Oct 24, 2005

PEPSA Long Term Legislative Positions


Requiring Employer Funding to Pay for DBP/DCP Choice. If employers provide a choice between a defined contribution plan or the current PERA Defined Benefit plan to their employees, those employers would be required to offset any cost of that choice on the defined benefit plan.

Pension Benefit Guarantee. The PEPSA Board supports legislation that would grant an enforceable, contractual right to retirement, survivor and disability benefits for vested PERA members.

Age 65 Full Benefit Retirement Age. The PEPSA Board supports maintaining age 65 as the normal retirement age for public employees who were hired after July 1, 1989, provided funding is available (1999 Cost: approximately 0.3 percent).

Any High Five Years of Salary. The PEPSA Board supports changing the high five consecutive years of salary to the highest five out of the last ten full fiscal years, providing the funding is available. (1999: cost is negligible.)

Military Leave Service Credit. The PEPSA Board opposes providing pension service credit for military service rendered prior to entering PERA-covered employment, or for leaves rendered during PERA covered employment for which purchase was not made within the current provisions of law, unless purchased at full actuarial value.

Defined Benefit vs. Defined Contribution Plan. The PEPSA Board opposes substituting a defined contribution plan for an existing defined benefit plan and opposes transfer of past employer contributions from the defined benefit plan to the defined contribution plan.

Post Retirement Adjustment Investment Component Averaging Period. The PEPSA Board supports SF 70, which would limit future post retirement increases to 5% (inflation and investments components combined.) This would include the evaluation for a possible "13th check" if certain criteria is met.

Safeguarding Pension Funds. The PEPSA Board opposes any legislative attempt to use or divert pension assets for non-pension purposes such as was done in 1983 when $25 Million was taken from PERA and used to help the State's General Fund.

Diversion of Assets for Other Uses. The PEPSA Board opposes diversion of PERA income or assets for uses other than for funding purposes.

Police State Aid. The PEPSA Board supports the primary use of the police state aid financed by the tax on automobile insurance premiums for funding the PERA Police & Fire Fund should an unfunded liability and deficiency develop, and for funding other police pension funds which have or develop unfunded liabilities.

State Board of Investment (SBI) Composition. The PEPSA Board opposes creating a new ten-member SBI. If increased public employee and retiree representation is desired, the PEPSA Board supports restructuring the Investment Advisory Council to include three active employee representatives and three retiree representatives.

Merger of Statewide Pension Systems. The PEPSA Board opposes merger of the three separate, statewide retirement systems.