Legislature(2023 - 2024)BELTZ 105 (TSBldg)
03/20/2023 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB88 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 88 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
March 20, 2023
1:34 p.m.
MEMBERS PRESENT
Senator Jesse Bjorkman, Chair
Senator Click Bishop, Vice Chair
Senator Elvi Gray-Jackson
Senator Kelly Merrick
Senator Forrest Dunbar
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 88
"An Act relating to the Public Employees' Retirement System of
Alaska and the teachers' retirement system; providing certain
employees an opportunity to choose between the defined benefit
and defined contribution plans of the Public Employees'
Retirement System of Alaska and the teachers' retirement system;
and providing for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 88
SHORT TITLE: RETIREMENT SYSTEMS; DEFINED BENEFIT OPT.
SPONSOR(s): SENATOR(s) GIESSEL
03/01/23 (S) READ THE FIRST TIME - REFERRALS
03/01/23 (S) L&C, FIN
03/13/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/13/23 (S) Heard & Held
03/13/23 (S) MINUTE(L&C)
03/15/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/15/23 (S) Heard & Held
03/15/23 (S) MINUTE(L&C)
03/17/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/17/23 (S) Heard & Held
03/17/23 (S) MINUTE(L&C)
03/20/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
CORRINE MARKS, representing self
Douglas, Alaska
POSITION STATEMENT: Testified in support of SB 88.
PATRICK FITZGERALD, Political Coordinator
Teamsters Local 959
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 88.
RYAN FROST, Policy Analyst
Pension Integrity Project
Reason Foundation
Salem, Oregon
POSITION STATEMENT: Testified with concerns on SB 88.
ZACHARY CHRISTENSEN, Policy Analyst
Pension Integrity Project
Reason Foundation
Spanish Fork, Utah
POSITION STATEMENT: Testified with concerns on SB 88.
PAUL KELLY, representing self; President
American Federation of State, County and Municipal Employees
(AFSCME) Juneau Chapter
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 88.
MELISSA MEADE, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 88.
EMILY MOODY, representing self
Cordova, Alaska
POSITION STATEMENT: Testified in support of SB 88.
IRENE BOLL, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 88.
NADINE LEFEBVRE, representing self
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 88.
CHERYL LOVEGREEN, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 88.
BRONSON FRYE, President
Building and Construction Trade council
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 88.
SHANE KILGORE, representing self
Kasilof, Alaska
POSITION STATEMENT: Testified in support of SB 88.
LAURA BONNER, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 88.
MIKE COONS, representing self; President
Concerned Conservatives of Alaska (CCAK)
Palmer, Alaska
POSITION STATEMENT: Testified in opposition to SB 88.
PAULA GONZALEZ ROHRBACHER, representing self
Douglas, Alaska
POSITION STATEMENT: Testified in support of SB 88.
KEVIN JOHNSON, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 88.
CRYSTAL BERWICK, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 88.
LUKE KREUZENSTEIN, representing self
Eagle River, Alaska
POSITION STATEMENT: Testified in support of SB 88.
MARIAN CHARLES, representing self
Willow, Alaska
POSITION STATEMENT: Testified in support of SB 88.
AXL LEVAN, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 88.
TIMOTHY WHITESELL, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 88.
BEN SIMON, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 88.
TED EISCHEID, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 88.
KELLY MCBRIDE, representing self
Palmer, Alaska
POSITION STATEMENT: Testified in support of SB 88.
ANDREW FOWLER, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 88.
TYLER BELK, representing self; Executive Board Member
International Association of Fire Fighters (IAFF) Local 1262
Eagle River, Alaska
POSITION STATEMENT: Testified in support of SB 88.
MICHAEL BUCY, representing self
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 88.
COREY LUCK, representing self
Mukilteo, Washington
POSITION STATEMENT: Testified in support of SB 88.
VERNON CARLSON, representing self
Cantwell, Alaska
POSITION STATEMENT: Testified in support of SB 88.
SARAH NUGENT, representing self
Kodiak, Alaska
POSITION STATEMENT: Testified in support of SB 88.
DUSTIN MADDEN, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 88.
