Legislature(2011 - 2012)CAPITOL 120
04/05/2012 01:00 PM House MILITARY & VETERANS' AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SJR16 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SJR 16 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON MILITARY AND VETERANS' AFFAIRS
April 5, 2012
1:53 p.m.
MEMBERS PRESENT
Representative Dan Saddler, Co-Chair
Representative Steve Thompson, Co-Chair
Representative Alan Austerman
Representative Bob Lynn
Representative Sharon Cissna
Representative Bob Miller
MEMBERS ABSENT
Representative Carl Gatto, Vice Chair
COMMITTEE CALENDAR
SENATE JOINT RESOLUTION NO. 16
Urging the United States Congress to approve legislation
allowing members of the military to receive promised retirement
benefits.
- MOVED SJR 16 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SJR 16
SHORT TITLE: MILITARY PENSIONS
SPONSOR(s): SENATOR(s) WIELECHOWSKI
02/03/12 (S) READ THE FIRST TIME - REFERRALS
02/03/12 (S) STA
02/09/12 (S) STA AT 9:00 AM BUTROVICH 205
02/09/12 (S) Moved SJR 16 Out of Committee
02/09/12 (S) MINUTE(STA)
02/10/12 (S) STA RPT 5DP
02/10/12 (S) DP: WIELECHOWSKI, KOOKESH, PASKVAN,
MEYER, GIESSEL
02/15/12 (S) TRANSMITTED TO (H)
02/15/12 (S) VERSION: SJR 16
02/17/12 (H) READ THE FIRST TIME - REFERRALS
02/17/12 (H) MLV
04/03/12 (H) MLV AT 1:00 PM CAPITOL 120
04/03/12 (H) Heard & Held
04/03/12 (H) MINUTE(MLV)
04/05/12 (H) MLV AT 1:00 PM CAPITOL 120
WITNESS REGISTER
KENDRA KLOSTER, Staff
Senator Bill Wielechowski
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Senator Bill Wielechowski,
sponsor, reviewed SJR 16.
ACTION NARRATIVE
1:53:32 PM
CO-CHAIR DAN SADDLER called the House Special Committee on
Military and Veterans' Affairs meeting to order at 1:53 p.m.
Representatives Saddler, Thompson, Lynn, and Miller were present
at the call to order. Representatives Austerman and Cissna
arrived as the meeting was in progress.
SJR 16-MILITARY PENSIONS
1:53:49 PM
CO-CHAIR SADDLER announced that the only order of business would
be SENATE JOINT RESOLUTION NO. 16, Urging the United States
Congress to approve legislation allowing members of the military
to receive promised retirement benefits.
1:54:25 PM
KENDRA KLOSTER, Staff, Senator Bill Wielechowski, Alaska State
Legislature, presented SJR 16 on behalf of Senator Wielechowski,
sponsor. She informed the committee that SJR 16 urges the U.S.
Department of Defense (DoD) and Congress to reconsider changes
proposed by the Defense Business Board, DoD, which would affect
the military pension system. At this time, the military has a
20-year vesting system; however, the Defense Business Board
suggests removing this provision, and making other changes.
Senate Joint Resolution 16 advocates that service members who
have already enlisted have the option to keep their 20-year
pension that was promised at induction. Furthermore, SJR 16
supports the passage of H.R. 3520, the Keeping Our Promises Act
of 2011, introduced by Congressman Don Young.
1:55:43 PM
REPRESENTATIVE LYNN disclosed a conflict of interest.
CO-CHAIR SADDLER indicated Representative Lynn would be required
to vote.
CO-CHAIR THOMPSON acknowledged that a retired service member may
draw retirement income for over 40 years; however, he opined it
is a bad idea to deny retirement after 20 years of service to
someone who has risked their life. He asked what studies show
on the differences in cost and liability, or how the 40l(k) plan
fits in for those who transfer.
MS. KLOSTER referred to materials provided in the committee
packet entitled, "Modernizing the Military Retirement System,"
dated 7/21/11, and prepared by the Defense Business Board Task
Group. She pointed out that the ideas in the overview are not
finite, and include the option of a 401(k)-style plan. The
resolution does not oppose this plan, but urges that those who
signed up under a 20-year plan should still have that option.
Ms. Kloster offered to provide further information on costs.
1:58:28 PM
CO-CHAIR THOMPSON surmised that under a 401(k) plan, a service
member could serve for five or ten years, then leave the service
and roll over the 401(k) into an individual retirement account
(IRA). He opined this would have a negative effect on the DoD
because currently a service member must stay for 20 years to get
retirement.
MS. KLOSTER called attention to page 9 of the aforementioned
Defense Business Board Task Group overview and read the
following:
The retirement plan is unaffordable. For each dollar
of current pay, the retirement plan accrues 33 cents,
for a total of $24 billion in FY 11. ... Increases in
inflation and life expectancy will further increase
military retirement costs.
MS. KLOSTER said the overview discusses the costs for a number
of different plans, but this information is "very preliminary"
and she was unsure what type of plan would be considered, or how
many service members would be "grandfathered" into a plan. She
agreed that 401(k) plans are "something that they would be able
to take with them."
2:00:23 PM
REPRESENTATIVE LYNN stated that retirement age is relative to a
person's experience.
CO-CHAIR SADDLER appreciated the value of the 20-year pension
plan, and agreed that promises to service members should be
kept; however, he suggested that service members should be
offered alternatives that may better serve their interest. Some
of the options proposed by the Defense Business Board are worth
consideration such as credit for service of less than 20 years
and for those who served hazardous or hardship duty. He
concluded that this is a complicated issue with many options and
cautioned that the resolution may be seen as a blanket
endorsement of the 20-year program.
2:02:39 PM
CO-CHAIR THOMPSON moved to report SJR 16 out of committee with
individual recommendations and the zero fiscal note. There
being no objection, SJR 16 was reported from the House Special
Committee on Military and Veterans' Affairs.
2:02:59 PM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Military and Veterans' Affairs meeting was
adjourned at 2:02 p.m.
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