Alaska State Legislature

Home
Bill & Laws
Bills
HB 1009 Detail
FullText

txt

HB 1009: "An Act relating to public employee compensation, benefits, and labor relations; relating to salaries, geographic and cost-of-living differentials for certain state employees, and to salary surveys and preparation of an annual pay schedule regarding certain state employees; relating to retirement and early retirement incentives for certain public employees; relating to pay and benefit programs for public employees; relating to and making conforming amendments concerning certain state aid calculations formerly based on geographic differentials for state employee salaries; relating to the exempt status of certain state employees; and providing for an effective date."

00HOUSE BILL NO. 1009 01 "An Act relating to public employee compensation, benefits, and labor relations; 02 relating to salaries, geographic and cost-of-living differentials for certain state 03 employees, and to salary surveys and preparation of an annual pay schedule 04 regarding certain state employees; relating to retirement and early retirement 05 incentives for certain public employees; relating to pay and benefit programs for 06 public employees; relating to and making conforming amendments concerning 07 certain state aid calculations formerly based on geographic differentials for state 08 employee salaries; relating to the exempt status of certain state employees; and 09 providing for an effective date." 10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 11 * Section 1. PURPOSE AND LEGISLATIVE INTENT. The purpose of sec. 7 of this Act 12 is to affirm the interpretation and practice of the state with regard to the use of criteria similar 13 to the criteria in the permanent fund dividend program for determining the establishment and 14 maintenance of state residency for eligibility for the cost-of-living differential under

01 AS 23.40.210. It is also the intent of the legislature to provide express statutory authority to 02 the state to establish or clarify those standards through adoption of regulations by the 03 Department of Administration and to set the eligibility criteria for the differential outside the 04 collective bargaining context. 05 * Sec. 2. AS 22.05.140(a) is amended to read: 06 (a) Except as provided in (d) of this section, the monthly base salary of the 07 chief justice is $9,203 [$8,333] and for each other justice, the monthly base salary is 08 $9,159 [$8,292]. 09 * Sec. 3. AS 22.07.090(a) is amended to read: 10 (a) Except as provided in (c) of this section, the monthly base salary of a 11 judge of the court of appeals is $8,652 [$7,833]. The compensation of a judge may 12 not be diminished during the term of office, unless by a general law applying to all 13 salaried officers of the state. 14 * Sec. 4. AS 22.10.190(a) is amended to read: 15 (a) Except as provided in (d) of this section, the monthly base salary for each 16 superior court judge is $8,469 [$7,667]. 17 * Sec. 5. AS 22.15.220(a) is amended to read: 18 (a) Except as provided in (e) of this section, the monthly base salary for each 19 district court judge is $7,179 [$6,500]. 20 * Sec. 6. AS 22.15.220(b) is amended to read: 21 (b) Each magistrate shall receive annual compensation including geographic 22 differential pay to be determined by the supreme court. Salary increases shall be 23 determined on the basis of percentage of pay increase the legislature provides for state 24 employees in the classified service. [THE BASE SALARY OF A MAGISTRATE 25 SHALL BE INCREASED BY A PERCENTAGE EQUAL TO THREE AND ONE- 26 HALF PER CENT TIMES THE NUMBER OF STEP INCREASES PROVIDED UNDER 27 AS 39.27.020 THAT A STATE EMPLOYEE WOULD RECEIVE WORKING IN THE 28 SAME ELECTION DISTRICT.] A magistrate's annual compensation may be payable, at the 29 option of the magistrate, either monthly in 12 equal installments or semi-monthly in 24 equal 30 installments. 31 * Sec. 7. AS 23.40.210 is amended by adding new subsections to read:

01 (b) An employee is eligible for the cost-of-living differential under (a) of this 02 section only if the individual is a state resident. The required presence of an employee 03 at a work station where room and board are provided or reimbursed by the employer 04 may not be considered to be physical presence in the state or physical absence from 05 the state for purposes of determining eligibility for the cost-of-living differential. 06 (c) The commissioner of administration may adopt regulations under AS 44.62 07 (Administrative Procedure Act) to clarify and implement the criteria for establishing 08 and maintaining eligibility for the cost-of-living differential. 09 (d) An agreement entered into under AS 23.40.070 - 23.40.260 must require 10 compliance with the eligibility criteria for receiving the cost-of-living differential 11 contained in this section and the regulations adopted by the commissioner under (c) 12 of this section. 13 (e) In this section, "state resident" means an individual who is physically 14 present in the state with the intent to remain permanently in the state under the 15 requirements of AS 01.10.055 or, if the individual is not physically present in the state, 16 intends to return to the state and remain permanently in the state under the 17 requirements of AS 01.10.055, and is absent only temporarily for reasons allowed 18 under AS 43.23.095(8) or a successor statute. 19 * Sec. 8. AS 24.10.100 is amended to read: 20 Sec. 24.10.100. SALARY OF LEGISLATORS. The monthly salary for each 21 member of the legislature is $2,001 [EQUAL TO STEP A, RANGE 10 OF THE 22 SALARY SCHEDULE IN AS 39.27.011(a) FOR JUNEAU]. The president of the 23 senate and the speaker of the house of representatives are each entitled to an additional 24 $500 a year during tenure of office. 25 * Sec. 9. AS 29.60.160(a) is amended to read: 26 (a) Payments to a municipality or other eligible recipient under AS 29.60.110 27 - 29.60.130 shall reflect area cost-of-living differentials. Payments shall be based on 28 the sum of per capita, per mile, and per bed or facility grants due each municipality 29 or other recipient multiplied by the appropriate area cost-of-living differential. The 30 area cost-of-living differential for each recipient shall be determined [ANNUALLY BY 31 ELECTION DISTRICT] under the provisions of AS 29.60.164 and 29.60.165

01 [AS 39.27.030]. Application of the area cost-of-living differential may not result in 02 distribution of an amount less than the amount of the payment determined without 03 reference to application of this section. 04 * Sec. 10. AS 29.60 is amended by adding new sections to read: 05 Sec. 29.60.164. AREA COST-OF-LIVING DIFFERENTIALS. (a) The area 06 cost-of-living differential multiplier shall be determined by multiplying the cost-of- 07 living steps found in the table in this subsection by three and one-half percent. The following 08 area cost-of-living steps apply: 09 Election District Cost of Living 10 1 0 11 2 1 12 3 1 13 4 0 14 5 2 15 6a (excluding Valdez Duty Station) 4 16 6b (Valdez Duty Station) 5 17 7 1 18 8 0 19 9 2 20 10 2 21 11 2 22 12 7 23 13 7 24 14 8 25 15a (excluding Nenana Duty Station) 9 26 15b (Nenana Duty Station) 8 27 16a (south of Arctic Circle) 4 28 16b (north of Arctic Circle) 9 29 17 9 30 18 9 31 19 8

