Text: April 11, 2018The Honorable Kurt DaudtSpeaker of the House of RepresentativesRoom 463, State Office BuildingSaint Paul, Minnesota 55155Dear Mr. Speaker:Earlier this week, I wrote asking the Legislature to prioritize work on which wehave expressed shared commitments. Given its broad bipartisan support, I ask that yourfirst order of business in completing that work be stabilizing the pensions of over half amillion Minnesota workers and retirees. The Senate has already unanimously passed aclean bill out of committee and off the Senate Floor. I urge the House to follow the goodexample of the Senate and expedite passage of this bill.The compromise Pensions Bill would provide an immediate reduction in pensionfund liabilities of $3 .4 billion, addressing the economic and demographic changes thepension plans are facing, and reverse their downward funding trajectories. In doing so,this bill reflects many of the recommendations of the Blue Ribbon Panel on PensionReform, which I convened in 2016. I greatly appreciate their work, strongly support theirrecommendations, and am pleased to see these urgently needed solutions reflected in thisyear's Omnibus Pensions Bill.Unfunded pension liabilities have adversely affected state, local, and schooldistrict bond ratings in recent years. These liabilities add millions of dollars in debt servicecosts to schools, cities, counties, and to the state. Setting our pension plans on acourse to continued stability will be viewed favorably by rating agencies, improve ourstate's finances, and keep our promises to hundreds of thousands of workers and retirees,who are depending on us to solve this problem.The compromise Pensions Bill reflects a bipartisan consensus achieved by themembers of the Pension Commission, led this year by Senator Julie Rosen andRepresentative Tim O'Driscoll. The bill also has the support of a remarkably large anddiverse coalition of representatives of the affected retirees, school, city and countygovernments, public employees, and the pension systems. Each has contributed to thepackage by accepting lower COLAs, higher employee and employer contributions, andreduced benefits. In fact, for every $1 invested by the state under this legislation,employees and retirees would contribute an additional $2.90 in higher contributions andlower COLAs and benefits. The bill truly reflects shared sacrifices from all parties.I again thank Senate Majority Leader Gazelka and Chair Rosen for passing SF2620 early, separately, and without disrupting the agreements among the interestsinvolved. I urge the House to act quickly, so that I can sign the bill into law by the end ofthis month.My Commissioners, staff, and I are ready to work with you at any time toexpedite this important work.Sincerely,Mark DaytonGovernorcc: The Honorable Paul Gazelka, Senate Majority LeaderThe Honorable Tom Bakk, Senate Minority LeaderThe Honorable Melissa Hortman, House Minority LeaderSenator Julie Rosen, Chair, Finance Committee and Pension CommissionRepresentative Tim O'Driscoll, Vice Chair Pension Commission