Legislature(2005 - 2006)

05/07/2005 07:32 PM Joint 141


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07:32:12 PM Start
07:34:17 PM SB141
09:18:50 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                 ALASKA STATE LEGISLATURE                                                                                     
              CONFERENCE COMMITTEE ON SB 141                                                                                  
                        May 7, 2005                                                                                             
                         7:32 p.m.                                                                                              
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                              draft                                                                            
Senator Lyda Green, Chair                                                                                                       
                                                                                                                                
Senator Ralph Seekins                                                                                                           
Senator Lyda Green, Chair                                                                                                       
Senator Donny Olson                                                                                                             
Senator Ralph Seekins                                                                                                           
                                                                                                                                
Senator Donny Olson                                                                                                             
Representative Bruce Weyhrauch                                                                                                  
                                                                                                                                
Representative Paul Seaton                                                                                                      
Representative Bruce Weyhrauch                                                                                                  
Representative Harry Crawford                                                                                                   
Representative Paul Seaton                                                                                                      
                                                                                                                                
Representative Harry Crawford                                                                                                   
MEMBERS ABSENT                                                                                                                
                                                                                                                                
                                                                                                                                
MEMBERS ABSENT                                                                                                                
All members present                                                                                                             
                                                                                                                                
                                                                                                                                
All members present                                                                                                             
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
CS FOR SENATE BILL NO. 141(FIN)                                                                                                 
                                                                                                                                
"An  Act relating  to the  teachers'  and public  employees'                                                                    
CS FOR SENATE BILL NO. 141(FIN)                                                                                                 
retirement  systems and  creating  defined contribution  and                                                                    
"An  Act relating  to the  teachers'  and public  employees'                                                                    
health  reimbursement plans  for  members  of the  teachers'                                                                    
retirement  systems and  creating  defined contribution  and                                                                    
retirement  system  and  the  public  employees'  retirement                                                                    
health  reimbursement plans  for  members  of the  teachers'                                                                    
system who are  first hired after July 1,  2005; relating to                                                                    
retirement  system  and  the  public  employees'  retirement                                                                    
university  retirement  programs;  establishing  the  Alaska                                                                    
system who are  first hired after July 1,  2005; relating to                                                                    
Retirement  Management Board  to  replace  the Alaska  State                                                                    
university  retirement  programs;  establishing  the  Alaska                                                                    
Pension  Investment Board,  the Alaska  Teachers' Retirement                                                                    
Retirement  Management Board  to  replace  the Alaska  State                                                                    
Board, and  the Public  Employees' Retirement  Board; adding                                                                    
Pension  Investment Board,  the Alaska  Teachers' Retirement                                                                    
appeals  of  the  decisions  of  the  administrator  of  the                                                                    
Board, and  the Public  Employees' Retirement  Board; adding                                                                    
teachers' and  public employees'  retirement systems  to the                                                                    
appeals  of  the  decisions  of  the  administrator  of  the                                                                    
jurisdiction  of  the  office  of  administrative  hearings;                                                                    
teachers' and  public employees'  retirement systems  to the                                                                    
providing for nonvested members  of the teachers' retirement                                                                    
jurisdiction  of  the  office  of  administrative  hearings;                                                                    
system defined benefit plans to  transfer into the teachers'                                                                    
providing for nonvested members  of the teachers' retirement                                                                    
retirement   system  defined   contribution  plan   and  for                                                                    
system defined benefit plans to  transfer into the teachers'                                                                    
nonvested  members  of   the  public  employees'  retirement                                                                    
retirement   system  defined   contribution  plan   and  for                                                                    
system  defined benefit  plans to  transfer into  the public                                                                    
nonvested  members  of   the  public  employees'  retirement                                                                    
employees'  retirement  system  defined  contribution  plan;                                                                    
system  defined benefit  plans to  transfer into  the public                                                                    
providing    for   political    subdivisions   and    public                                                                    
employees'  retirement  system  defined  contribution  plan;                                                                    
organizations  to  request  to  participate  in  the  public                                                                    
providing    for   political    subdivisions   and    public                                                                    
employees'   defined  contribution   retirement  plan;   and                                                                    
organizations  to  request  to  participate  in  the  public                                                                    
providing for an effective date."                                                                                               
employees'   defined  contribution   retirement  plan;   and                                                                    
                                                                                                                                
providing for an effective date."                                                                                               
     HEARD AND HELD                                                                                                             
                                                                                                                                
                                                                                                                                
     HEARD AND HELD                                                                                                             
HOUSE CS FOR CS FOR SENATE BILL NO. 141(FIN) am H                                                                               
                                                                                                                                
"An  Act relating  to the  teachers'  and public  employees'                                                                    
HOUSE CS FOR CS FOR SENATE BILL NO. 141(FIN) am H                                                                               
retirement  systems and  creating  defined contribution  and                                                                    
"An  Act relating  to the  teachers'  and public  employees'                                                                    
health  reimbursement plans  for  members  of the  teachers'                                                                    
retirement  systems and  creating  defined contribution  and                                                                    
retirement  system  and  the  public  employees'  retirement                                                                    
health  reimbursement plans  for  members  of the  teachers'                                                                    
system who are  first hired after July 1,  2005; relating to                                                                    
retirement  system  and  the  public  employees'  retirement                                                                    
university  retirement  programs;  establishing  the  Alaska                                                                    
system who are  first hired after July 1,  2005; relating to                                                                    
Retirement  Management Board  to  replace  the Alaska  State                                                                    
university  retirement  programs;  establishing  the  Alaska                                                                    
Pension  Investment Board,  the Alaska  Teachers' Retirement                                                                    
Retirement  Management Board  to  replace  the Alaska  State                                                                    
Board, and  the Public  Employees' Retirement  Board; adding                                                                    
Pension  Investment Board,  the Alaska  Teachers' Retirement                                                                    
appeals  of  the  decisions  of  the  administrator  of  the                                                                    
Board, and  the Public  Employees' Retirement  Board; adding                                                                    
teachers' and  public employees'  retirement systems  to the                                                                    
appeals  of  the  decisions  of  the  administrator  of  the                                                                    
jurisdiction  of  the  office  of  administrative  hearings;                                                                    
teachers' and  public employees'  retirement systems  to the                                                                    
providing for nonvested members  of the teachers' retirement                                                                    
jurisdiction  of  the  office  of  administrative  hearings;                                                                    
system defined benefit plans to  transfer into the teachers'                                                                    
providing for nonvested members  of the teachers' retirement                                                                    
retirement   system  defined   contribution  plan   and  for                                                                    
system defined benefit plans to  transfer into the teachers'                                                                    
nonvested  members  of   the  public  employees'  retirement                                                                    
retirement   system  defined   contribution  plan   and  for                                                                    
system  defined benefit  plans to  transfer into  the public                                                                    
nonvested  members  of   the  public  employees'  retirement                                                                    
employees'  retirement  system  defined  contribution  plan;                                                                    
system  defined benefit  plans to  transfer into  the public                                                                    
providing    for   political    subdivisions   and    public                                                                    
employees'  retirement  system  defined  contribution  plan;                                                                    
organizations  to  request  to  participate  in  the  public                                                                    
providing    for   political    subdivisions   and    public                                                                    
employees'   defined  contribution   retirement  plan;   and                                                                    
organizations  to  request  to  participate  in  the  public                                                                    
providing for an effective date."                                                                                               
employees'   defined  contribution   retirement  plan;   and                                                                    
                                                                                                                                
providing for an effective date."                                                                                               
     HEARD AND HELD                                                                                                             
                                                                                                                                
                                                                                                                                
     HEARD AND HELD                                                                                                             
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
BILL: SB 141                                                                                                                  
                                                                                                                                
SHORT TITLE: PUBLIC EMPLOYEE/TEACHER RETIREMENT/BOARDS                                                                          
BILL: SB 141                                                                                                                  
SPONSOR(s): FINANCE                                                                                                             
SHORT TITLE: PUBLIC EMPLOYEE/TEACHER RETIREMENT/BOARDS                                                                          
                                                                                                                                
SPONSOR(s): FINANCE                                                                                                             
03/14/05       (S)       READ THE FIRST TIME - REFERRALS                                                                        
                                                                                                                                
