03/15/2021 09:00 AM Senate EDUCATION
| Audio | Topic |
|---|---|
| Start | |
| SB20 | |
| SB6 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 20 | TELECONFERENCED | |
| *+ | SB 6 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
SENATE EDUCATION STANDING COMMITTEE
March 15, 2021
9:02 a.m.
MEMBERS PRESENT
Senator Roger Holland, Chair
Senator Gary Stevens, Vice Chair
Senator Shelley Hughes
Senator Peter Micciche
Senator Tom Begich
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 20
"An Act relating to recognition of certificates of out-of-state
teachers."
- HEARD & HELD
SENATE BILL NO. 6
"An Act relating to retirement incentives for members of the
defined benefit retirement plan of the teachers' retirement
system and the defined benefit retirement plan of the Public
Employees' Retirement System of Alaska; and providing for an
effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 20
SHORT TITLE: OUT OF STATE TEACHER RECIPROCITY
SPONSOR(s): SENATOR(s) STEVENS
01/22/21 (S) PREFILE RELEASED 1/8/21
01/22/21 (S) READ THE FIRST TIME - REFERRALS
01/22/21 (S) EDC, FIN
03/15/21 (S) EDC AT 9:00 AM BUTROVICH 205
BILL: SB 6
SHORT TITLE: RIP FOR PUBLIC EMPLOYEES/TEACHERS
SPONSOR(s): SENATOR(s) KAWASAKI
01/22/21 (S) PREFILE RELEASED 1/8/21
01/22/21 (S) READ THE FIRST TIME - REFERRALS
01/22/21 (S) EDC, L&C, FIN
03/15/21 (S) EDC AT 9:00 AM BUTROVICH 205
WITNESS REGISTER
TIM LAMKIN, Staff
Senator Gary Stevens
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced SB 20 on behalf of the bill
sponsor.
LARRY LEDOUX, Ph.D., Superintendent
Kodiak Island Borough School District
Kodiak, Alaska
POSITION STATEMENT: Testified in support of SB 20.
DEENA BISHOP, Ph.D., Superintendent
Anchorage School District
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 20.
MICHAEL JOHNSON, Ph.D., Commissioner
Alaska Department of Education and Early Development (DEED)
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 20.
SONDRA MEREDITH, Administrator
Teacher Certification
Department of Education and Early Development
Juneau, Alaska
POSITION STATEMENT: Answered questions about teacher
certification.
CASSIDY FRANCIES, Senior Policy Analyst
Education Commission of the States
Denver, Colorado
POSITION STATEMENT: Spoke about teacher reciprocity from a
national perspective.
TIFFANY MCDOLE, Policy Researcher
Education Commission of the States
Denver, Colorado
POSITION STATEMENT: Spoke about teacher reciprocity from a
national perspective.
JOE HAYES, Staff
Senator Scott Kawasaki
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented SB 6 on behalf of the sponsor.
DOUG WOOLIVER, Deputy Administrative Director
Alaska Court System
Anchorage, Alaska
POSITION STATEMENT: Described a RIP experience with the court
system.
JIM PUCKETT, Deputy Director
Division of Retirement and Benefits
Department of Administration (DOA)
Juneau, Alaska
POSITION STATEMENT: Answered questions about state retirement
systems.
ACTION NARRATIVE
9:02:53 AM
CHAIR ROGER HOLLAND called the Senate Education Standing
Committee meeting to order at 9:02 a.m. Present at the call to
order were Senators Stevens, Hughes, Begich, and Chair Holland.
Senator Micciche arrived shortly thereafter.
SB 20-OUT OF STATE TEACHER RECIPROCITY
9:03:35 AM
CHAIR HOLLAND announced the consideration of SENATE BILL NO. 20
"An Act relating to recognition of certificates of out-of-state
teachers."
He invited Senator Stevens and staff to introduce the bill.
9:03:49 AM
SENATOR GARY STEVENS, speaking as sponsor of SB 20, stated this
legislation is about teacher certification reciprocity. It is an
attempt to help districts solve the teacher shortage. It is a
balance between setting a high bar for excellent teachers and on
the other hand, acknowledging the barrier to entry some folks
face. Teaching is a heavily regulated profession with stringent
guidelines, training, and assessment programs. This bill is
simply an effort to offer a pathway that is clear, reflects the
unique needs of Alaska, and maintains an awareness of the
state's history and culture, but it also gets teachers in good
standing from other states, possibly even military spouses,
quickly. He is looking forward to hearing from districts about
whether this would help them solve teacher shortages.