PENITUSI NAU, representing self; Shop Seward
People Mover Maintenance
Municipality of Anchorage
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 88.
JOHN WAGNER, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 88.
ACTION NARRATIVE
1:34:01 PM
CHAIR JESSE BJORKMAN called the Senate Labor and Commerce
Standing Committee meeting to order at 1:34 p.m. Present at the
call to order were Senators Dunbar, Gray-Jackson, Merrick,
Bishop, and Chair Bjorkman.
SB 88-RETIREMENT SYSTEMS; DEFINED BENEFIT OPT.
1:34:47 PM
CHAIR BJORKMAN announced the consideration of SENATE BILL NO. 88
"An Act relating to the Public Employees' Retirement System of
Alaska and the teachers' retirement system; providing certain
employees an opportunity to choose between the defined benefit
and defined contribution plans of the Public Employees'
Retirement System of Alaska and the teachers' retirement system;
and providing for an effective date."
He stated that this is the fourth hearing of SB 88 and the
intention is to continue with public testimony. He reminded the
public that written testimony can be submitted to
slac@akleg.gov.
1:36:09 PM
CHAIR BJORKMAN opened public testimony on SB 88.
1:36:21 PM
CORRINE MARKS, representing self, Douglas, Alaska, testified in
support of SB 88, paraphrasing from the following prepared
statement:
Imagine this:
Wake up at 5:00.
Grade essays for an hour, finish 6, 123 more to go.
Walk the dog, drink coffee eat breakfast make
lunch pull out dinner.
7:45 leave the house.
Write learning targets on the board.
Post work to Canvas.
Try to grade another essay.
Get interrupted a student was threatened on
instagram.
Report the threats.
Another arrives they need the next two weeks' work
in 1 hour vacation coming.
AND
30 students walk in.
One student refuses to read an advocate needs to be
emailed. Observe the spark in students' eyes while
listening to a rap in the play and discussing social
statements about indigenous people, mental note
switch tomorrow's plan. Student work time please put
your phone away insightful word choice get off the
video game, no it is not educational what is the "so
what" of your theme?
AND
The bell rings.
5 minutes gather work check Canvas get slides up
answer 10 questions.
AND
28 students
AND
30 minute lunch
AND
25 students
AND
27 students
At some point:
A counselor shares one of our students attempted
suicide.
A student asks if I want to purchase a raffle ticket.
I answer 17 emails from parents.
A student demands their overdue assignment be graded
immediately.
Plan for tomorrow and still 123 essays.
After 25 years of teaching I'm working without a
contract because the state funding of public education
has not kept up with the costs but I do receive a
cute meme stating, "I appreciate you."
We are educators,
Mediators,
Assessors,
Counselors,
Mentors,
Snack providers,
Planners and,
Unappreciated professionals.
These are some reasons teachers are leaving to be in
states with pensions.
We need positive change demonstrating the respect
legislators say they have for educators.
We need to look at future educators and tell them they
will love the job AND be compensated fairly.
I have seen too many teachers leave.
We need new teachers to seek out jobs in the state of
Alaska AND want to stay here like I did after
teaching overseas because of the pension I will
receive.
We need the best possible future for our communities,
schools and most importantly our STUDENTS the future
of this state.
But for now I will return to my 123 essays and hope
you have the wisdom to invest in our state's future by
supporting SB 88.
Thank you.
1:38:51 PM
PATRICK FITZGERALD, Political Coordinator, Teamsters Local 959,
Anchorage, Alaska, offered invited testimony in support of SB 88
paraphrasing from the following prepared statement:
Hello,
My name is Patrick FitzGerald I am here representing
Teamsters Local 959 and am testifying in support of SB
88 the Return to define benefits.
Teamsters Local 959 represents approximately 5,000
Alaskans working in a variety of industry's which
include construction drivers, freight trucking,
nurses, UPS workers and roughly 800 public employees
with school bus workers, solid waste services and
people mover.
SB 88 return to define benefits will help the entire
spectrum of public sector workers by allowing them to
plan for an adequate retirement which provides the
fiscal security for them to stay in state. Public
sector workers who are recruited and trained in Alaska
and been leaving the state to pursue similar skilled
careers in other states, with the retirement benefits
being a leading factor in their decisions to leave.