01 In other states minus 6. 02 (b) For purposes of (a) of this section, "election district" means an election 03 district designated in the governor's proclamation of reapportionment and redistricting 04 of December 7, 1961. 05 Sec. 29.60.165. COST-OF-LIVING SURVEY. Subject to an appropriation 06 for this purpose, the director shall conduct a survey, at least every five years, to review 07 the differentials established in AS 29.60.164. This survey must address factors, as 08 determined by the director, that are also relevant in review of state salary schedules, 09 entitlement for beneficiaries of state programs, and payments for state service 10 providers. The survey must reflect the costs of living in various election districts of 11 the state, and Seattle, Washington, by using the cost of living in Anchorage as the 12 base. 13 * Sec. 11. AS 29.60.290(b) is amended to read: 14 (b) The area cost-of-living differential payable to each municipality under this 15 section shall be determined [ANNUALLY BY ELECTION DISTRICT] under the 16 provisions of AS 29.60.164 and 29.60.165 [AS 39.27.030]. Except as provided in 17 AS 29.60.300, application of the area cost-of-living differential may not result in a 18 payment that is less than the minimum payment determined under (a) of this section. 19 [FOR PURPOSES OF THIS SUBSECTION, THE ELECTION DISTRICTS USED 20 ARE THOSE DESIGNATED BY THE PROCLAMATION OF REAPPORTIONMENT 21 AND REDISTRICTING OF DECEMBER 7, 1961, AND RETAINED FOR THE 22 HOUSE OF REPRESENTATIVES BY PROCLAMATION OF THE GOVERNOR 23 SEPTEMBER 3, 1965.] 24 * Sec. 12. AS 39.20.250(a) is amended to read: 25 (a) Terminal leave for unused personal leave shall be allowed upon separation 26 from service. The payment equals the employee's accrued and unused hours of 27 personal leave at the time of separation from service multiplied by the hourly rate 28 of pay to which the employee was entitled at the time the leave was earned [THE 29 COMPENSATION THAT THE OFFICER OR EMPLOYEE WOULD HAVE 30 RECEIVED IF THE OFFICER OR EMPLOYEE HAD REMAINED IN THE 31 SERVICE UNTIL THE EXPIRATION OF THE PERIOD OF UNUSED PERSONAL

01 LEAVE]. A payment of terminal leave to an employee shall be made as a lump sum 02 payment. For purposes of this subsection, an employee is considered to use the 03 earliest accrued leave when the employee uses personal leave [OR IN 04 INSTALLMENTS OVER A PERIOD OF TIME, AS THE EMPLOYEE ELECTS]. 05 * Sec. 13. AS 39.27.011 is amended by adding new subsections to read: 06 (e) Effective July 1, 1996, the amounts set out in the salary schedule contained 07 in (a) of this section are increased by the lesser of 08 (1) 1.5 percent; or 09 (2) one-half of the percentage increase in the United States Department 10 of Labor, Bureau of Labor Statistics, consumer price index for all urban consumers for 11 Anchorage, Alaska, from the second half of 1994 to the second half of 1995. 12 (f) Effective July 1, 1997, the amounts set out in the salary schedule contained 13 in (a) of this section, as increased under (e) of this section, are increased by the lesser 14 of 15 (1) 1.5 percent; or 16 (2) one-half of the percentage increase in the United States Department 17 of Labor, Bureau of Labor Statistics, consumer price index for all urban consumers for 18 Anchorage, Alaska, from the second half of 1995 to the second half of 1996. 19 (g) Effective July 1, 1998, the amounts set out in the salary schedule contained 20 in (a) of this section, as increased under (e) and (f) of this section, are increased by 21 the lesser of 22 (1) 1.5 percent; or 23 (2) one-half of the percentage increase in the United States Department 24 of Labor, Bureau of Labor Statistics, consumer price index for all urban consumers for 25 Anchorage, Alaska, from the second half of 1996 to the second half of 1997. 26 * Sec. 14. AS 39.27.020 is repealed and reenacted to read: 27 Sec. 39.27.020. PAY DIFFERENTIALS. (a) The following pay differentials 28 are approved as an amendment to the basic salary schedule in AS 39.27.011: 29 Geographic Area Percentage Above or Below 30 (Election Districts) Basic Salary Schedule 31 3, 4, and 7 - 28 0

01 1, 2, 5, 6 5 02 34 - 36 10 03 29 - 33 4 04 37 - 40 20 05 Washington State minus 20. 06 (b) For purposes of determining the differential provided under (a) of this 07 section, an appointing authority may increase the salary on which the geographic pay 08 differential is computed by up to 20 percent of the employee's base salary set out in 09 AS 39.27.011 if 10 (1) the duty station for the position or job class is located in election 11 districts 37, 38, 39, or 40; 12 (2) the position or job class requires the employee to hold a license to 13 practice law under AS 08.08 or to practice medicine under AS 08.64; and 14 (3) the director certifies that recruitment or retention for the position 15 or job class in that election district is so difficult that the increase is essential to 16 recruitment or retention of employees in the position. 17 (c) The director may establish pay differentials for positions in foreign 18 countries or in states other than the State of Washington. If the director establishes 19 a pay differential under this subsection, the director shall adjust the differential as 20 necessary to maintain equitable relationships between salaries for positions outside the 21 state and in the state. 22 (d) For purposes of (a) of this section, "election district" means an election 23 district designated in the governor's proclamation of reapportionment and redistricting 24 applicable to the 1994 general election. 25 * Sec. 15. AS 39.27.030 is repealed and reenacted to read: 26 Sec. 39.27.030. COST-OF-LIVING SURVEY. Subject to an appropriation for 27 this purpose, the director shall conduct a survey, at least every five years, to review 28 the pay differentials established in AS 39.27.020. The survey may address factors, as 29 determined by the director, that are also relevant in review of state salary schedules, 30 entitlement for beneficiaries of state programs, and payments for state service 31 providers. The survey must reflect the costs of living in various election districts of