9:05:04 AM
TIM LAMKIN, Staff, Senator Gary Stevens, Alaska State
Legislature, Juneau, Alaska, said SB 20 aligns with some
regulatory emergency suspensions of the past year.
Superintendents around the state have requested assistance with
improving the supply of qualified teachers, primarily in the
form of relaxing some training requirements, specifically the
three credits in Alaska studies and multicultural studies. It is
assumed that if teachers are in good standing in another state,
if they have the basic requirements of a baccalaureate degree,
Praxis test passing score, and have passed a background check,
they should be eligible to legitimately resume teaching in
Alaska as well. This bill will give them a window of time to
complete the Alaska-specific trainings.
9:06:25 AM
MR. LAMKIN presented the sectional analysis for SB 20:
Sec. 1: AS 14.20.010, relating to a teaching certificate
being required to teach in Alaska, removes the reference of
there being a preliminary certificate.
Sec. 2: AS 14.20.015(a), relating to out-of-state teaching
certificates, removes reference to there being a
preliminary certificate, and also removes a requirement for
a out-of-state teachers to have a baccalaureate degree.
Sec. 3: AS 14.20.015(b), relating to out-of-state teaching
certificates, removes a requirement for passing a
competency exam, and replaces it with a requirement to
complete a college course in Alaska studies and multi or
cross-cultural studies within 3 years.
Sec. 4: AS 14.20.015(c), relating to out-of-state teaching
certificates, removes reference to there being a
preliminary teaching certificate.
Sec. 5: AS 14.20.020(b), relating to requirements of
teacher certificates generally, exempts out-of-state
teaching certificate holders from having to complete a
college course in Alaska studies and multi or cross-
cultural studies before receiving their Alaska certificate.
Sec 6: AS 14.20.020(h), relating to a requirement to
complete a college course in Alaska studies and multi or
cross-cultural studies, to allow an out-of-state teacher to
receive their Alaska certificate, but to complete those
studies within 3 years.
Sec 7: AS 14.20.020(k),relating to the requirement of a
variety of trainings to take place before being issued an
Alaska teaching certificate, to allow out-of-state
certificate holders 3 years to complete such trainings.
Sec. 8: AS 14.20.015 (d), (e), and (f), relating to
preliminary teaching certificate employment, tenure and
expiration are repealed.
9:09:01 AM
SENATOR BEGICH asked if the assumption is that holding a valid
teaching certificate from another state requires that someone
have a Bachelor of Arts or Bachelor of Science. He asked how
that would be known for sure.
MR. LAMKIN responded that there is a national movement for
conformity in teaching certificates. He is not aware of any
state that issues a teaching certificate without the applicant
having a baccalaureate degree.
SENATOR BEGICH said that in the past, a bill came up to allow
teachers to teach a foreign language without a teaching
certificate. He has been opposed to that because he sees it as a
loosening of the structure for education. He asked where the
protection in the law is to ensure someone has a Bachelor of
Arts or Bachelor of Science to teach.
MR. LAMKIN answered that he believes this is covered in a
section of the bill. Someone trained in Alaska must get a
baccalaureate degree. This is shifting the preliminary
certificates to a full certificate and applicants must prove
they have a baccalaureate. He is sure it is in the bill, but he
would defer to the commissioner on this.
9:11:12 AM
SENATOR MICCICHE asked if the original requirement for Alaska
studies came from a bill by Senator Stevens.
SENATOR STEVENS replied yes. He taught that class for many years
at the university.
9:11:37 AM
SENATOR HUGHES said there has been discussion of this in other
professions as well. She wants to make sure the bar is not lower
in other states. There are other requirements besides a college
degree. Mississippi requires that teachers pass a test about how
to teach reading. It would be reassuring to have a national
comparison about teacher certifications. Alaska might want to
say yes for these states and no for others. She asked if there a
resource that allows for comparisons of requirements. She asked
if that is something the sponsor might think necessary.
MR. LAMKIN responded that people online can contribute to the
conversation and give a picture of the national landscape. They
will formally present on Friday.
SENATOR HUGHES said the committee is looking at early literacy
bills. If the state brought in a teacher from Mississippi, that
teacher would know how to teach reading. The literacy bill would
require three credits in reading instruction, but that may not
be required in another state. That person would not be as
prepared. That is her concern.
CHAIR HOLLAND moved to invited testimony.
