Legislature(2013 - 2014)
2014-04-10 House Journal
Full Journal pdf2014-04-10 House Journal Page 2341 HB 385 HOUSE BILL NO. 385 by the House Rules Committee by request of the Governor, entitled: "An Act relating to additional state contributions to the teachers' defined benefit retirement plan and the public employees' defined benefit retirement plan; and providing for an effective date." was read the first time and referred to the Finance Committee. 2014-04-10 House Journal Page 2342 The following fiscal note(s) apply: 1. Fiscal, Office of the Governor 2. Fiscal, Office of the Governor The Governor's transmittal letter dated April 10, 2014, follows: "Dear Speaker Chenault: Under the authority of Article III, Section 18 of the Alaska Constitution, I am transmitting a bill that will implement a fixed annual contribution to pay down the past service liability of the Public Employees' Retirement System and Teachers' Retirement System. Enactment of this legislation is contingent upon approval of a $3 billion transfer from the Constitutional Budget Reserve fund into the Retirement System Trust Fund. The annual pension contributions represent the single largest cost driver in the State's operating budget. Current projections estimate that the Public Employees' Retirement System (PERS) and Teachers' Retirement System (TRS) have a combined unfunded liability of $11.9 billion. A $3 billion deposit into the retirement trust funds in the FY 2015 budget will enable the annual State pension contribution to drop to $500 million a year and will increase the funded status of the PERS and TRS systems by 10 percent almost immediately. This deposit will also reflect positively on local government balance sheets. I urge your prompt and favorable action on this measure. Sincerely, /s/ Sean Parnell Governor"