01 the state, and Seattle, Washington, by using the cost of living in Anchorage as a base. 02 * Sec. 16. AS 39.27.045 is amended to read: 03 Sec. 39.27.045. DEFINITION. In AS 39.27.020 - 39.27.030 [AS 39.27.030 - 04 39.27.040], "director" means the director of the division of personnel. 05 * Sec. 17. AS 39.35.160(a) is amended to read: 06 (a) A [BEGINNING JANUARY 1, 1987, EACH] peace officer or fire fighter 07 who is first hired on or after the effective date of this bill section shall contribute 08 to the system an amount equal to seven percent of the peace officer's or fire 09 fighter's compensation. A peace officer or fire fighter first hired before the 10 effective date of this bill section shall contribute to the system an amount equal to 11 seven and one-half percent of the peace officer's or fire fighter's compensation. Each 12 [BEGINNING JANUARY 1, 1987, EACH] other employee who is first hired on or 13 after the effective date of this bill section shall contribute to the system an amount 14 equal to six percent of the employee's compensation. Each other employee who 15 is first hired before the effective date of this bill section shall contribute to the 16 system an amount equal to six and three-quarters percent of the employee's 17 compensation. The contributions shall be deducted by the employer at the end of each 18 payroll period. The contributions shall be deducted from employee compensation 19 before computation of applicable federal taxes, and the contributions shall be treated 20 as employer contributions under 26 U.S.C. 414(h)(2). 21 * Sec. 18. AS 39.35.370(a) is amended to read: 22 (a) Subject to AS 39.35.450, a terminated employee is eligible for a normal 23 retirement benefit 24 (1) at age 60 with at least five years credited service; 25 (2) with at least 20 years of credited service as a peace officer or fire 26 fighter for peace officers or fire fighters first hired before the effective date of this 27 bill section; [OR] 28 (3) at age 50 with at least 20 years of credited service as a peace 29 officer or fire fighter, for peace officers and fire fighters first hired on or after the 30 effective date of this bill section; 31 (4) with at least 30 years of credited service for all other employees if

01 the employee was first hired before the effective date of this bill section; or 02 (5) at any time when the employee's age and amount of credited 03 service equal or exceed 85 when added together, for all other employees first 04 hired on or after the effective date of this bill section. 05 * Sec. 19. AS 39.35.370(b) is amended to read: 06 (b) Subject to AS 39.35.450, a terminated employee is eligible for an early 07 retirement benefit at age 55 with at least five years credited service. An actuarial 08 adjustment shall be made to retirement benefits paid under this section for an early 09 retirement benefit. The monthly amount of a retirement benefit that would be due 10 under (c) of this section shall be reduced by multiplying one-half of one percent 11 times the number of months, to the nearest month, by which the retirement date 12 of the employee falls short of the date that the employee reaches age 60. 13 * Sec. 20. AS 39.35.370(c) is amended to read: 14 (c) The monthly amount of a retirement benefit for 15 (1) a peace officer or fire fighter is two percent of the average monthly 16 compensation times the years of credited service through 10 years, plus two and one- 17 half percent of the average monthly compensation times the years of service over 10 years; 18 (2) [. FOR] all other employees first hired before the effective date 19 of this bill section, [IT] is 20 (A) [(1)] two percent of the average monthly compensation 21 times all years of service before July 1, 1986, and for years of service through 22 a total of 10 years; plus 23 (B) [(2)] two and one-quarter percent of the average monthly 24 compensation times all years of service after June 30, 1986, over 10 years of 25 total service through 20 years; plus 26 (C) [(3)] two and one-half percent of the average monthly 27 compensation times all years of service after June 30, 1986, over 20 years of 28 total service; 29 (3) all other employees first hired on or after the effective date of 30 this bill section, is 31 (A) one and one-half percent of the average monthly

01 compensation times all years of service through a total of 10 years; plus 02 (B) one and three-quarters percent of the average monthly 03 compensation times all years of service over 10 years of total service 04 through 20 years; plus 05 (C) two percent of the average monthly compensation times 06 all years of service over 20 years. 07 * Sec. 21. AS 39.35.450(a) is amended to read: 08 (a) Benefits payable under this section are in place of benefits payable under 09 AS 39.35.370, 39.35.385, and former AS 39.35.460 [39.35.460]. Upon filing an 10 application with the administrator or when a disabled employee first attains eligibility 11 for normal retirement under AS 39.35.400(f) or 39.35.410(h), the employee shall 12 designate the person who is the employee's spouse at the time of appointment to 13 retirement as the contingent beneficiary. However, if the designation of the spouse is 14 revoked under (c) of this section, the employee may designate a dependent approved 15 by the administrator as the contingent beneficiary or may take normal or early 16 retirement under AS 39.35.370 or 39.35.385 [OR A LEVEL INCOME OPTION 17 UNDER AS 39.35.460]. The administrator shall pay benefits under the option elected 18 by the employee. The employee may elect an option that provides that 19 (1) the employee is entitled to receive a reduced benefit payable for 20 life, and, after the employee's death, the contingent beneficiary is entitled to payments 21 in the amount of 75 percent of the reduced benefit payable for life; 22 (2) the employee is entitled to receive a reduced benefit payable for 23 life, and, after the employee's death, the contingent beneficiary is entitled to receive 24 payments in the amount of 50 percent of the reduced benefit payable for life [; 25 (3) THE EMPLOYEE IS ENTITLED TO RECEIVE A REDUCED 26 BENEFIT PAYABLE DURING THE JOINT LIFETIME OF THE EMPLOYEE AND 27 THE CONTINGENT BENEFICIARY, AND, AFTER THE DEATH OF EITHER THE 28 EMPLOYEE OR THE CONTINGENT BENEFICIARY, THE SURVIVOR IS 29 ENTITLED TO RECEIVE PAYMENTS IN THE AMOUNT OF 66 2/3 PERCENT OF 30 THE REDUCED BENEFIT PAYABLE FOR LIFE]. 31 * Sec. 22. AS 39.35.475(a) is amended to read:

01 (a) Once each year the administrator shall increase benefit payments to 02 (1) eligible disabled members; 03 (2) [, TO] persons age 60 or older receiving benefits under this system 04 in the preceding calendar year; 05 (3) members who were first hired before the effective date of this 06 bill section [, AND TO PERSONS] who have received benefits under this system for 07 at least five years and who are not otherwise eligible for an increase under this 08 section; and 09 (4) survivors of members described in (3) of this subsection when 10 the member and the survivor have together received benefits under this system 11 for at least five years. 12 * Sec. 23. AS 39.35.475(b) is amended to read: 13 (b) The increase in benefit payments applies to total benefit payments except 14 for the cost-of-living allowance under AS 39.35.480. For members first hired on or 15 after the effective date of this bill section, the amount of the increase is a 16 percentage of the current benefit equal to the lesser of 50 percent of the increase 17 in the cost of living in the preceding calendar year or six percent. For members 18 first hired before the effective date of this bill section, the [THE] amount of the 19 increase is a percentage of the current benefit equal to 20 (1) the lesser of 75 percent of the increase in the cost of living in the 21 preceding calendar year or nine percent, for recipients who on July 1 are at least 65 22 years old and for members receiving disability benefits; and 23 (2) the lesser of 50 percent of the increase in the cost of living in the 24 preceding calendar year or six percent, for recipients who on July 1 are at least 60 but 25 less than 65 years old or for recipients who are less than 60 years old on July 1 but 26 who have received benefits from the system for at least five years. 27 * Sec. 24. AS 39.35.485(a) is amended to read: 28 (a) An employee who is eligible for a benefit calculated in accordance with 29 AS 39.35.370(c) is entitled to a benefit of at least $25 a month for each year of 30 credited service, not including adjustments made under AS 39.35.340 for military 31 service, AS 39.35.350 for reinstatement of credited service, AS 39.35.360 for credit