9:14:30 AM
LARRY LEDOUX, Ph.D., Superintendent, Kodiak Island Borough
School District, Kodiak, Alaska, described SB 20 as an important
bill because teachers are difficult to find in Alaska. Alaska
cannot grow its own teachers in sufficient numbers to fill
positions and must look outside to find teachers. Alaska used to
enjoy hundreds of teachers who wanted to come to Alaska. When he
attended job fairs in Anchorage in the past, there would be
1,200 candidates lined up during the job fairs. Now it seems
there are more administrators looking for teachers than teacher
candidates. It is a competitive market. Alaska's salaries are
not as high as they used to be compared to other states. The
state needs to make it easier for qualified staff to come to
Alaska. This year, because of the emergency declaration and the
waiving of many requirements, it has been easy for Kodiak to
fill vacancies with quality teachers. The state waived Praxis
scores and the three semester hours in Alaska studies and
multicultural education. The Alaska certification office has
been exemplary in helping Kodiak certify its teachers. Many
teachers in Kodiak are military spouses. They often come in the
summer. Anything that holds up certification of these teachers
makes it difficult for them to be in classrooms on the first day
of school. This bill will help fill positions and attract more
teachers who sometimes go elsewhere because they don't want to
go through all the immediate steps necessary to be fully
certified, especially since they are taking a risk, from their
point of view, in coming to Alaska.
SENATOR STEVENS said that Senator Hughes brought up the issue of
applicants from other states who may not be as qualified as they
should be. He assumes Superintendent LeDoux would not hire
unqualified applicants.
DR. LEDOUX answered that his district would never hire a
teacher, especially in elementary areas, who did not have
sufficient credentials in reading. Generally, he has found that
elementary teachers have the reading background and experience.
If the district could not ascertain that, the district would not
hire them in spite of this bill.
9:18:51 AM
DEENA BISHOP, Ph.D., Superintendent, Anchorage School District,
Anchorage, Alaska, said that SB 20 allows potential applicants
to consider teaching in Alaska at a higher rate. The bill allows
the flexibility needed at just the right time in the state. Many
alternative certificate programs in the lower 48 do not require
student teaching but have a blended approach to gaining
certification. This bill allows new hires to move to the
professional certificate whereas they are not presently able to
do so because of the state's student teaching requirement. Often
they won't choose Alaska because of this provision. More people
are entering education as a second career than ever. Second
career educators are highly cherished. She personally has high
regard for them. They have so much more to offer to students,
especially when considering that education is preparing students
for the real world or success in life. Many second career
educators have worked in the private sector, which adds value to
classrooms. They are more inclined to enter into an alternative
certificate program. Anchorage has eight immersion programs.
Out-of-country educators often do not participate in the
traditional student teaching roles. This bill would allow for
out-of-country candidates to move to professional certification
as well. They cannot do that now because of the student teacher
requirement. The Anchorage School District, like Kodiak, has
about 7 percent of teachers and other certificated staff coming
from military families. They are military spouses. Recreational
opportunities in Alaska attract families but so does work. In
order to keep military spouses employed, a more flexible
certificate path is always valued in their transfers. SB 20
allows the time and flexibility need to transition to Alaska. SB
20 maintains high standards but allows more time to complete the
requirements.
9:22:15 AM
SENATOR MICCICHE asked if any teachers in the Anchorage School
District are without a baccalaureate degree.
DR. BISHOP answered that the district has some, primarily in
career and technical education. The state has a type M
certificate. Districts must request a type M certificate for
people they want to teach particular courses. That keeps
districts accountable. Districts hire the best candidates. The
Anchorage School District has hundreds of type M people who do
not have a baccalaureate degree.
9:23:13 AM
MICHAEL JOHNSON, Ph.D., Commissioner, Department of Education
and Early Development, Juneau, Alaska, thanked the committee for
focusing legislation on the shared priorities of the Alaska
Education Challenge. Priority four is to prepare, attract, and
retain effective education professionals. SB 20 will improve the
trajectory toward this priority. The state will continue to work
on preparing Alaskans to become certified teachers and
recognizes the current challenge to recruit enough teachers
requires the state to invite safe and skilled educators from
across the country. Many current teachers chose to move to the
state, learn from fellow Alaskans, respect the state's cultures,
and care for Alaska's students. This past year has given the
state an opportunity like never before to appreciate teachers
who work tirelessly for students, even when faced with a global
crisis. Alaska need teachers for students. Sondra Meredith, the
head of teacher certification, can answer any question about
current certification statutes and regulations. Tiffany and
Cassidy from Education Commission of the States have the
national perspective.
