because it created a fiscal note. Andrew Roth, appearing for the Public Employees Retirement Association, told the committee staff and members they had "no concerns with the language" and that PERA appreciated the opportunity to engage on the bill. Erin Reynolds, a fiscal analyst with Legislative Council staff, said the state auditor continues to select the external financial auditor for PERA under current practice and that the amendment did not change that process.

Amendment L002 revised the timing language so the Pension Review Subcommittee would conduct its review within three months after PERA's periodic actuarial audit and then every four years thereafter, aligning the subcommittee's schedule with the actuarial audit cycle so the subcommittee's data would be "fresh," in Reynolds's words.

Reynolds presented a fiscal memorandum prepared to reflect the amendments and explained that with the changes the fiscal impact is absorbable within existing legislative resources. She said the routing sheet allows fiscal analysts to prepare such memos to change committee routing when an absorbable fiscal impact is demonstrated. Katie Rudabush, legislative council staff, agreed that the amendment did not affect PERA's unfunded actuarial liabilities and said, "it doesn't need to go to appropriations," though the committee could still choose to send it to appropriations.

Senator Kolker moved to send the amended bill to the Committee of the Whole and to the consent calendar. After a roll call at the committee's close, the motion carried unanimously and the chair announced the bill would be placed on the consent calendar.

The committee record shows no outstanding objections, and no additional witnesses testified against the bill during the hearing.