Interim Calendar and Briefing

November 6, 1996

Contents:

Calendar of Scheduled Meetings

Agenda Information Regarding Scheduled Meetings

BRIEFINGS - Information Regarding Recent Meetings

Iowa Public Employees Retirement System - Special Studies Committee - September 25 and October 25, 1996

Calendar of Scheduled Meetings

Tuesday, November 12, 1996: ADMINISTRATIVE RULES REVIEW COMMITTEE
10:00 a.m., Room 22
Wednesday, November 13, 1996: ADMINISTRATIVE RULES REVIEW COMMITTEE
9:00 a.m., Room 22
Monday, November 18, 1996: SOLID WASTE REDUCTION AND RECYCLING STUDY COMMITTEE
10:00 a.m., Room 22
Tuesday, November 19, 1996: HEDGE TO ARRIVE CONTRACTS STUDY COMMITTEE
10:00 a.m., Room 334, Vocational Technical Building, Iowa Central Community College, Fort Dodge, IA; PROPERTY TAXATION STUDY COMMITTEE - (TENTATIVE)
10:00 a.m., Room 22
Wednesday, November 20, 1996: LOCAL INFRASTRUCTURE NEEDS STUDY COMMITTEE - (TENTATIVE)
10:00 a.m., Room 22
Friday, November 22, 1996: IOWA ADMINISTRATIVE PROCEDURES STUDY COMMITTEE
10:00 a.m., Room 22
Monday, November 25, 1996: DHS RESTRUCTURING TASK FORCE
10:00 a.m., Hoover Bldg. Conference Room, B-Level
(Meeting Room is Tentative)
Wednesday, November 27, 1996: LAW ENFORCEMENT TRAINING STUDY COMMITTEE - (TENTATIVE)
Time to be Announced, Room 1

Monday, December 2, 1996: INTERPRETIVE SERVICES STUDY COMMITTEE
10:00 a.m., Room 116
Wednesday, December 4, 1996: FISCAL COMMITTEE OF THE LEGISLATIVE COUNCIL - (TENTATIVE)
Time and Location to be Announced
Friday, December 13, 1996: Compensation of Justices, Judges, & Magistrates Study Committee - TENTATIVE
10:00 a.m., Room 22
Wednesday, December 18, 1996: LOCAL INFRASTRUCTURE NEEDS STUDY COMMITTEE - (TENTATIVE)
Time to be Announced, Room 22

Agenda Information Regarding Scheduled Meetings

Administrative Rules Review Committee

Co-chairperson: Senator Berl E. Priebe
Co-chairperson: Representative Janet Metcalf

Location: Committee Room 22, State House, Des Moines
Date & Time: Tuesday, November 12, 1996, 10:00 a.m., Wednesday, November 13, 1996, 9:00 a.m.
Contact Person: Joe Royce, Legal Counsel, Administrative Rules
LSB Staff: Kathie Bates, Administrative Code Office
Tentative Agenda: Agenda (as Published in the Administrative Bulletin)
FURTHER INFORMATION: | CHARGE | MEMBERS | STAFF | HEARINGS |

Solid Waste Reduction and Recycling Study Committee

Temporary Co-chairperson: Senator Patrick J. Deluhery
Temporary Co-chairperson: Representative Clyde Bradley

Location: Committee Room 22, State House, Des Moines
Date & Time: Monday, November 18, 1996, 10:00 a.m.
Staff: Patty Funaro
Tentative Agenda:
- Overview of waste management practices throughout the state and progress toward meeting statutory goals for solid waste reduction and recycling.
FURTHER INFORMATION: | CHARGE | MEMBERS | STAFF | FINAL REPORT |

Hedge to Arrive Contracts Study Committee

Temporary Co-chairperson: Senator John P. Kibbie
Temporary Co-chairperson: Representative Russell Teig

Location: Room 334, Vocational Technical Building, Iowa Central Community College, 330 Avenue M, Fort Dodge, IA
Date & Time: Tuesday, November 19, 1996, 10:00 a.m.
Staff: Doug Adkisson
Tentative Agenda:
- Presentations from a number of persons involved in the issue.
FURTHER INFORMATION: | CHARGE | MEMBERS | STAFF | FINAL REPORT |

Property Taxation Study Committee(Tentative)

Temporary Co-chairperson: Senator William Palmer
Temporary co-chairperson: Representative Roger Halvorson