SENATOR BEGICH questioned the reason for the statutory
requirement to have a baccalaureate degree to be a teacher when
300 teachers in the Anchorage School District do not have one.
9:26:14 AM
COMMISSIONER JOHNSON answered that he cannot say why it was
placed in statute originally. It is easy to say that teaching
increasingly requires a higher level of training. Like many
other industries, that postsecondary training is essential for
the work; however, increasingly, many pathways exist to achieve
those skills and preparations that may not have been available
in the traditional, higher education setting 15 or 20 years ago.
The broad answer is that it is a matter of training and skills.
Students are complex and it requires a special kind of training
to meet their needs.
SENATOR MICCICHE cited AS 14.20.022, which could require a
baccalaureate or at least five years of experience in the
subject matter that the person will be teaching. He asked if
that is the certificate that most teachers are using who do not
have a BA or BS.
COMMISSIONER JOHNSON deferred to Sondra Meredith, who knows the
statutes and regulations for all certificates and knows what was
waived during the pandemic.
9:28:43 AM
SONDRA MEREDITH, Administrator, Teacher Certification,
Department of Education and Early Development, Juneau, Alaska,
clarified that the type M certificate is a separate section than
the one Senator Micciche quoted. The statute for a subject
matter expert allows individuals with a bachelor's degree but
who have not completed a teacher education program to be
licensed in the state. Type M appears further along in the
statute.
SENATOR MICCICHE voiced support for the bill and said producing
evidence of a baccalaureate is easy. He understands why the
Alaska studies and cross-cultural studies are removed. It allows
districts to put a teacher to work right away. There are other
avenues without dropping the bar on every teacher without
requiring a BA. He asked why that is in the bill.
MS. MEREDITH said that when it comes to this particular pathway
that is in existence that the bill will change slightly, when
her agency looks at certifications from other states, it uses
the NASDTEC (National Association of State Directors of Teacher
Education and Certification) agreement to determine whether it
is a regular certificate. That has been established by NASDTEC.
The agency looks to see if the particular certificate being
presented represents a certificate that shows that the person
has completed a teacher preparation program and has a bachelor's
degree as the minimum requirement. She assumes the bill sponsor
would want that to continue. Her agency will continue to look at
the certificate to ensure that it is a regular certificate
issued by a state.
9:32:35 AM
SENATOR BEGICH asked if she said this is essentially removing a
redundancy.
MS. MEREDITH answered yes. As part of its processes, her agency
would be looking to the state that issued the certificate to
make sure it represented what she mentioned before.
SENATOR BEGICH asked if NASDTEC was an accrediting association.
MS. MEREDITH replied that it is a national association for her
licensing manager peers. The state has an agreement in statute
that connects the state to that agency.
SENATOR BEGICH said that satisfies his concern.
9:33:48 AM
SENATOR MICCICHE said that doesn't quite get him there. Other
than a subject matter expert, he doesn't see anywhere else in
code where a baccalaureate is required. He asked if the state is
thinking of dropping the requirement for a BA or a BS for a
teacher certificate. If not, he doesn't understand the value of
removing that section requiring that level of education. He is
just curious whether the state is considering for certain
subjects, other than subject matter experts, where the state is
having a difficult enough time landing educators in Alaska, that
someone with an associate of arts might be a target for
employment in the future.
MS. MEREDITH responded that most certifications are issued under
AS 14.20.020. In subsection b of that provision, a bachelor's
degree is the minimum requirement. That is the overarching
statute for all certificates except for the subject matter
expert and the out-of-state reciprocity language that is
separate from the section.
9:36:09 AM
CASSIDY FRANCIES, Senior Policy Analyst, Education Commission of
the States, Denver, Colorado, said generally, experience is the
biggest indicator of teacher effectiveness. A lot of policy
makers have used that as justification for providing
reciprocity, that the out-of-state teachers have experience
teaching.
9:37:27 AM
TIFFANY MCDOLE, Policy Researcher, Education Commission of the
States, Denver, Colorado, said she and Cassidy are presenting at
a later hearing with a formal analysis of the national landscape
on statute related to reciprocity. They will speak about how
states consider bachelor degrees or baccalaureates in the
licensing process.
MR. LAMKIN said that to touch upon Senator Micciche and Senator
Begich's concern, the key word is reciprocity. The target is
that if a teacher is in good standing in a particular subject
matter with the respective certificate, there would be
reciprocity for that certificate. The intent is not to lower the
bar regarding a baccalaureate degree. Senator Steven's office
will make sure that the bill is not doing that.
