News from the Director | St. Paul Teachers' Retirement Fund Association (SPTRFA) | St. Paul Teachers' Retirement Fund Association

The State Senate late Friday night, May 10, gave its approval to the Omnibus Pension Bill which now heads to a Conference Committee to resolve minor differences between the Senate and House versions. The Conference Committee has yet to schedule a meeting but action is expected in the next day or so. This week, the current Session is due to conclude. Therefore, insuring the Bill reaches the Governor’s desk in the next few days will be critical and is expected. Governor Dayton is a supporter of the proposal.

There was word, unconfirmed at this point, from the Senate President’s office that the funding difference between the House and Senate version has been resolved. The House allowed for the State’s additional supplemental payment of $7 million to SPTRFA to begin this fall (October, 2103). The Senate Finance Committee amended its bill to commence payments in the next fiscal year, July 2014. If the rumor is correct, the Senate side has located the sufficient funding to cover starting the payments later this year in accordance with the House language.

Senate conferees are headed by Senate President Sandy Pappas and Senator Roger Reinhert (DFL-Duluth). House conferees are expected to include Representatives Mary Murphy and Mike Nelson.

This past week, the SPTRFA’s Proposal, which has been folded into the 2013 Omnibus Pension Bill, passed two more hurdles on its course through Legislative maze. Through the persistent efforts of Representative Mary Murphy (DFL-Hermantown), the Pension Bill was debated on the floor of the House and approved on a roll call vote 73-49. A handful of weakening amendments were beaten back during floor debate. The Bill, including our proposal which remained unchanged from the language which left the Pension Commission, was engrossed and now awaits Senate action.

On the Senate side, its Finance Committee, chaired by Senator Richard Cohen (DFL-Saint Paul), gave approval on a voice vote, but with two modifications: an amendment to study the possible merger of the three separate teacher systems, the State’s TRA, Duluth Teachers and Saint Paul; and, a second change revising and delaying the initial supplemental State payment ($7 million/year) from the original date of this October to the next Fiscal Year, July 1, 2014.

Currently, our lead sponsor, Senator Sandy Pappas (DFL-Saint Paul) is attempting to restore the original funding plan before bringing the matter to the Senate floor for consideration. When the Senate has completed its action, the matter will require a Conference Committee, comprised of House and Senate members, to resolve any differences in each Chamber’s versions before final action. Governor Dayton is prepared to sign the Omnibus Pension Bill when it reaches his desk.

Omnibus Pension Bill heads to the Conference Committee

May 10 Legislative Update