Take for instance school bus drivers and equipment
operators. They can go work for the public sector,
earn a CDL paid for by the public, and then take that
training and go earn more competitive wages in the
private sector. A pension would help balance that
equation.
SB 88 creates a much more stable and affordable
retirement system that will greatly improve
recruitment and retention of public sector workers.
Please support SB 88 and pass it from Committee.
Thank you,
1:40:23 PM
RYAN FROST, Senior Policy Analyst, Pension Integrity Project,
Reason Foundation, Salem, Oregon, testified with concerns on SB
88. He has been employed by the Reason Foundation for four years
and before that spent seven years as the senior research and
policy manager for the police and fire pension system in
Washington state. He looked at a decade of teacher retention
data before and after the advent of the 2006 defined
contribution plan and found that there was no change. Regarding
ongoing costs, the Reason Foundation's concern last year with
pension bill proposals was why the new tier started at such a
high discount rate. If House Bill 20 had passed last year, the
new liabilities would have been too high.
1:42:45 PM
SENATOR BISHOP asked if he supports or opposes SB 88.
MR. FROST replied that the Reason Foundation is typically
neutral on all pension bills, though they feel that SB 88 has
far too much risk.
1:43:13 PM
SENATOR DUNBAR asked if he was calculating that SB 88 would
force people with a defined contribution to a defined benefit.
MR. FROST said that is correct.
SENATOR DUNBAR asked what brought him to Alaska.
MR. FROST replied that he offers solutions and knowledge on
pension bills countrywide.
1:44:29 PM
ZACHARY CHRISTENSEN, Policy Analyst, Pension Integrity Project,
Reason Foundation, Spanish Fork, Utah, testified with concerns
on SB 88. The Reason Foundation researches data and gives good
information to help guide legislators on pension plans. Any
evaluation of a pension plan in Alaska currently relies on a
discount rate of 7.25, which is too high. The current unfunded
liability for Alaska is over $6 billion which is likely an
undervaluation. SB 88 includes some cost-reducing measures that
reduce long-term costs by about $600,000,000 - but would add
more costs outweighing the savings. SB 88 could add $6.8 billion
in costs to Alaska's budget. After all additional costs are
paid, it could create issues for paying down pension debt in the
future. In 30 years the state could have the same amount of
pension that it does today.
1:46:54 PM
SENATOR DUNBAR asked whether there are any defined benefit plans
around the country that he would support.
MR. CHRISTENSEN answered yes, the Reason Foundation assisted
with the Arizona Public Safety Plan and the Colorado pension
reform. The reform model showed reduced costs, which they didn't
see with SB 88.
SENATOR DUNBAR asked whether either case was one where the state
or organization replaced a defined contribution plan with a
defined benefit plan.
MR CHRISTENSEN answered no.
SENATOR DUNBAR asked if he ever supported transitioning from a
defined contribution to a defined benefit.
MR. CHRISTENSEN answered that there has been only one instance
that he knows of.
1:48:24 PM
SENATOR MERRICK asked who funds Reason Foundation.
MR. CHRISTENSEN replied that Reason Foundation is a nonprofit
organization. The foundation has a variety of donors that change
over time. The list of donors is available on its website.
SENATOR MERRICK asked who the top donors are.
MR. CHRISTENSEN answered that he was not as familiar with that
aspect of the organization, but the list is available online. He
said there are many donors interested in solving the pension
fiscal issue around the country that has created more than $1.2
trillion dollars in pension debt.
1:49:14 PM
SENATOR BISHOP asked if he works pro bono or fee for service.
MR. CHRISTENSEN answered pro bono.
SENATOR BISHOP asked whether the state hypothetically could
engage Reason Foundation services.
MR. CHRISTENSEN answered that Reason Foundation is willing to
answer questions that any legislator has and talk about any of
its modeling and analysis for Alaska.
