Legislature(2013 - 2014)
03/20/2013 04:03 PM House L&C
| Audio | Topic |
|---|---|
| Start | |
| HB102 | |
| HB116 | |
| HB102 | |
| HB116 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
March 20, 2013
4:03 p.m.
MEMBERS PRESENT
Representative Kurt Olson, Chair
Representative Lora Reinbold, Vice Chair
Representative Mike Chenault
Representative Charisse Millett
Representative Dan Saddler
Representative Andy Josephson
MEMBERS ABSENT
Representative Bob Herron
COMMITTEE CALENDAR
HOUSE BILL NO. 102
"An Act relating to property exemptions for retirement plans,
individual retirement accounts, and Roth IRAs; relating to
transfers of individual retirement plans; relating to the rights
of judgment creditors of members of limited liability companies
and partners of limited liability partnerships; relating to the
Uniform Probate Code, including pleadings, orders, liability,
and notices under the Uniform Probate Code and the Alaska
Principal and Income Act, the appointment of trust property, the
Alaska Uniform Prudent Investor Act, co-trustees, trust
protectors, and trust advisors; relating to the Alaska Principal
and Income Act; relating to the Alaska Uniform Transfers to
Minors Act; relating to the disposition of human remains;
relating to the tax on insurers for life insurance policies;
relating to insurable interests for certain insurance policies;
relating to restrictions on transfers of trust interests;
relating to discretionary interests in irrevocable trusts;
relating to the community property of married persons; and
amending Rule 64, Alaska Rules of Civil Procedure, and Rule
301(a), Alaska Rules of Evidence."
- HEARD & HELD
HOUSE BILL NO. 116
"An Act relating to the use of credited military service by
retired peace officers and firefighters to meet certain
requirements for major medical insurance coverage; and providing
for an effective date."
- HEARD & HELD
CS FOR SENATE BILL NO. 23(FIN)
"An Act relating to development project financing by the Alaska
Industrial Development and Export Authority; relating to the
dividends from the Alaska Industrial Development and Export
Authority; authorizing the Alaska Industrial Development and
Export Authority to provide financing and issue bonds for a
liquefied natural gas production system and natural gas
distribution system; and providing for an effective date."
- BILL HEARING CANCELED
HOUSE BILL NO. 32
"An Act providing for the issuance of one business license for
multiple lines of business; and providing for reissuance of a
business license to correct a mistake on the license."
- SCHEDULED BUT NOT HEARD
PREVIOUS COMMITTEE ACTION
BILL: HB 102
SHORT TITLE: RETIREMENT PLANS; ROTH IRAS; PROBATE
SPONSOR(s): REPRESENTATIVE(s) KELLER
02/01/13 (H) READ THE FIRST TIME - REFERRALS
02/01/13 (H) L&C, JUD
02/25/13 (H) L&C AT 3:15 PM BARNES 124
02/25/13 (H) Heard & Held
02/25/13 (H) MINUTE(L&C)
03/20/13 (H) L&C AT 3:45 PM BARNES 124
BILL: HB 116
SHORT TITLE: PERS CREDIT FOR MILITARY SERVICE
SPONSOR(s): REPRESENTATIVE(s) MILLETT
02/13/13 (H) READ THE FIRST TIME - REFERRALS
02/13/13 (H) L&C, FIN
03/20/13 (H) L&C AT 3:45 PM BARNES 124
WITNESS REGISTER
ERNEST PRAX, Staff
Representative Wes Keller
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the bill on behalf of
Representative Wes Keller, sponsor of HB 102.
BETH CHAPMAN, Attorney
Faulkner Banfield, P.C.
Juneau, Alaska
POSITION STATEMENT: Testified during the discussion of HB 102.
JONATHAN BLATTMACHR, Attorney
President; Chief Executive Officer (CEO)
Alaska Trust Company
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 102.
DAVID SHAFTEL, Attorney
Shaftel Law Offices, PC
Anchorage, Alaska
POSITION STATEMENT: Testified during the discussion of HB 102.
VASILIOS GIALOPSOS, Staff
Representative Charisse Millett
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 116 on behalf of the sponsor,
Representative Charisse Millett.
JIM PUCKETT, Director
Central Office
Division of Retirement & Benefits (DRB)
Department of Administration (DOA)
Juneau, Alaska
POSITION STATEMENT: Testified and answered questions during the
discussion of HB 116.
