LEFT 2 board objects to amendment transferring LEFT 1 oversight, votes to register concerns

The Law Enforcement Officers' and Fire Fighters' Plan 2 Retirement Board spent most of its Feb. 25 meeting debating a late House-floor amendment to the LEFT 1 termination bill that would move responsibility for overseeing and recommending policy and funding for the closed LEFT 1 plan to the LEFT 2 board, and would transfer large surplus amounts to state accounts.

Board staff told members the amendment would set LEFT 1 funding at 110 percent, move $569,000,000 of LEFT 1 assets into the state's Climate Commitment Account, and place the remainder into a Pension Funding Stabilization Account that could be transferred to the state general fund; the House budget also includes an $880 million transfer over two years. Staff said the Senate had directed the LEFT 2 board to study whether certain DNR wildland firefighters should be made eligible for LEFT 2 but that no separate state funds were provided for that study.

Members reacted sharply. Several trustees said shifting governance responsibilities from the Select Committee on Pension Policy (SEPP) to the LEFT 2 board would create conflicts and could invite future incursions on LEFT 2 resources. One trustee urged forceful opposition to “dipping in and using that money for anything other than pensions,” calling the practice “wrong.” Another urged the board to consider accepting governance only if it could be structured to protect LEFT 1 retirees.

Board staff explained that, under the amendment, LEFT 2 would not legally be able to refuse compliance if the law passed, and that the transfer of governance would not take effect until June 30, 2029 — giving stakeholders time to propose statutory changes. Staff also said the bill does not authorize using LEFT 1 funds to pay for LEFT 1 studies; instead, any studies the LEFT 2 board conducts on LEFT 1 matters would be paid from LEFT 2's expense fund.

After discussion about how forceful the board's formal stance should be, a motion was made and seconded to register an "other with concerns" position regarding the amendment. The board voted and the chair declared the motion carried; staff said they would present those concerns at the Senate Ways and Means hearing scheduled the next day.

The board also reviewed other legislative items, including a medical-premium reimbursement proposal for surviving spouses that advanced in the legislature, discussed differences between the House and Senate budget lines for trustee education and communications, and noted outreach and staff events planned for March. No public comments were received at the meeting.

The board plans follow-up with the legislature and with the governor's office to press the concerns it identified; the amendment as written would take effect in 2029 if enacted, and staff said there will be opportunities over the next months and years to seek statutory changes or clarifications.