01 for earlier service, AS 39.35.370(c) for early retirement, AS 39.35.420 for 02 nonoccupational death benefits, AS 39.35.450 for the survivor's option, former 03 AS 39.35.460 for the level income option, AS 39.35.475 for the post-retirement 04 pension adjustment, and AS 39.35.480 for the cost of living. 05 * Sec. 25. AS 39.35.535(c) is amended to read: 06 (c) A benefit recipient may elect major medical insurance coverage in 07 accordance with regulations and under the following conditions: 08 (1) a person who is younger than 60 years of age must pay an amount 09 equal to the full monthly group premium for retiree major medical insurance coverage 10 and the full monthly group premium for any dependent coverage elected; 11 (2) a person who is at least 60 years of age but is younger than 65 12 years of age must pay an amount equal to one-half of the full monthly group premium 13 for retiree major medical insurance coverage and any dependent coverage elected; 14 (3) a disabled member or a person 65 years of age or older and who 15 is receiving a benefit based on membership which began before the effective date 16 of this bill section is not required to make premium payments for retiree major 17 medical insurance coverage or any dependent coverage; 18 (4) a disabled member or person 65 years of age or older and who 19 is receiving a benefit based on membership that began on or after the effective 20 date of this bill section is not required to make premium payments for retiree 21 major medical insurance coverage; however, for any dependent coverage elected, 22 the person is required to pay an amount equal to one-half of the monthly group 23 premium. 24 * Sec. 26. AS 39.35.680(4) is amended to read: 25 (4) "average monthly compensation" means the result obtained by 26 dividing the compensation earned by an employee during a considered period by the 27 number of months, including fractional months, for which compensation was earned; 28 the considered period consists of (A) for employees first hired before the effective 29 date of this bill section, the three consecutive payroll years during the period of 30 credited service that yields the highest average, and (B) for employees first hired on 31 or after the effective date of this bill section, the five consecutive payroll years

01 during the period of credited service that yield the highest average, or if the 02 employee does not have the required number of [THREE] consecutive payroll years, 03 the employee's period of credited service; an employee must have at least 115 days 04 of credited service in the last payroll year in order for that year to be used as part of 05 the [THREE] consecutive payroll years; 06 * Sec. 27. AS 44.31.020 is amended to read: 07 Sec. 44.31.020. DUTIES OF DEPARTMENT. The Department of Labor shall 08 (1) enforce the laws, and adopt regulations under them concerning 09 employer-employee relationships, including the safety, hours of work, wages, and 10 conditions of workers, including children; 11 (2) accumulate, analyze, and report labor statistics; 12 (3) operate systems of workers' compensation and unemployment 13 insurance; and 14 (4) gather data reflecting the cost of living in the various election 15 districts of the state upon request of the director of personnel for determination of 16 area cost-of-living differentials under AS 29.60.164 and 29.60.165 or under 17 AS 39.27.030 [AS 39.27.030 - 39.27.040]. 18 * Sec. 28. AS 39.27.035, 39.27.040; and AS 39.35.460 are repealed. 19 * Sec. 29. FINDINGS AND PURPOSE AS TO SECS. 30 - 43. The State of Alaska and 20 many local governments are facing the need to restructure their operations and their work 21 forces in order to reduce expenditures and to balance budgets. Retirement and separation 22 incentives are management tools that have been used extensively by the private sector, the 23 federal government, and other state and local governments across the country. The purpose 24 of secs. 30 - 43 of this Act is to make these management tools temporarily available to the 25 state and to the municipalities of the state. Sections 30 - 43 of this Act will enable these 26 entities to be more efficient and cost-effective by eliminating certain nonessential positions 27 and producing a net reduction in personnel costs. 28 * Sec. 30. RETIREMENT INCENTIVE PROGRAM. (a) An employer may adopt a 29 retirement incentive plan under secs. 30 - 43 of this Act, as appropriate, and designate 30 categories of employees eligible to participate in that plan. An employer need not extend the 31 incentive plan to all employees who would otherwise be eligible, but may choose to extend

01 the plan only to employees 02 (1) in specific budget or administrative components of the employer; 03 (2) in specific job classifications; 04 (3) in specific geographic locations; or 05 (4) on the basis of any combination of factors under (1) - (3) of this 06 subsection. 07 (b) An employee is eligible to participate in a retirement incentive plan under secs. 08 30 - 43 of this Act only if the 09 (1) employee is a vested member of the public employees' retirement system 10 or the teachers' retirement system; 11 (2) employee will be qualified to retire under AS 14.25.110 or AS 39.35.370 12 after receipt of the credit described in (f) of this section; 13 (3) savings to the employer in personal services costs for the employee's 14 position will exceed the costs to the employer for that position within three years after the 15 employee is appointed to retirement. 16 (c) An employer shall file its proposed retirement incentive plan with the 17 commissioner of administration. Except as provided in sec. 37 of this Act, the commissioner 18 shall approve the plan if the plan meets the requirements of secs. 30 - 43 of this Act, except 19 that the commissioner may approve a state agency's retirement incentive plan only if the office 20 of management and budget approves the calculation of savings under (b)(3) of this section. 21 A proposed plan filed under this section must 22 (1) identify job classifications of employees, and specific budget or 23 administrative components, eligible to participate in the plan; 24 (2) include a reimbursement agreement that 25 (A) requires the employer, for each employee who retires under the 26 plan, to reimburse the appropriate retirement system, within three years after the end 27 of the fiscal year in which the employee is appointed to retirement, in an amount equal 28 to 29 (i) the actuarial equivalent of the difference between the benefits 30 the participant receives after the addition of the credit under (f) of this section 31 and the amount the participant would have received without the credit, less the