03/14/05       (S)       FIN                                                                                                    
03/14/05       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/16/05       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
03/14/05       (S)       FIN                                                                                                    
03/16/05       (S)       Heard & Held                                                                                           
03/16/05       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
03/16/05       (S)       MINUTE(FIN)                                                                                            
03/16/05       (S)       Heard & Held                                                                                           
03/17/05       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
03/16/05       (S)       MINUTE(FIN)                                                                                            
03/17/05       (S)       Heard & Held                                                                                           
03/17/05       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
03/17/05       (S)       MINUTE(FIN)                                                                                            
03/17/05       (S)       Heard & Held                                                                                           
03/21/05       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
03/17/05       (S)       MINUTE(FIN)                                                                                            
03/21/05       (S)       Heard & Held                                                                                           
03/21/05       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
03/21/05       (S)       MINUTE(FIN)                                                                                            
03/21/05       (S)       Heard & Held                                                                                           
03/22/05       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
03/21/05       (S)       MINUTE(FIN)                                                                                            
03/22/05       (S)       Heard & Held                                                                                           
03/22/05       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
03/22/05       (S)       MINUTE(FIN)                                                                                            
03/22/05       (S)       Heard & Held                                                                                           
03/23/05       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
03/22/05       (S)       MINUTE(FIN)                                                                                            
03/23/05       (S)       Heard & Held                                                                                           
03/23/05       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
03/23/05       (S)       MINUTE(FIN)                                                                                            
03/23/05       (S)       Heard & Held                                                                                           
03/29/05       (S)       FIN AT 4:30 PM SENATE FINANCE 532                                                                      
03/23/05       (S)       MINUTE(FIN)                                                                                            
03/29/05       (S)       Heard & Held                                                                                           
03/29/05       (S)       FIN AT 4:30 PM SENATE FINANCE 532                                                                      
03/29/05       (S)       MINUTE(FIN)                                                                                            
03/29/05       (S)       Heard & Held                                                                                           
03/30/05       (H)       FIN AT 9:00 AM HOUSE FINANCE 519                                                                       
03/29/05       (S)       MINUTE(FIN)                                                                                            
03/30/05       (S)       Heard & Held                                                                                           
03/30/05       (H)       FIN AT 9:00 AM HOUSE FINANCE 519                                                                       
03/30/05       (S)       MINUTE(FIN)                                                                                            
03/30/05       (S)       Heard & Held                                                                                           
03/31/05       (H)       FIN AT 9:00 AM HOUSE FINANCE 519                                                                       
03/30/05       (S)       MINUTE(FIN)                                                                                            
03/31/05       (S)       Heard & Held                                                                                           
03/31/05       (H)       FIN AT 9:00 AM HOUSE FINANCE 519                                                                       
03/31/05       (S)       MINUTE(FIN)                                                                                            
03/31/05       (S)       Heard & Held                                                                                           
04/01/05       (H)       FIN AT 9:00 AM HOUSE FINANCE 519                                                                       
03/31/05       (S)       MINUTE(FIN)                                                                                            
04/01/05       (S)       Heard & Held                                                                                           
04/01/05       (H)       FIN AT 9:00 AM HOUSE FINANCE 519                                                                       
04/01/05       (S)       MINUTE(FIN)                                                                                            
04/01/05       (S)       Heard & Held                                                                                           
04/02/05       (S)       FIN AT 10:00 AM SENATE FINANCE 532                                                                     
04/01/05       (S)       MINUTE(FIN)                                                                                            
04/02/05       (S)       Heard & Held                                                                                           
04/02/05       (S)       FIN AT 10:00 AM SENATE FINANCE 532                                                                     
04/02/05       (S)       MINUTE(FIN)                                                                                            
04/02/05       (S)       Heard & Held                                                                                           
04/03/05       (S)       FIN AT 10:00 AM SENATE FINANCE 532                                                                     
04/02/05       (S)       MINUTE(FIN)                                                                                            
04/03/05       (S)       Heard & Held                                                                                           
04/03/05       (S)       FIN AT 10:00 AM SENATE FINANCE 532                                                                     
04/03/05       (S)       MINUTE(FIN)                                                                                            
04/03/05       (S)       Heard & Held                                                                                           
04/04/05       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
04/03/05       (S)       MINUTE(FIN)                                                                                            
04/04/05       (S)       Scheduled But Not Heard                                                                                
04/04/05       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
04/05/05       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
04/04/05       (S)       Scheduled But Not Heard                                                                                
04/05/05       (S)       Heard & Held                                                                                           
04/05/05       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
04/05/05       (S)       MINUTE(FIN)                                                                                            
04/05/05       (S)       Heard & Held                                                                                           
04/06/05       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
04/05/05       (S)       MINUTE(FIN)                                                                                            
04/06/05       (S)       Moved   CSSB    141(FIN)   Out   of                                                                    
04/06/05       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
                         Committee                                                                                              
04/06/05       (S)       Moved   CSSB    141(FIN)   Out   of                                                                    
04/06/05       (S)       MINUTE(FIN)                                                                                            
                         Committee                                                                                              
04/08/05       (S)       FIN   RPT    CS   5DP    1DNP   1AM                                                                    
04/06/05       (S)       MINUTE(FIN)                                                                                            
                         NEW TITLE                                                                                              
04/08/05       (S)       FIN   RPT    CS   5DP    1DNP   1AM                                                                    
04/08/05       (S)       DP: GREEN, WILKEN, BUNDE, DYSON,                                                                       
                         NEW TITLE                                                                                              
                         STEDMAN                                                                                                
04/08/05       (S)       DP: GREEN, WILKEN, BUNDE, DYSON,                                                                       
04/08/05       (S)       DNP: HOFFMAN                                                                                           
                         STEDMAN                                                                                                
04/08/05       (S)       AM: OLSON                                                                                              
04/08/05       (S)       DNP: HOFFMAN                                                                                           
04/12/05       (S)       ENGROSSED                                                                                              
04/08/05       (S)       AM: OLSON                                                                                              
04/14/05       (S)       TRANSMITTED TO (H)                                                                                     
04/12/05       (S)       ENGROSSED                                                                                              
04/14/05       (S)       VERSION: CSSB 141(FIN)                                                                                 
04/14/05       (S)       TRANSMITTED TO (H)                                                                                     
04/14/05       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/14/05       (S)       VERSION: CSSB 141(FIN)                                                                                 
04/14/05       (H)       STA, FIN                                                                                               
04/14/05       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/14/05       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
04/14/05       (H)       STA, FIN                                                                                               
04/14/05       (H)       <Pending Referral>                                                                                     
04/14/05       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
04/16/05       (H)       STA AT 9:30 AM CAPITOL 106                                                                             
04/14/05       (H)       <Pending Referral>                                                                                     
04/16/05       (H)       <Bill Hearing Canceled>                                                                                
04/16/05       (H)       STA AT 9:30 AM CAPITOL 106                                                                             
04/19/05       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
04/16/05       (H)       <Bill Hearing Canceled>                                                                                
04/19/05       (H)       Heard & Held                                                                                           
04/19/05       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
04/19/05       (H)       MINUTE(STA)                                                                                            
04/19/05       (H)       Heard & Held                                                                                           
04/20/05       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
04/19/05       (H)       MINUTE(STA)                                                                                            
04/20/05       (H)       Moved HCS CSSB 141(STA) Out of                                                                         
04/20/05       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
                         Committee                                                                                              
04/20/05       (H)       Moved HCS CSSB 141(STA) Out of                                                                         
04/20/05       (H)       MINUTE(STA)                                                                                            
                         Committee                                                                                              
04/21/05       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
04/20/05       (H)       MINUTE(STA)                                                                                            
04/21/05       (H)       <Bill Hearing Canceled>                                                                                
04/21/05       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
04/22/05       (H)       STA RPT HCS(STA) 1DP 5NR                                                                               
04/21/05       (H)       <Bill Hearing Canceled>                                                                                
04/22/05       (H)       DP: SEATON;                                                                                            
04/22/05       (H)       STA RPT HCS(STA) 1DP 5NR                                                                               
04/22/05       (H)       NR:    LYNN,   GATTO,    GRUENBERG,                                                                    
04/22/05       (H)       DP: SEATON;                                                                                            
                         ELKINS, RAMRAS                                                                                         
04/22/05       (H)       NR:    LYNN,   GATTO,    GRUENBERG,                                                                    
04/23/05       (H)       FIN AT 10:00 AM HOUSE FINANCE 519                                                                      
                         ELKINS, RAMRAS                                                                                         
04/23/05       (H)       Heard & Held                                                                                           
04/23/05       (H)       FIN AT 10:00 AM HOUSE FINANCE 519                                                                      
04/23/05       (H)       MINUTE(FIN)                                                                                            
04/23/05       (H)       Heard & Held                                                                                           
04/28/05       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
04/23/05       (H)       MINUTE(FIN)                                                                                            
04/28/05       (H)       Heard & Held                                                                                           
04/28/05       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
04/28/05       (H)       MINUTE(FIN)                                                                                            
04/28/05       (H)       Heard & Held                                                                                           
04/30/05       (H)       FIN AT 2:00 PM HOUSE FINANCE 519                                                                       
04/28/05       (H)       MINUTE(FIN)                                                                                            
04/30/05       (H)       Heard & Held                                                                                           
04/30/05       (H)       FIN AT 2:00 PM HOUSE FINANCE 519                                                                       
04/30/05       (H)       MINUTE(FIN)                                                                                            
04/30/05       (H)       Heard & Held                                                                                           
05/01/05       (H)       FIN AT 1:00 PM HOUSE FINANCE 519                                                                       
04/30/05       (H)       MINUTE(FIN)                                                                                            
05/01/05       (H)       Moved HCS CSSB 141(FIN) Out of                                                                         
05/01/05       (H)       FIN AT 1:00 PM HOUSE FINANCE 519                                                                       
                         Committee                                                                                              
05/01/05       (H)       Moved HCS CSSB 141(FIN) Out of                                                                         
05/01/05       (H)       MINUTE(FIN)                                                                                            
                         Committee                                                                                              
05/02/05       (H)       FIN RPT HCS(FIN) 2DP 5NR 2AM                                                                           
05/01/05       (H)       MINUTE(FIN)                                                                                            
                         (FORTHCOMING HCS)                                                                                      
05/02/05       (H)       FIN RPT HCS(FIN) 2DP 5NR 2AM                                                                           
05/02/05       (H)       DP: KELLY, FOSTER;                                                                                     
                         (FORTHCOMING HCS)                                                                                      
05/02/05       (H)       NR: JOULE, STOLTZE, MOSES, MEYER,                                                                      
05/02/05       (H)       DP: KELLY, FOSTER;                                                                                     
                         CHENAULT;                                                                                              
05/02/05       (H)       NR: JOULE, STOLTZE, MOSES, MEYER,                                                                      
05/02/05       (H)       AM: HAWKER, WEYHRAUCH                                                                                  
                         CHENAULT;                                                                                              
05/02/05       (H)       OBJECTION TO REFERRAL TO RULES                                                                         
05/02/05       (H)       AM: HAWKER, WEYHRAUCH                                                                                  
05/02/05       (H)       OBJECTION TO REFERRAL TO RULES                                                                         
                         WITHDRAWN                                                                                              
05/02/05       (H)       OBJECTION TO REFERRAL TO RULES                                                                         
05/02/05       (H)       RETURNED TO FIN COMMITTEE                                                                              
                         WITHDRAWN                                                                                              
05/02/05       (H)       FIN RPT HCS(FIN) 3DP 4NR 1AM                                                                           
05/02/05       (H)       RETURNED TO FIN COMMITTEE                                                                              
                         (FORTHCOMING HCS)                                                                                      
05/02/05       (H)       FIN RPT HCS(FIN) 3DP 4NR 1AM                                                                           
05/02/05       (H)       DP: FOSTER, KELLY, CHENAULT;                                                                           
                         (FORTHCOMING HCS)                                                                                      
05/02/05       (H)       NR: HOLM, STOLTZE, MOSES, MEYER;                                                                       
05/02/05       (H)       DP: FOSTER, KELLY, CHENAULT;                                                                           
05/02/05       (H)       AM: HAWKER                                                                                             
05/02/05       (H)       NR: HOLM, STOLTZE, MOSES, MEYER;                                                                       
05/02/05       (H)       OBJECTION TO FISCAL ANALYSIS WITH                                                                      
05/02/05       (H)       AM: HAWKER                                                                                             
                        FINANCE RPT                                                                                             
05/02/05       (H)       OBJECTION TO FISCAL ANALYSIS WITH                                                                      
05/02/05       (H)       REPLACE FISCAL ANALYSIS FAILED Y15                                                                     
                        FINANCE RPT                                                                                             
                         N25                                                                                                    
05/02/05       (H)       REPLACE FISCAL ANALYSIS FAILED Y15                                                                     
05/02/05       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
                         N25                                                                                                    
05/02/05       (H)       Moved HCS CSSB 141(FIN) Out of                                                                         
05/02/05       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
                         Committee                                                                                              
05/02/05       (H)       Moved HCS CSSB 141(FIN) Out of                                                                         
05/02/05       (H)       MINUTE(FIN)                                                                                            
                         Committee                                                                                              
05/03/05       (H)       HCS(FIN) NT RECEIVED                                                                                   
05/02/05       (H)       MINUTE(FIN)                                                                                            
05/03/05       (H)       MOVED TO BOTTOM OF CALENDAR                                                                            
05/03/05       (H)       HCS(FIN) NT RECEIVED                                                                                   
05/03/05       (H)       BEFORE THE HOUSE                                                                                       
05/03/05       (H)       MOVED TO BOTTOM OF CALENDAR                                                                            
05/03/05       (H)       MOTION TO DIVIDE AM NO 3 NOT IN                                                                        
05/03/05       (H)       BEFORE THE HOUSE                                                                                       
                         ORDER                                                                                                  
05/03/05       (H)       MOTION TO DIVIDE AM NO 3 NOT IN                                                                        
05/03/05       (H)       ADJOURNED TO 5/4                                                                                       
                         ORDER                                                                                                  
05/05/05       (H)       BEFORE THE HOUSE                                                                                       
05/03/05       (H)       ADJOURNED TO 5/4                                                                                       
05/06/05       (H)       ENGROSSED                                                                                              
05/05/05       (H)       BEFORE THE HOUSE                                                                                       
05/07/05       (H)       VERSION: HCS CSSB 141(FIN) AM H                                                                        
05/06/05       (H)       ENGROSSED                                                                                              
05/07/05       (S)       CONCURRENCE MESSAGE READ                                                                               
05/07/05       (H)       VERSION: HCS CSSB 141(FIN) AM H                                                                        
05/07/05       (S)       CONFERENCE COMMITTEE APPOINTED                                                                         
05/07/05       (S)       CONCURRENCE MESSAGE READ                                                                               
05/07/05       (S)       GREEN (CHAIR), SEEKINS, OLSON                                                                          
05/07/05       (S)       CONFERENCE COMMITTEE APPOINTED                                                                         
05/07/05       (H)       RECEDE MESSAGE                                                                                         
05/07/05       (S)       GREEN (CHAIR), SEEKINS, OLSON                                                                          
05/07/05       (H)       CONFERENCE COMMITTEE APPOINTED                                                                         
05/07/05       (H)       RECEDE MESSAGE                                                                                         
05/07/05       (H)       SEATON, WEYHRAUCH, CRAWFORD                                                                            
05/07/05       (H)       CONFERENCE COMMITTEE APPOINTED                                                                         
                                                                                                                                
05/07/05       (H)       SEATON, WEYHRAUCH, CRAWFORD                                                                            
WITNESS REGISTER                                                                                                              
                                                                                                                                
                                                                                                                              
ACTION NARRATIVE                                                                                                              
No witnesses                                                                                                                    
                                                                                                                                
                                                                                                                                
     SB 141-PUBLIC EMPLOYEE/TEACHER RETIREMENT/BOARDS                                                                       
ACTION NARRATIVE                                                                                                              
                                                                                                                                
                                                                                                                                
CHAIR LYDA GREEN  called the Conference Committee  on SB 141                                                                    
     SB 141-PUBLIC EMPLOYEE/TEACHER RETIREMENT/BOARDS                                                                       
meeting to  order at 7:32:12  PM. All members  were present.                                                                  
                                                                                                                                
CHAIR  GREEN said  she hoped  to get  through the  points of                                                                    
CHAIR LYDA GREEN  called the Conference Committee  on SB 141                                                                    
agreement and disagreement and report  back to the House and                                                                    
meeting to  order at 7:32:12  PM. All members  were present.                                                                  
Senate.                                                                                                                         
CHAIR  GREEN said  she hoped  to get  through the  points of                                                                    
                                                                                                                                
agreement and disagreement and report  back to the House and                                                                    
SENATOR  SEEKINS moved  that the  Senate  request the  House                                                                    
Senate.                                                                                                                         
recede from its amendments to CSSB 141(FIN).                                                                                    
                                                                                                                                
SENATOR  SEEKINS moved  that the  Senate  request the  House                                                                    
An unidentified member objected.                                                                                                
recede from its amendments to CSSB 141(FIN).                                                                                    
                                                                                                                                
                                                                                                                                
A  roll   call  vote  was  taken.   Representatives  Seaton,                                                                    
An unidentified member objected.                                                                                                
Crawford, and  Weyhrauch and Senator Olson  were opposed and                                                                    
                                                                                                                                
Senators  Green and  Seekins were  in  favor, therefore  the                                                                    
A  roll   call  vote  was  taken.   Representatives  Seaton,                                                                    
motion failed.                                                                                                                  
Crawford, and  Weyhrauch and Senator Olson  were opposed and                                                                    
                                                                                                                                
Senators  Green and  Seekins were  in  favor, therefore  the                                                                    
REPRESENTATIVE WEYHRAUCH  moved that the Senate  concur with                                                                    
motion failed.                                                                                                                  
the changes contained in HCS CSSB 141(FIN)am H.                                                                                 
                                                                                                                                
REPRESENTATIVE WEYHRAUCH  moved that the Senate  concur with                                                                    
CHAIR GREEN objected.                                                                                                           
the changes contained in HCS CSSB 141(FIN)am H.                                                                                 
                                                                                                                                
                                                                                                                                
A   roll   call   vote  was   taken.   Senator   Olson   and                                                                    
CHAIR GREEN objected.                                                                                                           
Representatives  Weyhrauch,  Crawford  and  Seaton  were  in                                                                    
                                                                                                                                
favor and Senators Seekins and Green were opposed.                                                                              
A   roll   call   vote  was   taken.   Senator   Olson   and                                                                    
                                                                                                                                
Representatives  Weyhrauch,  Crawford  and  Seaton  were  in                                                                    
CHAIR  GREEN  announced  the motion  failed,  requiring  two                                                                    
favor and Senators Seekins and Green were opposed.                                                                              
affirmative  votes  from  each   house.  She  then  informed                                                                    
                                                                                                                                
members that several bill  comparisons had been distributed;                                                                    
CHAIR  GREEN  announced  the motion  failed,  requiring  two                                                                    
the  comparison done  by her  staff is  the most  recent and                                                                    
affirmative  votes  from  each   house.  She  then  informed                                                                    
contains  the provisions  of the  bill  with no  substantial                                                                    
members that several bill  comparisons had been distributed;                                                                    
differences. Senate members are  willing to accept the House                                                                    
the  comparison done  by her  staff is  the most  recent and                                                                    
language on those provisions at this time.                                                                                      
contains  the provisions  of the  bill  with no  substantial                                                                    
                                                                                                                                
differences. Senate members are  willing to accept the House                                                                    
7:34:17 PM                                                                                                                    
language on those provisions at this time.                                                                                      
                                                                                                                                
                                                                                                                                
REPRESENTATIVE  SEATON clarified  that  in the  rush to  get                                                                    
7:34:17 PM                                                                                                                    
things done,  in the House  comparison the Senate  and House                                                                    
                                                                                                                                
provisions  are reversed  so that  the provisions  under the                                                                    
REPRESENTATIVE  SEATON clarified  that  in the  rush to  get                                                                    
Senate column are the House provisions and vice versa.                                                                          
things done,  in the House  comparison the Senate  and House                                                                    
                                                                                                                                
provisions  are reversed  so that  the provisions  under the                                                                    
REPRESENTATIVE  WEYHRAUCH  noted  Senate  Finance  Committee                                                                    
Senate column are the House provisions and vice versa.                                                                          
staff  prepared the  document referred  to  by Chair  Green;                                                                    
                                                                                                                                
Representative Seaton  provided a comparison; and  the third                                                                    
REPRESENTATIVE  WEYHRAUCH  noted  Senate  Finance  Committee                                                                    
double-sided document explains all elements of the bill.                                                                        
staff  prepared the  document referred  to  by Chair  Green;                                                                    
                                                                                                                                
