Legislature(2021 - 2022)BARNES 124

03/21/2022 03:15 PM House LABOR & COMMERCE

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Audio Topic
03:19:43 PM Start
03:20:22 PM SJR12
03:49:57 PM Presentation: Professional Licensing Processing
05:17:20 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SJR 12 SOCIAL SECURITY BENEFIT REDUCTION REPEAL TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ Presentation: Professional Licensing Processing TELECONFERENCED
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                         March 21, 2022                                                                                         
                           3:19 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Zack Fields, Co-Chair                                                                                            
Representative Ivy Spohnholz, Co-Chair                                                                                          
Representative Calvin Schrage                                                                                                   
Representative Liz Snyder                                                                                                       
Representative David Nelson                                                                                                     
Representative James Kaufman                                                                                                    
Representative Ken McCarty                                                                                                      
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE JOINT RESOLUTION NO. 12                                                                                                  
Urging the United States Congress to repeal the Windfall                                                                        
Elimination Provision and Government Pension Offset of the                                                                      
Social Security Act.                                                                                                            
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PRESENTATION: PROFESSIONAL LICENSING PROCESSING                                                                                 
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SJR 12                                                                                                                  
SHORT TITLE: SOCIAL SECURITY BENEFIT REDUCTION REPEAL                                                                           
SPONSOR(s): SENATOR(s) WIELECHOWSKI                                                                                             
                                                                                                                                
03/29/21       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/29/21       (S)       STA, FIN                                                                                               
04/27/21       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
04/27/21       (S)       <Bill Hearing Canceled>                                                                                
05/04/21       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
05/04/21       (S)       Heard & Held                                                                                           
05/04/21       (S)       MINUTE(STA)                                                                                            
05/06/21       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
05/06/21       (S)       Moved SJR 12 Out of Committee                                                                          
05/06/21       (S)       MINUTE(STA)                                                                                            
05/07/21       (S)       STA RPT 1DP 3NR                                                                                        
05/07/21       (S)       DP: SHOWER                                                                                             
05/07/21       (S)       NR: HOLLAND, COSTELLO, REINBOLD                                                                        
02/24/22       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
02/24/22       (S)       Heard & Held                                                                                           
02/24/22       (S)       MINUTE(FIN)                                                                                            
03/01/22       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
03/01/22       (S)       Moved SJR 12 Out of Committee                                                                          
03/01/22       (S)       MINUTE(FIN)                                                                                            
03/04/22       (S)       FIN RPT  6DP                                                                                           
03/04/22       (S)       DP: STEDMAN, BISHOP, HOFFMAN, WILSON,                                                                  
                         WIELECHOWSKI, OLSON                                                                                    
03/11/22       (S)       TRANSMITTED TO (H)                                                                                     
03/11/22       (S)       VERSION: SJR 12                                                                                        
03/14/22       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/14/22       (H)       STA                                                                                                    
03/14/22       (H)       L&C REPLACES STA REFERRAL                                                                              
03/21/22       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
SENATOR BILL WIELECHOWSKI                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  As the prime sponsor, introduced SJR 12.                                                                 
                                                                                                                                
KEEGAN FARONE, Intern                                                                                                           
Senator Wielechowski                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  On behalf of Senator Wielechowski, prime                                                                 
sponsor of SJR 12, provided a PowerPoint presentation titled                                                                    
"Senate Joint Resolution 12."                                                                                                   
                                                                                                                                
TOM KLAAMEYER, President                                                                                                        
National Education Association-Alaska (NEA-Alaska)                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Provided invited testimony in support of                                                                 
SJR 12.                                                                                                                         
                                                                                                                                
KATHLEEN YERBICH, Teacher                                                                                                       
Matanuska-Susitna Education Association (MSEA)                                                                                  
Wasilla, Alaska                                                                                                                 
POSITION STATEMENT:  Provided invited testimony in support of                                                                 
SJR 12.                                                                                                                         
                                                                                                                                
SARA CHAMBERS, Director                                                                                                         
Division of  Corporations, Business, and  Professional Licensing,                                                               
Department of Commerce, Community, and Economic Development                                                                     
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:    Gave  the  presentation  on  Professional                                                             
Licensing Processing.                                                                                                           
                                                                                                                                
GLENN HOSKINSON, Deputy Director                                                                                                
Division of  Corporations, Business, and  Professional Licensing,                                                               
Department of Commerce, Community, and Economic Development                                                                     
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Provided comment  during the presentation on                                                             
Professional Licensing Processing.                                                                                              
                                                                                                                                