01 amount the participant has paid on the indebtedness determined under (d) or (e) 02 of this section; and 03 (ii) an appropriate share of the administrative costs of the 04 program; and 05 (B) provides that contributions from the employer under this section 06 take priority over other obligations of the employer to the maximum extent permitted 07 by law. 08 (d) A member of the teachers' retirement system who participates in an approved 09 retirement incentive plan under secs. 30 - 43 of this Act is indebted to that system for an 10 amount calculated under this subsection. The indebtedness is 25.95 percent of the member's 11 actual compensation for the school year in which the member terminates employment, or the 12 calculated school year compensation for a member who works less than the entire school year. 13 An outstanding indebtedness at the time a member is appointed to retirement under an 14 approved retirement incentive plan requires an actuarial adjustment to the benefits payable to 15 that member. 16 (e) A member of the public employees' retirement system who participates in an 17 approved retirement incentive plan under secs. 30 - 43 of this Act is indebted to that system 18 for an amount calculated under this subsection. The indebtedness is 22 1/2 percent for a 19 peace officer or fire fighter, and 20 1/4 percent for other members, of the member's actual 20 annual compensation for the year in which the member terminates employment, or the 21 calculated annual compensation for a member who works fewer than 12 months. An 22 outstanding indebtedness at the time a member is appointed to retirement under an approved 23 retirement incentive plan requires an actuarial adjustment to the benefits payable to that 24 member. 25 (f) An employee who participates in an approved retirement incentive plan under secs. 26 30 - 43 of this Act receives a credit of three years. The three years must be applied in the 27 following order until exhausted: 28 (1) to meet the age or service required for eligibility for normal retirement 29 under AS 14.25.110 or AS 39.35.370, as appropriate; 30 (2) to meet the age required for early retirement under AS 14.25.110 or 31 AS 39.35.370, as appropriate;

01 (3) to reduce the actuarial adjustment required for early retirement under 02 AS 14.25.110 or AS 39.35.370, as appropriate; 03 (4) as years of credited service for calculating retirement benefits. 04 (g) In this section, 05 (1) "department" means 06 (A) a principal department of the executive branch of state government; 07 an independent state entity that is attached to a principal department of the executive 08 branch for administrative purposes but that is not a public organization as defined in 09 AS 39.35.680 is part of that department for purposes of this paragraph; and 10 (B) the Office of the Governor; 11 (2) "employer" 12 (A) for purposes of a retirement incentive plan under AS 14.25, means 13 the Board of Regents of the University of Alaska, the Department of Education, or the 14 Regional Resource Center, but does not include a school district; and 15 (B) for purposes of a retirement incentive plan under AS 39.35, has the 16 meaning given in AS 39.35.680 and includes a department but does not include a 17 school district. 18 * Sec. 31. AUTHORIZATION FOR STATE EMPLOYEE RETIREMENT INCENTIVE. 19 (a) A state agency may adopt, and file with the commissioner of administration for approval, 20 a proposed retirement incentive plan for its employees as part of a permanent reduction in the 21 personal services costs in that section of the state agency. 22 (b) Upon the request of a state agency, the commissioner of administration shall 23 establish one or more periods during which the employees of that state agency who are 24 eligible under sec. 30(b) of this Act to participate in a retirement incentive plan may apply to 25 the commissioner of administration to participate in the state agency's approved plan. The 26 periods shall begin no earlier than June 30, 1996, and end no later than June 30, 1999. The 27 periods shall be no less than 30 days and no more than 60 days in duration, and may not 28 begin less than 30 days after their establishment. A state agency is not required to request an 29 application period and may request more than one application period. 30 (c) A proposed retirement incentive plan adopted under this section may not permit 31 an employee who is the governor, the lieutenant governor, or a commissioner, deputy

01 commissioner, or assistant commissioner of a principal department of the executive branch to 02 participate in the plan. 03 (d) A proposed retirement incentive plan adopted under this section may permit 04 participation only by an employee who is eligible to participate under sec. 30(b) of this Act 05 and who 06 (1) has been continuously employed by the state for at least one year before 07 the employee applies to participate in the state agency's approved plan; 08 (2) is a permanent seasonal employee who has been continuously employed 09 by the state in a permanent seasonal position during all of the time in the one year before the 10 employee's application to participate in which the position normally is filled; 11 (3) has a job sharing agreement with a state agency in which two or more 12 employees share a single position identified by a single position control number and in which 13 the employee who applies to participate in the plan was continuously employed by the agency 14 during the portion of the one year before the employee's application in which the employee 15 normally worked under the job sharing agreement; or 16 (4) meets a combination of the requirements of this subsection. 17 (e) The commissioner of administration may not accept the application of an employee 18 to participate in an approved retirement incentive plan adopted under this section unless the 19 employee will be appointed to retirement not later than the first day of the month that is six 20 months after the last day of the application period established by the commissioner under (b) 21 of this section. A state agency, in a plan adopted under this section, may set an earlier date 22 by which an employee must be appointed to retirement in order to participate in the plan. 23 * Sec. 32. AUTHORIZATION FOR RETIREMENT INCENTIVE FOR EMPLOYEES OF 24 THE UNIVERSITY OF ALASKA. (a) The Board of Regents of the University of Alaska 25 may adopt, and file with the commissioner of administration for approval, a proposed 26 retirement incentive plan for university employees. 27 (b) Upon the request of the Board of Regents, the commissioner of administration 28 shall establish one or more periods during which the employees of the university who are 29 eligible under sec. 30(b) of this Act to participate in a retirement incentive plan may apply to 30 the commissioner of administration to participate in the university's approved plan. The 31 periods shall begin no earlier than June 30, 1996, and end no later than June 30, 1999. The

01 periods shall be no less than 30 days and no more than 60 days in duration and may not begin 02 less than 30 days after their establishment. The Board of Regents is not required to request 03 an application period and may request more than one application period. 04 (c) The commissioner of administration may not accept the application of an employee 05 to participate in an approved retirement incentive plan adopted under this section unless the 06 employee will be appointed to retirement not later than the first day of the month that is six 07 months after the last day of the application period established by the commissioner under (b) 08 of this section. The Board of Regents, in a plan adopted under this section, may set an earlier 09 date by which an employee of the University of Alaska must be appointed to retirement in 10 order to participate in the plan. 11 (d) A participant in the optional university retirement program under AS 14.40.661 - 12 14.40.799 who is vested in the public employees' retirement system or the teachers' retirement 13 system may participate in a retirement incentive plan for that system if the participant meets 14 the other qualifications of secs. 30 - 43 of this Act. If a provision of this subsection is 15 inconsistent with another provision of law, the provision of this subsection governs. 16 * Sec. 33. AUTHORIZATION FOR RETIREMENT INCENTIVE FOR OTHER 17 EMPLOYEES IN THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM. (a) The 18 governing body of a political subdivision of the state or public organization that has elected 19 to participate in the public employees' retirement system under AS 39.35.550 - 39.35.650 may 20 adopt, and file with the commissioner of administration for approval, a proposed retirement 21 incentive plan for its employees. A plan adopted under this section must provide that the 22 application period for participation in the retirement incentive plan is December 31, 1996, 23 through June 30, 1997. 24 (b) The commissioner of administration may not accept the application of an employee 25 to participate in an approved retirement incentive plan adopted under this section unless the 26 employee will be appointed to retirement on or before February 1, 1998. The governing body 27 of the political subdivision or public organization, in a plan adopted under this section, may 28 set an earlier date by which an employee must be appointed to retirement in order to 29 participate in the plan. 30 * Sec. 34. AUTHORIZATION FOR RETIREMENT INCENTIVE FOR EMPLOYEES OF 31 REGIONAL RESOURCE CENTERS IN THE TEACHERS' RETIREMENT SYSTEM. (a)

