HB 361: "An Act relating to pilot pay programs to attract and retain exceptional state employees; and providing for an effective date."
00 HOUSE BILL NO. 361 01 "An Act relating to pilot pay programs to attract and retain exceptional state 02 employees; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 14.25.220(6) is amended to read: 05 (6) "base salary" 06 (A) means the total remuneration payable under contract for a 07 full year of membership service, including addenda to the contract, but does 08 not include 09 (i) a bonus or other incentive paid under a pilot pay 10 program established under AS 39.27.032; and 11 (ii) [,] for a member first hired on or after July 1, 1996, 12 [DOES NOT INCLUDE] remuneration in excess of the limitations set 13 out in 26 U.S.C. 401(a)(17); 14 (B) has the same meaning as "compensation" under
01 AS 39.35.680(8) when applied to a state legislator who elects membership 02 under AS 14.25.040(b); 03 * Sec. 2. AS 14.25.220(6) is amended to read: 04 (6) "base salary" 05 (A) means the total remuneration payable under contract for a 06 full year of membership service, including addenda to the contract, but does 07 not include 08 (i) a bonus or other incentive paid under a pilot pay 09 program established under former AS 39.27.032; and 10 (ii) for a member first hired on or after July 1, 1996, 11 remuneration in excess of the limitations set out in 26 U.S.C. 12 401(a)(17); 13 (B) has the same meaning as "compensation" under 14 AS 39.35.680(8) when applied to a state legislator who elects membership 15 under AS 14.25.040(b); 16 * Sec. 3. AS 14.25.220(10) is amended to read: 17 (10) "compensation" means the total remuneration paid under contract 18 to a member for services rendered during a school year, including cost-of-living 19 differentials, payments for leave that is actually used by the member, the amount by 20 which the member's wages are reduced under AS 39.30.150(c), and the amount 21 deferred under an employer-sponsored deferred compensation plan or the tax shelter 22 annuity plan approved by the Department of Education and Early Development, but 23 does not include retirement benefits, welfare benefits, per diem, expense allowances, 24 workers' compensation payments, bonus or other incentive payments under a pilot 25 pay program established under AS 39.27.032, or payments for leave not used by the 26 member, whether those leave payments are scheduled payments, lump-sum payments, 27 donations, or cash-ins; for purposes of AS 14.25.050, compensation paid includes any 28 payment made after June 30 of a school year for services rendered before the end of 29 the school year; 30 * Sec. 4. AS 14.25.220(10) is amended to read: 31 (10) "compensation" means the total remuneration paid under contract
01 to a member for services rendered during a school year, including cost-of-living 02 differentials, payments for leave that is actually used by the member, the amount by 03 which the member's wages are reduced under AS 39.30.150(c), and the amount 04 deferred under an employer-sponsored deferred compensation plan or the tax shelter 05 annuity plan approved by the Department of Education and Early Development, but 06 does not include retirement benefits, welfare benefits, per diem, expense allowances, 07 workers' compensation payments, bonus or other incentive payments under a pilot pay 08 program established under former AS 39.27.032, or payments for leave not used by 09 the member, whether those leave payments are scheduled payments, lump-sum 10 payments, donations, or cash-ins; for purposes of AS 14.25.050, compensation paid 11 includes any payment made after June 30 of a school year for services rendered before 12 the end of the school year; 13 * Sec. 5. AS 23.40.075 is amended to read: 14 Sec. 23.40.075. Items not subject to bargaining. The parties may not 15 negotiate terms contrary to the 16 (1) reemployment rights for injured state employees under 17 AS 39.25.158; 18 (2) reemployment rights of the organized militia under AS 26.05.075; 19 (3) authority of the Department of Health and Social Services under 20 AS 47.27.035 to assign Alaska temporary assistance program participants to a work 21 activity considered appropriate by the Department of Health and Social Services; [OR] 22 (4) authority for agencies to create temporary positions under 23 AS 47.27.055(c); or 24 (5) pilot pay programs established under AS 39.27.032. 25 * Sec. 6. AS 39.27 is amended by adding a new section to read: 26 Sec. 39.27.032. Pilot pay programs. (a) Notwithstanding any contrary 27 provision of this chapter, the personnel board may adopt and amend the personnel 28 rules under AS 39.25.140 as it considers advisable to establish pilot pay programs for 29 positions that a department or other state agency has had difficulty filling with 30 qualified applicants and to recognize exceptional employee performance. 31 (b) A program established under (a) of this section may include payment of a
