AGENDA

RETIREMENT AND INDEPENDENT ENTITIES

INTERIM COMMITTEE

UTAH LEGISLATURE

Approximate time frame

Wednesday, September 10, 2014 • 10:00 a.m. • Utah Retirement Systems Office 540 1st Floor Conference Room (540 East 200 South, Salt Lake City)

10:00 1. Committee Business

· Call to order

· Approval of minutes of the May 14, 2014 meeting

10:05 2. A Guide to Utah’s Independent Entities

Title 63E, Independent Entities Code, created the Retirement and Independent Entities Committee and established its duties related to the oversight of independent entities. At the direction of the chairs, the committee staff has updated the report "A Guide to Utah's Independent Entities" first released in August 2012. Like the 2012 guide, the July 2014 version inventories and explains the purpose of existing independent entities and adds an explanation on the process to create and dissolve an independent entity.

· Benjamin N. Christensen, Policy Analyst, Office of Legislative Research and General Counsel

· Melinda Boulter, Research Assistant, Office of Legislative Research and General Counsel

10:20 3. Utah Housing Corporation

The Utah Housing Corporation was initially created in statute as an independent public corporation in 1975 to raise funds and create opportunities to assist low- and moderate-income individuals in obtaining decent, safe, and sanitary housing. The corporation does not receive any state funds. The corporation purchases and services mortgage loans made by private lenders to low and moderate income buyers and packages the loans into various securities that are sold to investors seeking highly rated, secure, fixed rate investments. The corporation has a nine member governing board. A representative of the Utah Housing Corporation will explain its mission, operations, challenges, and achievements.

· Grant S. Whitaker, President and CEO, Utah Housing Corporation

10:45 4. Utah Capital Investment Corporation

The Utah Capital Investment Corporation was initially created in statute as an independent quasi-public corporation in 2003 to make venture capital fund investments through the Utah Fund of Funds to provide access to alternative capital to Utah entrepreneurs. While the obligations of the corporation are not obligations of the state or any of its political subdivisions, investments are backed by Utah tax credits. A representative of the Utah Capital Investment Corporation will explain its mission, operations, challenges, and achievements. In addition, the Legislative Auditor General released “A Performance Audit of the Utah Fund of Funds in August 2014. The audit reviewed operations, determined whether the program is achieving expectations, and evaluated investment and economic development numbers reported by the program. The auditors will present the audit findings to the committee.

· Darin Underwood, Audit Manager, Office of the Legislative Auditor General

· Brian Dean, Audit Supervisor, Office of the Legislative Auditor General

· Bret Jepsen, Managing Director, Utah Capital Investment Corporation

11:25 5. Funding Request for 2-1-1 Information and Referral Network -- Update

During the 2013 General Session, the legislature passed SB 56, “Utah 211 Referral Information Network” which required the Department of Human Services to designate an approved 2-1-1 service provider. The appropriation request for this program was $550,000 ongoing and was presented to the Retirement and Independent Entities Appropriations subcommittee on February 15, 2013 by the United Way. Due to budget constraints only $250,000 one-time was appropriated to Human Services for this program for FY 2014 and $500,000 one-time was appropriated for FY 2015. A representative of United Way 211 Service will provide an update on the funding for the 2-1-1 Service.

· Chiara Cameron, 2-1-1 Director, United Way of Salt Lake

11:35 6. Public Employee’s Health Program (PEHP) Cost Updates

The PEHP was created within URS by the Legislature to provide group health and other coverage for state, local, and public educational institution employees (see Utah Code Section 49-20-105). A representative of PEHP will provide cost updates and explain current efforts and issues.

· R. Chet Loftis, Group Insurance Director, PEHP

Noon Break for Lunch

12:30 7. Total Compensation Analysis for State Employees

Attracting and retaining qualified employees is among the first concerns of any public or private entity. The Department of Human Resource Management is required to develop and administer human resource systems, including a state pay plan, classification system, and recruitment and selection system. The department is required to conduct research and planning to prepare for future state human resource needs. The department will report on the status of total state employee compensation, identify areas of concern, and offer recommendations. In addition, representatives of the Office of Management and Budget will provide an update on efforts to adequately fund leave balances paid-out when an employee leaves state employment or retires.

· Benjamin N. Christensen, Policy Analyst, Office of Legislative Research and General Counsel

· Debbie Cragun, Executive Director, Department of Human Resource Management

· Matthew Lund, Budget, Revenue, and Policy Economist, Office of Management and Budget

· Nate Talley, Budget, Revenue, and Policy Economist, Office of Management and Budget

1:45 8. Postretirement Employment Restrictions

The 2010 retirement reforms implemented stricter postretirement reemployment restrictions, including: (1) a one-year employment separation requirement after retirement; and (2) a prohibition on collecting a retirement allowance while receiving any employer retirement contribution or while earning additional service credit. The concept behind the restrictions is to discourage earlier than normal retirement or at least eliminate incentives to retire earlier than normal. As stated in two legislative audits in 2006 and 2009, the retirement fund is adversely affected when employees retire earlier than they otherwise would because retiring earlier decreases the pay-in period to the fund and extends the payout period from the fund. Since the 2010 reforms, requests from retirees to ease the postemployment retirement restrictions are continuous. How should the committee respond to these requests? What is the cost of easing postretirement restrictions?

· Benjamin N. Christensen, Policy Analyst, Office of Legislative Research and General Counsel

· Shannon C. Halverson, Associate General Counsel, Office of Legislative Research and General Counsel

· Dee S. Larsen, Legal Counsel, Utah Retirement Systems

2:30 9. Potential Utah Retirement System Legislation - Updates

Annually, Utah Retirement Systems (URS) recommends changes in statute to keep the Utah State Retirement and Insurance Benefit Act updated by addressing issues identified in the previous year and by making technical changes. In addition, URS is suggesting separate legislation to address Tier II retirement systems and benefit claim limitations. A representative of URS will explain the concepts of the legislations and provide an update.

· Dee S. Larsen, Legal Counsel, Utah Retirement Systems

3:00 10. Utah Retirement Systems Office Tour

Following the other agenda items the committee will adjourn the regular meeting and participate in a walking tour of the URS Office.

4:00 11. Other Items / Adjourn