01 A regional resource center that has employees who are members of the teachers' retirement 02 system may adopt, and file with the commissioner of administration for approval, a proposed 03 retirement incentive plan for its employees. A plan adopted under this section must provide 04 that the application period for participation in the retirement incentive plan is June 30, 1996, 05 through December 31, 1996. 06 (b) The commissioner of administration may not accept the application of an employee 07 to participate in an approved retirement incentive plan adopted under this section unless the 08 employee will be appointed to retirement on or before August 1, 1997. The regional resource 09 center, in a plan adopted under this section, may set an earlier date by which an employee 10 must be appointed to retirement in order to participate in the plan. 11 * Sec. 35. POLITICAL SUBDIVISION OR PUBLIC ORGANIZATION EMPLOYMENT. 12 For purposes of determining the years of service requirements for retirement under 13 AS 14.25.110 or AS 39.35.370, as appropriate, a vested member who is a state employee and 14 who applies to participate in a retirement incentive plan under secs. 30 - 43 of this Act may 15 receive credit for employment with a political subdivision or public organization before the 16 political subdivision or organization became an employer under the public employees' 17 retirement system. The member may not receive credit for those years under this section for 18 purposes of determining benefits. If a provision of this section is inconsistent with any other 19 provision of law, the provision of this section governs. 20 * Sec. 36. PROVISION AND AUTHORIZATION FOR ADMINISTRATIVE DIRECTOR 21 OF COURT. (a) The chief justice of the state supreme court may adopt a retirement 22 incentive plan for an administrative director of the Alaska Court System who is a member of 23 the judicial retirement system under AS 22.25.012 if participation in the plan will result in 24 savings to the court system in personal services costs within three years after commencement 25 of the plan. The administrative director may participate only if the administrative director is 26 vested in the judicial retirement system and will be qualified to retire under AS 22.25.010 27 after receipt of the retirement incentive. To participate, the administrative director shall apply 28 to the commissioner of administration to participate in the approved court system plan. 29 (b) The court system shall include in the retirement incentive plan a reimbursement 30 agreement that requires the court system, for each administrative director of the Alaska Court 31 System who is retired under the plan, to reimburse the judicial retirement system within three

01 years after the end of the fiscal year in which the administrative director is appointed to 02 retirement in an amount equal to 03 (1) the actuarial equivalent of the difference between the benefits the 04 administrative director receives after the addition of the credit under (e) of this section and 05 the amount the participant would have received without the credit, less the total of the amount 06 the participant has paid on the indebtedness determined under (d) of this section; and 07 (2) an appropriate share of the administrative costs of the program. 08 (c) A retirement incentive plan adopted under this section must provide that 09 contributions from the court system under (b) of this section take priority over other 10 obligations of the court system under (b) of this section to the maximum extent permitted by 11 law. 12 (d) An administrative director of the Alaska Court System who participates in an 13 approved retirement incentive plan is indebted to the system. The amount of indebtedness is 14 equal to 21 percent of the director's actual annual compensation for the year in which the 15 director terminates employment to participate in the program, or the calculated annual 16 compensation for an administrative director who works fewer than 12 months. An outstanding 17 indebtedness at the time the administrative director is appointed to retirement under an 18 approved retirement incentive plan will require an actuarial adjustment to the benefits payable 19 to the director. 20 (e) An administrative director of the Alaska Court System who participates in an 21 approved retirement incentive plan receives a credit of three years that may only be used to 22 meet the age requirements for normal or early retirement under AS 22.25.010(d). 23 (f) The chief justice of the Alaska Supreme Court may adopt and file with the 24 commissioner of administration for approval, a proposed retirement incentive plan for the 25 administrative director of the court system who is a member of the judicial retirement system. 26 Upon the request of the chief justice, the commissioner of administration shall establish a 27 period during which an administrative director eligible to participate in the retirement incentive 28 plan of the court system may apply to the commissioner of administration to participate in the 29 court system's approved plan. The period shall begin no earlier than July 1, 1996, and end 30 no later than June 30, 1999. The period shall be no less than 30 days and no more than 60 31 days in duration and may not begin less than 30 days after establishment. The chief justice

01 is not required to request an application period. 02 (g) The commissioner of administration may not accept the application of an 03 administrative director of the court system to participate in an approved retirement incentive 04 plan adopted under this section unless the administrative director will be appointed to 05 retirement not later than the first day of the month that is six months after the last day of the 06 application period established by the commissioner under (f) of this section. The chief justice, 07 in a plan adopted under this section, may set an earlier date by which an administrative 08 director must be appointed to retirement in order to participate in the plan. 09 * Sec. 37. RECOVERY OF EMPLOYER DELINQUENCIES. To recover a delinquency 10 owed by an employer other than the state under an agreement entered into under sec. 30(c)(2) 11 of this Act, the Department of Administration may 12 (1) direct that the amount of the delinquency or a lesser amount be withheld 13 from any money payable to the employer by a state department or agency and that the amount 14 withheld be credited to the delinquency; and 15 (2) bring action against the employer. 16 * Sec. 38. REEMPLOYMENT INDEBTEDNESS; PROHIBITION ON REEMPLOYMENT. 17 (a) If an individual is reemployed as a member of the public employees' retirement system 18 under AS 39.35, the teachers' retirement system under AS 14.25, the judicial retirement system 19 under AS 22.25, or the optional university retirement program under AS 14.40.661 - 14.40.799 20 after appointment to retirement under secs. 30 - 43 of this Act, that individual forfeits the 21 incentive credit received under secs. 30 - 43 of this Act and is indebted to the system under 22 which the individual took retirement. The indebtedness is 150 percent of the amount the 23 individual received as a result of participation in a retirement incentive plan under secs. 30 - 24 43 of this Act and to which the individual would not otherwise have been entitled, including 25 the cost of health insurance. The amount that the individual has paid under sec. 30(d) or (e) 26 of this Act will be applied as a credit toward the reemployment indebtedness. Interest on the 27 reemployment indebtedness accrues from the date of reemployment until the date that the 28 individual either is appointed to retirement and accepts an actuarial adjustment to the 29 individual's future benefits or repays the indebtedness in full. The rate of interest is that 30 established by regulation for the public employees' retirement system by the public employees' 31 retirement board and for the teachers' retirement system by the teachers' retirement board.