RICHARD WEIN                                                                                                                    
Chair, State Medical Board                                                                                                      
Sitka, Alaska                                                                                                                   
POSITION  STATEMENT:    Testified   during  the  presentation  on                                                             
Professional Licensing Processing.                                                                                              
                                                                                                                                
DANETTE SCHLOEDER, RN, Chair                                                                                                    
Alaska Board of Nursing                                                                                                         
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:    Testified   during  the  presentation  on                                                             
Professional Licensing Processing.                                                                                              
                                                                                                                                
ERIN JOHNSON, PhD                                                                                                               
Chair,  Board   of  Psychologists  and   Psychological  Associate                                                               
Examiners                                                                                                                       
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:    Testified   during  the  presentation  on                                                             
Professional Licensing Processing.                                                                                              
                                                                                                                                
JUSTIN RUFFRIDGE, PharmD                                                                                                        
Chair, Board of Pharmacy                                                                                                        
Soldotna, Alaska                                                                                                                
POSITION  STATEMENT:    Testified   during  the  presentation  on                                                             
Professional Licensing Processing.                                                                                              
                                                                                                                                
DORENE "DORI" HAGEN, LPC, Chair                                                                                                 
Board of Professional Counselors                                                                                                
Homer, Alaska                                                                                                                   
POSITION  STATEMENT:    Testified   during  the  presentation  on                                                             
Professional Licensing Processing.                                                                                              
                                                                                                                                
JARED KOSIN, CEO                                                                                                                
Alaska State Hospital and Nursing Home Association                                                                              
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:    Testified   during  the  presentation  on                                                             
Professional Licensing Processing.                                                                                              
                                                                                                                                
SARA MASSMANN                                                                                                                   
Legislative Committee Co-Chair, Alaska Nurses Association                                                                       
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:    Testified   during  the  presentation  on                                                             
Professional Licensing Processing.                                                                                              
                                                                                                                                
TONIE PROTZMAN, MS, LPC, CDC, PSP III, Executive Director                                                                       
Alaska Chapter of the National Association of Social Workers                                                                    
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:    Testified   during  the  presentation  on                                                             
Professional Licensing Processing.                                                                                              
                                                                                                                                
TOM CHARD, CEO                                                                                                                  
Alaska Behavioral Health Association                                                                                            
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:    Testified   during  the  presentation  on                                                             
Professional Licensing Processing.                                                                                              
                                                                                                                                
TIM MULLEN, PhD, CEO                                                                                                            
Ortho Alaska, Inc.;                                                                                                             
Member                                                                                                                          
Alaska State Medical Association                                                                                                
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified  during the Professional Licensing                                                             
Processing.                                                                                                                     
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:19:43 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  IVY  SPOHNHOLZ  called  the House  Labor  and  Commerce                                                             
Standing   Committee    meeting   to    order   at    3:19   p.m.                                                               
Representatives Kaufman, Nelson,  McCarty, Schrage, and Spohnholz                                                               
were present  at the call  to order.  Representatives  Fields and                                                               
Snyder arrived as the meeting was in progress.                                                                                  
                                                                                                                                
         SJR 12-SOCIAL SECURITY BENEFIT REDUCTION REPEAL                                                                    
                                                                                                                                
3:20:22 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SPOHNHOLZ announced  that the  first order  of business                                                               
would  be  SENATE JOINT  RESOLUTION  NO.  12, Urging  the  United                                                             
States Congress to repeal the  Windfall Elimination Provision and                                                               
Government Pension Offset of the Social Security Act.                                                                           
                                                                                                                                
3:21:11 PM                                                                                                                    
                                                                                                                                
SENATOR  BILL  WIELECHOWSKI,  Alaska State  Legislature,  as  the                                                               
prime  sponsor,  introduced  SJR  12.    He  explained  that  the                                                               
resolution  urges Congress  to  repeal  the Windfall  Elimination                                                               
Provision  (WEP)  and  Government  Pension Offset  (GPO)  of  the                                                               
Social Security  Act.   He paraphrased  from the  written sponsor                                                               
statement  [included   in  the  committee  packet],   which  read                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     SJR   12  urges   Congress  to   repeal  the   Windfall                                                                    
     Elimination  Provision  (WEP)  and  Government  Pension                                                                    
     Offset (GPO) of  the Social Security Act.  The WEP cuts                                                                    
     the  Social Security  benefits of  public employees  in                                                                    
     Alaska  if  they  plan to  switch  between  the  public                                                                    
     sector and  private sector or  military. In  2021, this                                                                    
     loss  could be  as much  as  $498 per  month, or  about                                                                    
     $6,000  a  year.  The  GPO   cuts  spousal  or  widows'                                                                    
     benefits for public employees for  no reason other than                                                                    
     their work in the public  sector. This cut could amount                                                                    
     to  as much  as 2/3rds  the value  of the  individual's                                                                    
     government pension.                                                                                                        
                                                                                                                                