KATHY LEA, Deputy Director
Central Office
Division of Retirement and Benefits (DRB)
Department of Administration (DOA)
Juneau, Alaska
POSITION STATEMENT: Testified and answered questions during the
discussion of HB 116.
JAKE METCALFE
Executive Director
Public Safety Employees Association Local 803 (PSEA)
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 116.
JAMES W. SEARS, Jr.
Division of Alaska State Troopers (AST)
Department of Public Safety (DPS);
Vice President, Public Safety Employees Association (PSEA)
Nome, Alaska
POSITION STATEMENT: Testified during the discussion of HB 116.
CHRISTOPHER BURKE, Sergeant
Juneau Police Department (JPD)
City and Borough of Juneau
Juneau, Alaska
POSITION STATEMENT: Testified during the discussion of HB 116.
JAMES BAISDEN, Fire Chief
Nikiski Fire Department;
1st Vice President
Alaska Fire Chiefs Association
Nikiski, Alaska
POSITION STATEMENT: Testified in support of HB 116.
JOHN BROWN, Sergeant
Division of Alaska State Troopers (AST)
Department of Public Safety (DPS)
Seward, Alaska
POSITION STATEMENT: Testified during the discussion of HB 116.
SEAN MARTINES, Sergeant
Fairbanks International Airport Police and Fire
Fairbanks International Airport
Department of Transportation & Public Facilities (DOT&PF)
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 116.
MARC CLOWARD, Sergeant
Division of Alaska Wildlife Troopers (AWT)
Department of Public Safety (DPS)
Cordova, Alaska
POSITION STATEMENT: Testified in support of HB 116.
ACTION NARRATIVE
4:03:02 PM
CHAIR KURT OLSON called the House Labor and Commerce Standing
Committee meeting to order at 4:03 p.m. Representatives
Reinbold, Chenault, Millett, Saddler, Josephson, and Olson were
present at the call to order.
HB 102-RETIREMENT PLANS; ROTH IRAS; PROBATE
4:03:27 PM
CHAIR OLSON announced that the first order of business would be
HOUSE BILL NO. 102, "An Act relating to property exemptions for
retirement plans, individual retirement accounts, and Roth IRAs;
relating to transfers of individual retirement plans; relating
to the rights of judgment creditors of members of limited
liability companies and partners of limited liability
partnerships; relating to the Uniform Probate Code, including
pleadings, orders, liability, and notices under the Uniform
Probate Code and the Alaska Principal and Income Act, the
appointment of trust property, the Alaska Uniform Prudent
Investor Act, co-trustees, trust protectors, and trust advisors;
relating to the Alaska Principal and Income Act; relating to the
Alaska Uniform Transfers to Minors Act; relating to the
disposition of human remains; relating to the tax on insurers
for life insurance policies; relating to insurable interests for
certain insurance policies; relating to restrictions on
transfers of trust interests; relating to discretionary
interests in irrevocable trusts; relating to the community
property of married persons; and amending Rule 64, Alaska Rules
of Civil Procedure, and Rule 301(a), Alaska Rules of Evidence."
4:03:52 PM
ERNEST PRAX, Staff, Representative Wes Keller, Alaska State
Legislature, on behalf of the sponsor, Representative Wes
Keller, stated that the proposed committee substitute (CS) for
HB 102, Version U, will be before the committee for adoption.
This bill would incorporate two changes from the previous
meeting. The first change incorporates an amendment, Amendment
1, previously adopted by the committee that corrected a drafting
error. The second change would remove language on page 35,
lines 18-31, and page 36, lines 1-4, which is Section 38 of the
original bill.
4:04:45 PM
REPRESENTATIVE REINBOLD moved to adopt the proposed committee
substitute, (CS), labeled 28-LS-0335\U, Bannister, 2/26/13, as
the working document.
CHAIR OLSON objected for the purpose of discussion.
4:05:12 PM
MR. PRAX explained that Section 38 pertains to the allowable
time for an insurable interest and as he recalled the committee
held a discussion on whether it was needed since it was more of
a technical legal question. He related that the parties the
sponsor was working with decided the language was not necessary.
4:06:28 PM
CHAIR OLSON removed his objection. There being no further
objection, Version U was before the committee.
4:08:39 PM
BETH CHAPMAN, Attorney, Faulkner Banfield, P.C., stated she
previously testified in support of the bill. She said she also
supported the proposed amendments, including the technical
amendment.
4:09:16 PM
JONATHAN BLATTMACHR, Attorney, President & CEO, Alaska Trust
Company, testified in support of HB 102, which he said could
create jobs and bring revenue into the state.
