Report from the Government Affairs Committee:
The General Assembly Session convened on January 9th, and to date, we have had two House Retirement Committee meetings and one Senate Retirement Committee meeting. The bills considered thus far have been plan specific with the exception of HB 293, HB 297, and HB 308. HB 293 includes in the definition of fiscal impact any change to a public retirement system that grants or allows the purchase of an insurable interest in its participants. HB 293 effectively prohibits a public retirement system from expending or obligating funds to purchase life insurance on its members unless the member's estate or beneficiary is designated by the member. HB 308 further defines the duties of a board of trustees to be consistent with those of common law when not inconsistent with Title 47. HB 308 came about last year when we raised the issue that Title 47 does not contain a standard of prudence to guide and protect trustees in the performance of their duties as fiduciaries. There is more to come on this issue. All three bills passed through the Committees unanimously.
We have engaged the Office of the State Auditor regarding the issue of whether a biennial actuarial study is required (47-1-3,4) or a triennial study is required (47-20-21). This has opened the question of what constitutes a "public" retirement system and a "legislatively controlled" retirement system. We will seek some answers and, perhaps in time, some Code clarifications that will serve all of us well.
Signed:
Your Government Affairs Committee"