Representative Seaton  provided a comparison; and  the third                                                                    
CHAIR  GREEN  affirmed  that members  would  work  from  the                                                                    
double-sided document explains all elements of the bill.                                                                        
Senate  Finance  Committee   document,  which  has  numbered                                                                    
                                                                                                                                
columns.                                                                                                                        
CHAIR  GREEN  affirmed  that members  would  work  from  the                                                                    
                                                                                                                                
Senate  Finance  Committee   document,  which  has  numbered                                                                    
7:37:31 PM                                                                                                                    
columns.                                                                                                                        
                                                                                                                                
                                                                                                                                
CHAIR  GREEN began  reviewing  the  comparison and  directed                                                                    
7:37:31 PM                                                                                                                    
members  to line  7, employee  contribution rates,  and said                                                                    
                                                                                                                                
the Senate is agreeable to the House plan.                                                                                      
CHAIR  GREEN began  reviewing  the  comparison and  directed                                                                    
                                                                                                                                
members  to line  7, employee  contribution rates,  and said                                                                    
REPRESENTATIVE  WEYHRAUCH asked  if  column  d contains  the                                                                  
the Senate is agreeable to the House plan.                                                                                      
provisions in  the House  bill while  column b  contains the                                                                  
                                                                                                                                
provisions in the Senate bill as received by the House.                                                                         
REPRESENTATIVE  WEYHRAUCH asked  if  column  d contains  the                                                                  
                                                                                                                                
provisions in  the House  bill while  column b  contains the                                                                  
CHAIR GREEN clarified that column  b contains the provisions                                                                  
provisions in the Senate bill as received by the House.                                                                         
in the  bill passed  by the Senate  while column  d contains                                                                  
                                                                                                                                
the  provisions  of  the  bill  passed  by  the  House.  She                                                                    
CHAIR GREEN clarified that column  b contains the provisions                                                                  
repeated   that  in   column   d,  line   7,  the   employee                                                                  
in the  bill passed  by the Senate  while column  d contains                                                                  
contribution will remain unchanged.                                                                                             
the  provisions  of  the  bill  passed  by  the  House.  She                                                                    
                                                                                                                                
repeated   that  in   column   d,  line   7,  the   employee                                                                  
7:41:26 PM                                                                                                                    
contribution will remain unchanged.                                                                                             
                                                                                                                                
                                                                                                                                
SENATOR  SEEKINS asked  if the  Senate plan  was a  floating                                                                    
7:41:26 PM                                                                                                                    
plan while the House plan was a fixed plan.                                                                                     
                                                                                                                                
SENATOR  SEEKINS asked  if the  Senate plan  was a  floating                                                                    
REPRESENTATIVE SEATON explained the  Senate plan contains an                                                                    
plan while the House plan was a fixed plan.                                                                                     
escalator   for   the    employee,   which   increases   the                                                                    
                                                                                                                                
contribution by .5 percent per  year until the amount equals                                                                    
REPRESENTATIVE SEATON explained the  Senate plan contains an                                                                    
the employer  contribution. He noted  that questions  of the                                                                    
escalator   for   the    employee,   which   increases   the                                                                    
legality of that method were raised.                                                                                            
contribution by .5 percent per  year until the amount equals                                                                    
                                                                                                                                
the employer  contribution. He noted  that questions  of the                                                                    
CHAIR GREEN  referred to line  9, column  d, and said  the 5                                                                  
legality of that method were raised.                                                                                            
percent to  the DC account  as listed  in the House  plan is                                                                    
                                                                                                                                
acceptable to the Senate.                                                                                                       
CHAIR GREEN  referred to line  9, column  d, and said  the 5                                                                  
                                                                                                                                
percent to  the DC account  as listed  in the House  plan is                                                                    
CHAIR GREEN  directed members to  page 2, line 24,  and said                                                                    
acceptable to the Senate.                                                                                                       
the House  gave the board  the additional duty  of assisting                                                                    
                                                                                                                                
the retirement system  administrator in prescribing policies                                                                    
CHAIR GREEN  directed members to  page 2, line 24,  and said                                                                    
for the  operation of the  retirement system. The  Senate is                                                                    
the House  gave the board  the additional duty  of assisting                                                                    
agreeable to that directive.                                                                                                    
the retirement system  administrator in prescribing policies                                                                    
                                                                                                                                
for the  operation of the  retirement system. The  Senate is                                                                    
CHAIR GREEN moved  to the language on line  25, which speaks                                                                    
agreeable to that directive.                                                                                                    
to the  $400 honorarium plus  per diem, and said  the Senate                                                                    
                                                                                                                                
finds that to be acceptable.                                                                                                    
CHAIR GREEN moved  to the language on line  25, which speaks                                                                    
                                                                                                                                
to the  $400 honorarium plus  per diem, and said  the Senate                                                                    
SENATOR SEEKINS commented that the  intent of that provision                                                                    
finds that to be acceptable.                                                                                                    
is to mirror the per diem  paid to the Alaska Permanent Fund                                                                    
                                                                                                                                
Corporation board of trustees.                                                                                                  
SENATOR SEEKINS commented that the  intent of that provision                                                                    
                                                                                                                                
is to mirror the per diem  paid to the Alaska Permanent Fund                                                                    
REPRESENTATIVE SEATON said  that is correct, as  well as the                                                                    
Corporation board of trustees.                                                                                                  
directors  of  the  board  of  the  Alaska  Housing  Finance                                                                    
                                                                                                                                
Corporation.                                                                                                                    
REPRESENTATIVE SEATON said  that is correct, as  well as the                                                                    
                                                                                                                                
directors  of  the  board  of  the  Alaska  Housing  Finance                                                                    
7:41:52 PM                                                                                                                    
Corporation.                                                                                                                    
                                                                                                                                
                                                                                                                                
CHAIR GREEN  said the Senate  is agreeable to  the provision                                                                    
7:41:52 PM                                                                                                                    
on  page  3, line  27,  to  change  the  fund ratio  to  105                                                                    
                                                                                                                                
percent.                                                                                                                        
CHAIR GREEN  said the Senate  is agreeable to  the provision                                                                    
                                                                                                                                
on  page  3, line  27,  to  change  the  fund ratio  to  105                                                                    
CHAIR GREEN  referred to the  provision on page 3,  line 29,                                                                    
percent.                                                                                                                        
which closes a loophole, and said the Senate is agreeable.                                                                      
                                                                                                                                
CHAIR GREEN  referred to the  provision on page 3,  line 29,                                                                    
SENATOR  SEEKINS asked  if it  applies  to minor  dependents                                                                    
which closes a loophole, and said the Senate is agreeable.                                                                      
only.                                                                                                                           
                                                                                                                                
SENATOR  SEEKINS asked  if it  applies  to minor  dependents                                                                    
REPRESENTATIVE   SEATON  explained   that   it  applies   to                                                                    
only.                                                                                                                           
dependents with no relationship to  the retiree before he or                                                                    
                                                                                                                                
she died.                                                                                                                       
REPRESENTATIVE   SEATON  explained   that   it  applies   to                                                                    
                                                                                                                                
dependents with no relationship to  the retiree before he or                                                                    
SENATOR SEEKINS asked if any  age limits apply to dependents                                                                    
she died.                                                                                                                       
or if the benefit is dependent on IRS status.                                                                                   
                                                                                                                                
SENATOR SEEKINS asked if any  age limits apply to dependents                                                                    
REPRESENTATIVE   SEATON    believed   the    definition   of                                                                    
or if the benefit is dependent on IRS status.                                                                                   
"dependent"  is from  the existing  retirement system  so no                                                                    
                                                                                                                                
changes would occur.                                                                                                            
REPRESENTATIVE   SEATON    believed   the    definition   of                                                                    
                                                                                                                                
"dependent"  is from  the existing  retirement system  so no                                                                    
CHAIR GREEN  stated, "They're already dependent  adults that                                                                    
changes would occur.                                                                                                            
might be  covered, as well  as certainly your  children that                                                                    
                                                                                                                                
you would have custody of."                                                                                                     
CHAIR GREEN  stated, "They're already dependent  adults that                                                                    
                                                                                                                                
might be  covered, as well  as certainly your  children that                                                                    
REPRESENTATIVE SEATON said his  understanding is that if the                                                                    
you would have custody of."                                                                                                     
retiree  dies  and   the  spouse  later  adopts   or  has  a                                                                    
                                                                                                                                
dependent, the new dependent would not be covered.                                                                              
REPRESENTATIVE SEATON said his  understanding is that if the                                                                    
                                                                                                                                
retiree  dies  and   the  spouse  later  adopts   or  has  a                                                                    
7:44:09 PM                                                                                                                    
dependent, the new dependent would not be covered.                                                                              
                                                                                                                                
                                                                                                                                
CHAIR  GREEN moved  to line  32 and  said the  House removed                                                                    
7:44:09 PM                                                                                                                    
language   regarding  forfeiting   all  rights   under  this                                                                    
                                                                                                                                
chapter, which  the Senate is  agreeable to. She  noted that                                                                    
CHAIR  GREEN moved  to line  32 and  said the  House removed                                                                    
language is in existing law so nothing will change.                                                                             
language   regarding  forfeiting   all  rights   under  this                                                                    
                                                                                                                                
chapter, which  the Senate is  agreeable to. She  noted that                                                                    
CHAIR GREEN explained that the  language on page 4, line 36,                                                                    
language is in existing law so nothing will change.                                                                             
pertains  to  conditional  retroactivity, which  the  Senate                                                                    
                                                                                                                                
finds acceptable.                                                                                                               
CHAIR GREEN explained that the  language on page 4, line 36,                                                                    
                                                                                                                                
pertains  to  conditional  retroactivity, which  the  Senate                                                                    
7:44:48 PM                                                                                                                    
finds acceptable.                                                                                                               
                                                                                                                                
                                                                                                                                
REPRESENTATIVE WEYHRAUCH asked about line 3 above line 36.                                                                      
7:44:48 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
CHAIR GREEN said  the number 3 was  erroneously implanted on                                                                    
REPRESENTATIVE WEYHRAUCH asked about line 3 above line 36.                                                                      
every page and asked members to ignore it.                                                                                      
                                                                                                                                
CHAIR GREEN said  the number 3 was  erroneously implanted on                                                                    
7:46:13 PM                                                                                                                    
every page and asked members to ignore it.                                                                                      
                                                                                                                                
                                                                                                                                
CHAIR GREEN announced a 10-minute break.                                                                                        
7:46:13 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
8:03:47 PM                                                                                                                    
CHAIR GREEN announced a 10-minute break.                                                                                        
                                                                                                                                
                                                                                                                                
REPRESENTATIVE  SEATON  informed  members  the  House  would                                                                    
8:03:47 PM                                                                                                                    
accept  the Senate  schedule  on  page 1,  line  13, but  in                                                                    
                                                                                                                                
several places  in the Senate  version, such as on  page 93,                                                                    
REPRESENTATIVE  SEATON  informed  members  the  House  would                                                                    
lines  4  and 5,  the  bill  refers  to  age 65  instead  of                                                                    
accept  the Senate  schedule  on  page 1,  line  13, but  in                                                                    
Medicare eligible.  House members  are agreeable as  long as                                                                    
several places  in the Senate  version, such as on  page 93,                                                                    
the  understanding is  that the  correct  term is  "Medicare                                                                    
lines  4  and 5,  the  bill  refers  to  age 65  instead  of                                                                    
eligible" and that term is used.                                                                                                
Medicare eligible.  House members  are agreeable as  long as                                                                    
                                                                                                                                
the  understanding is  that the  correct  term is  "Medicare                                                                    
CHAIR GREEN  stated that "Medicare  eligible" would  be used                                                                    
eligible" and that term is used.                                                                                                
throughout the bill.                                                                                                            
                                                                                                                                
CHAIR GREEN  stated that "Medicare  eligible" would  be used                                                                    
SENATOR SEEKINS pointed out  the conference committee cannot                                                                    
throughout the bill.                                                                                                            
amend the bill.                                                                                                                 
                                                                                                                                
SENATOR SEEKINS pointed out  the conference committee cannot                                                                    
8:04:33 PM                                                                                                                    
amend the bill.                                                                                                                 
                                                                                                                                
                                                                                                                                
CHAIR GREEN announced an at-ease.                                                                                               
8:04:33 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
8:05:44 PM                                                                                                                    
CHAIR GREEN announced an at-ease.                                                                                               
                                                                                                                                
                                                                                                                                
CHAIR GREEN  informed members [the conference  committee can                                                                    
8:05:44 PM                                                                                                                    
request] that a technical correction  be made to the bill by                                                                    
                                                                                                                                
the legal drafter to make that language consistent.                                                                             
CHAIR GREEN  informed members [the conference  committee can                                                                    
                                                                                                                                
request] that a technical correction  be made to the bill by                                                                    
REPRESENTATIVE SEATON  referred to  the language on  line 28                                                                    
the legal drafter to make that language consistent.                                                                             
and said the  problem is the retroactivity to  1987. He said                                                                    
                                                                                                                                
the House  has no  problem making that  change prospectively                                                                    
REPRESENTATIVE SEATON  referred to  the language on  line 28                                                                    
but it cannot agree to diminish accrued benefits.                                                                               
and said the  problem is the retroactivity to  1987. He said                                                                    
                                                                                                                                
the House  has no  problem making that  change prospectively                                                                    
CHAIR  GREEN said  that  provision would  be  left open  for                                                                    
but it cannot agree to diminish accrued benefits.                                                                               
further discussion at a later date.                                                                                             
                                                                                                                                
CHAIR  GREEN said  that  provision would  be  left open  for                                                                    
8:07:26 PM                                                                                                                    
further discussion at a later date.                                                                                             
                                                                                                                                
                                                                                                                                
CHAIR GREEN informed members that  by accepting the language                                                                    
8:07:26 PM                                                                                                                    
on page  1, line 9,  the reference on  line 5 would  also be                                                                    
                                                                                                                                
accepted.                                                                                                                       
CHAIR GREEN informed members that  by accepting the language                                                                    
                                                                                                                                
on page  1, line 9,  the reference on  line 5 would  also be                                                                    
REPRESENTATIVE SEATON said that is correct.                                                                                     
accepted.                                                                                                                       
                                                                                                                                
                                                                                                                                
CHAIR GREEN explained that one is  5 percent; the other is 8                                                                    
REPRESENTATIVE SEATON said that is correct.                                                                                     
percent so the total would be  13 percent. She then said the                                                                    
                                                                                                                                
Senate would also agree to accept line 5.                                                                                       
CHAIR GREEN explained that one is  5 percent; the other is 8                                                                    
                                                                                                                                
percent so the total would be  13 percent. She then said the                                                                    
8:09:03 PM                                                                                                                    
Senate would also agree to accept line 5.                                                                                       
                                                                                                                                
