Legislature(2005 - 2006)CAPITOL 106

02/16/2006 08:00 AM STATE AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 344 VEHICLE TRANSACTION AGENTS TELECONFERENCED
Heard & Held
+ SB 12 LIMIT RELATIONS WITH CERTAIN NATIONS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 347 MOTOR VEHICLE INSURANCE & NOTICE TELECONFERENCED
Moved CSHB 347(STA) Out of Committee
+= HB 238 PUBLIC EMPLOYEE/TEACHER RETIREMENT TELECONFERENCED
Moved CSHB 238(STA) Out of Committee
+= SB 186 EXECUTIVE BRANCH ETHICS TELECONFERENCED
Moved HCS CSSB 186(STA) Out of Committee
HB 238-PUBLIC EMPLOYEE/TEACHER RETIREMENT                                                                                     
                                                                                                                                
8:09:28 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON announced  that  the first  order  of business  was                                                               
HOUSE BILL  NO. 238, "An  Act relating to contribution  rates for                                                               
employers  and  members  in  the defined  benefit  plans  of  the                                                               
teachers' retirement system and  the public employees' retirement                                                               
system and  to the ad-hoc  post-retirement pension  adjustment in                                                               
the  teachers'  retirement   system;  requiring  insurance  plans                                                               
provided  to  members of  the  teachers'  retirement system,  the                                                               
judicial  retirement  system,  the public  employees'  retirement                                                               
system,  and  the  former  elected  public  officials  retirement                                                               
system to provide a list  of preferred drugs; relating to defined                                                               
contribution  plans  for  members  of  the  teachers'  retirement                                                               
system  and   the  public   employees'  retirement   system;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
[Before the  committee was CSHB 238,  Version 24-LS0761\R, Wayne,                                                               
1/31/06.]                                                                                                                       
                                                                                                                                
8:10:43 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON,  after  ascertaining  that there  was  no  one  to                                                               
testify, closed public testimony.                                                                                               
                                                                                                                                
8:11:01 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  moved Amendment  1, labeled,  24-LS0761\R.1, Wayne,                                                               
2/7/06, which read as follows:                                                                                                  
                                                                                                                                
     Page 2, line 5, following "to":                                                                                            
          Insert "the average salary of all employees of                                                                        
     the employer multiplied by"                                                                                                
                                                                                                                                
8:12:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER objected for  discussion purposes, and she                                                               
asked Chair Seaton to clarify how  the language of the bill would                                                               
read with Amendment 1.                                                                                                          
                                                                                                                                
8:12:44 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON explained that the  language, beginning on [page 2],                                                               
line 3, would read as follows:                                                                                                  
                                                                                                                                
     (1) applying the employer's past  service cost rate, up                                                                    
     to  an  amount  equal  to  the  blended  employer  past                                                                    
     service  cost rate,  as  calculated  on the  employer's                                                                    
     entire  wage  base,  to  the   average  salary  of  all                                                                    
     employees of  the employer multiplied by  the number of                                                                    
     employees  of  that employer  who  are  members of  the                                                                    
     public  employees'  defined  contribution  plan  in  AS                                                                    
     39.35.700-39.35.990;                                                                                                       
                                                                                                                                
CHAIR SEATON said  the language currently on [page  2, lines 3-6]                                                               
sets out  a calculation formula,  but it is missing  the language                                                               
of Amendment 1.                                                                                                                 
                                                                                                                                
8:13:14 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER removed her objection.                                                                                   
                                                                                                                                
CHAIR  SEATON  asked  if  there  was  any  further  objection  to                                                               
Amendment 1.  There being none, it was so ordered.                                                                              
                                                                                                                                
8:13:24 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  moved Amendment  2, labeled,  24-LS0761\R.3, Wayne,                                                               
2/7/06, which read as follows:                                                                                                  
                                                                                                                                
     Page 2, lines 20 - 21:                                                                                                     
          Delete all material:                                                                                                  
          Insert    "contribution   plan    established   in                                                                    
     AS 39.35.700 -  39.35.990 and the defined  benefit plan                                                                    
     established in AS 39.35.095 - 39.35.680;"                                                                                  
                                                                                                                                
8:13:34 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER objected for discussion purposes.                                                                        
                                                                                                                                
8:13:45 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON explained  that the identifying statutes  on page 2,                                                               
lines 20-21,  are in  the wrong order,  and Amendment  2 corrects                                                               
that mistake.                                                                                                                   
                                                                                                                                
8:14:04 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER removed her objection to Amendment 2.                                                                    
                                                                                                                                
CHAIR SEATON  asked if  there was any  further objection.   There                                                               
being none, Amendment 2 was adopted.                                                                                            
                                                                                                                                
8:14:21 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON moved  Amendment 3, which read  as follows [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     Page 2, lines 7-14                                                                                                         
                                                                                                                                
     Delete all material                                                                                                        
                                                                                                                                
REPRESENTATIVE GARDNER objected for discussion purposes.                                                                        
                                                                                                                                
8:15:36 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON  stated  his  assumption  that  regarding  employer                                                               
contribution   rates  in   municipalities  with   low-compensated                                                               
elected officials,  "the entire normal [medical]  cost associated                                                               
with that person  is spread among the rest of  the individuals of                                                               
that employer  and is  calculated in that  employer's rate."   He                                                               
said he would like confirmation that that is true.                                                                              
                                                                                                                                
8:15:51 AM                                                                                                                    
                                                                                                                                
TRACI  CARPENTER, Project  Manager, Central  Office, Division  of                                                               
Retirement  & Benefits,  Department of  Administration, confirmed                                                               
that  Chair  Seaton's  statement  is true.    She  rephrased  the                                                               
concept  as follows:   "The  way  that calculation  works by  the                                                               
actuary  is they  determine what  the dollar  cost amount  is for                                                               
medical benefits  for all of  the participating members  for that                                                               
year, and then, having arrived  at the dollar amount, they divide                                                               
that by the wage base to arrive at the contribution amount."                                                                    
                                                                                                                                
8:16:18 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON asked if  that is also the case in  Tiers I, II, and                                                               
III of the defined benefits program.                                                                                            
                                                                                                                                
8:16:32 AM                                                                                                                    
                                                                                                                                
MS. CARPENTER answered yes.                                                                                                     
                                                                                                                                
8:16:38 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON explained  that Amendment  3 would  remove language                                                               
that is not necessary.                                                                                                          
                                                                                                                                
8:17:07 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER removed her objection to Amendment 3.                                                                    
                                                                                                                                
CHAIR  SEATON  asked  if  there  was  any  further  objection  to                                                               
Amendment 3.  There being none, it was so ordered.                                                                              
                                                                                                                                
8:17:23 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LYNN  moved  to  report  CSHB  238,  Version  24-                                                               
LS0761\R,  Wayne,  1/31/06, as  amended,  out  of committee  with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
There being no  objection, CSHB 238(STA) was reported  out of the                                                               
House State Affairs Standing Committee.                                                                                         

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