1:50:01 PM
PAUL KELLY, representing self; President, American Federation of
State, County and Municipal Employees (AFSCME) Juneau Chapter,
representing self and Union Employer, AFSCME Local 52 Juneau
Chapter, Juneau, Alaska, testified in support of SB 88. He
clarified that he was offering his own views on behalf of his
union chapter. He paralleled public service workers like
educators and legislators with the notion that neither group
typically takes these roles for higher pay, and that both groups
would prioritize the well-being of their families when
considering career moves. He emphasized that most public jobs do
not compete with their equivalents in the private sector in
terms of pay or benefits but are needed positions and worthy of
investment.
1:52:31 PM
MELISSA MEADE, representing self, Anchorage, Alaska, testified
in support of SB 88. Her father retired with a Tier I
retirement. She graduated from UAA with a bachelor's degree in
biology and started to work for the State of Alaska. Inadequate
retirement benefits hinder recruitment and retention. Her
retirement has suffered a loss of $100,000 and will not be
accessible to her for 30 more years.
1:55:34 PM
EMILY MOODY, representing self, Cordova, Alaska, testified in
support of SB 88. She gave testimony from her school classroom.
She has been teaching for 12 years and is on a Tier III
retirement plan. Teachers are generally attracted to teaching
jobs because of good benefits; Alaska is the only state in which
teachers do not have a defined benefit plan and are denied
access to Social Security. Alaska has among the worst teacher
turnover rate in the country. She stressed that it is important
for the state to retain the teachers it has.
1:58:51 PM
IRENE BOLL, representing self, Anchorage, Alaska, testified in
support of SB 88. Alaska has neglected the retirement needs of
public employees. Prioritizing the needs of oil companies over
Alaskan citizens is unacceptable. SB 88 is a good start in the
right direction towards providing public employees with security
and dignity in their retirement years.
2:00:52 PM
NADINE LEFEBVRE, representing self, Juneau, Alaska, testified in
support of SB 88. Alaska's working age population is declining
and the senior population is growing at the fastest rate in the
country by percentage of the population. She spoke to Alaska's
low birth rate and aging population adding to the dependency
ratio. She suggested that retirees with a defined pension need
less support from the state to sustain them. The defined benefit
pension system provides a known monthly pension upon which
recipients can formulate personal or household budgets during
their retirement years. Retirees with financial security have
better opportunities to age in place in their current homes, pay
taxes, vote in elections, and put in volunteer hours in
positions that would otherwise require paid personnel. SB 88
should not be considered a financial burden, but a reinvestment
in Alaska's economy.
2:04:03 PM
CHERYL LOVEGREEN, representing self, Anchorage, Alaska,
testified in support of SB 88. She was dismayed by Alaskans
leaving the state and with delays in services. SB 88 is a cost-
effective way to recruit and retain teachers and public safety
officers.
2:05:01 PM
BRONSON FRYE, President, Building and Construction Trade
Council, Anchorage, Alaska, testified in support of SB 88. The
legislature must make an investment in public employees, some of
whom help run the crucial Alaskan construction industry.
2:07:49 PM
SHANE KILGORE, representing self, Kasilof, Alaska, testified in
support of SB 88. He works for the Kenai Peninsula Borough as a
maintenance electrician. Lower wages in the public sector means
he is unable to save for his own retirement; without a pension
plan he may be forced to leave the state for better retirement
options.
2:08:39 PM
LAURA BONNER, representing self, Anchorage, Alaska, testified in
support of SB 88. She receives a pension from the public sector
defined benefit plan; though not wealthy, she can afford to
maintain residency in Alaska and continue spending in the local
economy. Restoring a defined benefit is long overdue and will
help the Alaskan economy in the long-term. She related a story
of a friend who worked for the Department of Corrections as a
registered nurse, and had a defined contribution plan, and
decided to leave the state immediately upon retiring. The
decision in 2006 to switch to a defined contribution plan was a
mistake and should be fixed with SB 88.
2:10:48 PM
MIKE COONS, representing self; President, Concerned
Conservatives of Alaska (CCAK), Palmer, Alaska, testified in
opposition to SB 88. He worked 42 years and is now retired,
having set aside his paychecks into a 401(k) and Roth account.