     Because  Alaska is  one  of few  states  that does  not                                                                    
     offer  a defined  benefit plan  or coverage  for social                                                                    
     security,  the WEP  and GPO  affect  more Alaskans  per                                                                    
     capita  than  any  other  state.  Public  employees  in                                                                    
     Alaska  are  being punished  for  choosing  to work  in                                                                    
     public service.                                                                                                            
                                                                                                                                
     The  WEP  and  GPO negatively  impact  recruitment  and                                                                    
     retention   of   Alaska   public  employees   such   as                                                                    
     firefighters, police officers  and especially teachers.                                                                    
     Those  who  do   not  want  to  be   subject  to  these                                                                    
     provisions will  simply look elsewhere  for employment.                                                                    
     Punishing individuals for  choosing public service runs                                                                    
     counter  to  retaining  dedicated Alaskan  workers  and                                                                    
     recruiting the best of the best to Alaska.                                                                                 
                                                                                                                                
     Passage  of SJR  12  will demonstrate  that the  Alaska                                                                    
     Legislature opposes  arbitrary and  unfair cuts  to the                                                                    
     rightfully   earned   Social   Security   benefits   of                                                                    
     Alaskans.                                                                                                                  
                                                                                                                                
     Alaskans deserve to retire with dignity. I urge your                                                                       
     support of SJR 12.                                                                                                         
                                                                                                                                
SENATOR  WIELECHOWSKI  added  that   this  affects  about  16,000                                                               
Alaskans, and that Alaska is the  most impacted of all the states                                                               
with over 15 percent of retirees  in Alaska impacted by this.  He                                                               
reported  that   several  bills   in  Congress   have  widespread                                                               
bipartisan support,  one of which  is cosponsored by  Alaskas  US                                                               
Senator Lisa  Murkowski.   He said this  is a  nationwide effort,                                                               
with people across the US cheering on SJR 12.                                                                                   
                                                                                                                                
3:23:15 PM                                                                                                                    
                                                                                                                                
KEEGAN  FARONE,   Intern,  Senator  Wielechowski,   Alaska  State                                                               
Legislature, on behalf of Senator  Wielechowski, prime sponsor of                                                               
SJR 12,  provided a PowerPoint presentation  titled  Senate Joint                                                               
Resolution 12.    He  displayed the title  slide and  stated that                                                               
SJR 12 urges  the US Congress to repeal  the Windfall Elimination                                                               
Provision (WEP)  and the Government  Pension Offset (GPO)  of the                                                               
Social Security Act.  He  moved to slide 2,  Windfall Elimination                                                               
Provision,   and explained  that  the WEP  affects workers  whose                                                               
work  histories   include  both  [Social   Security]-covered  and                                                               
noncovered  employment,  with   the  noncovered  employment  also                                                               
providing a pension.                                                                                                            
                                                                                                                                
MR.   FARONE  proceeded   to  slide   3,  "Windfall   Elimination                                                               
Provision," and  stated that  through what  is called  the "first                                                               
bend" a  worker's first $996  of Social Security is  reduced from                                                               
90 percent to  as low as 40 percent depending  on the quantity of                                                               
recorded years  considered to  be of  substantial earnings.   The                                                               
  hree bend  formula" constitutes  what is  known as  the primary                                                               
insurance amount  (PIA), which is  the amount of  Social Security                                                               
benefits  paid  to  a  retiree  at  full  retirement  age.    The                                                               
reduction  is   based  on  the  years   of  substantial  earnings                                                               
accumulated throughout  the worker's  lifetime, which  is reduced                                                               
in 5  percent increments for  years less than  30.  So,  a worker                                                               
with fewer than  21 years of substantial earnings  will receive a                                                               
50  percent reduction  to the  first  bend of  the average  index                                                               
monthly earnings (AIME).                                                                                                        
                                                                                                                                