01 (b) An individual who was appointed to retirement under secs. 30 - 43 of this Act may 02 not be employed by, or enter into a contract for personal services with, a state agency or the 03 University of Alaska within the five years after the date of appointment to retirement, except 04 that 05 (1) the University of Alaska may enter into a personal services contract with 06 the individual for teaching or research that does not entitle the individual to receive retirement, 07 health, or leave benefits, except social security replacement if required by the Internal Revenue 08 Code; and 09 (2) the individual may accept employment with the legislature during a 10 legislative session if the employment is on an hourly basis and does not entitle the individual 11 to receive retirement, health, or leave benefits. 12 (c) Notwithstanding the prohibition in (b) of this section, a state agency or the 13 University of Alaska may enter into a personal services contract with an individual who was 14 appointed to retirement under secs. 30 - 43 of this Act if the Board of Regents, for the 15 University of Alaska, or the commissioner of administration, for a state agency, determines 16 that there is a compelling reason to do so because of the individual's specialized or extensive 17 experience that relates to a particular program or project of the state agency or university. 18 However, a state agency may not enter into a contract with an individual under this subsection 19 if the individual was employed by the state agency at the time of the individual's appointment 20 to retirement. 21 * Sec. 39. LEGISLATIVE EMPLOYEE RETIREMENT INCENTIVE PLAN. (a) The 22 Legislative Council may adopt and file with the commissioner of administration a retirement 23 incentive plan for employees of the legislative branch of state government. The plan must 24 designate categories of employees eligible to participate in that plan, include a reimbursement 25 agreement for the cost of participation by employees in the plan, and require employees to 26 meet the eligibility criteria and pay the indebtedness amount under sec. 30 of this Act. The 27 Legislative Council may exercise the powers of an employer under sec. 30 of this Act, but a 28 plan adopted by the council is not subject to review by the office of management and budget 29 or approval of the commissioner of administration. 30 (b) The application periods established by the Legislative Council under the plan 31 during which the employees of a legislative agency who meet the requirements of sec. 30(b)

01 of this Act are eligible to participate in the retirement incentive plan shall begin no earlier 02 than June 30, 1996, and end no later than June 30, 1999. The application periods shall be no 03 less than 30 days and not more than 60 days in duration, and may not begin less than 30 days 04 after their establishment. The Legislative Council is not required to establish an application 05 period and may establish more than one application period. 06 (c) The commissioner of administration may not accept the application of an employee 07 to participate in the Legislative Council retirement incentive plan under this section unless the 08 employee will be appointed to retirement not later than the first day of the month that is six 09 months after the last day of the application period established by the Legislative Council under 10 this section. The Legislative Council may set an earlier date by which an employee must be 11 appointed to retirement in order to participate in the plan. 12 (d) The provisions of secs. 35, 37, 38, 41, and 43 of this Act apply to a plan adopted 13 under this section. 14 * Sec. 40. OFFICE OF MANAGEMENT AND BUDGET. (a) When designating an 15 employee category for participation in a retirement incentive plan under secs. 30 - 32 of this 16 Act, the executive head of the relevant state agency shall describe in detail the expected effect 17 of the plan or program on the agency's personal services cost and operation. This financial 18 report must be approved by the director of the office of management and budget before the 19 commissioner of administration may approve the proposed plan or program. The state agency 20 shall report each year to the office of management and budget on the cost of each employee's 21 participation and the effect on the agency's personal services cost and operation. 22 (b) The office of management and budget shall submit to the legislature annual reports 23 on the retirement incentive and separation incentive programs under secs. 30 - 43 of this Act 24 beginning January 15, 1998, and continuing through January 15, 2000, and shall submit a final 25 report January 15, 2001. Each report must provide the information necessary for the 26 legislature to evaluate the effectiveness of the programs in achieving their objectives. The 27 report must include information on the designated employee categories under the incentive 28 programs, the cost to the state, the cost to the employee, the annual budgeted amount, by state 29 agency, for the incentives, the number of positions deleted or left vacant, and the projected 30 or actual net savings over the three-year period, and recommendations to the legislature for 31 changes in appropriations that reflect the cost and cost savings resulting from the retirement

01 and separation incentive programs. 02 * Sec. 41. PROGRAM CHANGES. (a) An individual employee does not have a vested 03 or contractual right to a benefit under secs. 30 - 43 of this Act until an agreement is executed 04 with the administrator that specifically authorizes that employee to participate in the retirement 05 incentive program under secs. 30 - 43 of this Act or until an agreement is executed with the 06 commissioner of administration to participate in the separation incentive program under secs. 07 30 - 43 of this Act. The legislature reserves the right to change any aspect of either incentive 08 program as it relates to employees for whom participation agreements have not yet been 09 executed with the administrator or with the commissioner of administration. 10 (b) In this section, "administrator" means the administrator of the public employees' 11 retirement system of employees who are members of that system, and the administrator of the 12 teachers' retirement system for employees who are members of that system. 13 * Sec. 42. REGULATIONS. The commissioner of administration may adopt regulations 14 under AS 44.62 (Administrative Procedure Act) to implement and interpret secs. 30 - 38 and 15 40 - 43 of this Act. 16 * Sec. 43. DEFINITIONS. (a) Unless otherwise provided in secs. 30 - 43 of this Act, the 17 definitions set out in AS 14.25.220 apply to provisions in secs. 31 - 39 of this Act that relate 18 to teachers' retirement system and members of the teachers' retirement system. 19 (b) Unless otherwise provided in secs. 30 - 43 of this Act, the definitions set out in 20 AS 39.35.680 apply to provisions in secs. 31 - 39 of this Act that relate to the public 21 employees' retirement system and members of the public employees' retirement system except 22 that "employer" does not include a school district. 23 (c) In secs. 30 - 43 of this Act, 24 (1) "office of management and budget" means the office of management and 25 budget in the Office of the Governor; 26 (2) "public employees' retirement system" means the Public Employees' 27 Retirement System of Alaska (AS 39.35); 28 (3) "state agency" 29 (A) means 30 (i) the judicial branch of state government; 31 (ii) a principal department of the executive branch of state

