Legislature(1999 - 2000)
02/08/2000 08:11 AM House STA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 236-CREDITED PART-TIME SERVICE TRS Number 0082 CHAIR JAMES announced the first order of business is HOUSE BILL NO. 236, "An Act relating to credited service in the teachers' retirement system for part-time employment." Number 0098 PATRICIA SWENSON, Legislative Assistant to Representative Bunde, Alaska State Legislature, read the following sponsor statement: The purpose of HB 236 is to correct an inequity in the teachers retirement system (TRS). Under the current system teachers working more than 50 percent of the time, but less than full time, receive only one-half service credit for time worked. In other words, teachers in this group contribute more retirement dollars, but do not get a retirement benefit consistent with their contribution. House Bill 236 will correct the inequity in the TRS by giving teachers, who work more than 50 percent of the time, but less than full time, retirement service credit based on time worked. MS. SWENSON said 250 teachers are affected by HB 236. Number 0214 REPRESENTATIVE SMALLEY said he understood that the retirement benefit had already been paid by the part-time teachers. MS. SWENSON affirmed that, adding that the fiscal note is zero. Number 0269 CHAIR JAMES voiced her understanding that part-time teachers have already contributed to the TRS fund. She explained that HB 236 is a fairness issue that will allow part-time teachers to be credited with the amount they have paid to TRS. Number 0385 GUY BELL, Director, Division of Retirement & Benefits, Department of Administration, said he agrees with Representative Bunde that HB 236 is an equity issue. House Bill 236 gives equivalent credit to part-time teachers for the time they teach each year. Each teacher is paying at his/her own rate into the TRS. The fiscal note shows a .01 percent increase in employer rates, recognizing that there is a negligible cost to HB 236. He noted that TRS has a 12 percent employer rate, which can easily absorb the minimal increase caused by HB 236. He further stated that HB 236 will not have an impact on future employer rates for TRS. Number 0548 JOHN CYR, President, NEA-Alaska [Affiliated with the National Education Association], testified in favor of HB 236. He said HB 236 is a matter of equity and will allow about 250 teachers to receive what they already had paid into TRS. Number 0624 REPRESENTATIVE HUDSON made a motion to move HB 236 out of committee with individual recommendations and the attached zero fiscal note. There being no objection, HB 236 moved from the House State Affairs Standing Committee.
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