MR. FARONE  presented slide 4,  Windfall  Elimination Provision,                                                                
and related  that the WEP  affects more Alaskans per  capita than                                                               
any other state.   In 2020, over 12,000  retired Alaskan workers,                                                               
60 disabled  workers, and 478  spouses and children  were subject                                                               
to  WEP reductions.    Of all  Social  Security beneficiaries  in                                                               
Alaska, 11.6 percent had their benefits reduced by the WEP.                                                                     
                                                                                                                                
MR.  FARONE continued  to slide  5,  Government  Pension Offset,                                                                
and explained that  the GPO affects Alaskans the  second most per                                                               
capita  of all  US states.   However,  unlike the  WEP which  can                                                               
apply to any noncovered employment,  the GPO applies specifically                                                               
to government workers retirement benefits.                                                                                      
                                                                                                                                
MR.  FARONE  showed slide  6,   Government  Pension Offset,   and                                                               
reported that  the GPO  may equate to  two-thirds of  the pension                                                               
that  a  Social  Security  beneficiary is  set  to  receive  from                                                               
noncovered employment.   In what is known as  a  partial offset,                                                                
GPO refers  to a reduction in  which the GPO is  smaller than the                                                               
benefit, so the  remainder of Social Security  benefits are paid.                                                               
In  full offset,  the GPO is  larger than the spousal benefit, so                                                               
no Social Security benefit is paid.                                                                                             
                                                                                                                                
MR. FARONE  displayed slide 7,   Government Pension  Offset,  and                                                               
specified that  of the 3,322  Alaskans subject to  GPO reductions                                                               
in  2020, nearly  73  percent were  fully  offset, meaning  those                                                               
affected  received  no  Social   Security  spousal  or  widowers                                                                
benefit  because  the  reduction  was greater  than  the  benefit                                                               
itself.  He  further specified that 43 percent  of those affected                                                               
were widows or widowers.                                                                                                        
                                                                                                                                
MR. FARONE  continued to slide  8,  Conclusion,  and  stated that                                                               
although the WEP  and GPO were created to  address the inequality                                                               
with   double-dipping   principle,  another   was   inadvertently                                                               
created.   He  said  Alaskans  should not  suffer  cuts to  their                                                               
rightfully  earned   Social  Security   benefits  due   to  their                                                               
dedication to public service.                                                                                                   
                                                                                                                                
3:27:04 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SPOHNHOLZ  observed the  statement  [on  slide 4],   In                                                               
2020, over  12,000 Alaskans had Social  Security benefits reduced                                                               
by the WEP.    She then observed the statement  [on slide 7] that                                                               
3,322 Alaskans  were affected  by the  GPO.   She asked  what the                                                               
difference is between the two.                                                                                                  
                                                                                                                                
MR. FARONE replied that the  WEP and GPO are separate provisions.                                                               
The  WEP is  a  provision that  affects  the individuals   Social                                                               
Security [benefits], and the GPO  applies specifically to spouses                                                               
and widowers benefits.                                                                                                          
                                                                                                                                
CO-CHAIR SPOHNHOLZ asked whether  some folks have both provisions                                                               
layering on top of each other.                                                                                                  
                                                                                                                                
MR. FARONE responded that is correct.                                                                                           
                                                                                                                                
3:28:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCARTY surmised that  this pertains only to state                                                               
employees, not non-state employees.                                                                                             
                                                                                                                                
SENATOR WIELECHOWSKI answered  that it could apply  to anyone who                                                               
does not pay into Social Security.   It would apply to anyone who                                                               
works in  the state of Alaska  for an employer that  does not pay                                                               
into  Social Security,  which typically  is all  state employees,                                                               
municipal employees, and school district employees.                                                                             
                                                                                                                                
REPRESENTATIVE MCCARTY inquired whether  this pertains in any way                                                               
to non-government employees.                                                                                                    
                                                                                                                                
SENATOR WIELECHOWSKI replied  that it would not,  unless they had                                                               
a  job that  didnt  pay  into Social  Security, which  he doesnt                                                                
know that there are any in Alaska.                                                                                              
                                                                                                                                
REPRESENTATIVE  MCCARTY posed  a  scenario of  someone working  a                                                               
government job  and then going  to a non-government job,  or vice                                                               
versa.  He  offered his understanding that right  now this person                                                               
would  have a  reduction on  his or  her Social  Security portion                                                               
because of the government job.                                                                                                  
                                                                                                                                