SENATOR BEGICH clarified that Ms. Meredith said that AS
14.20.020(b) requires a baccalaureate degree. This simply
removes a redundancy in the law. If the agency is examining
certificates through reciprocity and the accreditation process,
then teachers will have met that requirement. Once she explained
that to him, it makes it clear to him that it is a redundancy
and the bill is not lowering the standard. He will look at
.020(b) to make sure that is the case, but that seems to be what
folks are saying. He has deeper concerns that he will bring up
with the Anchorage superintendent about the hundreds of type M
certificates but not now.
SENATOR MICCICHE said that he sees the statement in .020 and
agrees that it has a requirement, but this bill seems to
indicate unless it is a certificate born out of reciprocity.
That concerns him. He would like to understand that. It seems to
point in that direction, trusting in the certification of other
states. He does not think that is the goal and is not sure it
needs to be removed. He would like to know if others can point
the committee in that direction, that it still does satisfy that
requirement. He does not think it is redundant. He thinks it is
saying when the state is receiving other certificates, a BA or
BS is still required, unless it is a type M certificate.
9:41:31 AM
SENATOR HUGHES offered her understanding that one of the
regulations that was suspended for out-of-state teachers during
COVID-19 was fingerprinting because it slowed the hiring
process. She said she wonders if the timing of fingerprinting
will be a problem. She asked if the fingerprint records from
other states are being accepted so teachers. If not, she asked
what kind of delay could be expected.
9:42:27 AM
MR. LAMKIN said he is reviewing the emergency orders and he does
not see that fingerprinting regulations were suspended.
SENATOR HUGHES suggested that should be double checked, and
whether Alaska would want to accept the fingerprinting done in
another state so there would be no delay.
MR. LAMKIN deferred to Ms. Meredith.
MS. MEREDITH explained that the fingerprint regulations were not
suspended because of a provision under AS 14.20.010 that allows
individuals applying for certification to present their
fingerprint cards. That gives the department 90 days to work
with the Department of Public Safety (DPS) to receive their
criminal history report. During that time, those individuals are
considered to be fully licensed in Alaska, so there is no
penalty to the applicant or district as long as the fingerprint
card is provided. The department did work with DPS during the
emergency orders. DPS allowed the department to submit a name-
based check for individuals having difficulty getting hand-
rolled prints. That worked well and gave the individual more
time to get fingerprints rolled. With the removal of the
emergency orders, that is no longer an option, but the
department still has the additional time after someone initially
applies for certification.
SENATOR HUGHES thanked her for the clarification.
9:45:34 AM
CHAIR HOLLAND held SB 20 in committee.
9:45:52 AM
At ease
SB 6-RIP FOR PUBLIC EMPLOYEES/TEACHERS
9:46:58 AM
CHAIR HOLLAND reconvened the meeting and announced the
consideration of SENATE BILL NO. 6 "An Act relating to
retirement incentives for members of the defined benefit
retirement plan of the teachers' retirement system and the
defined benefit retirement plan of the Public Employees'
Retirement System of Alaska; and providing for an effective
date."
He invited Joe Hayes to present the bill.
9:47:18 AM
JOE HAYES, Staff, Senator Scott Kawasaki, Alaska State
Legislature, Juneau, Alaska, read the sponsor statement for SB
6:
Senate Bill 6 would implement a temporary, voluntary
Retirement Incentive Program to increase state savings by
allowing public employees to retire up to three years
early. Long-serving public employees are among the highest
paid in the state. In many cases, pensions paid to retiring
employees would cost the state less money than their
current salaries. Providing high-salaried employees the
option to retire early would save Alaska money through
lower personnel costs.
SB 6 could also help prevent layoffs. The bill presents a
method of cost-cutting and payroll reduction without
forcing anyone out of the workforce before they are ready
to retire. This gives the State of Alaska the opportunity
to reduce operating costs by opening vacancies that enable
the placement of more junior employees. Retirement
incentive programs are regularly used in the private sector
to efficiently control personnel costs through market
incentives rather than heavy-handed layoffs.
Retirement Incentive Programs have been used on a temporary
basis three times in Alaska's history and was last proposed
in 2004. In 1986, Senator Jim Duncan estimated savings at
approximately $25 million. A Legislative Audit of the 1989
Retirement Incentive Program demonstrated a savings of
$22.9 million with nearly 1,764 individual participants. In
1996, Rep. McGuire calculated the state gained $41 million
in savings through identical legislation.
