Legislature(2003 - 2004)
2003-02-28 Senate Journal
Full Journal pdf2003-02-28 Senate Journal Page 0300 SB 94 SENATE BILL NO. 94 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: "An Act relating to benefits for retired teachers or employees who participated in retirement incentive programs and are subsequently reemployed as a commissioner; and providing for an effective date." was read the first time and referred to the State Affairs Committee. The following fiscal information was published today: Fiscal Note No. 1, zero, Department of Administration Governor's transmittal letter dated February 27: 2003-02-28 Senate Journal Page 0301 Dear President Therriault: Under the authority of art. III, sec. 18, of the Alaska Constitution, I am transmitting a bill relating to reemployment of certain members of the Teachers' Retirement System of Alaska (TRS) and the Public Employees' Retirement System (PERS) who have retired under a retirement incentive plan (RIP). The objective of this bill is to allow a person who retired under a RIP to return to state service as a commissioner without being penalized. It is in the best interest of the people of Alaska to ensure that administrative departments of state government be managed by competent, skilled, knowledgeable, and experienced persons. Choosing to serve Alaska as the head of a state agency, in many cases, requires an individual to make sacrifices they may never have anticipated. This bill would remove one of the major disincentives, and give the Governor greater flexibility in filling out his cabinet. Under existing law, if a TRS or PERS member who took normal retirement and retired under a RIP is re-employed in the TRS or PERS system, the member forfeits the incentive credit and becomes indebted to the TRS or PERS. This bill would allow a TRS or PERS member in this situation who is re-employed as a commissioner to accept the position without being subject to the reemployment indebtedness. Under existing law, a retired member of the TRS or PERS who took normal retirement and is re-employed in a TRS or PERS position may elect to continue receiving the member's retirement benefits during the period of employment. A member who retired under a RIP, however, may not make the election to continue receiving TRS or PERS retirement benefits. This bill would allow a TRS or PERS member in this situation who is subsequently re-employed as a commissioner to elect to continue receiving retirement benefit payments during the period of reemployment. Finally, under existing law, the option to elect to continue receiving TRS or PERS benefits during the period of reemployment is repealed as of July 1, 2005. This bill repeals that option for individuals subject to the bill, i.e., TRS or PERS members who retired under a RIP and are subsequently re-employed as a commissioner. 2003-02-28 Senate Journal Page 0302 I urge your prompt and favorable action on this measure. Sincerely, /s/ Frank H. Murkowski Governor