SENATOR WIELECHOWSKI  responded yes,  that is  the way  it works.                                                               
This would not  apply, he explained, to someone who  has worked a                                                               
full 30  years with Social  Security contributions being  made on                                                               
his  or her  behalf.   This would  only apply  if the  person has                                                               
worked less  than 30 years, which  is many people.   For example,                                                               
if prior  to retiring,  someone works 25  years as  a legislator,                                                               
firefighter,  or  military member,  his  or  her Social  Security                                                               
benefits will be reduced significantly.   A person who has worked                                                               
20 or  fewer years, will have  his or her Social  Security cut by                                                               
up to $498  per month or almost  $6,000 a year.   Every year from                                                               
20 to 30 years  there is a 5 percent increase.   So, a person who                                                               
has worked  21 years  with Social Security  benefits and  who has                                                               
also worked  for a public employer,  would have a maximum  cut of                                                               
$448 [per month].   It drops 5 percent for  every year between 20                                                               
and 30 years.                                                                                                                   
                                                                                                                                
3:31:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCARTY  posed a scenario  in which he  has worked                                                               
for  one entity  for  20 years  and then  another  entity for  an                                                               
additional 20  years, and  he now  receives retirement  from each                                                               
one.   In this scenario,  he is not  double dipping, he  just has                                                               
two different  retirement plans.   However,  he continued,  if he                                                               
works for  a government  entity for  20 years  and then  works in                                                               
another job  in which he pays  into Social Security, he  will not                                                               
be able  to get a  full expectation  from that.   This resolution                                                               
would fix it so that he could have a double retirement.                                                                         
                                                                                                                                
SENATOR WIELECHOWSKI answered that is correct.                                                                                  
                                                                                                                                
REPRESENTATIVE MCCARTY remarked, "This is a great idea."                                                                        
                                                                                                                                
SENATOR WIELECHOWSKI posed a scenario  in which a person works 20                                                               
years for a  government employer and then 20 years  for a private                                                               
employer.   He  said this  person would  have his  or her  Social                                                               
Security cut  by $498 [a month].   This is penalizing  people for                                                               
working for a public employer.   If a person worked for a private                                                               
employer there would  be no cut.   The person has paid  in and is                                                               
getting cut because Congress made  this bizarre bill decades ago,                                                               
for which the ramifications were not thought out.                                                                               
                                                                                                                                
3:33:11 PM                                                                                                                  
                                                                                                                              
CO-CHAIR SPOHNHOLZ suggested that  providing a sectional analysis                                                               
would not be necessary, to which no one objected.                                                                               
                                                                                                                              
3:33:18 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SPOHNHOLZ opened invited testimony on SJR 12.                                                                          
                                                                                                                                
3:33:31 PM                                                                                                                    
                                                                                                                                
TOM KLAAMEYER,  President, National  Education Association-Alaska                                                               
(NEA-Alaska), provided  invited testimony  in support of  SJR 12.                                                               
He shared  that he arrived in  Alaska in 1989 courtesy  of the US                                                               
Air Force.  He said he used  his GI bill to attend the University                                                               
of Alaska  Anchorage and is  now in  his twenty-sixth year  as an                                                               
educator in the  Anchorage School District.  He  stated that this                                                               
is an obscure topic to  many people, but of incredible importance                                                               
to  members   of  NEA-Alaska,   members  of   Alaskas   Teachers                                                                
Retirement System  (TRS) and Public Employees   Retirement System                                                               
(PERS), and  every legislator and  staff member, all of  whom are                                                               
subject  to  GPO/WEP penalties.    The  GPO/WEP  is a  series  of                                                               
penalties  that   can  negatively  impact  the   Social  Security                                                               
benefits that  were earned  by certain  former federal  and state                                                               
employees by virtue  of these employees collecting a  PERS or TRS                                                               
retirement.                                                                                                                     
                                                                                                                                
MR. KLAAMEYER  noted that Alaska  educators and  public employees                                                               
hired after 2006 are particularly  vulnerable to both provisions.                                                               
In 2006, he  explained, PERS/TRS changed from  a pension (defined                                                               
benefit program) to a defined  contribution retirement system for                                                               
all subsequent  employees.  The  GPO/WEP were designed  to reduce                                                               
the  Social  Security  benefits   of  former  state  and  federal                                                               
employees  who held  government  pensions.   Certificated  Alaska                                                               
educators hired  after 2006,  now numbering  about 60  percent of                                                               
all teachers in  Alaska, have no pension.  Yet,  they are subject                                                               
to GPO/WEP  if they have  previous Social Security  earnings, and                                                               
they  arent   eligible  to  participate  in  Social  Security  as                                                               
educators even if  they wanted to.  When  talking about teachers,                                                               
he  explained,  he  is   including  all  certificated  educators,                                                               
counselors,  nurses,  principals,  and superintendents.    Alaska                                                               
certificated  educators have  the dubious  distinction of  having                                                               
the  absolute worst,  least secure  retirement system  in the  US                                                               
without  a  pension  or  Social  Security.    A  person  entering                                                               
teaching as a  second career or working another job  to make ends                                                               
meet has  paid into the system  with their taxes, but  because of                                                               
the  GPO/WEP  this person  gets  a  double  whammy of  having  no                                                               
pension and a reduced Social Security benefit.                                                                                  
                                                                                                                                