From 1987-1991 the US Airforce saved $50 a year for officers. He
posited that public employees should be able to set aside funds
for retirement on their own, stating that teachers make an
average of $75,000 or more annually. He said that the company
that he worked for that matched his savings did so voluntarily,
but SB 88 mandates employees to save. He expressed his belief
that SB 88 does not follow republican values.
2:13:19 PM
PAULA GONZALEZ ROHRBACHER, representing self, Douglas, Alaska,
testified in support of SB 88. She is a former state employee,
having retired in 2008 after 26 years of service. She feels
lucky to have retired as a Tier I employee with a state pension.
Her husband was employed by a non-profit organization under a
defined contribution plan that suffered losses. He had to wait
until he was eligible for Social Security to retire. SB 88
creates strong incentives for new and continuing high caliber
employees to work for the state.
2:15:03 PM
KEVIN JOHNSON, representing self, Fairbanks, Alaska, testified
in support of SB 88. He is a life-long Alaskan and has been a
firefighter with the Fairbanks Fire Department Local IAFF 1324
for about five years. The current PERS system has a 96.8 percent
chance of failure, so firefighters have a 4 percent chance of
getting a sustainable, dignified retirement. Many Alaskan
firefighters are likely to relocate to Oregon or Washington for
secure retirement, while Alaska public sector suffers from
employee retention challenges.
2:17:46 PM
CRYSTAL BERWICK, representing self, Anchorage, Alaska, testified
in support of SB 88. She is a state employee who was giving
testimony on her lunch break. There is an employment crisis and
a 20 percent vacancy in state jobs. People work in public
service for the benefits. Providing benefits seems like a simple
solution to the problem. She wants to live in Alaska forever but
as a 32-year-old planning for a family, she is not sure staying
is a good idea. The defined benefit option would keep her here
and attract others like her. It is known that there is a brain
drain. In France, they riot over a two year change in pension;
meanwhile her coworkers don't know what a pension is. She
emphasized that it is not the case that she wants to give the
committee an ultimatum, but she and other state workers simply
can't stay in Alaska if lawmakers don't compensate them
appropriately for working in public service.
2:19:21 PM
LUKE KREUZENSTEIN, representing self, Eagle River, Alaska,
testified in support of SB 88. He is a Tier I employee who
recently returned and the difference for new employees who don't
have a pension is stark and devastating. Pensions cannot
necessarily be measured on spreadsheets and are not meant to be
self-funded through investments like 401(k) plans. Pensions are
meant to be supported by the public as a part of the foundation
of the economy. SB 88 is the best chance to recover from the
current crisis.
2:20:53 PM
MARIAN CHARLES, representing self, Willow, Alaska, testified in
support of SB 88. She is a retired teacher and has lived in
Alaska for about 50 years. She expressed her wish to be a part
of an educated society and considers it her duty as an Alaskan
citizen to help pay for it. Teaching has become difficult, so
providing adequate retirement will aid in retention and create
an education system valued by all.
2:22:28 PM
AXL LEVAN, representing self, Fairbanks, Alaska, testified in
support of SB 88. Working for the Department of Environmental
Conservation, he has learned that the state is not currently
competitive with the private sector or federal jobs in regard to
retaining employees. His parents were Tier II teachers. The
defined benefit system clearly works to retain quality
employees; without it, the state will have minimal retention.
His coworkers indicated that a defined benefit would be an
adequate counter to offers from out of state. SB 88 will help
correct the current "brain drain" that is occurring in Alaska.
2:24:45 PM
TIMOTHY WHITESELL, representing self, Fairbanks, Alaska,
testified in support of SB 88. He is a Northern Region Airtanker
Coordinator for the Division of Forestry and Fire Protection. He
has over 30 years of public service as a wildlands firefighter
and is a Tier III employee. During his tenure he has noticed the
loss of trained personnel to agencies with better pay and
benefits.
2:27:34 PM
BEN SIMON, representing self, Anchorage, Alaska, testified in
support of SB 88. He is a Senior Captain with the Anchorage Fire
Department, has been in public safety for eight years, and is a
Tier III employee. He feels secure in his retirement but is
tired of training a significant number of employees just to see
them relocate to Oregon or Washington. Almost every state has a
defined benefit retirement plan except Alaska. He wants to
remain in Alaska, and he wants good public safety officers and
teachers.