Senate Bill 6 is an innovative policy option for state
agencies, municipalities and school districts to consider
as a means to reduce payroll costs without layoff
9:49:13 AM
MR. HAYES presented the sectional analysis for SB 6:
Section 1:
Defines the purpose and intent of the bill to make
Retirement Incentive Programs (RIP) temporarily
available to state agencies, municipalities and school
districts. Includes intent for state agencies that
adopt authorized RIPs to adopt an accompanying policy
to prohibit hiring of new employees.
Section 2:
Allows public employers, including the University of
Alaska, to elect to adopt a RIP under the bill. The
employer may limit the program to specific components,
job classifications, geographic locations or a
combination of the three.
Specifies the commissioner of administration or the
commissioner's designee ("administrator") has the sole
authority to approve or deny an employee's RIP
application.
An employer adopting a RIP shall propose the program
to the administrator to approve if it meets the
requirements set forth under sec. 9 of this bill.
Establishes the requirements for any RIP proposed by a
public employer:
(1) Designate job classifications and specific
budget and administrative components of employees
eligible to participate; and
(2) For each participating employee, the employer
must reimburse the defined benefit retirement
plan within three years after the end of the
fiscal year in which the employee retires. This
reimbursement must be equal to an amount that is
the difference between the benefits the RIP
participant receives after the credit and the
benefits the participant would have received
without the credit, less the amount the
participant has paid on the indebtedness provided
later in this section. The reimbursement
agreement requires the employer's contributions
must be given priority over other financial
obligations.
9:51:01 AM
An employer adopting a RIP may request the
administrator to establish one or more application
periods open to at least one eligible employee. The
RIP application period must be at least 30 days and at
most 60 days in duration. RIP application periods may
only be established between 30 days after the program
is established and no later than June 30, 2024.
An administrator may allow an employee to retire early
under a RIP no later than six months after the last
day of the application period, or a date set by the
RIP as the date employees are eligible to retire
earlywhichever is earlier.
Establishes RIP eligibility requirements for an
employee:
(1) The employee is vested in a defined benefit
retirement plan in PERS or TRS;
(2) The employee has credit for service under
Tiers 1, 2 or 3;
(3) The employee is at least 50 years old and has
at least 17 years of credited service as a peace
officer or firefighter, or at least 20 years of
credited service in any other public agency;
(4) The employee is qualified to retire under
their defined benefit plan after receipt of the
approved early retirement credit;
(5) An employee of a state agency satisfies the
requirements under sec. 3; and
(6) The savings in personal services costs for
the participating employee's position will exceed
the cost to the employer for that vacating
position within three years after the employee is
appointed to retirement.
Sets the level of indebtedness for RIP participants.
For TRS members, participants pay 25.95 percent of the
year's annual compensation for the school year, or the
calculated school year compensation if they work a
partial year, plus a share of the administrative
costs. The indebtedness for peace officers and
firefighters is 22.5 percent and 20.25 percent for all
other PERS members.
For any RIP participants, annual or personal leave may
be applied toward indebtedness. Pension benefits shall
be reduced by an actuarial adjustment if the
participant has not paid the indebtedness at the time
of retirement.
9:53:18 AM
Provides a credit of three years of service to be
given to an employee participating in the program. The
three years credit must be applied in an order of
priority until the credit is met: to meet the age or
service required for normal retirement eligibility; to
meet the age required for early retirement; to reduce
the actuarial adjustment required for early
retirement; as years of credited service for
calculating benefits.
Section 3:
Requires interested eligible state employees must be
employed for at least 12 months prior to application
to an approved RIP.
Prohibits the governor, lieutenant governor,
commissioners, deputy commissioners or assistant
commissioners from participating in a RIP.
Section 4: Authorizes University of Alaska employees
who are members of PERS or TRS may participate in a
RIP under the appropriate requirements for their
defined benefit retirement program established under
this bill.
Section 5: Allows PERS or TRS members to receive a
credit for service while employed in a political or
public organization prior to that organization's
participation in PERS or TRS. The credit may not be
applied to determine the amount of retirement benefits
that employee receives.
Section 6: Allows the commissioner of administration
to recover a delinquency owed to the state by an
employer. Provides a delinquency may be recovered by
withholding money owed to the employer equal to or
less than the amount of the delinquency, and by
bringing action against the employer.