                                                                                                                                
SENATOR SEEKINS commented  that in looking at  the totals in                                                                    
8:09:03 PM                                                                                                                    
section 13,  line 9,  the numbers  on line  5 include  the 5                                                                    
                                                                                                                                
percent  number  to  equal  the  13  percent.  He  said  his                                                                    
SENATOR SEEKINS commented  that in looking at  the totals in                                                                    
understanding of line 9 is that  the 4.5 and 2.0 differ from                                                                    
section 13,  line 9,  the numbers  on line  5 include  the 5                                                                    
the House  version, which establishes  a 2.5-fixed  rate. He                                                                    
percent  number  to  equal  the  13  percent.  He  said  his                                                                    
asked  if the  1.75 in  the Senate  version is  a calculated                                                                    
understanding of line 9 is that  the 4.5 and 2.0 differ from                                                                    
number rather than a fixed number.                                                                                              
the House  version, which establishes  a 2.5-fixed  rate. He                                                                    
                                                                                                                                
asked  if the  1.75 in  the Senate  version is  a calculated                                                                    
REPRESENTATIVE  SEATON pointed  out  the $250  on the  House                                                                    
number rather than a fixed number.                                                                                              
side is also a calculated number.                                                                                               
                                                                                                                                
REPRESENTATIVE  SEATON pointed  out  the $250  on the  House                                                                    
SENATOR SEEKINS asked if that  number stays the same forever                                                                    
side is also a calculated number.                                                                                               
in  the   House  version  or   whether  it   is  actuarially                                                                    
                                                                                                                                
calculated for a date certain.                                                                                                  
SENATOR SEEKINS asked if that  number stays the same forever                                                                    
                                                                                                                                
in  the   House  version  or   whether  it   is  actuarially                                                                    
REPRESENTATIVE SEATON replied $250  is the current actuarial                                                                    
calculated for a date certain.                                                                                                  
calculation  but the  House  version  requires that  medical                                                                    
                                                                                                                                
benefits be  enough to satisfy the  medical cost. Therefore,                                                                    
REPRESENTATIVE SEATON replied $250  is the current actuarial                                                                    
the  $250  would  be actuarially  calculated  each  year  to                                                                    
calculation  but the  House  version  requires that  medical                                                                    
prevent building up an unfunded liability.                                                                                      
benefits be  enough to satisfy the  medical cost. Therefore,                                                                    
                                                                                                                                
the  $250  would  be actuarially  calculated  each  year  to                                                                    
SENATOR SEEKINS asked if the number is fixed in statute.                                                                        
prevent building up an unfunded liability.                                                                                      
                                                                                                                                
                                                                                                                                
REPRESENTATIVE SEATON  referred members  to line 29  on page                                                                    
SENATOR SEEKINS asked if the number is fixed in statute.                                                                        
86 of HCS CSSB 141(FIN)am H, subsection (d).                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  referred members  to line 29  on page                                                                    
8:11:56 PM                                                                                                                    
86 of HCS CSSB 141(FIN)am H, subsection (d).                                                                                    
                                                                                                                                
                                                                                                                                
CHAIR GREEN  said her  understanding is  that in  the Senate                                                                    
8:11:56 PM                                                                                                                    
version, the  1.75 percent is  from the  Mercer calculation.                                                                  
                                                                                                                                
She assumed it to be a calculable rate each year.                                                                               
CHAIR GREEN  said her  understanding is  that in  the Senate                                                                    
                                                                                                                                
version, the  1.75 percent is  from the  Mercer calculation.                                                                  
SENATOR  SEEKINS thought  it was  a fixed  rate and  said he                                                                    
She assumed it to be a calculable rate each year.                                                                               
couldn't see where  it becomes calculable in  the future. He                                                                    
                                                                                                                                
affirmed he was  speaking to the 2.5 percent  amount for the                                                                  
SENATOR  SEEKINS thought  it was  a fixed  rate and  said he                                                                    
medical [rate].                                                                                                                 
couldn't see where  it becomes calculable in  the future. He                                                                    
                                                                                                                                
affirmed he was  speaking to the 2.5 percent  amount for the                                                                  
REPRESENTATIVE   WEYHRAUCH  said   it   is   2  percent   by                                                                  
medical [rate].                                                                                                                 
legislative fiat.                                                                                                               
                                                                                                                                
REPRESENTATIVE   WEYHRAUCH  said   it   is   2  percent   by                                                                  
SENATOR  SEEKINS  agreed the  number  will  remain the  same                                                                    
legislative fiat.                                                                                                               
until changed by the legislature.                                                                                               
                                                                                                                                
SENATOR  SEEKINS  agreed the  number  will  remain the  same                                                                    
REPRESENTATIVE  WEYHRAUCH thought  that was  the purpose  of                                                                    
until changed by the legislature.                                                                                               
requiring advice and consent and  reports to the legislature                                                                    
                                                                                                                                
in other portions of the bill.                                                                                                  
REPRESENTATIVE  WEYHRAUCH thought  that was  the purpose  of                                                                    
                                                                                                                                
requiring advice and consent and  reports to the legislature                                                                    
CHAIR  GREEN  recalled  a   conversation  about  reaching  a                                                                    
in other portions of the bill.                                                                                                  
balance  between the  contribution rates  for employees  and                                                                    
                                                                                                                                
retirement health benefits.  She pointed out the  1.75 is in                                                                  
CHAIR  GREEN  recalled  a   conversation  about  reaching  a                                                                    
statute as well.                                                                                                                
balance  between the  contribution rates  for employees  and                                                                    
                                                                                                                                
retirement health benefits.  She pointed out the  1.75 is in                                                                  
8:14:22 PM                                                                                                                    
statute as well.                                                                                                                
                                                                                                                                
                                                                                                                                
SENATOR SEEKINS asked if the  language beginning on page 51,                                                                    
8:14:22 PM                                                                                                                    
lines 7-14, of the House bill  add a requirement for AMRB to                                                                  
                                                                                                                                
annually evaluate  the employer  rate for  medical insurance                                                                    
SENATOR SEEKINS asked if the  language beginning on page 51,                                                                    
sufficient to cover projected costs.                                                                                            
lines 7-14, of the House bill  add a requirement for AMRB to                                                                  
                                                                                                                                
annually evaluate  the employer  rate for  medical insurance                                                                    
REPRESENTATIVE SEATON said that was the intent.                                                                                 
sufficient to cover projected costs.                                                                                            
                                                                                                                                
                                                                                                                                
SENATOR  SEEKINS said  he  would object  to  just setting  a                                                                    
REPRESENTATIVE SEATON said that was the intent.                                                                                 
number in statute.                                                                                                              
                                                                                                                                
SENATOR  SEEKINS said  he  would object  to  just setting  a                                                                    
REPRESENTATIVE SEATON said House members would too.                                                                             
number in statute.                                                                                                              
                                                                                                                                
                                                                                                                                
CHAIR  GREEN suggested  leaving that  question for  the next                                                                    
REPRESENTATIVE SEATON said House members would too.                                                                             
conference committee to address.                                                                                                
                                                                                                                                
CHAIR  GREEN suggested  leaving that  question for  the next                                                                    
REPRESENTATIVE SEATON added there are  a couple of errors in                                                                    
conference committee to address.                                                                                                
both accounts.  Although those errors were  discussed on the                                                                    
                                                                                                                                
House  floor, they  were  not changed  because  a death  and                                                                    
REPRESENTATIVE SEATON added there are  a couple of errors in                                                                    
disability part was  added on the House side,  which adds up                                                                    
both accounts.  Although those errors were  discussed on the                                                                    
to  3/10 of  a  percent and  the  actuarial calculation  was                                                                    
House  floor, they  were  not changed  because  a death  and                                                                    
supposed to  be there.  He said  Mercer calculated  the 1.75                                                                  
disability part was  added on the House side,  which adds up                                                                    
rate based on  requiring people to retire  directly from the                                                                  
to  3/10 of  a  percent and  the  actuarial calculation  was                                                                    
system  as it  was  on the  House side  and  made a  mistake                                                                  
supposed to  be there.  He said  Mercer calculated  the 1.75                                                                  
because  not retiring  from the  system  increases the  cost                                                                  
rate based on  requiring people to retire  directly from the                                                                  
quite a bit.                                                                                                                  
system  as it  was  on the  House side  and  made a  mistake                                                                  
                                                                                                                              
because  not retiring  from the  system  increases the  cost                                                                  
SENATOR SEEKINS  agreed that 175  basis points  increase the                                                                  
quite a bit.                                                                                                                  
cost quite a bit and he  is not willing to fix that [number]                                                                  
                                                                                                                              
in statute.                                                                                                                   
SENATOR SEEKINS  agreed that 175  basis points  increase the                                                                  
                                                                                                                                
cost quite a bit and he  is not willing to fix that [number]                                                                  
CHAIR  GREEN said  she would  leave that  open for  the free                                                                    
in statute.                                                                                                                   
conference committee.                                                                                                           
                                                                                                                                
CHAIR  GREEN said  she would  leave that  open for  the free                                                                    
8:16:46 PM                                                                                                                    
conference committee.                                                                                                           
                                                                                                                                
                                                                                                                                
REPRESENTATIVE  WEYHRAUCH  said   the  health  reimbursement                                                                    
8:16:46 PM                                                                                                                    
provision should  also be left open  because the differences                                                                    
                                                                                                                                
need to be determined.                                                                                                          
REPRESENTATIVE  WEYHRAUCH  said   the  health  reimbursement                                                                    
                                                                                                                                
provision should  also be left open  because the differences                                                                    
CHAIR  GREEN said  someone had  asked if  a person  resigned                                                                    
need to be determined.                                                                                                          
rather than  retired, that person  would have access  to the                                                                    
                                                                                                                                
health reimbursement account.                                                                                                   
CHAIR  GREEN said  someone had  asked if  a person  resigned                                                                    
                                                                                                                                
rather than  retired, that person  would have access  to the                                                                    
8:20:42 PM                                                                                                                    
health reimbursement account.                                                                                                   
                                                                                                                                
                                                                                                                                
CHAIR GREEN announced an at-ease.                                                                                               
8:20:42 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
8:23:02 PM                                                                                                                    
CHAIR GREEN announced an at-ease.                                                                                               
                                                                                                                                
                                                                                                                                
CHAIR  GREEN announced  she would  leave  the last  question                                                                    
8:23:02 PM                                                                                                                    
open for the next conference committee to address.                                                                              
                                                                                                                                
CHAIR  GREEN announced  she would  leave  the last  question                                                                    
SENATOR  SEEKINS proposed  highlighting the  specific points                                                                    
open for the next conference committee to address.                                                                              
the  committee  does  not  agree   on  by  page  number  and                                                                    
                                                                                                                                
paragraph using the matrix.                                                                                                     
SENATOR  SEEKINS proposed  highlighting the  specific points                                                                    
                                                                                                                                
the  committee  does  not  agree   on  by  page  number  and                                                                    
CHAIR  GREEN expressed  skepticism about  making it  through                                                                    
paragraph using the matrix.                                                                                                     
100 pages.                                                                                                                      
                                                                                                                                
CHAIR  GREEN expressed  skepticism about  making it  through                                                                    
SENATOR SEEKINS  said he wanted  to look at  each referenced                                                                    
100 pages.                                                                                                                      
page.                                                                                                                           
                                                                                                                                
SENATOR SEEKINS  said he wanted  to look at  each referenced                                                                    
REPRESENTATIVE SEATON referred to line 8 on the matrix.                                                                         
page.                                                                                                                           
                                                                                                                                
                                                                                                                                
SENATOR  SEEKINS  clarified  that   would  be  pages  73-74,                                                                  
REPRESENTATIVE SEATON referred to line 8 on the matrix.                                                                         
sections 7-8 of the House  version and pages 71-72, sections                                                                  
                                                                                                                                
95 and 96 in the Senate version.                                                                                              
SENATOR  SEEKINS  clarified  that   would  be  pages  73-74,                                                                  
                                                                                                                                
sections 7-8 of the House  version and pages 71-72, sections                                                                  
REPRESENTATIVE  SEATON explained  line  8 sets  a floor  for                                                                    
95 and 96 in the Senate version.                                                                                              
PERS  and TRS  contributions  to  prevent another  shortfall                                                                    
                                                                                                                                
from occurring,  like the one  that occurred after  the PERS                                                                    
REPRESENTATIVE  SEATON explained  line  8 sets  a floor  for                                                                    
contribution  was lowered  to 6.75  percent. It  will smooth                                                                    
PERS  and TRS  contributions  to  prevent another  shortfall                                                                    
out the long-range contributions to  the system so the state                                                                    
from occurring,  like the one  that occurred after  the PERS                                                                    
does not generate  past service costs. TRS did  keep a floor                                                                    
contribution  was lowered  to 6.75  percent. It  will smooth                                                                    
at 11 percent  so the contribution never went  down but PERS                                                                    
out the long-range contributions to  the system so the state                                                                    
brought  its normal  cost rates  down  to 6.75  a couple  of                                                                    
does not generate  past service costs. TRS did  keep a floor                                                                    
years ago.  He thought that earlier,  the committee accepted                                                                    
at 11 percent  so the contribution never went  down but PERS                                                                    
the  elimination  of  the employee  contribution  -  the  50                                                                    
brought  its normal  cost rates  down  to 6.75  a couple  of                                                                    
percent  match with  the  .5 percent  escalator  on line  7,                                                                    
years ago.  He thought that earlier,  the committee accepted                                                                    
which corresponds to line 8 in  the Senate bill. He said the                                                                    
the  elimination  of  the employee  contribution  -  the  50                                                                    
Senate  version says  50 percent  of the  normal cost  rate.                                                                    
percent  match with  the  .5 percent  escalator  on line  7,                                                                    
Line  7 said  the employee  rate would  increase .5  percent                                                                    
which corresponds to line 8 in  the Senate bill. He said the                                                                    
each year until the two  matched. Since the Senate agreed to                                                                    
Senate  version says  50 percent  of the  normal cost  rate.                                                                    
eliminate that language, it also  eliminated the employer 50                                                                    
Line  7 said  the employee  rate would  increase .5  percent                                                                    
percent  match.  He  questioned  whether  the  Senate  would                                                                    
each year until the two  matched. Since the Senate agreed to                                                                    
accept  the floor  on employer  contributions  in the  House                                                                    
eliminate that language, it also  eliminated the employer 50                                                                    
version.                                                                                                                        
percent  match.  He  questioned  whether  the  Senate  would                                                                    
                                                                                                                                
accept  the floor  on employer  contributions  in the  House                                                                    
8:26:53 PM                                                                                                                    
version.                                                                                                                        
                                                                                                                                
