Legislature(1999 - 2000)
03/23/1999 04:04 PM House HES
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 17 - PERS CREDIT FOR NONCERTIFICATED EMPLOYEES Number 0020 CO-CHAIRMAN DYSON announced the next order of business as House Bill No. 17, "An Act relating to the calculation of employee contributions and credited service in the public employees' retirement system for noncertificated employees of school districts, regional educational attendance areas, the Alaska Vocational Technical Center, and the state boarding schools; and providing for an effective date." Number 0040 REPRESENTATIVE TOM BRICE, Alaska State Legislature, sponsor of HB 17, presented the bill with an amendment. He said this committee moved this bill out last session, but it ran out of time in the Senate Rules Committee and died. This bill addresses an inequity that exists in school districts. Currently certified employees have a nine-month contract, and get a year of retirement credit, but the classified employees, which includes janitors, office staff and maintenance workers, also have a nine-month contract but only get nine months of retirement credit. Classified employees are not eligible for unemployment insurance either. This bill would allow those employees to voluntarily buy into the PERS (Public Employees Retirement System) the extra two or three months of service for retirement. Currently a nine-month employee has to work nearly 40 years to reach a 30 year retirement. Included in this bill are the employees of the Alaska Vocational Technical Center, boarding schools, regional education attendance area (REA) schools and the amendment includes the special education service agency (SESA). CO-CHAIRMAN COGHILL asked if the stipulation for buying in to this would change unemployment eligibility. REPRESENTATIVE BRICE said it would not change unemployment eligibility, but it would take the step to address the inequity that exists for these employees. Number 0300 REPRESENTATIVE WHITAKER commented that it is a good bill but he is concerned with the attached fiscal note. He wondered if it provides additional funding for services that may not have to be paid for. REPRESENTATIVE BRICE said Mr. Church from the Department of Administration can probably answer that question. The amount of $72.4 thousand is for computer programming. That amount is not general fund expenditure; the employees will pay for that computer change. REPRESENTATIVE WHITAKER asked for clarification on that point. Number 0404 REPRESENTATIVE BRICE said the $72.4 thousand is from the revenue that the employees would pay into the system, and the cost associated with getting that year of service is a voluntary election by the employees. They have to take a positive action to say they want to pay an increased contribution into their retirement system, so they don't have to work 40 years for a 30 year retirement. CO-CHAIRMAN COGHILL said this does not reflect what could be. It only reflects what it is going to cost to institute this program. Number 0549 REPRESENTATIVE BRICE said the bill was drafted in such a way that any cost associated with this piece of legislation would ensure the actuarial soundness of the PERS funds. The $72.4 thousand is going to come out of contributions by the employees. Number 0586 The committee took a brief at-ease from 4:12 p.m. to 4:13 p.m. REPRESENTATIVE GREEN asked if this bill provides for future part-time workers. Number 0602 REPRESENTATIVE BRICE said if they are eligible, but he believes this is dealing with full-time seasonal employees. This starts today and goes forward; the employees cannot buy back years. Number 0670 RICK HELMS, representing Alaska Public Employees Association (APEA), American Federation of Teachers (AFT), Southeast Political Board of Directors, came forward to testify. He asked the committee for their support on HB 17. There are over 3600 members in APEA and 600 of them are nine-month employees, and this bill would benefit them. They are also professionals like the teachers and administrators. It takes them 37.5 years to get 30 years of service, and passing this bill will fix this injustice. He urged this committee to pass HB 17 this year. Number 0767 SANDY PEVAN testified from the Matanuska-Susitna (Mat-Su) Legislative Information Office (LIO) via teleconference. She has worked in her district 21 years and has only 14 years in her retirement. It takes five years to be vested PERS, but a nine-month school employee has to work 7.5 years to be vested. She urged them to support HB 17. Number 0829 DUANE GUILEY testified on behalf of the Special Education Service Agency (SESA) from Anchorage via teleconference. He is in favor of HB 17 and offered to answer questions. CO-CHAIRMAN DYSON asked him if the amendment which covers SESA is satisfactory. MR. GUILEY said he hadn't seen the specific amendment but understood what it would do. It does provide the same opportunity for SESA employees as it does to current employees of the REA and school districts. When he was told this amendment was the same as the one in the Senate, he said it did accomplish the objective of adding SESA to the legislation. Number 0936 DON ETHERIDGE came forward to testify on behalf of Public Employees Local 71. They support this bill and would like to see it passed to help their members who are school employees. Number 0976 JOHN CYR, President, NEA-Alaska, came forward to testify in support of HB 17. REPRESENTATIVE GREEN wanted reassurance that the payments would be sufficient to keep the program viable for all those who are already in it. BILL CHURCH, Retirement Supervisor, Division of Retirement and Benefits, Department of Administration, affirmed that the surcharge allocated will cover all of the costs to the retirement system. Number 1035 REPRESENTATIVE BRICE offered Amendment 1, 1-LS0157\A.1, Cramer, 3/22/99, which read: Page 1, line 3, following "areas,": Insert "the special education service agency," Page 1, line 9, following "area,": Insert "of the special education service agency," Page 2, line 22: Delete "district or" Insert "district, a" Following "area,": Insert "the special education service agency," Page 2, line 26: Delete "or" Insert ", a" Page 2, line 27, following "area": Insert ", or the special education service agency," Page 3, line 1: Delete "or" Insert ", a" Page 3, line 2, following "area": Insert ", or the special education service agency," Page 3, line 6: Delete "or" Insert ", a" Following "area,": Insert ", or the special education service agency," Page 3, line 12, following "area,": Insert "the special education service agency," CO-CHAIRMAN DYSON asked whether there was any objection. There being none, Amendment 1 was adopted. Number 1099 CO-CHAIRMAN COGHILL made a motion to move HB 17, as amended, with the fiscal note and individual recommendations. There being no objection, CSHB 17(HES) moved out of the House Health, Education and Social Services Standing Committee.
| Document Name | Date/Time | Subjects |
|---|