2:29:39 PM
TED EISCHEID, representing self, Anchorage, Alaska, testified in
support of SB 88. He has a pension from Wisconsin and is now
living in Anchorage. In 2012, his wife accepted a private sector
position in Anchorage. He spent three years away from his wife
continuing to work in Wisconsin in order to secure his pension.
Pensions retain the best and brightest. He does not want to
teach here because there is no pension plan.
2:32:19 PM
KELLY MCBRIDE, representing self, Palmer, Alaska, testified in
support of SB 88. She is a Tier II employee who is unaffected by
SB 88, but it does affect the ability to recruit and retain
quality professionals who impact her work in special education
and also the education of her daughter. The cost of this reform
is tempered with the cost of losing educators when they are
needed most.
2:33:47 PM
ANDREW FOWLER, representing self, Fairbanks, Alaska, testified
in support of SB 88. He is a firefighter and was the last person
hired under Tier III, in 2005. Currently, 25 out of 47 members
have worked at the Fairbanks Fire Department for less than two
years; 33 out of 47 have worked there for less than five years.
The Fairbanks Fire Department has had to lower their promotion
standards twice in the last year because of the less experienced
personnel.
2:35:41 PM
TYLER BELK, representing self; Executive Board Member,
International Association of Fire Fighters (IAFF) Local 1262,
Eagle River, Alaska, testified in support of SB 88. He works for
the Anchorage Fire Department. His respected coworkers are
leaving for Washington and he can't blame them because one's
family must come first after a certain point. SB 88 is
exceptionally important.
2:37:38 PM
MICHAEL BUCY, representing self, Juneau, Alaska, testified in
support of SB 88. He is a teacher in Juneau. He just reached his
20th year as a Tier II employee for the Juneau School District.
He quoted a bumper sticker that said, "If you think education is
expensive, try ignorance." The current situation is scaring away
good teachers. In 2008, he and his wife went to Montreal to
further his education in music; experience matters in the
business of education. He and his wife considered relocating to
Montreal but returned to Alaska, one of the factors being his
Tier II retirement plan. He was a staffer for Representative Max
Gruenberg in 2006 when the defined benefit was repealed because
it was a fiscal burden due to poor actuarial advice. He
expressed that the plan should be better managed but defined
benefit should return.
2:40:23 PM
COREY LUCK, representing self, Mukilteo, Washington, testified
in support of SB 88. He is a firefighter and EMT in Washington
where he enjoys a defined benefit retirement plan. He is
associated with the Alaska Professional Firefighters and the
International Association of Firefighters Local 40303 Juneau
Career Firefighters. Prior to his current position, he worked in
Juneau. As a third generation Alaska public servant, he wanted
to continue working in Alaska for the rest of his career, but he
realized that he would not have a retirement. The Alaska
Professional Firefighters conducted a study that revealed that
less than 6 percent of firefighters and police officers in
Alaska can retire successfully. When he left Juneau in 2021, 50
percent of the department had less than five years of
experience. The percentage has increased since his departure.
2:42:12 PM
VERNON CARLSON, representing self, Cantwell, Alaska, testified
in support of SB 88. He supports returning to a defined benefit
plan that resembles the state retirement system prior to 2006.
He is a lifelong Alaskan and public servant, having started in
the United States Navy followed by 30 years with the Alaska
Department of Transportation. As a small business owner, his
brother can increase his wealth on both large and small scales,
along with receiving bonuses, whereas Mr. Carlson could only
depend on a fixed income and good pension. He pointed out that
public servants are first responders who face life-threatening
conditions. He listed about ten public service employees who
were killed in the line of duty. He believes defined benefit
plans should include all state employees and educators.
2:44:51 PM
SARAH NUGENT, representing self, Kodiak, Alaska, testified in
support of SB 88. She taught with the Kodiak Island Borough
School District for 16 years. Her resolve to stay in Alaska
waivers because of the retirement plan. Statistics show that
teacher turnover is hurting students. Without any access to a
secure income such as Social Security and a good retirement
plan, she is losing hope.