4:10:22 PM
DAVID SHAFTEL, Attorney, Shaftel Law Offices, PC, said he is an
attorney in trust and estates and is one of the group of
attorneys that worked on HB 102 for about three years. He
characterized the bill as containing provisions that will help
all of Alaska's residents. He urged the committee to give
serious consideration to the bill.
4:11:37 PM
REPRESENTATIVE JOSEPHSON understood he does probate practice and
is familiar with probate practice and the probate bar.
MR. SHAFTEL confirmed that to be the case.
REPRESENTATIVE JOSEPHSON asked whether those in probate practice
like the bill.
MR. SHAFTEL replied yes, and noted that a number of provisions
in HB 102 will make it easier for the attorneys to administer
estates and trusts as well as to plan for Alaska residents. The
provisions, he related, were discussed among the probate bar,
which is a relatively small group that meets, discusses
problems, and when statute changes are necessary ask the
legislature for assistance.
4:13:02 PM
CHAIR OLSON, after first determining no one else wished to
testify, closed public testimony on HB 102.
[HB 102 was held over.]
4:13:43 PM
The committee took an at-ease from 4:13 p.m. to 4:19 p.m.
HB 116-PERS CREDIT FOR MILITARY SERVICE
4:19:58 PM
CHAIR OLSON announced that the next order of business would be
HOUSE BILL NO. 116 "An Act relating to the use of credited
military service by retired peace officers and firefighters to
meet certain requirements for major medical insurance coverage;
and providing for an effective date."
4:20:06 PM
REPRESENTATIVE MILLETT, speaking as sponsor of HB 116, said this
bill is a way to honor members of the military that have served
in the military and worked with the state as peace officers.
She explained that military members often take jobs in civilian
life they previously held in the military, such as firefighters
and police officers. The aforementioned professions are jobs
that are difficult, cause great wear and tear on the body, and
for which the potential for injury is high. Therefore, HB 116
provides a cost savings that could help fire and police members
by allowing them to purchase five years of Public Employees'
Retirement System (PERS) service for medical benefits and
retirement. She highlighted that the bill has a zero fiscal
note since members would repay the cost through an actuary
formula for up to five years of military service time. She
highlighted that this would recognize the military service of
the police officers and firefighters as well as the increased
possibility of injury or need for more time off as these people
age. This bill would allow for an earlier retirement for those
who chose to do so at no cost to the state and potentially save
the state some money.
4:23:03 PM
VASILIOS GIALOPSOS, Staff, Representative Charisse Millett,
Alaska State Legislature, on behalf of Representative Charisse
Millett, provided a sectional analysis of the bill. He stated
that Section 1 is a conforming section such that it would
conform AS 39.35.340 to Section 2 of the bill, which would allow
peace officers and firefighters, vested under PERS Tier 2 or
Tier 3, to obtain medical coverage under AS 39.35.535 (c). The
proposed retiree would confer with the state's Division of
Retirement and Benefits and the actuarial indebtedness would be
calculated. Since the bill is permissive, the employee would be
able to choose to purchase up to five years of service time.
4:24:23 PM
REPRESENTATIVE SADDLER asked whether the purchase would be
limited to Tiers 2 and 3. He then asked whether the benefit
would be available for Tier 1.
MR. GIALOPSOS responded that in a technical sense, Tier 1 could
apply. However, since the officers in question are eligible to
purchase the credit between their 20th and 25th work year, Tier
1 employees would already encompass this timeframe.
4:25:09 PM
REPRESENTATIVE JOSEPHSON asked whether this could save the state
money since the incoming police and fire employees would be a
lower classification.
MR. GIALOPSOS responded that there is a strong argument that it
would save money. He stated 240 employees are peace officers
and firefighters, working in some of the most hazardous work
environments. He characterized the jobs as being for younger
people. Thus entry-level positions would be coming in at lower
cost. Additionally, the cost of injuries could affect workers'
compensation or result in a disability.
REPRESENTATIVE JOSEPHSON understood the bill is permissive so a
person could shop for coverage.
MR. GIALOPSOS answered yes.
4:27:04 PM
JIM PUCKETT, Director, Central Office, Division of Retirement &
Benefits (DRB), Department of Administration (DOA), introduced
himself.
KATHY LEA, Deputy Director, Central Office, Division of
Retirement and Benefits (DRB), Department of Administration
(DOA), introduced herself.
