02/03/1994 09:05 AM Senate CRA

 SENATOR RANDY PHILLIPS introduced  SB 39  (RETIREMENT CREDITED                
 SERVICE & BENEFITS) as the next order of business.                            
 ROXANNE STEWART, staff to Senator Jim Duncan, informed the                    
 committee that they were unable to get a fiscal note on the                   
 amendment to SB 39 they had proposed the previous week because the            
 Governor's office does not provide fiscal notes on amendments that            
 have not been adopted.  She noted that the Division of Retirement             
 & Benefits has provided a letter relating to the effect of the                
 amendment.                                                                    
                                                                               
 Number 080                                                                    
                                                                               
 SENATOR RANDY PHILLIPS stated the committee would take testimony              
 over the teleconference network.                                              
                                                                               
 GARY TODD, Soldotna, a permanent seasonal employee of the Alaska              
 Department of Fish & Game, said there are a lot of people that work           
 during the summer on a number of different jobs, and some of these            
 people have been working for 14 to 16 years.  Many of these people            
 are not vested in the retirement system even though they have spent           
 a lot of time working seasonally along side permanent people who              
 have all the benefits.  He would like to see these people credited            
 with this time and at a reasonable cost.                                      
                                                                               
 Number 120                                                                    
                                                                               
 JANET PARKER, Division of Retirement & Benefits, Department of                
 Administration, explained that the actuarial cost would be                    
 different for each individual because it is based upon their salary           
 and how much time the individual is buying.   SENATOR LEMAN added             
 that while it might seem like a large amount to be paid by an                 
 individual, the potential for recovery is excellent.                          
                                                                               
 Number 145                                                                    
                                                                               
 JOAN WILKERSON, Juneau, Alaska Public Employees Association, voiced           
 support for SB 39.  She said in 1980 the definition of "seasonal"             
 or "temporary" was changed to "nonpermanent."  This dealt with an             
 inequity where previously, seasonal employees could not buy into or           
 get credit for the years they had put in.  SB 39 would cover people           
 who put in seasonal work in the sixties and seventies.  She added             
 that if the same rights were afforded to people from 1980 on, it              
 would seem appropriate to apply them to people who have been loyal            
 and faithful workers to the State of Alaska in the previous two               
 decades.                                                                      
                                                                               
 Ms. Wilkerson noted that when the same legislation was before the             
 Legislature two years ago the Division of Retirement & Benefits               
 didn't see it as a cost, and she questioned why there is fiscal               
 note on the current bill that shows a cost.                                   
                                                                               
 Number 215                                                                    
                                                                               
 SENATOR PHILLIPS asked what conditions changed in two years so that           
 they are now showing a cost to the system.  JANET PARKER answered             
 that this Administration decided that they would not present a bill           
 to the Legislature with a zero fiscal note if they truly believe              
 that there wasn't one there.  At one point they said that there is            
 no cost because it's all within the retirement system, and they               
 presented the bills that way.  This Administration has decided that           
 if there is going to be a cost, no matter how big or small, the               
 bill has to have a fiscal note.                                               
                                                                               
 Number 250                                                                    
                                                                               
 DR. CLARK DAMON, Juneau, said he would be affected under the public           
 service provision by combining the two retirement programs.  He               
 said if he paid the $50,000 which he would be required to pay to be           
 eligible for the program, he would receive $237 a month, plus a               
 $306 health benefit allowance.  Projecting his costs out, it would            
 take him 19.5 years to recoup his money.                                      
                                                                               
 Number 275                                                                    
                                                                               
 SENATOR LEMAN requested that he be provided with calculations for             
 some of these typical people who may choose this, showing how much            
 it will cost and how long it takes to recoup the cost.  SENATOR               
 PHILLIPS suggested that the bill would be moving to the State                 
 Affairs Committee, which is chaired by Senator Leman, and that                
 information could be provided to his committee.                               
                                                                               
 SENATOR RANDY PHILLIPS stated his intent to move SB 39 out of                 
 committee without the amendment because it lacks a fiscal note.               
                                                                               
 Number 330                                                                    
                                                                               
 SENATOR ADAMS moved that SB 39 and the accompanying fiscal notes be           
 passed out of committee with individual recommendations.  Hearing             
 no objection, it was so ordered.