Legislature(2001 - 2002)
04/20/2001 02:05 PM Senate HES
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 149-TEACHER RETIREMENT,REEMPLOYMENT,CERTIFIC'T
SENATOR WILKEN moved to adopt Version R of SB 149 as the working
document of the committee. There being no objection, the motion
carried.
MR. PAUL ROETMAN, staff to Senator Leman, sponsor of SB 149,
explained that the committee substitute (CS) outlines specific
incentives to promote recruitment and retention of teachers.
Alaska has a growing teacher shortage. In the beginning of 2001,
almost 90 teaching vacancies existed across the state. Many
schools had to rely on emergency certificates and waivers to fill
those positions. Alaska is attracting fewer teachers to the
state and, in addition, the University of Alaska simply cannot
meet the demand for graduates. SB 149 takes a pro-active
approach to help reduce the staffing shortage.
MR. ROETMAN described the changes made in the CS. The original
bill included some financial incentives to attract teachers. The
partial loan assumption (50 percent loan forgiveness) and merit
awards for selected teachers provisions were removed from the CS.
What remains is recognition of out-of-state teacher credentials,
an incentive for employment of retired teachers, and improved
medical coverage for current teachers.
Sections 1 and 2 deal with a preliminary teacher certificate to
recognize out-of-state teacher credentials to facilitate the
process for out-of-state teachers who want to relocate to Alaska
to teach. The bill allows those teachers with a valid teaching
certificate to take the practice exam within the first year of
their employment instead of prior to it. A preliminary Alaska
teaching certificate will be issued for a three-year term.
Sections 3, 4 and 5 allow school districts to employ retired
teachers if they anticipate or formally record a shortage. The
CS contains a five percent limitation but, according to Guy Bell,
director of the Division of Retirement and Benefits, retired
teachers are not likely to flood the vacant positions.
Section 6 increases medical benefits to 100 percent coverage if a
teacher, who normally can retire after 20 years, postpones
retirement for another five years.
MR. ROETMAN proposed two amendments for the committee's
consideration. The first, Amendment 1, reads as follows:
A M E N D M E N T 1
OFFERED IN THE SENATE BY SENATOR LEMAN
TO: CSSSSB 149( ), Draft Version "R"
Page 3, lines 14 - 17:
Delete all material.
Reletter the following subsections accordingly.
Page 3, following line 31:
Insert a new bill section to read:
"* Sec. 5. AS 14.25.040(a) is amended to read:
(a) Unless a teacher or member has elected to
participate in the optional university retirement program
under AS 14.40.661 - 14.40.799 [OR HAS FILED AN ELECTION
UNDER AS 14.25.043(b)], a teacher or member contracting for
service with a participating employer is subject to this
chapter."
Renumber the following bill sections accordingly.
Page 5, following line 7:
Insert new bill sections to read:
"* Sec. 7. AS 14.25.043(a) is amended to read:
(a) If a retired member again becomes an active member,
benefit payments may not be made during the period of
reemployment [UNLESS THE TEACHER MAKES AN ELECTION UNDER (b)
OF THIS SECTION]. The retirement benefit must be suspended
for the entire school year if the teacher is reemployed as
an active teacher for a period equivalent to a year of
service. During the period of reemployment, [THE MEMBER IS
SUBJECT TO AS 14.25.050 AND] deductions from the member's
salary will be made in accordance with AS 14.25.050."
Renumber the following bill sections accordingly.
Page 5, following line 20:
Insert a new bill section to read:
"* Sec. 9. AS 14.20.135 and AS 14.25.043(b) are repealed
July 1, 2004."
Page 5, line 28:
Delete "sec. 10"
Insert "sec. 14"
Page 5, line 30:
Delete "secs. 4 - 6"
Insert "secs. 4, 6, and 8"
Page 6, line 1:
Delete "Section 8"
Insert "Section 11"
Page 6, following line 1:
Insert a new bill section to read:
"* Sec. 13. Sections 5, 7, and 9 of this Act take effect
July 1, 2004."
Renumber the following bill section accordingly.
Page 6, line 2:
Delete "sec. 9"
Insert "secs. 12 and 13"
SENATOR WILKEN moved to adopt Amendment 1. There being no
objection, the motion carried.
SENATOR WILKEN moved to adopt Amendment 2.
VICE-CHAIR LEMAN objected for the purpose of an explanation.
MR. ROETMAN said Amendment 2 does two things: it removes the five
percent limitation of Section (3)(b); and it provides a sunset
provision after three years for all three of the retirement
provisions.
VICE-CHAIR LEMAN asked Mr. Bell to explain the effect of
Amendment 2 on the Teachers Retirement System (TRS).
MR. GUY BELL, Director of the Division of Retirement and
Benefits, Department of Administration, told the committee that
Amendment 2 will have no impact, from an actuarial perspective,
on the retiree-return provision and there will be an almost
immaterial impact on the medical benefit enhancement. The amount
will be .17 percent of payroll equaling, for example, $85 on a
$50,000 salary. He believes it is a good idea to include a
sunset provision so that the legislature can re-evaluate this
program in the future.
VICE-CHAIR LEMAN asked if three years will provide adequate time.
MR. BELL said it should.
VICE-CHAIR LEMAN said his intention was to get something into
effect that will work this year and next year and then take
another look at it. He announced with no objection, Amendment 2
was adopted.
MR. ROETMAN noted that Melissa Hill was available to testify via
teleconference.
Number 674
MELISSA HILL, Alaska Teacher Placement, said she cannot stress
the need to find qualified teachers for students in Alaska. It is
becoming harder and harder to find teachers willing to relocate
to rural Alaska. The state needs to seek ways to accommodate and
entice teachers. She supports recognition of certified out-of-
state teachers. She also supports employment of retired teachers
because aside from enlarging the applicant pool, it will provide
mentoring opportunities. Mentor teachers are a major factor in
teacher retention.
MS. HILL informed committee members of the following facts:
· Alaska still has 300 teaching vacancies after the previous
job fair;
· Only 375 applicants have registered for the April job fair;
· At least four of Alaska's rural school districts can expect
to hire 30 to 60 new teachers each year.
There was no further public testimony.
SENATOR WARD moved CSSB 149(HES) from committee with individual
recommendations and its accompanying fiscal notes. There being
no objection, the motion carried.
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