4:28:18 PM
MR. PUCKETT related there is a minor issue regarding changing
language in the bill so that it can be administered as intended.
CHAIR OLSON asked whether the department supports the bill.
MR. PUCKETT responded that the DOA is neutral on the bill.
4:28:46 PM
REPRESENTATIVE SADDLER asked how the process would work.
MS. LEA answered that currently PERS Tier 2 and Tier 3 peace
officers and firefighters of any age can retire after 20 years
of service; however, they cannot access medical coverage until
they reach 25 years of service. Therefore, those employees who
retire after 20 years of service must wait until age 60 before
they are eligible [to receive medical coverage]. Ms. Lea
related a scenario in which an employee wishes to buy service
time. The department would estimate the cost to purchase the
military service for health eligibility in the year the person
is retiring. She explained this limit is due to the actuarial
calculation, which is based on the employee's age, the current
earnings in the fund, as well as the present value of the
additional benefits. Thus, the amount owed for each year of
eligibility up to five years would be calculated. The
additional retirement time could be paid in full or in part
prior to retirement if any remaining time can be taken as a
lifetime actuarial reduction to the retirement or benefit. She
said the person could do a plan-to-plan transfer into PERS from
another qualified plan such as the Alaska Supplemental Annuity
Plan or the Alaska Deferred Compensation Plan to pay for this.
4:31:37 PM
REPRESENTATIVE SADDLER asked whether there is a penalty for
transferring from plan-to-plan.
MS. LEA answered no; that it would be a direct plan-to-plan
transfer.
4:31:50 PM
REPRESENTATIVE SADDLER asked whether people who have served as
firefighters and police officers but now serve in the military
could buy service time, in other words would it be reciprocal.
MS. LEA answered that she did not know.
4:32:14 PM
JAKE METCALFE, Executive Director, Public Safety Employees
Association Local 803 (PSEA), said that PSEA represents police
officers in Ketchikan, Sitka, Juneau, Fairbanks, Soldotna,
Unalaska, and Dillingham as well as the Alaska State Troopers
(AST), airport police, and firefighters in Fairbanks and
Anchorage. He related that approximately 750-800 police, fire,
and police department employees are represented by the PSEA. He
said the PSEA very much supports HB 116 and he asked the
committee to support the bill. He referred to the sponsor's
statement and read, "They have made a career providing public
safety and rescue in one of the most hazardous working
environments to be found." He also referred to charts in
members' packets which identify the type of injuries that police
officers and firefighters have suffered over time.
MR. METCALFE highlighted the tragedy that happened this week
involving Thomas Madole, a Village Public Safety Officer (VPSO)
who was killed in Southwest Alaska. He said this demonstrates
the type of hazards that police and fire employees face every
day when they go to work. He characterized public safety jobs
as being very difficult ones. He said, "Our hearts go out to
his family and we wish them the best dealing with this tragedy."
In conclusion, he urged members to support the bill.
4:35:19 PM
CHAIR OLSON asked how many of the 750 employees would be
eligible for the buyback provisions in HB 116.
MR. METCALFE answered the total number was 238 last year,
although the total number has been reduced since some people
have subsequently retired. In further response to a question,
Mr. Metcalfe answered that 238 State of Alaska PSEA employees
would be eligible to the provisions in HB 116.
CHAIR OLSON said it isn't a huge number.
MR. METCALFE acknowledged that the PSEA does not represent all
police and public safety employees of the state.
4:36:07 PM
REPRESENTATIVE SADDLER asked whether the restrictions are in
place for those not honorably discharged from the military
service.
MR. METCALFE said he did not know.
REPRESENTATIVE SADDLER then asked the sponsor for clarification.
4:36:44 PM
MR. GIALOPSOS referred to AS 39.35.340(a), which read:
A vested employee is entitled to credited service for
active military service in the armed forces of the
United States, either by enlistment or induction, if
the employee received a discharge under honorable
conditions and is not entitled to receive retirement
benefits from the United States government for the
same service.
MR. GIALOPSOS explained this refers to a narrowly defined
description of the eligible public safety employees.
4:37:21 PM
REPRESENTATIVE SADDLER asked whether "under honorable
conditions" also includes a general discharge.
MR. GIALOPSOS answered yes.
REPRESENTATIVE MILLETT expressed her desire not to offend any of
the older police officers.
MR. METCALFE responded she did not.