2:47:14 PM
DUSTIN MADDEN, representing self, Anchorage, Alaska, testified
in support of SB 88. For the last two years he has worked for
the State of Alaska at the Anchorage International Airport.
Post-pandemic, there have been drastic changes in conducting
day-to-day business; "help wanted" signs are everywhere. He
spoke about recruitment and retention challenges. There is no
incentive to stay in Alaska, as a paycheck alone is not
sufficient for survival.
2:49:27 PM
PENITUSI NAU, representing self; Shop Seward, People Mover
Maintenance, Municipality of Anchorage, Anchorage, Alaska,
testified in support of SB 88. He has been with People Mover
since 2001. He expressed his belief that every person in his
shop would like to have a defined benefit.
2:51:38 PM
JOHN WAGNER, representing self, Fairbanks, Alaska, testified in
support of SB 88. He is a captain with the Fairbanks Fire
Department. He and his wife have deep roots in Alaska, and they
don't want to leave. He is the most senior member of the
department in the Tier IV system. As a leader, he tells young
recruits that their best bet is to leave Alaska and go somewhere
that respects their time and talent.
2:54:05 PM
CHAIR BJORKMAN held SB 88 in committee and held public testimony
open. He reiterated that the public may submit written testimony
via email to slac@akleg.gov.
2:54:27 PM
SENATOR GRAY-JACKSON thanked those who testified. She recognized
that last Tuesday Senate President Gary Stevens held a press
conference and she expressed gratitude to Senator Cathy Giessel
for highlighting the role that the state's former actuary Mercer
played in undermining the defined benefit system. As a result of
her remarks, her staff reviewed the state's complaint against
Mercer that the Alaska Attorney General filed in December of
2007. In order that the public would understand the magnitude
and impact of what happened before 2007, she shared a couple of
brief excerpts from the report including the following quotes:
Mercer's negligence and breaches of duty
frustrated the Plans ability to achieve these funding
objectives and injured the Plans. Fully aware of the
billions of dollars at stake, Mercer nevertheless made
fundamental errors in methodology and even in basic
calculations, and failed to assign competent,
experienced personnel to work for the Plans. Because
of this misconduct, Mercer miscalculated - by over
$1.8 billion - the contributions necessary to fund the
Plans.
Mercer's failure to meet its obligations to the
Plans is one of the most significant factors
contributing to the financial crisis in Alaska's
pension and health system.
One of the most important of Mercer's
responsibilities was to calculate the future health
care liabilities, a major and growing obligation of
the Plans. Mercer failed at this task, employing
methods and assumptions that fell far short of
professional standards. In fact, it appears that none
of the actuaries who led Mercer's work for the Plans
and signed valuation reports were health care
actuaries, even though Mercer employed many health
care actuaries among its thousands of consultants and
actuaries around the world.
SENATOR GRAY-JACKSON continued to say that the state eventually
settled out of court with Mercer for $500 Million. The real
victims of Mercer's maleficence are the State of Alaska workers,
Senator Gray-Jackson being one, who lost the opportunity to
participate in a defined benefit retirement plan.
SB 88 was held in committee with public testimony open.