Location: Committee Room 22, State House, Des Moines
Date & Time: Tuesday, November 19, 1996, 10:00 a.m.
Staff: Mike Goedert, Susan Crowley
Tentative Agenda: Agenda to be Announced
FURTHER INFORMATION: | CHARGE | MEMBERS | STAFF | FINAL REPORT |

Local Infrastructure Needs Study Committee

Temporary Co-chairperson: Senator Larry Murphy
Temporary Co-chairperson: Representative Barry Brauns

Location: To be Announced
Date & Time: Wednesday, November 20, 1996, Time to be Announced
Staff: Susan Crowley
Tentative Agenda:
- Presenattions from local government representatives and others on local infrastructure financing and on proposals to meet local infrastructure needs.
FURTHER INFORMATION: | CHARGE | MEMBERS | STAFF | FINAL REPORT |

Iowa Administrative Procedures Study Committee

Temporary Co-chairperson: Senator Tom Vilsack
Temporary Co-chairperson: Representative Janet Metcalf

Location: Committee Room 22, State House, Des Moines
Date & Time: Friday, November 22, 1996, 10:00 a.m.
Staff: Ed Cook, Doug Adkisson
Tentative Agenda:
- Presentations from the Iowa State Bar Association, state agencies, and others concerning proposals to revise Iowa's Administrative Procedures Act.
FURTHER INFORMATION: | CHARGE | MEMBERS | STAFF | FINAL REPORT |

DHS Restructuring Task Force

Co-chairperson: Senator Johnie Hammond
Co-chairperson: Representative Hubert Houser

Location: Hoover State Office Building Conference Room, B-Level (Tentative Meeting Room), Des Moines
Date & Time: Monday, November 25, 1996, 10:00 a.m.
Staff: Patty Funaro, Rick Nelson
Tentative Agenda: Agenda to be Announced
FURTHER INFORMATION: | CHARGE | MEMBERS | STAFF | FINAL REPORT |

Law Enforcement Training Study Committee (Tentative)

Temporary Co-chairperson: Senator Randal Giannetto
Temporary Co-chairperson: Representative Teresa Garman

Location: Committee Room 1, State House, Des Moines
Date & Time: Wednesday, November 27, 1996, Time to be Announced
Staff: Kathy Hanlon, Jan Simmons
Tentative Agenda: Agenda to be Announced
FURTHER INFORMATION: | CHARGE | MEMBERS | STAFF | FINAL REPORT |

Interpretive Services Study Committee

Temporary Co-chairperson: Senator Elaine Szymoniak
Temporary Co-chairperson: Representative Joseph Kremer

Location: Committee Room 116, State House, Des Moines
Date & Time: Monday, December 2, 1996, 10:00 a.m.
Staff: Richard Nelson, Patty Funaro
Tentative Agenda:
- Review of current services for adults and schools, programs in other states, and the results of a Deaf Services Commission survey.
FURTHER INFORMATION: | CHARGE | MEMBERS | STAFF | FINAL REPORT |

Fiscal Committee of the Legislative Council - TENTATIVE

Co-chairperson: Senator Larry Murphy
Co-chairperson: Representative David Millage

Location: To be Announced
Date & Time: Wednesday, December 4, 1996, Time to be Announced
LFB Staff: Tim Faller, Holly Lyons
LSB Monitor: Kathy Hanlon
Tentative Agenda: Agenda to be Announced
FURTHER INFORMATION: | CHARGE | MEMBERS | STAFF | FINAL REPORT |

Compensation of Justices, Judges, and Magistrates Study Committee - TENTATIVE

Temporary Co-chairperson: Senator Eugene Fraise
Temporary Co-chairperson: Representative Jeff Lamberti

Location: Committee Room 22, State House, Des Moines
Date & Time: Friday, December 13, 1996, 10:00 a.m.
Staff: Leslie Hickey, Mike Kuehn
Tentative Agenda: Agenda to be Announced
FURTHER INFORMATION: | CHARGE | MEMBERS | STAFF | FINAL REPORT |

Local Infrastructure Needs Study Committee - TENTATIVE

Temporary Co-chairperson: Senator Larry Murphy
Temporary Co-chairperson: Representative Barry Brauns

Location: Committee Room 22, State House, Des Moines
Date & Time: Wednesday, December 18, 1996, Time to be Announced
Staff: Susan Crowley
Tentative Agenda: Agenda to be Announced
FURTHER INFORMATION: | CHARGE | MEMBERS | STAFF | FINAL REPORT |

BRIEFINGS - Information Regarding Recent Meetings

IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM - SPECIAL STUDIES COMMITTEE

September 25 and October 25, 1996

Background - Special Studies Committee.