Section 7: Allows an administrator to close an adopted
RIP to new applicants if it has been determined that
an increase in the number of participants will have a
significant negative effect on the actuarial soundness
of PERS or TRS.
9:55:08 AM
Section 8: Requires an employee who participated in a
RIP that is reemployed under PERS or TRS or the
judicial retirement system to forfeit the incentive
credits received or due as established under sec. 2.
That employee must also incur an indebtedness to the
reemploying defined benefit plan at 110 percent of the
amount received solely as a result in participating in
a RIP, including health insurance premium costs.
The administrator shall apply the amount the employee
paid in indebtedness under sec. 2 as a credit toward
the member's reemployment indebtedness. Interest on
the reemployment indebtedness accrues from the date of
reemployment until the date the individual is
appointed to retirement and accepts an actuarial
adjustment to future benefits, or until the employee
repays the indebtedness in full. The rate of interest
is established by the Alaska Retirement Management
Board.
Prohibits a state agency or the University of Alaska
from employing or contracting an individual who
retired under a RIP for a period of three years.
Establishes several exceptions for the University of
Alaska, school districts and the legislative branch.
9:56:19 AM
Section 9: Requires the director of the Office of
Management and Budget (OMB) to determine if each RIP
adopted will reduce net operating costs for the state
agency for a five-year period beginning July 1, 2021
and report the outcome of the review to the
administrator.
Prohibits the administrator from approving a RIP
unless the OMB determines the program is expected to
reduce the agency's net operation costs. The state
agency adopting a RIP shall cooperate with and provide
information to the OMB to aid with the preparation of
the review and the annual report submitted to the
legislature.
9:56:58 AM
Requires the OMB to submit to both legislative
chambers an annual report of established RIPs
beginning January 15, 2022, through January 15, 2025.
Sets the requirements for those annual reports so that
the legislature can evaluate the RIPs, their impacts
on PERS and TRS, and their economic impact to
employing agencies.
9:57:19 AM
Section 10: Provides that an employee does not have a
vested or contractual right to a benefit under this
bill until an agreement is executed with the
administrator that authorizes the employee to
participate in the RIP. Allows the legislature to
change a RIP as it relates to employees for whom an
agreement has not been executed.
Section 11: Allows the commissioner to adopt
regulations to implement and interpret the Act.
Section 12: Provides definitions of administrator,
employer, OMB, PERS, TRS, public organization and
state agency for purposes of the Act established under
this bill.
Section 13: Prohibits sections 1-12 from impairing the
benefits of a person appointed to retirement under
PERS or TRS before the effective date of this bill.
Section 14: Sections 1-12 apply to contracts made on
or after the effective date.
Section 15: Repeals sections 1-12 on July 1, 2024.
Section 16: Enacts the bill immediately under AS
01.10.070(c)
9:58:29 AM
SENATOR BEGICH noted that in Section 10, Mr. Hayes said, "for
whom an agreement has been executed." He suggested Mr. Hayes
meant to say "for whom an agreement has not been executed
MR. HAYES agreed.
SENATOR BEGICH said that Section 8 is to keep people from taking
advantage of the system and coming back immediately after
executing an RIP. He asked if that was correct, and Mr. Hayes
affirmed it was correct.
9:59:45 AM
SENATOR HUGHES referenced a bill allowing retired teachers to
come back. She understands what Senator Begich is saying but
wonders if that would make sense if there is a shortage. In
Section 2, an employee could be 50 years old. If this is truly
something where there could be a net cost savings, she
questioned the reason for an age limit. Someone could meet the
minimum years of credited service at a younger age.
MR. HAYES responded that he is not sure how many state employees
would be hired at 18 without a degree, but he will review that.
SENATOR HUGHES said someone could start at age 25 and still meet
that requirement before age 50.
SENATOR BEGICH said Senator Micciche's bill that became law
excluded teachers from coming back into the retirement system.
There are exceptions in Section 8 for things like substitute
teaching. The retirement incentive bill would not be affected by
this.
10:02:41 AM
SENATOR MICCICHE said the financial benefits to the state have
been questionable with the RIPs passed in the past. The state is
in a perfect storm of not being able to fill teacher positions,
which is why the legislature passed the retiree rehire bill. He
is struggling. The economic benefits are questionable. The
Legislative Research Services report had mixed reviews. With
some calculations there actually was a cost to the state. He
understands the economic value of giving an economic incentive
to replace a highly compensated 30-year teacher with another
teacher at a lower cost, but right now, the state is in dire
straits in keeping teaching positions filled. That worries him.