                                                                                                                                
CHAIR  GREEN said  she thought  the [Senate]  was trying  to                                                                    
8:26:53 PM                                                                                                                    
craft the  language to assure  there would  be participation                                                                    
                                                                                                                                
at  the  normal service  rate.  She  suggested leaving  that                                                                    
CHAIR  GREEN said  she thought  the [Senate]  was trying  to                                                                    
provision open for future discussion.                                                                                           
craft the  language to assure  there would  be participation                                                                    
                                                                                                                                
at  the  normal service  rate.  She  suggested leaving  that                                                                    
REPRESENTATIVE  SEATON  said  that  is fine.  He  said  when                                                                    
provision open for future discussion.                                                                                           
looked at  carefully, one  can see  that lines  7 and  8 are                                                                    
                                                                                                                                
tied together.  He explained that because  the Senate agreed                                                                    
REPRESENTATIVE  SEATON  said  that  is fine.  He  said  when                                                                    
to  remove the  escalator from  the employee  rate up  to 50                                                                    
looked at  carefully, one  can see  that lines  7 and  8 are                                                                    
percent,  the reference  to  the employer  paying  up to  50                                                                    
tied together.  He explained that because  the Senate agreed                                                                    
percent does not make sense.                                                                                                    
to  remove the  escalator from  the employee  rate up  to 50                                                                    
                                                                                                                                
percent,  the reference  to  the employer  paying  up to  50                                                                    
CHAIR GREEN repeated she would leave that open.                                                                                 
percent does not make sense.                                                                                                    
                                                                                                                                
                                                                                                                                
SENATOR SEEKINS  asked if  the House and  Senate are  not in                                                                    
CHAIR GREEN repeated she would leave that open.                                                                                 
agreement on line 5.                                                                                                            
                                                                                                                                
SENATOR SEEKINS  asked if  the House and  Senate are  not in                                                                    
CHAIR GREEN said they are.                                                                                                      
agreement on line 5.                                                                                                            
                                                                                                                                
                                                                                                                                
SENATOR SEEKINS  said the House  and Senate agree on  line 7                                                                    
CHAIR GREEN said they are.                                                                                                      
but they  are not in agreement  on lines 8 and  9. He asked,                                                                    
                                                                                                                                
regarding line  11, why  the House views  its version  to be                                                                    
SENATOR SEEKINS  said the House  and Senate agree on  line 7                                                                    
more advantageous.                                                                                                              
but they  are not in agreement  on lines 8 and  9. He asked,                                                                    
                                                                                                                                
regarding line  11, why  the House views  its version  to be                                                                    
REPRESENTATIVE SEATON explained  the requirement for medical                                                                    
more advantageous.                                                                                                              
benefits  is  10 years  of  service.  If employees  are  not                                                                    
                                                                                                                                
required to  retire directly from  the system with  30 years                                                                    
REPRESENTATIVE SEATON explained  the requirement for medical                                                                    
of service at any  age or at age 60 with  at least 10 years,                                                                    
benefits  is  10 years  of  service.  If employees  are  not                                                                    
a person could work from age  22 to 32, leave the state, and                                                                    
required to  retire directly from  the system with  30 years                                                                    
have medical benefits provided by  the state at age 60. When                                                                    
of service at any  age or at age 60 with  at least 10 years,                                                                    
Mercer  calculated  the  Senate's  number,  it  assumed  the                                                                    
a person could work from age  22 to 32, leave the state, and                                                                    
employee would retire directly from the system.                                                                                 
have medical benefits provided by  the state at age 60. When                                                                    
                                                                                                                                
Mercer  calculated  the  Senate's  number,  it  assumed  the                                                                    
8:30:44 PM                                                                                                                    
employee would retire directly from the system.                                                                                 
                                                                                                                                
                                                                                                                                
CHAIR  GREEN asked  if  a  person who  worked  30 years  and                                                                    
8:30:44 PM                                                                                                                    
resigned would be required to come back and work to retire.                                                                     
                                                                                                                                
CHAIR  GREEN asked  if  a  person who  worked  30 years  and                                                                    
REPRESENTATIVE SEATON said absolutely  not. He said retiring                                                                    
resigned would be required to come back and work to retire.                                                                     
directly from the  system is defined as 30  years of service                                                                    
                                                                                                                                
or more than 10 years and reaching age 60.                                                                                      
REPRESENTATIVE SEATON said absolutely  not. He said retiring                                                                    
                                                                                                                                
directly from the  system is defined as 30  years of service                                                                    
CHAIR GREEN said she would leave that provision open.                                                                           
or more than 10 years and reaching age 60.                                                                                      
                                                                                                                                
                                                                                                                                
SENATOR SEEKINS  asked for  an explanation  of the  items on                                                                    
CHAIR GREEN said she would leave that provision open.                                                                           
line 12.                                                                                                                        
                                                                                                                                
SENATOR SEEKINS  asked for  an explanation  of the  items on                                                                    
REPRESENTATIVE  SEATON explained  the  House  version has  a                                                                    
line 12.                                                                                                                        
pre-Medicare  eligible medical  coverage provision  built in                                                                    
                                                                                                                                
so  if a  person is  within  5 years  of being  pre-Medicare                                                                    
REPRESENTATIVE  SEATON explained  the  House  version has  a                                                                    
eligible,  s/he can  get a  subsidy on  medical premiums  so                                                                    
pre-Medicare  eligible medical  coverage provision  built in                                                                    
that s/he could retire at  age 60. The premium subsidy would                                                                    
so  if a  person is  within  5 years  of being  pre-Medicare                                                                    
be  based on  the number  of  years served  beginning at  30                                                                    
eligible,  s/he can  get a  subsidy on  medical premiums  so                                                                    
percent  for 10  years  of  service with  an  increase of  3                                                                    
that s/he could retire at  age 60. The premium subsidy would                                                                    
percent per year up to 30  years, at which point the subsidy                                                                    
be  based on  the number  of  years served  beginning at  30                                                                    
would be  90 percent.  The subsidy of  the premium  has some                                                                    
percent  for 10  years  of  service with  an  increase of  3                                                                    
cost containment built  in. The start year - this  year - is                                                                    
percent per year up to 30  years, at which point the subsidy                                                                    
$7,900;  the  maximum  escalation  is 5  percent  per  year.                                                                    
would be  90 percent.  The subsidy of  the premium  has some                                                                    
Therefore,  if health  care costs  increase  12 percent  per                                                                    
cost containment built  in. The start year - this  year - is                                                                    
year,  7 percent  would be  excluded  from the  calculation.                                                                    
$7,900;  the  maximum  escalation  is 5  percent  per  year.                                                                    
This  benefit was  built in  because employees  said medical                                                                    
Therefore,  if health  care costs  increase  12 percent  per                                                                    
benefits are highly prized.                                                                                                     
year,  7 percent  would be  excluded  from the  calculation.                                                                    
                                                                                                                                
This  benefit was  built in  because employees  said medical                                                                    
8:34:32 PM                                                                                                                    
benefits are highly prized.                                                                                                     
                                                                                                                                
                                                                                                                                
CHAIR GREEN asked about the increased cost to the employer.                                                                     
8:34:32 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
REPRESENTATIVE  SEATON said  it  would increase  costs by  1                                                                    
CHAIR GREEN asked about the increased cost to the employer.                                                                     
percent for each pre-Medicare eligible employee.                                                                                
                                                                                                                                
REPRESENTATIVE  SEATON said  it  would increase  costs by  1                                                                    
CHAIR GREEN  said she  would leave  that provision  open for                                                                    
percent for each pre-Medicare eligible employee.                                                                                
later discussion.                                                                                                               
                                                                                                                                
CHAIR GREEN  said she  would leave  that provision  open for                                                                    
SENATOR  SEEKINS  said  the  House and  Senate  are  not  in                                                                    
later discussion.                                                                                                               
agreement  on line  13. He  then asked,  regarding line  14,                                                                    
                                                                                                                                
what the normal retirement age is.                                                                                              
SENATOR  SEEKINS  said  the  House and  Senate  are  not  in                                                                    
                                                                                                                                
agreement  on line  13. He  then asked,  regarding line  14,                                                                    
REPRESENTATIVE  SEATON  said  normal retirement  age  is  60                                                                    
what the normal retirement age is.                                                                                              
months pre-Medicare, meaning 60 years old.                                                                                      
                                                                                                                                
REPRESENTATIVE  SEATON  said  normal retirement  age  is  60                                                                    
SENATOR SEEKINS  asked if, in the  House version, retirement                                                                    
months pre-Medicare, meaning 60 years old.                                                                                      
begins 5 years earlier than the Senate version.                                                                                 
                                                                                                                                
SENATOR SEEKINS  asked if, in the  House version, retirement                                                                    
REPRESENTATIVE  SEATON said  that is  correct. He  explained                                                                    
begins 5 years earlier than the Senate version.                                                                                 
that a person  with 30 years of service who  is not 60 would                                                                    
                                                                                                                                
have to pay the full premium.                                                                                                   
REPRESENTATIVE  SEATON said  that is  correct. He  explained                                                                    
                                                                                                                                
that a person  with 30 years of service who  is not 60 would                                                                    
CHAIR GREEN asked if that provision merely provides access.                                                                     
have to pay the full premium.                                                                                                   
                                                                                                                                
                                                                                                                                
REPRESENTATIVE SEATON said that is correct.                                                                                     
CHAIR GREEN asked if that provision merely provides access.                                                                     
                                                                                                                                
                                                                                                                                
REPRESENTATIVE SEATON  said that is  the same as  the Senate                                                                    
REPRESENTATIVE SEATON said that is correct.                                                                                     
version.  The  difference  between  the  two  is  the  House                                                                    
                                                                                                                                
version  has a  60  months  pre-Medicare eligible  component                                                                    
REPRESENTATIVE SEATON  said that is  the same as  the Senate                                                                    
whereas the  Senate version has  no medical  benefits before                                                                    
version.  The  difference  between  the  two  is  the  House                                                                    
Medicare eligible age or 65.                                                                                                    
version  has a  60  months  pre-Medicare eligible  component                                                                    
                                                                                                                                
whereas the  Senate version has  no medical  benefits before                                                                    
CHAIR GREEN  asked for  an explanation of  the age  range in                                                                    
Medicare eligible age or 65.                                                                                                    
the House version.                                                                                                              
                                                                                                                                
CHAIR GREEN  asked for  an explanation of  the age  range in                                                                    
REPRESENTATIVE  SEATON said  the  service range  in the  two                                                                    
the House version.                                                                                                              
versions is  identical - 30  years or 10 years  and reaching                                                                    
                                                                                                                                
the age of 60. He then  said, "...It's actually 10 years and                                                                    
REPRESENTATIVE  SEATON said  the  service range  in the  two                                                                    
60  months  pre-Medicare  eligible.  The  reason  that  pre-                                                                    
versions is  identical - 30  years or 10 years  and reaching                                                                    
Medicare  eligible is  so important  is because  the federal                                                                    
the age of 60. He then  said, "...It's actually 10 years and                                                                    
government  might come  around  in a  few  years and  change                                                                    
60  months  pre-Medicare  eligible.  The  reason  that  pre-                                                                    
Medicare eligible  to 67 and we  at the state don't  want to                                                                    
Medicare  eligible is  so important  is because  the federal                                                                    
be stuck  with paying 100  percent of medical  costs between                                                                    
government  might come  around  in a  few  years and  change                                                                    
65 and 67 if they raise the age limit by two years."                                                                            
Medicare eligible  to 67 and we  at the state don't  want to                                                                    
                                                                                                                                
be stuck  with paying 100  percent of medical  costs between                                                                    
SENATOR  SEEKINS asked  if this  would establish  a floating                                                                    
65 and 67 if they raise the age limit by two years."                                                                            
rate that  duplicates exactly what the  Senate version would                                                                    
                                                                                                                                
do in terms of age and eligibility now.                                                                                         
SENATOR  SEEKINS asked  if this  would establish  a floating                                                                    
                                                                                                                                
rate that  duplicates exactly what the  Senate version would                                                                    
REPRESENTATIVE SEATON said the  House version provides for a                                                                    
do in terms of age and eligibility now.                                                                                         
60  months  pre-Medicare   eligible  subsidy  for  insurance                                                                    
                                                                                                                                
premiums while the Senate version  does not provide anything                                                                    
REPRESENTATIVE SEATON said the  House version provides for a                                                                    
pre-Medicare eligible.                                                                                                          
60  months  pre-Medicare   eligible  subsidy  for  insurance                                                                    
                                                                                                                                
premiums while the Senate version  does not provide anything                                                                    
CHAIR GREEN noted  the House version provides  an extra five                                                                    
pre-Medicare eligible.                                                                                                          
years of assistance.                                                                                                            
                                                                                                                                
CHAIR GREEN noted  the House version provides  an extra five                                                                    
REPRESENTATIVE SEATON said that is correct.                                                                                     
years of assistance.                                                                                                            
                                                                                                                                
                                                                                                                                
CHAIR GREEN  said she  would leave  that provision  open, as                                                                    
REPRESENTATIVE SEATON said that is correct.                                                                                     
well as lines  15 and 16 as she is  waiting for more figures                                                                    
                                                                                                                                
on that provision.                                                                                                              
CHAIR GREEN  said she  would leave  that provision  open, as                                                                    
                                                                                                                                
well as lines  15 and 16 as she is  waiting for more figures                                                                    
SENATOR SEEKINS  said the difference  between the  House and                                                                    
on that provision.                                                                                                              
Senate  versions  in  the health  reimbursement  arrangement                                                                    
                                                                                                                                
[line 17] is  the 50 basis points in the  House version. The                                                                    
SENATOR SEEKINS  said the difference  between the  House and                                                                    
House  wants to  give retirees  more money  than the  Senate                                                                    
Senate  versions  in  the health  reimbursement  arrangement                                                                    
does.                                                                                                                           
[line 17] is  the 50 basis points in the  House version. The                                                                    
                                                                                                                                
House  wants to  give retirees  more money  than the  Senate                                                                    
REPRESENTATIVE SEATON said that is correct.                                                                                     
does.                                                                                                                           
                                                                                                                                
                                                                                                                                
CHAIR GREEN said  some concern was expressed  that the House                                                                    
REPRESENTATIVE SEATON said that is correct.                                                                                     
provision was "too rich" so she would leave that open.                                                                          
                                                                                                                                