4:38:21 PM
JAMES W. SEARS, Alaska State Trooper (AST), Department of Public
Safety (DPS); Vice President, Public Safety Employees
Association (PSEA), stated he was born and raised in Alaska and
is currently an Alaska State Trooper (AST) stationed in Nome.
He has performed most of his career in rural Alaska and has been
in law enforcement since 1985. He highlighted that his job
duties are demanding and offered that were it necessary to
rescue Representative Millett he could have carried to safety
during his earlier years but now he would likely drag her to
safety. He reported that he is a disabled U.S. Army veteran.
He advised that his job duties are very physically demanding,
including carrying an extra 28 pounds of gear each day; the gear
includes his vest, duty weapon and other gear. Furthermore, he
travels throughout the state in airplanes, four-wheel all-
terrain vehicles, boats, and on foot. In fact, he related that
he just returned from a 400-mile snowmachine patrol and is a
little sore. He explained that carrying 28 pounds of gear is
physically hard on bodies.
MR. SEARS related that it is more difficult to wrestle bad guys
who do not want to cooperate than it was during his younger
years. He highlighted that HB 116 would give veterans an
opportunity to retire with 20 years if they also have five years
of military service. This bill would allow the officers to
purchase their military time and military medical time. In the
long run, he predicted this would save the state a lot of money
since senior AST's salaries are higher. He surmised that the
bill would also reduce the costs of injuries for older officers.
In fact, the PSEA's employees are not asking for a handout since
these members are willing to pay for the military service. He
asked for support for HB 116 for military veterans that have
served their country and currently serve their state. He also
expressed condolences for VPSO Madole who gave the ultimate
sacrifice.
4:42:46 PM
CHAIR OLSON asked whether this would open up advancement
possibilities, too, for other officers.
MR. SEARS confirmed that is correct. He explained that the
seasoned officers would trickle out of the PSEA. For example,
he has four more years before he would be eligible to retire and
take advantage of the option HB 116 provides.
CHAIR OLSON did not think the retirements would overwhelm the
system.
4:43:27 PM
CHRISTOPHER BURKE, Sergeant, Juneau Police Department (JPD),
City and Borough of Juneau, stated that this bill would benefit
him as well as others. He said he has worked in law enforcement
most of his adult life. He has purchased his military credit.
He said he has been with JPD in active law enforcement for 17
years. Thus far, the CBJ has not taken a position on the bill.
He served in the U.S. Coast Guard (USCG) on two separate patrol
boats whose mission was law enforcement and search and rescue
operations. He also served in the first Gulf War and worked on
anti-terrorist patrols. He was born and raised in Alaska and
returned to Alaska since it was a lifelong dream to work in the
community in which he grew up. Further, the bill does not have
a fiscal impact since the cost would be placed on members
wishing to purchase the military time. Without HB 116, he would
otherwise need to work an additional five years to retire with
full benefits. One optional benefit to the state is the cost
savings since currently the state would pay for his benefits
during the additional five years of service prior to
eligibility. He suggested this would cost more since he is
currently at the top of his pay scale. He also agreed with
Chair Olson, that the bill would also allow younger officers an
opportunity for promotion. He, too, acknowledged the job
becomes more physically demanding as he grows older although he
has been lucky he has not been injured. He said he is a working
street patrol sergeant, which he plans to remain doing for his
remaining time. He also said he works with younger officers who
shoulder some of the demanding enforcement.
4:47:15 PM
SERGEANT BURKE acknowledged that the people who will use the
program would do so in a tiered affect. He said under HB 116 he
would purchase his time and leave the state with 25 years of
service. Additionally, he would pay for the medical premiums
instead of the CBJ or the state paying them. He concluded that
he served his country, the state and the CBJ for 26 years. He
asked members to support this bill since it will be a cost
savings to the state and is also a means to thank veterans who
have dedicated their lives to help people through public
service.
CHAIR OLSON indicated at least one veteran serves on the
committee.
4:48:44 PM
JAMES BAISDEN, Fire Chief, Nikiski Fire Department; 1st Vice
President, Alaska Fire Chiefs Association, speaking as Fire
Chief, thanked the committee and Representative Millett for
bringing this bill forward. He said that he is one of five
veterans working for the department and believes about 10
firefighters could be affected by HB 116. He has held
conversations with the Anchorage Fire Department personnel who
indicate 23 fire department members would be eligible. He
served his country honorably for nine years in the U.S. Air
Force (USAF) and three years in Alaska Air National Guard (AANG)
as a firefighter. In 2007, he refinanced his home to purchase
five years of PERS service at a cost of $39,000. In September
2014, he will have 20 years as a Tier 2 employee as an Alaska
firefighter. Even though he is eligible for PERS retirement, he
is not eligible for medical coverage. Military veterans,
firefighters, and police officer put themselves at risk helping
others throughout their careers. They will be exposed to many
types of hazardous situations during this time to protect
Alaskans and their loved ones. Please help honor Alaska's
military veterans with public safety members by passing HB 116.