He appreciates the idea. Maybe at some point it will be more
beneficial, but right now he is worried about it.
MR. HAYES responded that Senator Kawasaki views this bill as
win-win. It is an opt-in rather an opt-out bill. Each
governmental agency decides if it works for them. The state is
not saying that anyone has to do an RIP, but if there are cost
savings, agencies could proceed. It is a morale booster because
of the amounts of layoffs coming from the state with reduced
budgets. This is a better way for folks to walk away and retain
morale in certain segments of the state.
CHAIR HOLLAND called on invited testimony.
10:05:26 AM
DOUG WOOLIVER, Deputy Administrative Director, Alaska Court
System, Anchorage, Alaska, said the court has no position on SB
6, but he was asked to testify about a RIP program the court
developed in 2016. The court was looking to reduce personnel
costs. It had long-time employees who cost more than newer
employees. The court had no authority to have an early
retirement program such as this. It could only incentivize those
who were already eligible for retirement to retire. With the
court program, employees must have been eligible to retire for
at least three years, must have been an employee of the court
system for at least 10 years, and agree to retire by August 31
of 2016. Only 28 people were eligible and 16 of them opted to
retire. The incentive was three months salary. The net savings
was $680,000 a year, which is not big relative to PERS (Public
Employee Retirement System) or TRS (Teacher Retirement System),
but for the court system budget, $680,000 was a real help at the
time. It was a morale booster. The court was able to say goodbye
to people on good terms and saved a lot of money by the court's
standards. It is a different kind of program, but it worked for
the court system.
10:07:54 AM
SENATOR MICCICHE said he is only looking at the bill from an
education standpoint because it is in the Education Committee.
He feels differently about the bill as far as TRS vs. PERS. With
PERS he sees some practical benefit. The ageism aspect of this
has been challenged in the past. The court system was based on
years of service or something not related to age. This bill
seems more age directed. He asked if Mr. Wooliver had any
concerns about that or would he rather not speak to the legal
aspects of the bill.
MR. WOOLIVER replied that it would be best to turn to
Legislative Legal for that, but retirement incentives are common
across the country. He would guess that whatever the law is, it
is well established.
SENATOR HUGHES said that to veer off education a bit, from
reading the Legislative Research information, the 1989 program
was to mitigate the social hardships of layoffs. Those positions
were not replaced. As lawmakers they need to think about that.
They have seen that per capita the number of state employees is
high. Alaska is a unique state and provides a lot of services,
so it is not comparable. It might be something to consider if a
position would remain vacant sooner under this if the state
decides to downsize. She is just throwing that out. That could
be of benefit to the state.
10:10:18 AM
JIM PUCKETT, Deputy Director, Division of Retirement and
Benefits, Department of Administration (DOA), Juneau, Alaska,
said he was available for questions.
CAROLINE SCHULTZ, Chief Policy Analyst, Office of Management and
Budget, Office of the Governor, Juneau, Alaska, said she was
available to answer questions.
SENATOR MICCICHE asked Mr. Puckett about the legal ability to
remove the TRS section of the bill and let it move forward with
PERS. He is just curious about that. This would not work for TRS
right now. He asked if it would be legal to have an RIP without
a TRS option.
MR. PUCKETT answered they are two separate retirement systems,
so there could be a bill that is only for PERS and not TRS.
There would be nothing wrong about that legally.
MR. HAYES said, unfortunately, the superintendent from Sitka
could not be present. Sitka is doing an RIP. He would like him
to testify at some point.
10:12:47 AM
CHAIR HOLLAND held SB 6 in committee.
10:13:01 AM
There being no further business to come before the committee,
Chair Holland adjourned the Senate Education Standing Committee
at 10:13 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 01_SB020_TeacherCert_Reciprocity_Sponsor-Statement.pdf |
SEDC 3/15/2021 9:00:00 AM SFIN 3/29/2021 9:00:00 AM |
SB 20 |
| 02_SB020_TeacherCert_Reciprocity_BillText_version A.pdf |
SEDC 3/15/2021 9:00:00 AM |
SB 20 |
| 03_SB020_TeacherCert_Reciprocity_Sectional_version A.pdf |
SEDC 3/15/2021 9:00:00 AM |
SB 20 |
| 04_SB020_TeacherCert_Reciprocity_Research_Dept.Defense_Military-Spouses.pdf |
SEDC 3/15/2021 9:00:00 AM SFIN 3/29/2021 9:00:00 AM |
SB 20 |