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The 2013-2014 Pension Commission, consisting of seven members of the Senate and seven members of the House, will convene for the first time on Jan. 29.
(Published Jan 22, 2013)
Many were surprised to learn that as of Jan. 15, members of the 2013-2014 Legislative Commission on Pensions and Retirement, also known as the Pension Commission, have already been appointed. In previous years, the Legislature has taken weeks, sometimes months, to make Pension Commission appointments.
The appointments also mark the first time in the Pension Commission’s history that it will consist of 14 members. The 2011 Legislature enacted legislation carried by longtime Pension Commission member Rep. Phyllis Kahn (DFL-Minneapolis) that increased the number from 10 to 14. The provision became effective in January 2013.
The Commission now consists of seven members of the Senate appointed by the Subcommittee on Committees of the Committee on Rules and Administration, and seven members of the House of Representatives appointed by the speaker. No more than five members from each chamber may be from the majority caucus in that chamber.
The appointed members are:
The Pension Commission, which was permanently created in 1967, performs four major functions:
This year, the Pension Commission will have the difficult task of stabilizing the Public Employees Retirement Association (PERA) Police and Fire Plan. According to PERA’s actuaries, the plan currently has a funding deficiency representing approximately 7.9 percent of active members’ salaries.
That means, absent any other changes to the plan, combined member and employer contributions would need to increase nearly 8 percent to fully fund the plan by 2038, the date mandated by law for full funding. Nearly all agree increasing contributions alone to address the problem is financially impossible. A plan to correct the deficiency has been endorsed by the Minnesota Police and Peace Officers Association and the PERA Board of Directors.
The Commission will convene on Jan. 29, and will elect a chair. The 2013-2014 Pension Commission will be chaired by a member from the Senate. The gavel rotates on a biennial basis between the House and Senate. The 2011-2012 Pension Commission was chaired by Rep. Morrie Lanning (R-Moorhead).
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Contact Anne Finn
Assistant IGR Director
(651) 281-1263 or (800) 925-1122