MR. KLAAMEYER specified  that the decision for TRS to  opt out of                                                               
the  Social Security  system  was made  in  1951 during  Alaskas                                                                
territorial days,  so knowing the  reasoning is difficult.   From                                                               
his  research through  NEAs  history,  he said  it may  have been                                                               
thought  that  belonging  to  Social  Security  wasn't  necessary                                                               
because at the time the TRS  Tier I benefits provided security in                                                               
retirement.   But  those  days are  long gone,  he  stated.   The                                                               
GPO/WEP  provisions were  added in  1983,  and he  would like  to                                                               
think that a different decision  would have been made by Alaskas                                                                
state leaders  had they  known then  what a  precarious situation                                                               
they would be placing on future educators.                                                                                      
                                                                                                                                
MR. KLAAMEYER  said it  was learned  in the  last few  years that                                                               
there is a  process by which individual districts,  or the state,                                                               
could once again reenter the  Social Security system, which might                                                               
provide some help in providing  retirement security.  However, he                                                               
continued,  because of  the GPO/WEP  problem  that issue  becomes                                                               
muddled  and quickly  problematic as  the costs  and benefits  of                                                               
such  a move  are weighed.   To  be clear,  one of  the solutions                                                               
suggested is  to go ahead and  get back into the  Social Security                                                               
system to give that security  in retirement, which could be done,                                                               
but  then NEA-Alaskas   members would  lose up  to half  of their                                                               
Social Security benefits  because they are still  receiving a TRS                                                               
or PERS pension.   So, it becomes a dubious  choice   an educator                                                               
would be  paying the same  as everybody  else to get  into Social                                                               
Security but not  be able to collect the full  benefit unless the                                                               
person had more than  30 years when he or she  would no longer be                                                               
subject to GPO/WEP.                                                                                                             
                                                                                                                                
3:39:40 PM                                                                                                                    
                                                                                                                                
MR. KLAAMEYER related  that he's heard of people  who retired not                                                               
knowing of GPO/WEP or that they  were impacted until they went to                                                               
Social Security  and were told  that their benefits  were reduced                                                               
by hundreds  of dollars.   Even worse,  some educators  have lost                                                               
their  eligibility entirely  for the  survivor benefits  from the                                                               
spouse  or parent.    This  money for  retirement  may have  been                                                               
counted  on for  their entire  working careers  and it  is simply                                                               
gone.   He  said  NEA-Alaska  is doing  its  best  to inform  its                                                               
members about this  problem and is advocating for  fixing it, but                                                               
the complexity of  the topic makes for an uphill  battle.  Arming                                                               
NEA-Alaskas  members with the details  does not mitigate the harm                                                               
that they  will receive from  GPO/WEP, he pointed out,  they just                                                               
know its   coming.  It may  seem obscure or minimal  to some, but                                                               
to a  senior on  a fixed  retirement income  after a  lifetime of                                                               
public service,  several hundred  dollars a  month can  have real                                                               
consequences.                                                                                                                   
                                                                                                                                
MR. KLAAMEYER thanked  the sponsor for bringing forth  SJR 12 and                                                               
the committee  for hearing  the resolution.   He  said NEA-Alaska                                                               
has  been  working  for  years   with  the  Alaska  Congressional                                                               
Delegation,  which speaks  to the  length of  time of  working on                                                               
this and  the complexity  of the  problem.   Perhaps SJR  12 will                                                               
raise  the profile  of the  problem, he  continued, and  give the                                                               
Alaska Congressional  Delegation the  support needed  to advocate                                                               
for Alaska's state workers and retirees more effectively.                                                                       
                                                                                                                                
3:42:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCARTY asked why [the GPO/WEP] exists.                                                                          
                                                                                                                                