The Committee was formed by the Iowa Public Employees' Retirement System division (IPERS) to conduct several studies required by the Legislature concerning the system and to report the results of those studies to the Legislature's Public Retirement Systems Committee by September 1997. The Special Studies Committee has met several times during the summer and fall concerning the conduct of the required studies.

Joseph Metz, Buck Consultants

Overview. Buck Consultants was retained to assist IPERS in evaluating the utility of adding a supplemental plan to IPERS' benefits and to examine the issue of providing expanded disability benefits under IPERS. In preparation for considering these issues, Mr. Metz addressed the committee concerning these two studies and more specifically, led a discussion concerning possible supplemental plans that could be adopted.

Supplemental Plan Alternatives to be Considered:

Adding voluntary employee contribution features to the IPERS current defined benefit plan.
Adoption of a stand-alone defined contribution plan in which participation by the members is voluntary.
Amending the current IPERS-defined benefit plan to remove the employee contribution feature and adopt a stand-alone defined contribution plan in which participation by the members is mandatory.
Amend the current IPERS-defined benefit plan to create a hybrid plan, such as a "floor offset plan" which allows a member of the plan to receive the greater of a minimum level defined benefit plan or a benefit based on contributions on behalf of the member.
Establish a two-tiered IPERS plan, such as limiting membership in the defined benefits plan to current members and providing a defined contribution plan for new members, or providing a defined benefit plan for new members without employee contributions.
Establish a mechanism where excess funds in IPERS could be used to fund a cost of living adjustment for retiree benefits.

Mary Beth Braitman, Ice Miller Donado & Ryan

Overview. Mary Beth Braitman is an attorney in the law firm retained by IPERS to oversee and provide legal guidance concerning the IPERS plan. Ms. Braitman addressed the committee by examining various options for enhancing or modifying benefits under IPERS.

Enhancing Mandatory Employee Contributions to an Existing Defined Benefit Plan:

Colorado case study: In order to assist shorter term state employees, Colorado has added an enhancement to its core defined benefit plan of a refund of employee contributions for those members who terminate prior to vesting. The refund is calculated by giving the employee their employee contributions plus 25 percent of employer contributions with interest calculated at 80 percent of the fund's actuarial interest rate. If the member does not withdraw their money until age 65, the employee receives 50 percent of the employer contributions instead of 25 percent. Vested members receive the greater of their benefit under the defined benefit plan or the added enhancement. Ms. Braitman indicated that this enhancement has been in place for only a few years.
Indiana case study: Indiana provides for an "annuity savings account" for all members. In Indiana, the core defined benefit plan is paid for by employer contributions with the employee contributions going into the annuity savings account. The interest applied to this account is determined each year by the board of trustees and is protected from investment loss; i.e., once interest is credited it can not be reduced even if the fund loses money in any particular year. In discussing this plan, it was noted that Indiana provides for a 1.1 percent multiplier for each year of service and allows retirement based on the rule of 85.
Nebraska case study: Nebraska increased member and employer contributions in 1993 and specifically designated a part of the increase to go to a special reserve fund for the purpose of supporting cost of living adjustments. Under this plan, the actuary determines the extent of any COLA paid based on the funds available in the reserve fund.

Splitting Out Mandatory Employee Contributions to a Separate New Defined Contribution Plan:

Washington State new teachers plan case study: Washington kept the existing defined benefit plan for all members but reduced the formula multiplier from 2 percent to 1 percent for teachers hired after July 1, 1996. Then, for these new teachers, their employee contributions go to a separate account which provides the employee some direction in the investment of this portion. In effect, these new teachers have a base defined benefit plan with an additional defined contribution plan.
South Dakota case study: South Dakota has established a new plan where all new state employees must make an irrevocable choice within 90 days of employment between going into the existing defined benefit plan or into a new defined contribution plan.
Small Business Job Protection Act of 1996 - Enhancing Eligible Deferred Compensation Plans. Recent federal legislation has provided for enhancement of existing 457 (deferred compensation) plans by allowing funds deposited in these accounts to be in a protected trust for participants and provides for cost of living index adjustments to the maximum contribution level. In addition, one investment option for participants could be to have their account invested through IPERS. Ms. Braitman indicated that Minnesota and New York have something similar to this possible option.
Conversion From a Defined Benefit Plan to a Defined Contribution Plan. Ms. Braitman indicated that several legal problems would arise if a current defined benefit plan was converted to a defined contribution plan with the conversion applicable to current members of the defined benefit plan.
- LSB Monitor: Ed Cook
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