CHAIR GREEN said  some concern was expressed  that the House                                                                    
REPRESENTATIVE WEYHRAUCH asked if line  17 relates to line 9                                                                  
provision was "too rich" so she would leave that open.                                                                          
on page 1.                                                                                                                    
                                                                                                                                
REPRESENTATIVE WEYHRAUCH asked if line  17 relates to line 9                                                                  
CHAIR GREEN  said it  does and that  a deeper  discussion on                                                                    
on page 1.                                                                                                                    
the  balance between  all of  those  contributions needs  to                                                                    
                                                                                                                                
occur because  one causes one to  go down and another  to go                                                                    
CHAIR GREEN  said it  does and that  a deeper  discussion on                                                                    
up.  The  right  balance  needs  to be  found  so  that  the                                                                    
the  balance between  all of  those  contributions needs  to                                                                    
employer is not over contributing  and she believes there is                                                                    
occur because  one causes one to  go down and another  to go                                                                    
room for change. She repeated  she would leave that open for                                                                    
up.  The  right  balance  needs  to be  found  so  that  the                                                                    
the free conference committee.                                                                                                  
employer is not over contributing  and she believes there is                                                                    
                                                                                                                                
room for change. She repeated  she would leave that open for                                                                    
CHAIR  GREEN then  said  she and  Senator  Seekins are  very                                                                    
the free conference committee.                                                                                                  
concerned with line 19.                                                                                                         
                                                                                                                                
CHAIR  GREEN then  said  she and  Senator  Seekins are  very                                                                    
SENATOR  SEEKINS  said his  concern  is  that someone  could                                                                    
concerned with line 19.                                                                                                         
leave voluntarily and  come back and get  full benefits plus                                                                    
                                                                                                                                
interest.                                                                                                                       
SENATOR  SEEKINS  said his  concern  is  that someone  could                                                                    
                                                                                                                                
leave voluntarily and  come back and get  full benefits plus                                                                    
CHAIR GREEN said that literally  means someone could be kept                                                                    
interest.                                                                                                                       
on the  books for infinity  and she believes the  benefit is                                                                    
                                                                                                                                
designed  to prepare  employees,  not to  keep  them on  the                                                                    
CHAIR GREEN said that literally  means someone could be kept                                                                    
books for 60  years. She said she would leave  that open for                                                                    
on the  books for infinity  and she believes the  benefit is                                                                    
future discussion.                                                                                                              
designed  to prepare  employees,  not to  keep  them on  the                                                                    
                                                                                                                                
books for 60  years. She said she would leave  that open for                                                                    
REPRESENTATIVE SEATON said the whole  design of this plan is                                                                    
future discussion.                                                                                                              
a  defined  contribution. He  continued,  "And  we have  two                                                                    
                                                                                                                                
components  of  defined contribution  here.  One  is to  the                                                                    
REPRESENTATIVE SEATON said the whole  design of this plan is                                                                    
retirement plan  where we're doing  a percentage  into there                                                                    
a  defined  contribution. He  continued,  "And  we have  two                                                                    
and the other defined contribution  portion is the HRA where                                                                    
components  of  defined contribution  here.  One  is to  the                                                                    
we  take a  certain  amount  of money  and  put  it in  your                                                                    
retirement plan  where we're doing  a percentage  into there                                                                    
individual account that you have and  you have to own and it                                                                    
and the other defined contribution  portion is the HRA where                                                                    
becomes portable,  it becomes usable.  So this is  a defined                                                                    
we  take a  certain  amount  of money  and  put  it in  your                                                                    
contribution section of the medical plan."                                                                                      
individual account that you have and  you have to own and it                                                                    
                                                                                                                                
becomes portable,  it becomes usable.  So this is  a defined                                                                    
CHAIR  GREEN   said  the  HRA   is  not  portable,   as  she                                                                    
contribution section of the medical plan."                                                                                      
understands it.                                                                                                                 
                                                                                                                                
CHAIR  GREEN   said  the  HRA   is  not  portable,   as  she                                                                    
REPRESENTATIVE SEATON said it is  portable in the sense that                                                                    
understands it.                                                                                                                 
it is the  employee's specific account that  the employee is                                                                    
                                                                                                                                
free  to use  for  any  medical expenses.  It  is a  defined                                                                    
REPRESENTATIVE SEATON said it is  portable in the sense that                                                                    
contribution, not  a defined benefit.  If it were  a defined                                                                    
it is the  employee's specific account that  the employee is                                                                    
benefit, it would say the employer  would pay so much of the                                                                    
free  to use  for  any  medical expenses.  It  is a  defined                                                                    
medical  costs.  This says  the  state  will contribute  2.5                                                                    
contribution, not  a defined benefit.  If it were  a defined                                                                    
percent of the  average wage of every  PERS/TRS employee for                                                                    
benefit, it would say the employer  would pay so much of the                                                                    
individual use.  He pointed out  the employee would  not own                                                                    
medical  costs.  This says  the  state  will contribute  2.5                                                                    
it until s/he met the 10 year vesting requirement.                                                                              
percent of the  average wage of every  PERS/TRS employee for                                                                    
                                                                                                                                
individual use.  He pointed out  the employee would  not own                                                                    
8:43:30 PM                                                                                                                    
it until s/he met the 10 year vesting requirement.                                                                              
                                                                                                                                
                                                                                                                                
SENATOR SEEKINS  asked if he  is sure ownership  is attached                                                                    
8:43:30 PM                                                                                                                    
or whether the  account is there for  the employee's benefit                                                                    
                                                                                                                                
if he continues to be an employee and retires normally.                                                                         
SENATOR SEEKINS  asked if he  is sure ownership  is attached                                                                    
                                                                                                                                
or whether the  account is there for  the employee's benefit                                                                    
8:44:27 PM                                                                                                                    
if he continues to be an employee and retires normally.                                                                         
                                                                                                                                
                                                                                                                                
REPRESENTATIVE SEATON  replied, "You can look  at it however                                                                    
8:44:27 PM                                                                                                                    
you  want  but if  the  idea  of a  DC  plan  is to  make  a                                                                    
                                                                                                                                
contribution into  an account that  is accounted for  - you,                                                                    
REPRESENTATIVE SEATON  replied, "You can look  at it however                                                                    
individually - not  for the group but  you individually have                                                                    
you  want  but if  the  idea  of a  DC  plan  is to  make  a                                                                    
this benefit  - that's what the  DC plan is and  that's what                                                                    
contribution into  an account that  is accounted for  - you,                                                                    
this is. Now it  takes 10 years to vest in  it just like you                                                                    
individually - not  for the group but  you individually have                                                                    
have 5 years to vest in the other account."                                                                                     
this benefit  - that's what the  DC plan is and  that's what                                                                    
                                                                                                                                
this is. Now it  takes 10 years to vest in  it just like you                                                                    
SENATOR SEEKINS  said he can  see no reason why,  if someone                                                                    
have 5 years to vest in the other account."                                                                                     
voluntarily  separates,  the   state  should  maintain  that                                                                    
                                                                                                                                
contribution and let it accrue  interest in case that person                                                                    
SENATOR SEEKINS  said he can  see no reason why,  if someone                                                                    
decides to come  back 20 years later. He  questioned why the                                                                    
voluntarily  separates,  the   state  should  maintain  that                                                                    
state  should do  that  if  "it doesn't  exist  in the  real                                                                    
contribution and let it accrue  interest in case that person                                                                    
world?"                                                                                                                         
decides to come  back 20 years later. He  questioned why the                                                                    
                                                                                                                                
state  should do  that  if  "it doesn't  exist  in the  real                                                                    
REPRESENTATIVE  WEYHRAUCH said  it  does exist  in the  real                                                                    
world?"                                                                                                                         
world because, "When your  employer contributes something to                                                                    
                                                                                                                                
you for your benefit, it becomes a property interest."                                                                          
REPRESENTATIVE  WEYHRAUCH said  it  does exist  in the  real                                                                    
                                                                                                                                
world because, "When your  employer contributes something to                                                                    
SENATOR  OLSON asked  if the  employee contributes  to a  DC                                                                    
you for your benefit, it becomes a property interest."                                                                          
plan.                                                                                                                           
                                                                                                                                
SENATOR  OLSON asked  if the  employee contributes  to a  DC                                                                    
CHAIR GREEN  clarified the employee  does not  contribute to                                                                    
plan.                                                                                                                           
the HRA portion.                                                                                                                
                                                                                                                                
CHAIR GREEN  clarified the employee  does not  contribute to                                                                    
REPRESENTATIVE   SEATON  agreed   but   said  the   employer                                                                    
the HRA portion.                                                                                                                
contributes to  an account for  each specific  employee. The                                                                    
                                                                                                                                
employee  must  submit  medical invoices  for  reimbursement                                                                    
REPRESENTATIVE   SEATON  agreed   but   said  the   employer                                                                    
from that  account. He said the  purpose of a DC  plan is to                                                                    
contributes to  an account for  each specific  employee. The                                                                    
attract employees.                                                                                                              
employee  must  submit  medical invoices  for  reimbursement                                                                    
                                                                                                                                
from that  account. He said the  purpose of a DC  plan is to                                                                    
SENATOR  SEEKINS  asked to  leave  this  provision open  for                                                                    
attract employees.                                                                                                              
further negotiation  because he  believes the only  way this                                                                    
                                                                                                                                
money will  become the employee's  money is if  the employee                                                                    
SENATOR  SEEKINS  asked to  leave  this  provision open  for                                                                    
returns to state employment.                                                                                                    
further negotiation  because he  believes the only  way this                                                                    
                                                                                                                                
money will  become the employee's  money is if  the employee                                                                    
REPRESENTATIVE  SEATON said  that  is  incorrect because  it                                                                    
returns to state employment.                                                                                                    
belongs to the employee if s/he vests in 10 years.                                                                              
                                                                                                                                
REPRESENTATIVE  SEATON said  that  is  incorrect because  it                                                                    
SENATOR SEEKINS read, "can  return to participating employer                                                                    
belongs to the employee if s/he vests in 10 years.                                                                              
without time  limitation and  have account  balance restored                                                                    
                                                                                                                                
with interest."                                                                                                                 
SENATOR SEEKINS read, "can  return to participating employer                                                                    
                                                                                                                                
without time  limitation and  have account  balance restored                                                                    
REPRESENTATIVE  SEATON said  that is  correct and  explained                                                                    
with interest."                                                                                                                 
that if  Senator Seekins worked  for 10 years,  vested, left                                                                    
                                                                                                                                
state service  for 5 years  and returned, his  account would                                                                    
REPRESENTATIVE  SEATON said  that is  correct and  explained                                                                    
still be there. It is an incentive to employees to return.                                                                      
that if  Senator Seekins worked  for 10 years,  vested, left                                                                    
                                                                                                                                
state service  for 5 years  and returned, his  account would                                                                    
SENATOR SEEKINS  said in the  real world, if you  leave, you                                                                    
still be there. It is an incentive to employees to return.                                                                      
leave it behind therefore he disagrees with that provision.                                                                     
                                                                                                                                
SENATOR SEEKINS  said in the  real world, if you  leave, you                                                                    
CHAIR GREEN said  that is one of the  characteristics of the                                                                    
leave it behind therefore he disagrees with that provision.                                                                     
current  plan  that  has  caused  the state  to  be  in  the                                                                    
                                                                                                                                
position it is in.                                                                                                              
CHAIR GREEN said  that is one of the  characteristics of the                                                                    
                                                                                                                                
current  plan  that  has  caused  the state  to  be  in  the                                                                    
CHAIR GREEN moved to the next issue: board members.                                                                             
position it is in.                                                                                                              
                                                                                                                                
                                                                                                                                
8:47:17 PM                                                                                                                    
CHAIR GREEN moved to the next issue: board members.                                                                             
                                                                                                                                
                                                                                                                                
SENATOR SEEKINS  asked why only  one person on the  board is                                                                    
8:47:17 PM                                                                                                                    
not a PERS/TRS member.                                                                                                          
                                                                                                                                
SENATOR SEEKINS  asked why only  one person on the  board is                                                                    
REPRESENTATIVE SEATON  said the  board is comprised  of four                                                                    
not a PERS/TRS member.                                                                                                          
employer representatives and  four employee representatives.                                                                    
                                                                                                                                
The  commissioners   of  revenue  and   administration,  and                                                                    
REPRESENTATIVE SEATON  said the  board is comprised  of four                                                                    
finance  officers of  a municipality  and a  school district                                                                    
employer representatives and  four employee representatives.                                                                    
would  represent employers,  while two  members of  the PERS                                                                    
The  commissioners   of  revenue  and   administration,  and                                                                    
employee system and  two members of the  TRS employee system                                                                    
finance  officers of  a municipality  and a  school district                                                                    
would represent employees.                                                                                                      
would  represent employers,  while two  members of  the PERS                                                                    
                                                                                                                                
employee system and  two members of the  TRS employee system                                                                    
SENATOR  SEEKINS  asked  if the  commissioners  and  finance                                                                    
would represent employees.                                                                                                      
officers are PERS members.                                                                                                      
                                                                                                                                
SENATOR  SEEKINS  asked  if the  commissioners  and  finance                                                                    
CHAIR GREEN said they are.                                                                                                      
officers are PERS members.                                                                                                      
                                                                                                                                
                                                                                                                                
SENATOR  SEEKINS  noted  the   PERS  and  TRS  members  also                                                                    
CHAIR GREEN said they are.                                                                                                      
participate in  the program  so only  one board  member does                                                                    
                                                                                                                                
not. He felt that balance is out of line.                                                                                       
SENATOR  SEEKINS  noted  the   PERS  and  TRS  members  also                                                                    
                                                                                                                                
participate in  the program  so only  one board  member does                                                                    
8:48:56 PM                                                                                                                    
not. He felt that balance is out of line.                                                                                       
                                                                                                                                