2:58:24 PM
There being no further business to come before the committee,
Chair Bjorkman adjourned the Senate Labor and Commerce Standing
Committee meeting at 2:52 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 88 Letters of Support-Received 3.18-20.23.pdf |
SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Public Testimony-Letters of Support-received as of 03.11-15.23.pdf |
SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Research ARMB vs Mercer Lawsuit 03.16.23.pdf |
SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Supporting Documents-News Article_NY Times_Mercer's Little Alaska Problem.pdf |
SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Research DOA Funded Ratio Combined PERS TRS 03.16.23.pdf |
SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Supporting Documents-ACSA Presentation to SL&C-Work Force Challenges 03.15.23.pdf |
SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Suporting Documents-Edward Siedle - bio and articles.pdf |
SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Supporting Documents-ACSA 2023 Joint Positions Statement.pdf |
SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Supporting Documents-ACSA Presentation to SL&C-Work Force Challenges 03.15.23.pdf |
SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 ver B.PDF |
SL&C 3/13/2023 1:30:00 PM SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Sponsor Statement ver B.pdf |
SL&C 3/13/2023 1:30:00 PM SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Sectional Analysis ver B 3.10.23.pdf |
SL&C 3/13/2023 1:30:00 PM SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Presentation to SL&C 3.13.23.pdf |
SL&C 3/13/2023 1:30:00 PM SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Letters of Opposition - Received as of 3.7.23.pdf |
SL&C 3/13/2023 1:30:00 PM SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Letters of Support - Received as of 3.10.23.pdf |
SL&C 3/13/2023 1:30:00 PM SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Repealed Sections ver B.pdf |
SL&C 3/13/2023 1:30:00 PM SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Research AK Educator Turnover Infographic 3.10.23.pdf |
SL&C 3/13/2023 1:30:00 PM SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Research 2017 ISER cost of teacher turnover 3.10.23.pdf |
SL&C 3/13/2023 1:30:00 PM SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Research APFO Recruitment and Retention Report 3.10.23.pdf |
SL&C 3/13/2023 1:30:00 PM SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Research DB v DC comparison DOA presentation to Sen Fin 3.10.23.pdf |
SL&C 3/13/2023 1:30:00 PM SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Research DPS - Cost to Replace a State Trooper - 3.10.23.pdf |
SL&C 3/13/2023 1:30:00 PM SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Research DPS Employee Engagement Survey Results 3.10.23.pdf |
SL&C 3/13/2023 1:30:00 PM SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Research DPS Recruitment-Retention Plan Overview 3.10.23.pdf |
SL&C 3/13/2023 1:30:00 PM SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Research FFD Cost of hiring from Scott Raygor Fire Chief Fairbanks 3.10.23.pdf |
SL&C 3/13/2023 1:30:00 PM SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Research Legislative Finance Division Research Report on Retirement System 3.10.23.pdf |
SL&C 3/13/2023 1:30:00 PM SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Research NIRS Teacher Retirement Plan Offerings March 2022 3.10.23.pdf |
SL&C 3/13/2023 1:30:00 PM SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Research PERS Tier chart 3.10.23.pdf |
SL&C 3/13/2023 1:30:00 PM SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Research Returning Alaska State Employees to Social Security 3.10.23.pdf |
SL&C 3/13/2023 1:30:00 PM SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Research Risk Sharing in Public Retirement Plans NASRA 3.10.23.pdf |
SL&C 3/13/2023 1:30:00 PM SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Research TRS Tier chart 3.10.23.pdf |
SL&C 3/13/2023 1:30:00 PM SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Summary Table Version B 3.10.23.pdf |
SL&C 3/13/2023 1:30:00 PM SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 News Articles 3.10.23.pdf |
SL&C 3/13/2023 1:30:00 PM SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Research Alaska Public Pension Coalition White Paper 2010 3.10.23.pdf |
SL&C 3/13/2023 1:30:00 PM SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Fiscal Note-DOA-DRB-03.03.23.pdf |
SL&C 3/13/2023 1:30:00 PM SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 REVISED_ Presentation to SL&C 3.13.23.pdf |
SL&C 3/13/2023 1:30:00 PM SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Research Dept of Law Recruitment and Retention.pdf |
SL&C 3/13/2023 1:30:00 PM SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Research (pg 5) Defined Benefit Total Funded Status DOA to SFIN 2.14.23.pdf |
SL&C 3/13/2023 1:30:00 PM SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Research OCS Staff Departure 2.23.23.pdf |
SL&C 3/13/2023 1:30:00 PM SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 REVISED_Summary Table Ver B 3.12.23.pdf |
SL&C 3/13/2023 1:30:00 PM SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
SB 88 |
| SB 88 Research Actuarial Report from HB 55 (plus all other public employees) 01.18.21.pdf |
SL&C 3/13/2023 1:30:00 PM SL&C 3/15/2023 1:30:00 PM SL&C 3/17/2023 1:30:00 PM SL&C 3/20/2023 1:30:00 PM SL&C 3/22/2023 1:30:00 PM |
HB 55 SB 88 |