MR. KLAAMEYER replied that that is  the point, it has no logic to                                                               
it, it is an unfair penalty.  He  shared that he is a TRS Tier II                                                               
beneficiary  with a  pension, so  maybe  there is  some logic  to                                                               
that.  He said  he has had other jobs through  which he paid into                                                               
Social Security, and if he were  to earn 40 quarters by working a                                                               
job outside of education he would  then receive a benefit, but it                                                               
would be offset.  Because he has  spent the bulk of his career in                                                               
education not paying into Social  Security he likely would not be                                                               
as impacted  as some.   For  people who  worked in  other careers                                                               
before  becoming  an  educator,  all  their  retirement  benefits                                                               
become  subject, even  though it  isnt  a  pension.   In the  TRS                                                               
system the  employer and the  employee each pay greater  than the                                                               
6.2 percent  that employers  and employees  each pay  into Social                                                               
Security; by  that definition the Social  Security Administration                                                               
still  counts  it as  a  pension  even  though  it is  a  defined                                                               
contribution  plan.   He  said NEA-Alaska  has  asked the  Social                                                               
Security Administration  to waive  Alaska from  consideration for                                                               
GPO/WEP, but  was told it  couldnt  be done  administratively, it                                                               
must be  done in statute.   He concurred  it makes no  sense that                                                               
one  retirement  benefit   earned  in  one  job   cancels  out  a                                                               
retirement benefit  earned in another  job.  It is  ludicrous and                                                               
unfair and impacts NEA-Alaska members more than most.                                                                           
                                                                                                                                
3:45:21 PM                                                                                                                    
                                                                                                                                
KATHLEEN    YERBICH,    Teacher,   Matanuska-Susitna    Education                                                               
Association (MSEA), provided invited  testimony in support of SJR
12.   She explained  that the WEP  and GPO were  put in  place in                                                               
1983 with  the main justification  being that teachers  and other                                                               
public employees  had earned a  generous pension, so  they didnt                                                                
the  Social Security  piece.    But, she  continued,  this is  no                                                               
longer the case.  She does  not have a generous retirement as she                                                               
is  Tier III  - after  working 20  years as  a teacher,  she will                                                               
receive  $900  per  month retirement.    Financial  analysts  say                                                               
Alaskas  Tier III system doesnt   fit the requirements to even be                                                               
called a retirement.  Even if  she worked for 30 years, the money                                                               
that she will receive will not be enough to retire.                                                                             
                                                                                                                                
MS. YERBICH stated she has  a Social Security account from monies                                                               
earned during her  teen years, her military years,  and her years                                                               
of a  part-time job  as an  adult.   However, she  continued, she                                                               
will  only receive  a fraction  from this  account.   Her husband                                                               
worked 40  years in  Alaska construction and  is now  retired and                                                               
receiving  a Social  Security check.   If  he passes  away before                                                               
her, she will only receive a fraction  of his check.  The rest of                                                               
his money and her money will  get absorbed into the system - this                                                               
is what the WEP and GPO mean.                                                                                                   
                                                                                                                                
MS. YERBICH  related that when  she explains  the WEP and  GPO to                                                               
other people,  the common  response is that  it must  be illegal.                                                               
And  it  does seem  illegal  because  it  is  so unjust.    While                                                               
educating people she  has had many widowers  share their struggle                                                               
with  her.   They  worked for  20 or  more  years, their  husband                                                               
worked 20 or more years, and  together they made ends meet, until                                                               
their husband passed away.  They  only receive a fraction of this                                                               
money, and it  is heartbreaking.  The committee has  the power to                                                               
help them by urging repeal of the  WEP and GPO.  Both pieces were                                                               
designed  so teachers  and public  employees were  not given  too                                                               
much of the pie, but they are now barely at the table.                                                                          
                                                                                                                                
3:47:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCARTY   observed  that  if  the   GPO/WEP  were                                                               
repealed it would become retroactive.   He inquired about how far                                                               
it  would go  and  how much  money  would be  available  to do  a                                                               
retroactive capture to take care of these retirement pieces.                                                                    
                                                                                                                                
MS. YERBICH  responded that if  it is  repealed she will  get all                                                               
her  Social Security  monies when  she  retires and  will not  be                                                               
penalized.  She will get  all her husband's Social Security money                                                               
if he passes  away before her because it would  not be penalized.                                                               
Repeal of both the GPO and WEP gets rid of the penalization.                                                                    
                                                                                                                                