                                                                                                                                
REPRESENTATIVE  CRAWFORD   said  he  is  a   member  of  the                                                                    
8:48:56 PM                                                                                                                    
ironworkers' pension plan. That  board consists of 3 members                                                                    
                                                                                                                                
from the  employers' group and  3 members of  the employees'                                                                    
REPRESENTATIVE  CRAWFORD   said  he  is  a   member  of  the                                                                    
group. Although they have disparate  goals at times, all are                                                                    
ironworkers' pension plan. That  board consists of 3 members                                                                    
covered by the  same plan. He thought  the House composition                                                                    
from the  employers' group and  3 members of  the employees'                                                                    
is much fairer than the Senate composition.                                                                                     
group. Although they have disparate  goals at times, all are                                                                    
                                                                                                                                
covered by the  same plan. He thought  the House composition                                                                    
SENATOR SEEKINS said  he sees the two  commissioners and two                                                                    
is much fairer than the Senate composition.                                                                                     
finance  officers as  employees of  the state.  He asked  if                                                                    
                                                                                                                                
something  goes  wrong  with  the  ironworkers'  [retirement                                                                    
SENATOR SEEKINS said  he sees the two  commissioners and two                                                                    
plan],  the general  public would  be asked  to make  up the                                                                    
finance  officers as  employees of  the state.  He asked  if                                                                    
deficit  as would  happen with  PERS  and TRS.  He said  the                                                                    
something  goes  wrong  with  the  ironworkers'  [retirement                                                                    
person who  is not a beneficiary  of PERS and TRS  should be                                                                    
plan],  the general  public would  be asked  to make  up the                                                                    
part of the balance of this committee.                                                                                          
deficit  as would  happen with  PERS  and TRS.  He said  the                                                                    
                                                                                                                                
person who  is not a beneficiary  of PERS and TRS  should be                                                                    
REPRESENTATIVE  WEYHRAUCH  asked  if  the  ratio  under  the                                                                    
part of the balance of this committee.                                                                                          
Senate  version was  6 PERS/TRS  members  to 3  non-PERS/TRS                                                                    
                                                                                                                                
members  versus the  8 PERS/TRS  members  to 1  non-PERS/TRS                                                                    
REPRESENTATIVE  WEYHRAUCH  asked  if  the  ratio  under  the                                                                    
member in the House version.                                                                                                    
Senate  version was  6 PERS/TRS  members  to 3  non-PERS/TRS                                                                    
                                                                                                                                
members  versus the  8 PERS/TRS  members  to 1  non-PERS/TRS                                                                    
SENATOR SEEKINS said  that is correct. He  likened the House                                                                    
member in the House version.                                                                                                    
composition  to  allowing the  fox  to  watch over  the  hen                                                                    
                                                                                                                                
house. Someone  who is  qualified and  not a  beneficiary of                                                                    
SENATOR SEEKINS said  that is correct. He  likened the House                                                                    
the PERS/TRS system should be on the board.                                                                                     
composition  to  allowing the  fox  to  watch over  the  hen                                                                    
                                                                                                                                
house. Someone  who is  qualified and  not a  beneficiary of                                                                    
CHAIR GREEN told members the  Senate used the Permanent Fund                                                                    
the PERS/TRS system should be on the board.                                                                                     
board  as  a  model.  It  was  looking  for  highly  trained                                                                    
                                                                                                                                
investors. She  added the Senate  sees this board as  a very                                                                    
CHAIR GREEN told members the  Senate used the Permanent Fund                                                                    
hard  working board  and supports  the  honorarium for  that                                                                    
board  as  a  model.  It  was  looking  for  highly  trained                                                                    
reason. She  said she prefers  to have 3  unconnected people                                                                    
investors. She  added the Senate  sees this board as  a very                                                                    
on the board.                                                                                                                   
hard  working board  and supports  the  honorarium for  that                                                                    
                                                                                                                                
reason. She  said she prefers  to have 3  unconnected people                                                                    
SENATOR  SEEKINS said  he is  not accusing  anyone of  being                                                                    
on the board.                                                                                                                   
less than honorable; he just  feels the board should be more                                                                    
                                                                                                                                
balanced.                                                                                                                       
SENATOR  SEEKINS said  he is  not accusing  anyone of  being                                                                    
                                                                                                                                
less than honorable; he just  feels the board should be more                                                                    
REPRESENTATIVE  SEATON replied  the commissioners  would not                                                                    
balanced.                                                                                                                       
be  representing their  individual  membership  in PERS  and                                                                    
                                                                                                                                
TRS, but rather the State of  Alaska. He clarified that in a                                                                    
REPRESENTATIVE  SEATON replied  the commissioners  would not                                                                    
House  Finance  version, the  PERS/TRS  members  were to  be                                                                    
be  representing their  individual  membership  in PERS  and                                                                    
elected,  which put  them outside  of the  required criteria                                                                    
TRS, but rather the State of  Alaska. He clarified that in a                                                                    
for other  board members.  In the  final House  version, all                                                                    
House  Finance  version, the  PERS/TRS  members  were to  be                                                                    
members must meet the same criteria.                                                                                            
elected,  which put  them outside  of the  required criteria                                                                    
                                                                                                                                
for other  board members.  In the  final House  version, all                                                                    
8:54:49 PM                                                                                                                    
members must meet the same criteria.                                                                                            
                                                                                                                                
                                                                                                                                
SENATOR OLSON said in his  businesses, when negotiating with                                                                    
8:54:49 PM                                                                                                                    
employees, he  and his managers  are in the  same retirement                                                                    
                                                                                                                                
program  as his  employees  but his  managers represent  his                                                                    
SENATOR OLSON said in his  businesses, when negotiating with                                                                    
side. He  said he tends  to favor the House  composition and                                                                    
employees, he  and his managers  are in the  same retirement                                                                    
questioned  how many  Permanent Fund  board members  are not                                                                    
program  as his  employees  but his  managers represent  his                                                                    
permanent fund dividend recipients.                                                                                             
side. He  said he tends  to favor the House  composition and                                                                    
                                                                                                                                
questioned  how many  Permanent Fund  board members  are not                                                                    
SENATOR  SEEKINS  said  every  resident  receives  an  equal                                                                    
permanent fund dividend recipients.                                                                                             
permanent  fund   dividend  but  not  every   resident  gets                                                                    
                                                                                                                                
retirement benefits  from the state.  He noted he is  in the                                                                    
SENATOR  SEEKINS  said  every  resident  receives  an  equal                                                                    
process of  creating a  bright line in  the ethics  law that                                                                    
permanent  fund   dividend  but  not  every   resident  gets                                                                    
says if a public officer  has an investment worth $10,000 or                                                                    
retirement benefits  from the state.  He noted he is  in the                                                                    
more   and  that   officer's  action   could  benefit   that                                                                    
process of  creating a  bright line in  the ethics  law that                                                                    
investment,  the  officer must  put  that  investment in  an                                                                    
says if a public officer  has an investment worth $10,000 or                                                                    
account that  s/he has no  management control over.  He said                                                                    
more   and  that   officer's  action   could  benefit   that                                                                    
because the State  of Alaska has an interest  in the success                                                                    
investment,  the  officer must  put  that  investment in  an                                                                    
of this program, it should have  more than one member who is                                                                    
account that  s/he has no  management control over.  He said                                                                    
not a beneficiary of the system.                                                                                                
because the State  of Alaska has an interest  in the success                                                                    
                                                                                                                                
of this program, it should have  more than one member who is                                                                    
CHAIR GREEN announced that issue would remain open.                                                                             
not a beneficiary of the system.                                                                                                
                                                                                                                                
                                                                                                                                
Regarding  line 22,  board terms,  SENATOR SEEKINS  said his                                                                    
CHAIR GREEN announced that issue would remain open.                                                                             
understanding  is that  the structure  of the  board in  the                                                                    
                                                                                                                                
Senate version  is modeled after  the Permanent  Fund board.                                                                    
Regarding  line 22,  board terms,  SENATOR SEEKINS  said his                                                                    
As a former chair of that  board, the only thing he found he                                                                    
understanding  is that  the structure  of the  board in  the                                                                    
did not  like was  that every board  member was  a political                                                                    
Senate version  is modeled after  the Permanent  Fund board.                                                                    
appointee  who  sat  at  the   will  of  the  governor.  The                                                                    
As a former chair of that  board, the only thing he found he                                                                    
legislature changed that  last year so that  now members are                                                                    
did not  like was  that every board  member was  a political                                                                    
appointed to  staggered terms and  they can only  be removed                                                                    
appointee  who  sat  at  the   will  of  the  governor.  The                                                                    
for  cause. He  said three-year  terms provide  a chance  to                                                                    
legislature changed that  last year so that  now members are                                                                    
evaluate members' service. He sees no reason to change.                                                                         
appointed to  staggered terms and  they can only  be removed                                                                    
                                                                                                                                
for  cause. He  said three-year  terms provide  a chance  to                                                                    
REPRESENTATIVE  SEATON said  the  House went  with a  6-year                                                                    
evaluate members' service. He sees no reason to change.                                                                         
term because 3-year  terms with a 9 member  board means that                                                                    
                                                                                                                                
a single term  governor would replace the  entire board. The                                                                    
REPRESENTATIVE  SEATON said  the  House went  with a  6-year                                                                    
6-year term would allow for  some staggering so that doesn't                                                                    
term because 3-year  terms with a 9 member  board means that                                                                    
happen.                                                                                                                         
a single term  governor would replace the  entire board. The                                                                    
                                                                                                                                
6-year term would allow for  some staggering so that doesn't                                                                    
CHAIR  GREEN  said the  differences  between  the House  and                                                                    
happen.                                                                                                                         
Senate board terms leave a  lot of room for modifications so                                                                    
                                                                                                                                
she would leave that open.                                                                                                      
CHAIR  GREEN  said the  differences  between  the House  and                                                                    
                                                                                                                                
Senate board terms leave a  lot of room for modifications so                                                                    
CHAIR GREEN referred to line  23, board duties, and said she                                                                    
she would leave that open.                                                                                                      
would leave that open.                                                                                                          
                                                                                                                                
CHAIR GREEN referred to line  23, board duties, and said she                                                                    
SENATOR SEEKINS asked for the rationale of line 23.                                                                             
would leave that open.                                                                                                          
                                                                                                                                
                                                                                                                                
REPRESENTATIVE SEATON  said one big problem  of past service                                                                    
SENATOR SEEKINS asked for the rationale of line 23.                                                                             
costs was not recognizing the  changes to medical costs. The                                                                    
                                                                                                                                
House thought the medical component  should be analyzed each                                                                    
REPRESENTATIVE SEATON  said one big problem  of past service                                                                    
year to make sure the  state doesn't get behind on projected                                                                    
costs was not recognizing the  changes to medical costs. The                                                                    
medical benefits.                                                                                                               
House thought the medical component  should be analyzed each                                                                    
                                                                                                                                
year to make sure the  state doesn't get behind on projected                                                                    
REPRESENTATIVE  WEYHRAUCH  indicated  the  medical  benefits                                                                    
medical benefits.                                                                                                               
have always  been projected to  be the largest  component of                                                                    
                                                                                                                                
the financial impact and most subject to change.                                                                                
REPRESENTATIVE  WEYHRAUCH  indicated  the  medical  benefits                                                                    
                                                                                                                                
have always  been projected to  be the largest  component of                                                                    
CHAIR GREEN thought  that was included as  an assumption but                                                                    
the financial impact and most subject to change.                                                                                
she would check.                                                                                                                
                                                                                                                                
CHAIR GREEN thought  that was included as  an assumption but                                                                    
REPRESENTATIVE SEATON  said the  other assumptions  are made                                                                    
she would check.                                                                                                                
every four years.                                                                                                               
                                                                                                                                
REPRESENTATIVE SEATON  said the  other assumptions  are made                                                                    
CHAIR  GREEN thought  another review  kicks in  on alternate                                                                    
every four years.                                                                                                               
years as well.                                                                                                                  
                                                                                                                                
CHAIR  GREEN thought  another review  kicks in  on alternate                                                                    
REPRESENTATIVE  WEYHRAUCH  indicated  that everyone  was  in                                                                    
years as well.                                                                                                                  
agreement about line 27.                                                                                                        
                                                                                                                                
REPRESENTATIVE  WEYHRAUCH  indicated  that everyone  was  in                                                                    
CHAIR GREEN said the committee  agreed to leave line 28 open                                                                    
agreement about line 27.                                                                                                        
and it agreed upon line 29.                                                                                                     
                                                                                                                                
CHAIR GREEN said the committee  agreed to leave line 28 open                                                                    
9:00:55 PM                                                                                                                    
and it agreed upon line 29.                                                                                                     
                                                                                                                                
                                                                                                                                
CHAIR  GREEN  said  regarding line  30,  the  University  of                                                                    
9:00:55 PM                                                                                                                    
Alaska  (UA) requested  this language.  The  UA prefers  the                                                                    
                                                                                                                                
Senate language  because it was  part of a  complete package                                                                    
CHAIR  GREEN  said  regarding line  30,  the  University  of                                                                    
it brought  to the Senate.  The current language  provides a                                                                    
Alaska  (UA) requested  this language.  The  UA prefers  the                                                                    
one-time  option   for  current  employees  who   choose  to                                                                    
Senate language  because it was  part of a  complete package                                                                    
participate  in  PERS/TRS  to  transfer  into  the  existing                                                                    
it brought  to the Senate.  The current language  provides a                                                                    
optional retirement program.  She said she was  not sure she                                                                    
one-time  option   for  current  employees  who   choose  to                                                                    
wanted to revise the UA's optional retirement program.                                                                          
participate  in  PERS/TRS  to  transfer  into  the  existing                                                                    
                                                                                                                                
optional retirement program.  She said she was  not sure she                                                                    
REPRESENTATIVE SEATON  explained the House did  that for two                                                                    
wanted to revise the UA's optional retirement program.                                                                          
reasons. First,  a lot  of people  move into  the University                                                                    
                                                                                                                                
system  and then  into school  districts  or boroughs.  This                                                                    
REPRESENTATIVE SEATON  explained the House did  that for two                                                                    
would  give UA  blue-collar  workers a  different plan  from                                                                    
reasons. First,  a lot  of people  move into  the University                                                                    
professors that  would not be transferable.  He cautioned if                                                                    
system  and then  into school  districts  or boroughs.  This                                                                    
the UA  has a separate system  that is done by  the Board of                                                                    
would  give UA  blue-collar  workers a  different plan  from                                                                    
Regents,  it  would no  longer  conform  with PERS  so  blue                                                                    
professors that  would not be transferable.  He cautioned if                                                                    
collar  workers could  not transfer  from a  municipality to                                                                    
the UA  has a separate system  that is done by  the Board of                                                                    
the  UA.  For  that  reason, the  House  left  the  optional                                                                    
Regents,  it  would no  longer  conform  with PERS  so  blue                                                                    
program  intact but  all  other employees  would  be in  the                                                                    
collar  workers could  not transfer  from a  municipality to                                                                    
defined contribution PERS program established here.                                                                             
the  UA.  For  that  reason, the  House  left  the  optional                                                                    
                                                                                                                                
program  intact but  all  other employees  would  be in  the                                                                    
CHAIR GREEN  asked if new  employees could choose  a defined                                                                    
defined contribution PERS program established here.                                                                             
benefits program or defined contribution program.                                                                               
                                                                                                                                