01 recruitment bonus, retention bonus, excellence bonus, or other incentive that the 02 personnel board considers will help a department or other state agency compete for 03 employees who possess skills that are in high demand or who perform exceptionally. 04 (c) Payment of a bonus or other incentive may be conditioned on agreement of 05 the employee to complete a period of employment with the department or other state 06 agency awarding the payment. 07 (d) In establishing a program under (a) of this section, the personnel board 08 shall set a maximum amount that can be paid to an employee as a bonus or other 09 incentive. 10 (e) A payment under a program established under (a) of this section is not part 11 of the employee's pay rate, base salary, or gross earnings for purposes of 12 (1) overtime compensation; 13 (2) the teachers' retirement system under AS 14.25.010 - 14.25.200; 14 (3) the public employees' retirement system under AS 39.35.010 - 15 39.35.690; or 16 (4) determining the compensation and payments payable under 17 AS 23.30.005 - 23.30.400 (Alaska Workers' Compensation Act). 18 (f) In this section, 19 (1) "excellence bonus" means a payment to reward a state employee 20 who has performed beyond normal expectations for the position during an intense 21 project period and achieved an important goal of a department or other state agency or 22 who has enhanced significantly the delivery of services, rate of production, or mission 23 of a department or other state agency; 24 (2) "recruitment bonus" means a single payment as an incentive to 25 accept state employment in a position that has a shortage of qualified applicants; 26 (3) "retention bonus" means a payment to retain a state employee with 27 needed skills that are in high demand. 28 * Sec. 7. AS 39.35.680(8) is amended to read: 29 (8) "compensation" means the remuneration earned by an employee 30 for personal services rendered to an employer, including employee contributions under 31 AS 39.35.160, cost-of-living differentials only as provided in AS 39.35.675, payments
01 for leave that is actually used by the employee, the amount by which the employee's 02 wages are reduced under AS 39.30.150(c), and any amount deferred under an 03 employer-sponsored deferred compensation plan, but does not include retirement 04 benefits, severance pay or other separation bonuses, welfare benefits, per diem, 05 expense allowances, workers' compensation payments, bonus or other incentive 06 payments under a pilot pay program established under AS 39.27.032, or payments 07 for leave not used by the employee, whether those leave payments are scheduled 08 payments, lump-sum payments, donations, or cash-ins; for a member first hired on or 09 after July 1, 1996, compensation does not include remuneration in excess of the 10 limitations set out in 26 U.S.C. 401(a)(17) (Internal Revenue Code); 11 * Sec. 8. AS 39.35.680(8) is amended to read: 12 (8) "compensation" means the remuneration earned by an employee 13 for personal services rendered to an employer, including employee contributions under 14 AS 39.35.160, cost-of-living differentials only as provided in AS 39.35.675, payments 15 for leave that is actually used by the employee, the amount by which the employee's 16 wages are reduced under AS 39.30.150(c), and any amount deferred under an 17 employer-sponsored deferred compensation plan, but does not include retirement 18 benefits, severance pay or other separation bonuses, welfare benefits, per diem, 19 expense allowances, workers' compensation payments, bonus or other incentive 20 payments under a pilot pay program established under former AS 39.27.032, or 21 payments for leave not used by the employee, whether those leave payments are 22 scheduled payments, lump-sum payments, donations, or cash-ins; for a member first 23 hired on or after July 1, 1996, compensation does not include remuneration in excess 24 of the limitations set out in 26 U.S.C. 401(a)(17) (Internal Revenue Code); 25 * Sec. 9. AS 23.40.075(5), AS 39.27.032, and sec. 10 of this Act are repealed. 26 * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to 27 read: 28 REPORT. The commissioner of administration shall report to the governor and the 29 legislature by January 31, 2006, on the experience with each pilot pay program established 30 under this Act and its effectiveness in attracting and retaining exceptional state employees. 31 * Sec. 11. Sections 1, 3, 5 - 7, and 10 of this Act take effect July 1, 2002.
01 * Sec. 12. Sections 2, 4, 8, and 9 of this Act take effect July 1, 2007.