4:51:18 PM
CHAIR OLSON asked how many Central Emergency Services (CES)
personnel would be affected.
MR. BAISEN answered that his survey included two CES members,
five members in Nikiski, two in Bear Creek, two in Homer, and
two in Kodiak. Even if the bill were currently in effect, he
noted that some may not be able to take advantage of the
program. Thus far he is the only one to have paid for his
military service, he said.
4:52:20 PM
JOHN BROWN, Sergeant, Division of Alaska State Troopers (AST),
Department of Public Safety (DPS), stated he has been working
nearly 17 years as a sergeant with the AST during which he has
been stationed in many areas of the state. Prior to his AST
service, he served in the USAF as a law enforcement officer for
four years. Even though he would not be eligible under HB 116
for another three years he knows this bill will mean a lot to
his family.
4:53:40 PM
SEAN MARTINES, Sergeant, Fairbanks International Airport Police
and Fire (FIAPF), Fairbanks International Airport (FIA),
Department of Transportation & Public Facilities (DOT&PF), first
thanked Representative Millet for sponsoring the bill. He
stated he has 15 years of service as an airport police and fire
officer. He previously served for seven years on U.S. Coast
Guard Cutter Sedge based out of Homer. He subsequently attended
aviation school and was stationed in Kodiak for four years at
their air station. He has served Alaskans for most of his
career. His department has 23 PSEA members, 10 are Tier 3
employees, and three are eligible to buy back military time. He
related he will be returning from back surgery on April 1 and
the department has six recruits starting on May 1. Fully geared
up with fire gear, he weighs 340 pounds. He hopes to finish out
his career strong. He characterized the officers as incredible,
with a tremendous zest for life and passing the bill would honor
the three members who would be eligible. He said the
committee's support for HB 116 will mean a lot to the officers.
4:56:32 PM
MARC CLOWARD, Sergeant, Division of Alaska Wildlife Troopers
(AWT), Department of Public Safety (DPS), said that he has
worked as an Alaska Wildlife Trooper but he is also a veteran.
He thanked the sponsor for introducing the bill for all
veterans. The routine nature of his work as a Trooper is
physically demanding. In the normal course of the day he might
fly a super cub or a Cessna 185, operate a four-wheeler,
snowmachine, or some type of marine vessel. Often times his
routine patrols require boarding vessels in rough waters or hike
distances to access remote camps for inspections. The chance
for injury is considerable and he has had several injuries in
last the 15 years, which he indicated is proportional to his
age. He said he is now 47 and is not invincible. He
anticipated the physical demands will become more challenging
over time. This bill would give him the option to retire at 20
years and would allow him to purchase medical coverage to
coincide with the five years of credited military service he has
already purchased. He said this would give him 25 years of
accredited service with medical benefits. He said that without
this option he would need to work an additional 10 years to
obtain the same benefit; however under this scenario, the state
would also be obligated to a 30-year pension based on an even
higher earning rate. He offered his belief that HB 116 is a
fiscally viable option which would allow him, as a veteran, to
retire after 20 years of service with full benefits while
simultaneously relieving the state of additional financial
burden of funding a 30-year retirement. He urged members to
support HB 116. He viewed this bill as a critical component to
recognize those who have served their country and now serve the
state.
4:59:04 PM
REPRESENTATIVE JOSEPHSON said he did not want to seem overly
sentimental, but he has been so impressed by the public workers
- whether in the exempt class or the non-exempt class. He said,
"I really believe without these folks the wheels of the state
would come off. The private sector is vital, but he wished
everyone - all my constituents - knew about all these people and
what they are doing. It's hard to tell it all, but I'm
impressed."
CHAIR OLSON related the only time the public will know this is
when they need [the police and firefighters.]
4:59:43 PM
REPRESENTATIVE MILLETT passed on her condolences to the family
of VPSO Madole in Manokotak. She asked the officers to pass on
to his family that the legislators are thinking of him. She
said it was very tragic.
[HB 116 was held over.]
5:00:16 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee Meeting was adjourned at
5:00 p.m.
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