CHAIR GREEN  asked if new  employees could choose  a defined                                                                    
REPRESENTATIVE  SEATON explained  the employee  would either                                                                    
benefits program or defined contribution program.                                                                               
have  the  SB 141  defined  contribution  plan or  the  UA's                                                                    
                                                                                                                                
optional  plan,  which is  a  defined  contribution plan  as                                                                    
REPRESENTATIVE  SEATON explained  the employee  would either                                                                    
well. That  would allow blue-collar  workers to go  from one                                                                    
have  the  SB 141  defined  contribution  plan or  the  UA's                                                                    
PERS job to another.                                                                                                            
optional  plan,  which is  a  defined  contribution plan  as                                                                    
                                                                                                                                
well. That  would allow blue-collar  workers to go  from one                                                                    
CHAIR   GREEN  asked   if   UA   talked  about   forecasting                                                                    
PERS job to another.                                                                                                            
difficulties arising from the difference.                                                                                       
                                                                                                                                
CHAIR   GREEN  asked   if   UA   talked  about   forecasting                                                                    
REPRESENTATIVE  WEYHRAUCH said  he did  not recall  any such                                                                    
difficulties arising from the difference.                                                                                       
testimony in  the House Finance  Committee. He said  UA does                                                                    
                                                                                                                                
that  now with  its  professorial  and administrative  staff                                                                    
REPRESENTATIVE  WEYHRAUCH said  he did  not recall  any such                                                                    
because it can offer the defined contribution plan.                                                                             
testimony in  the House Finance  Committee. He said  UA does                                                                    
                                                                                                                                
that  now with  its  professorial  and administrative  staff                                                                    
9:04:39 PM                                                                                                                    
because it can offer the defined contribution plan.                                                                             
                                                                                                                                
                                                                                                                                
SENATOR OLSON said  it was his understanding  that UA wanted                                                                    
9:04:39 PM                                                                                                                    
a  hybrid plan  and asked  whether Representative  Seaton is                                                                    
                                                                                                                                
saying that will be denied.                                                                                                     
SENATOR OLSON said  it was his understanding  that UA wanted                                                                    
                                                                                                                                
a  hybrid plan  and asked  whether Representative  Seaton is                                                                    
REPRESENTATIVE  SEATON  replied  the UA  testified  that  it                                                                    
saying that will be denied.                                                                                                     
wanted to  go to a  defined contribution plan  for everyone,                                                                    
                                                                                                                                
although there  would be different  levels of it.  The House                                                                    
REPRESENTATIVE  SEATON  replied  the UA  testified  that  it                                                                    
version says  the defined contribution plan  that applies to                                                                    
wanted to  go to a  defined contribution plan  for everyone,                                                                    
most  everyone  will be  the  same  as the  state's  defined                                                                    
although there  would be different  levels of it.  The House                                                                    
contribution plan and  UA will have the ability  to offer an                                                                    
version says  the defined contribution plan  that applies to                                                                    
optional plan. He affirmed there was no hybrid plan.                                                                            
most  everyone  will be  the  same  as the  state's  defined                                                                    
                                                                                                                                
contribution plan and  UA will have the ability  to offer an                                                                    
CHAIR GREEN noted both bodies have agreed on line 32.                                                                           
optional plan. He affirmed there was no hybrid plan.                                                                            
                                                                                                                                
                                                                                                                                
9:05:56 PM                                                                                                                    
CHAIR GREEN noted both bodies have agreed on line 32.                                                                           
                                                                                                                                
                                                                                                                                
SENATOR SEEKINS asked for an explanation of line 33.                                                                            
9:05:56 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
REPRESENTATIVE SEATON  stated, "What that is,  it's not only                                                                    
SENATOR SEEKINS asked for an explanation of line 33.                                                                            
AVTechs,  it's   also  Department   of  Labor   has  welding                                                                    
                                                                                                                                
instructors  out -  I  think  it's in  Bethel  and you  know                                                                    
REPRESENTATIVE SEATON  stated, "What that is,  it's not only                                                                    
wherever  they  have instructors  that  they  hire that  are                                                                    
AVTechs,  it's   also  Department   of  Labor   has  welding                                                                    
teachers  that are  in  TRS system,  this  means they  would                                                                    
instructors  out -  I  think  it's in  Bethel  and you  know                                                                    
continue  in the  TRS  system instead  of  stopping the  TRS                                                                    
wherever  they  have instructors  that  they  hire that  are                                                                    
system and  having to be  in PERS  because then if  they had                                                                    
teachers  that are  in  TRS system,  this  means they  would                                                                    
qualified in  one they would  be basically having  two state                                                                    
continue  in the  TRS  system instead  of  stopping the  TRS                                                                    
retirement  programs.  So this  means  that  if they  are  a                                                                    
system and  having to be  in PERS  because then if  they had                                                                    
member  of TRS  when  they go  in as  an  instructor in  the                                                                    
qualified in  one they would  be basically having  two state                                                                    
Department  of  Labor, they  will  stay  in the  TRS  system                                                                    
retirement  programs.  So this  means  that  if they  are  a                                                                    
because there  are slight differences.  But if  they're not,                                                                    
member  of TRS  when  they go  in as  an  instructor in  the                                                                    
they're in the PERS system."                                                                                                    
Department  of  Labor, they  will  stay  in the  TRS  system                                                                    
                                                                                                                                
because there  are slight differences.  But if  they're not,                                                                    
SENATOR   SEEKINS    asked   if    Representative   Seaton's                                                                    
they're in the PERS system."                                                                                                    
understanding is  that people in  the AVTech  programs would                                                                    
                                                                                                                                
stay there  forever or that  they don't  want to go  back to                                                                    
SENATOR   SEEKINS    asked   if    Representative   Seaton's                                                                    
being a blue-collar worker.                                                                                                     
understanding is  that people in  the AVTech  programs would                                                                    
                                                                                                                                
stay there  forever or that  they don't  want to go  back to                                                                    
9:07:02 PM                                                                                                                    
being a blue-collar worker.                                                                                                     
                                                                                                                                
                                                                                                                                
REPRESENTATIVE WEYHRAUCH  said he heard testimony  about how                                                                    
9:07:02 PM                                                                                                                    
a welder who works for the  city in a village might be asked                                                                    
                                                                                                                                
to be a  welding instructor. This would allow  the welder to                                                                    
REPRESENTATIVE WEYHRAUCH  said he heard testimony  about how                                                                    
do that  without getting into a  separate retirement system.                                                                    
a welder who works for the  city in a village might be asked                                                                    
It is  designed to  pick up  on the  skilled labor  in those                                                                    
to be a  welding instructor. This would allow  the welder to                                                                    
areas.                                                                                                                          
do that  without getting into a  separate retirement system.                                                                    
                                                                                                                                
It is  designed to  pick up  on the  skilled labor  in those                                                                    
REPRESENTATIVE  SEATON  said that  is  not  quite what  this                                                                    
areas.                                                                                                                          
does. He explained that blue-collar  workers who come to the                                                                    
                                                                                                                                
Department of Labor to teach  welding would be in PERS. This                                                                    
REPRESENTATIVE  SEATON  said that  is  not  quite what  this                                                                    
would  apply to  people like  high school  teachers who  are                                                                    
does. He explained that blue-collar  workers who come to the                                                                    
already in  TRS who are  brought to the Department  of Labor                                                                    
Department of Labor to teach  welding would be in PERS. This                                                                    
to  teach -  they would  then change  to PERS.  Those people                                                                    
would  apply to  people like  high school  teachers who  are                                                                    
would remain  in TRS but  anyone who  is not already  in TRS                                                                    
already in  TRS who are  brought to the Department  of Labor                                                                    
would be in PERS.                                                                                                               
to  teach -  they would  then change  to PERS.  Those people                                                                    
                                                                                                                                
would remain  in TRS but  anyone who  is not already  in TRS                                                                    
CHAIR GREEN asked how many people this would apply to.                                                                          
would be in PERS.                                                                                                               
                                                                                                                                
                                                                                                                                
REPRESENTATIVE SEATON said  maybe 10 to 12  people in Seward                                                                    
CHAIR GREEN asked how many people this would apply to.                                                                          
and  some  in  Kotzebue.  He provided  the  history  of  the                                                                    
                                                                                                                                
problem.                                                                                                                        
REPRESENTATIVE SEATON said  maybe 10 to 12  people in Seward                                                                    
                                                                                                                                
and  some  in  Kotzebue.  He provided  the  history  of  the                                                                    
CHAIR GREEN asked if those  employees preferred to be in TRS                                                                    
problem.                                                                                                                        
because the benefits are better.                                                                                                
                                                                                                                                
CHAIR GREEN asked if those  employees preferred to be in TRS                                                                    
REPRESENTATIVE  SEATON  said the  workers  who  were in  TRS                                                                    
because the benefits are better.                                                                                                
before would have to cancel out  and change over to PERS. If                                                                    
                                                                                                                                
they were  vested in  TRS, they  would have  that retirement                                                                    
REPRESENTATIVE  SEATON  said the  workers  who  were in  TRS                                                                    
system and would be forced to pick up the new PERS.                                                                             
before would have to cancel out  and change over to PERS. If                                                                    
                                                                                                                                
they were  vested in  TRS, they  would have  that retirement                                                                    
CHAIR GREEN said she would leave line 33 open.                                                                                  
system and would be forced to pick up the new PERS.                                                                             
                                                                                                                                
                                                                                                                                
CHAIR GREEN said  she does not believe the  contents of line                                                                    
CHAIR GREEN said she would leave line 33 open.                                                                                  
34  should be  placed in  statute.  She said  the board  has                                                                    
                                                                                                                                
instructions  and goals  already and  that the  cost savings                                                                    
CHAIR GREEN said  she does not believe the  contents of line                                                                    
measures are  an administrative  function. She said  line 34                                                                    
34  should be  placed in  statute.  She said  the board  has                                                                    
would be left open.                                                                                                             
instructions  and goals  already and  that the  cost savings                                                                    
                                                                                                                                
measures are  an administrative  function. She said  line 34                                                                    
REPRESENTATIVE  SEATON  mentioned  the House  State  Affairs                                                                    
would be left open.                                                                                                             
Committee  included it  as intent  language but  Legislative                                                                    
                                                                                                                                
Legal Services  and the  House Finance  Committee [preferred                                                                    
REPRESENTATIVE  SEATON  mentioned  the House  State  Affairs                                                                    
that it be put in the bill instead].                                                                                            
Committee  included it  as intent  language but  Legislative                                                                    
                                                                                                                                
Legal Services  and the  House Finance  Committee [preferred                                                                    
REPRESENTATIVE  SEATON explained  that line  35 grew  out of                                                                    
that it be put in the bill instead].                                                                                            
the retirement  and benefits board's  attempt to  up generic                                                                    
                                                                                                                                
drug  use. That  use has  increased from  37 to  42 percent,                                                                    
REPRESENTATIVE  SEATON explained  that line  35 grew  out of                                                                    
saving an  estimated $1 million  for each 1  percent change.                                                                    
the retirement  and benefits board's  attempt to  up generic                                                                    
Generic drugs are  not required now so line  35 requires the                                                                    
drug  use. That  use has  increased from  37 to  42 percent,                                                                    
cost  savings measures  be implemented  and mandatory.  That                                                                    
saving an  estimated $1 million  for each 1  percent change.                                                                    
change is estimated to save $6.5 million per year.                                                                              
Generic drugs are  not required now so line  35 requires the                                                                    
                                                                                                                                
cost  savings measures  be implemented  and mandatory.  That                                                                    
CHAIR GREEN announced  the House and Senate  agree upon line                                                                    
change is estimated to save $6.5 million per year.                                                                              
36 and that she would leave lines 37 and 38 open.                                                                               
                                                                                                                                
CHAIR GREEN announced  the House and Senate  agree upon line                                                                    
CHAIR GREEN  then asked members  to sign the report  so that                                                                    
36 and that she would leave lines 37 and 38 open.                                                                               
it can be  taken to members' respective  bodies tomorrow, at                                                                    
                                                                                                                                
which  time  free  conference   committee  members  will  be                                                                    
CHAIR GREEN  then asked members  to sign the report  so that                                                                    
appointed.                                                                                                                      
it can be  taken to members' respective  bodies tomorrow, at                                                                    
                                                                                                                                
which  time  free  conference   committee  members  will  be                                                                    
9:13:47 PM                                                                                                                    
appointed.                                                                                                                      
                                                                                                                                
                                                                                                                                
SENATOR  SEEKINS moved  to  return a  letter  to the  Senate                                                                    
9:13:47 PM                                                                                                                    
President and House Speaker that  states that the conference                                                                    
                                                                                                                                
committee  on SB  141 met  on May  7, 2005  and that  Senate                                                                    
SENATOR  SEEKINS moved  to  return a  letter  to the  Senate                                                                    
members  failed  to concur  with  the  changes to  HCS  CSSB                                                                    
President and House Speaker that  states that the conference                                                                    
141(FIN)am H, that  the House members failed  to recede from                                                                    
committee  on SB  141 met  on May  7, 2005  and that  Senate                                                                    
their  changes  to CSSB  141(FIN)  and  that the  conference                                                                    
members  failed  to concur  with  the  changes to  HCS  CSSB                                                                    
committee considered the attached  sections and did not come                                                                    
141(FIN)am H, that  the House members failed  to recede from                                                                    
to   agreement.   The  conference   committee   respectfully                                                                    
their  changes  to CSSB  141(FIN)  and  that the  conference                                                                    
requests limited powers of free conference.                                                                                     
committee considered the attached  sections and did not come                                                                    
                                                                                                                                
to   agreement.   The  conference   committee   respectfully                                                                    
CHAIR GREEN  announced that with  no objections,  the motion                                                                    
requests limited powers of free conference.                                                                                     
carried.                                                                                                                        
                                                                                                                                
CHAIR GREEN  announced that with  no objections,  the motion                                                                    
REPRESENTATIVE  SEATON  asked  if the  conference  committee                                                                    
carried.                                                                                                                        
should specify the areas for limited free conference.                                                                           
                                                                                                                                
REPRESENTATIVE  SEATON  asked  if the  conference  committee                                                                    
CHAIR GREEN said the committee  will sign the report when it                                                                    
should specify the areas for limited free conference.                                                                           
meets at 1:45 p.m. tomorrow.  She then adjourned the meeting                                                                    
                                                                                                                                
at 9:18:50 PM.                                                                                                                
CHAIR GREEN said the committee  will sign the report when it                                                                    
meets at 1:45 p.m. tomorrow.  She then adjourned the meeting                                                                    
at 9:18:50 PM.                                                                                                                

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