01 government; and independent state entity that is attached to a principal 02 department of the executive branch for administrative purposes but that is not 03 a public organization as defined in AS 39.35.680 is part of that department for 04 purposes of this clause; and 05 (iii) the Office of the Governor; 06 (B) does not include 07 (i) the University of Alaska; 08 (ii) a political subdivision of the state; or 09 (iii) a public organization as defined in AS 39.35.680; 10 (4) "teachers' retirement system" means the Teachers' Retirement System of 11 Alaska (AS 14.25). 12 * Sec. 44. SALARY ADJUSTMENTS FOR CERTAIN EXEMPT EMPLOYEES OF THE 13 EXECUTIVE BRANCH. Permanent and temporary employees of the executive branch who 14 are in the exempt service under AS 39.25, who are not members of a collective bargaining 15 unit established under the Public Employment Relations Act (AS 23.40), and who are not 16 otherwise covered by AS 39.27.011(a), are entitled to receive salary adjustments comparable 17 to those received by the classified and partially exempt employees of the executive branch 18 under AS 39.27.011(e) - (g), as enacted by sec. 13 of this Act, and to receive geographic 19 differentials comparable to those received by the classified and partially exempt employees 20 of the executive branch under AS 39.25.020, as enacted by sec. 14 of this Act. 21 * Sec. 45. SALARY INCREASES FOR EMPLOYEES OF THE UNIVERSITY OF 22 ALASKA. The employees of the University of Alaska who are not members of a collective 23 bargaining unit are entitled to receive salary increases in accordance with the compensation 24 policy of the Board of Regents of the University of Alaska. 25 * Sec. 46. SALARY ADJUSTMENTS FOR EMPLOYEES OF THE JUDICIAL BRANCH. 26 For the fiscal years beginning July 1, 1997, and July 1, 1998, permanent and temporary 27 employees of the judicial branch, other than justices and judges, who are not members of a 28 collective bargaining agreement unit are entitled to receive salary adjustments comparable to 29 those received by the classified and partially exempt employees of the executive branch under 30 AS 39.27.011(f) - (g), as enacted by sec. 13 of this Act, and geographic differential 31 adjustments comparable to those received by the classified and partially exempt employees

01 of the executive branch under AS 39.27.020, as enacted by sec. 14 of this Act. 02 * Sec. 47. SALARY INCREASES FOR JUDICIAL BRANCH EMPLOYEES. For the 03 fiscal year beginning July 1, 1996, and ending June 30, 1997, the temporary and permanent 04 employees of the judicial branch, other than justices and judges, who are not members of a 05 collective bargaining unit are entitled to receive a salary increase of 5.2 percent of the 06 employee's base salary as of June 30, 1996. 07 * Sec. 48. JUDGES AND JUSTICES. Notwithstanding AS 22.05.140(d), AS 22.07.090(c), 08 AS 22.10.190(d), and AS 22.15.220(e), and sec. 13 of this Act, justices and judges in the 09 judicial branch are not entitled to receive the increases provided by AS 22.05.140(d), 10 AS 22.07.090(c), AS 22.10.190(d), and AS 22.15.220(e) for the fiscal year beginning July 1, 11 1996, and ending June 30, 1997. 12 * Sec. 49. SALARY INCREASES FOR LEGISLATIVE BRANCH EMPLOYEES. 13 Employees of the legislative branch of state government who are not otherwise subject to 14 AS 39.27.011, other than legislators, are entitled to receive salary adjustments comparable to 15 those received by the classified and partially exempt employees of the executive branch under 16 AS 39.27.011(e) - (g), as enacted by sec. 13 of this Act. 17 * Sec. 50. APPROVAL OF MONETARY TERMS OF AGREEMENTS. (a) This section 18 (1) supersedes the provisions of any bill passed by the Second Session of the 19 Nineteenth Alaska State Legislature and enacted into law that disapproves the monetary terms 20 of the collective bargaining agreements listed in this section; and 21 (2) satisfies the terms of any bill passed by the Second Session of the 22 Nineteenth Alaska State Legislature and enacted into law that imposes conditions on the 23 approval of the monetary terms of those agreements. 24 (b) This section constitutes approval of the monetary terms of the collective bargaining 25 agreements entered into between the state and the following collective bargaining 26 organizations: 27 (1) Alaska State Employees Association, for the General Government Unit; 28 (2) Alaska Public Employees Association, for the Supervisory Unit; 29 (3) Public Employees Local 71, for the Labor, Trades and Crafts Unit; 30 (4) Inlandboatmen's Union of the Pacific, representing the unlicensed marine 31 unit;

01 (5) International Organization of Masters, Mates, and Pilots, Pacific Maritime 02 Region, for the Masters, Mates, and Pilots Unit; 03 (6) Public Safety Employees Association, representing state troopers and other 04 commissioned law enforcement personnel; 05 (7) the Classified Employees Association, representing University of Alaska 06 employees; 07 (8) the Alaska Community Colleges' Federation of Teachers, representing 08 faculty members of the University of Alaska; 09 (9) the Alyeska Correspondence School Education Association representing 10 teachers at the Alyeska Central School; 11 (10) Alaska Vocational Technical Center Teacher's Association representing 12 teachers at the Alaska Vocational Technical Center; and 13 (11) International Brotherhood of Electrical Workers representing nonjudicial, 14 nonsupervisory, classified employees of the Alaska Court System. 15 * Sec. 51. DECLINING TO PLACE EMPLOYEES OF THE LABOR RELATIONS 16 SECTION IN THE EXEMPT SERVICE. The legislature declines to place employees of the 17 labor relations section of the Department of Administration in the exempt service because it 18 finds that the public is better served by maintaining the current status of these employees. 19 * Sec. 52 LIMITATION ON THE REDUCTION OF EMPLOYEE SALARIES. (a) So 20 long as the employee remains in the same geographic area, as set out in AS 39.27.020, as 21 amended by sec. 14 of this Act, 22 (1) the salary that an employee is receiving on June 30, 1996, may not be 23 reduced by application of a provision of sec. 14 of this Act until June 30, 1997; 24 (2) for the fiscal year beginning July 1, 1997, the salary that an employee is 25 receiving on June 30, 1997, may not be reduced by more than five percent as a result of the 26 application of a provision of this Act. 27 (b) If an employee moves to another geographic area after June 30, 1996, both the pay 28 differential in AS 39.27.020(a) and the limitation on applicable salary in AS 39.27.020(b), as 29 reenacted by sec. 14 of this Act, apply to that employee's salary on the effective date of the 30 move. 31 (c) Nothing in this Act prohibits a reduction in an employee's salary as a result of a

01 voluntary or involuntary demotion. 02 * Sec. 53 Nothing in this Act modifies or terminates the terms of a collective bargaining 03 agreement in effect on the effective date of this Act. 04 * Sec. 54. Section 52 of this Act is repealed July 1, 1998. 05 * Sec. 55 Sections 30, 31, and 39 of this Act are repealed July 1, 2000. 06 * Sec. 56. Sections 32 - 36 of this Act are repealed December 31, 1999. 07 * Sec. 57. This Act takes effect July 1, 1996.