3:48:52 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SPOHNHOLZ  opined that it's  wrong that people  who have                                                               
worked in the public sector  and the private sector are penalized                                                               
in this way.   When the GPO and WEP  were created, she continued,                                                               
it was  based on the  rich retirement  pensions that were  had in                                                               
those days, but those days are  long gone and havent  existed for                                                               
[most  of] her  life.   She was  about eight  years old  when the                                                               
State  of Alaska  chose  to  opt out  of  Social  Security.   The                                                               
states  programs  are no longer as  rich as they used  to be, and                                                               
it is problematic  that now people who worked in  both the public                                                               
and private sectors are penalized.                                                                                              
                                                                                                                                
[SJR 12 was held over.]                                                                                                         
                                                                                                                                
^PRESENTATION: Professional Licensing Processing                                                                                
        PRESENTATION: Professional Licensing Processing                                                                     
                                                                                                                              
3:49:57 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SPOHNHOLZ announced  that the  final order  of business                                                               
would   be  a   presentation   on   the  Professional   Licensing                                                               
Processing.                                                                                                                     
PRESENTERS:                                                                                                                   
                                                                                                                                
SARA CHAMBERS                                                                                                                   
GLENN HOSKINSON                                                                                                                 
RICHARD WEIN                                                                                                                    
DANETTE SCHLOEDER, RN                                                                                                           
ERIN JOHNSON, PhD                                                                                                               
JUSTIN RUFFRIDGE, PharmD                                                                                                        
DORENE "DORI" HAGEN, LPC                                                                                                        
JARED KOSIN, CEO                                                                                                                
SARA MASSMANN                                                                                                                   
TONIE PROTZMAN, MS, LPC, CDC, PSP III                                                                                           
TOM CHARD, CEO                                                                                                                  
TIM MULLEN, PhD                                                                                                                 
                                                                                                                                
NOTE: The  presentation was  recorded and  log notes  were taken.                                                             
The  recording  is  available  at   the  legislature's  web  site                                                               
akleg.gov  or by  contacting the  House Records  Office at  State                                                               
Capitol,  Room   3,  Juneau,  Alaska  99801   (mailing  address),                                                               
(907)465-2214,  and after  adjournment of  the second  session of                                                               
the Thirty-Second  Alaska State Legislature this  information may                                                               
be obtained  by contacting the  Legislative Reference  Library at                                                               
(907) 465-3808.                                                                                                                 
                                                                                                                                
5:17:20 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Labor and  Commerce Standing Committee  meeting was  adjourned at                                                               
5:17 p.m.                                                                                                                       

Document Name Date/Time Subjects
SJR 12 GPO Explanation SSA.pdf HL&C 3/21/2022 3:15:00 PM
SSTA 5/4/2021 3:30:00 PM
SJR 12
SJR 12 Sponsor Statement.pdf HL&C 3/21/2022 3:15:00 PM
SFIN 2/24/2022 9:00:00 AM
SSTA 5/4/2021 3:30:00 PM
SJR 12
SJR 12 v.B.PDF HL&C 3/21/2022 3:15:00 PM
SSTA 5/4/2021 3:30:00 PM
SJR 12
SJR 12 WEP and GPO numbers 2018.pdf HL&C 3/21/2022 3:15:00 PM
SSTA 5/4/2021 3:30:00 PM
SJR 12
SJR 12 WEP Explanation SSA.pdf HL&C 3/21/2022 3:15:00 PM
SSTA 5/4/2021 3:30:00 PM
SJR 12
SJR 12 GPO Explainer 2.8.21.pdf HL&C 3/21/2022 3:15:00 PM
SFIN 2/24/2022 9:00:00 AM
SJR 12
SJR 12 Letter of Support 2.9.22.pdf HL&C 3/21/2022 3:15:00 PM
SFIN 2/24/2022 9:00:00 AM
SJR 12
SJR 12 Letter of Support 5.5.21.pdf HL&C 3/21/2022 3:15:00 PM
SFIN 2/24/2022 9:00:00 AM
SJR 12
SJR 12 Presentation.pdf HL&C 3/21/2022 3:15:00 PM
SFIN 2/24/2022 9:00:00 AM
SJR 12
SJR 12 WEP GPO Key Points 2.9.22.pdf HL&C 3/21/2022 3:15:00 PM
SFIN 2/24/2022 9:00:00 AM
SJR 12
SJR 12 WEP Explainer 11.16.21.pdf HL&C 3/21/2022 3:15:00 PM
SFIN 2/24/2022 9:00:00 AM
SJR 12
DCCED CBPL HLC Presentation 3.21.22 FINAL.pdf HL&C 3/21/2022 3:15:00 PM
Professional Licensing Processing
2021 Professional Licensing Statistics.pdf HL&C 3/21/2022 3:15:00 PM
Professional Licensing Processing