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HCS CSSB 152(FIN) Detail
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HCS CSSB 152(FIN): "An Act relating to public employee compensation, benefits, and labor relations; relating to salaries, geographic and cost-of-living differentials for certain state employees, and to salary surveys and preparation of an annual pay schedule regarding certain state employees; relating to retirement and early retirement incentives for certain public employees; relating to severance and other pay and benefit programs for public employees; relating to and making conforming amendments concerning certain state aid calculations formerly based on geographic differentials for state employee salaries; relating to the exempt status of certain state employees; and providing for an effective date."

00HOUSE CS FOR CS FOR SENATE BILL NO. 152(FIN) 01 "An Act relating to public employee compensation, benefits, and labor relations; 02 relating to salaries, geographic and cost-of-living differentials for certain state 03 employees, and to salary surveys and preparation of an annual pay schedule 04 regarding certain state employees; relating to retirement and early retirement 05 incentives for certain public employees; relating to severance and other pay and 06 benefit programs for public employees; relating to and making conforming 07 amendments concerning certain state aid calculations formerly based on 08 geographic differentials for state employee salaries; relating to the exempt status 09 of certain state employees; and providing for an effective date." 10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 11 * Section 1. PURPOSE AND LEGISLATIVE INTENT. The purpose of sec. 7 of this Act 12 is to affirm the interpretation and practice of the state with regard to the use of criteria similar 13 to the criteria in the permanent fund dividend program for determining the establishment and 14 maintenance of state residency for eligibility for the cost-of-living differential under

01 AS 23.40.210. It is also the intent of the legislature to provide express statutory authority to 02 the state to establish or clarify those standards through adoption of regulations by the 03 Department of Administration and to set the eligibility criteria for the differential outside the 04 collective bargaining context. 05 * Sec. 2. AS 22.05.140(a) is amended to read: 06 (a) Except as provided in (d) of this section, the monthly base salary of the 07 chief justice is $9,203 [$8,333] and for each other justice, the monthly base salary is 08 $9,159 [$8,292]. 09 * Sec. 3. AS 22.07.090(a) is amended to read: 10 (a) Except as provided in (c) of this section, the monthly base salary of a 11 judge of the court of appeals is $8,652 [$7,833]. The compensation of a judge may 12 not be diminished during the term of office, unless by a general law applying to all 13 salaried officers of the state. 14 * Sec. 4. AS 22.10.190(a) is amended to read: 15 (a) Except as provided in (d) of this section, the monthly base salary for each 16 superior court judge is $8,469 [$7,667]. 17 * Sec. 5. AS 22.15.220(a) is amended to read: 18 (a) Except as provided in (e) of this section, the monthly base salary for each 19 district court judge is $7,179 [$6,500]. 20 * Sec. 6. AS 22.15.220(b) is amended to read: 21 (b) Each magistrate shall receive annual compensation including geographic 22 differential pay to be determined by the supreme court. Salary increases shall be 23 determined on the basis of percentage of pay increase the legislature provides for state 24 employees in the classified service. [THE BASE SALARY OF A MAGISTRATE 25 SHALL BE INCREASED BY A PERCENTAGE EQUAL TO THREE AND ONE- 26 HALF PER CENT TIMES THE NUMBER OF STEP INCREASES PROVIDED UNDER 27 AS 39.27.020 THAT A STATE EMPLOYEE WOULD RECEIVE WORKING IN THE 28 SAME ELECTION DISTRICT.] A magistrate's annual compensation may be payable, at the 29 option of the magistrate, either monthly in 12 equal installments or semi-monthly in 24 equal 30 installments. 31 * Sec. 7. AS 23.40.210 is amended by adding new subsections to read:

01 (b) An employee is eligible for the cost-of-living differential under (a) of this 02 section only if the individual is a state resident. The required presence of an employee 03 at a work station where room and board are provided or reimbursed by the employer 04 may not be considered to be physical presence in the state or physical absence from 05 the state for purposes of determining eligibility for the cost-of-living differential. 06 (c) The commissioner of administration may adopt regulations under AS 44.62 07 (Administrative Procedure Act) to clarify and implement the criteria for establishing 08 and maintaining eligibility for the cost-of-living differential. 09 (d) An agreement entered into under AS 23.40.070 - 23.40.260 must require 10 compliance with the eligibility criteria for receiving the cost-of-living differential 11 contained in this section and the regulations adopted by the commissioner under (c) 12 of this section. 13 (e) In this section, "state resident" means an individual who is physically 14 present in the state with the intent to remain permanently in the state under the 15 requirements of AS 01.10.055 or, if the individual is not physically present in the state, 16 intends to return to the state and remain permanently in the state under the 17 requirements of AS 01.10.055, and is absent only temporarily for reasons allowed 18 under AS 43.23.095(8) or a successor statute. 19 * Sec. 8. AS 24.10.100 is amended to read: 20 Sec. 24.10.100. SALARY OF LEGISLATORS. The monthly salary for each 21 member of the legislature is $2,001 [EQUAL TO STEP A, RANGE 10 OF THE 22 SALARY SCHEDULE IN AS 39.27.011(a) FOR JUNEAU]. The president of the 23 senate and the speaker of the house of representatives are each entitled to an additional 24 $500 a year during tenure of office. 25 * Sec. 9. AS 29.60.160(a) is amended to read: 26 (a) Payments to a municipality or other eligible recipient under AS 29.60.110 27 - 29.60.130 shall reflect area cost-of-living differentials. Payments shall be based on 28 the sum of per capita, per mile, and per bed or facility grants due each municipality 29 or other recipient multiplied by the appropriate area cost-of-living differential. The 30 area cost-of-living differential for each recipient shall be determined [ANNUALLY BY 31 ELECTION DISTRICT] under the provisions of AS 29.60.164 and 29.60.165

01 [AS 39.27.030]. Application of the area cost-of-living differential may not result in 02 distribution of an amount less than the amount of the payment determined without 03 reference to application of this section. 04 * Sec. 10. AS 29.60 is amended by adding new sections to read: 05 Sec. 29.60.164. AREA COST-OF-LIVING DIFFERENTIALS. (a) The area 06 cost-of-living differential multiplier shall be determined by multiplying the cost-of- 07 living steps found in the table in this subsection by three and one-half percent. The following 08 area cost-of-living steps apply: 09 Election District Cost of Living 10 1 0 11 2 1 12 3 1 13 4 0 14 5 2 15 6a (excluding Valdez Duty Station) 4 16 6b (Valdez Duty Station) 5 17 7 1 18 8 0 19 9 2 20 10 2 21 11 2 22 12 7 23 13 7 24 14 8 25 15a (excluding Nenana Duty Station) 9 26 15b (Nenana Duty Station) 8 27 16a (south of Arctic Circle) 4 28 16b (north of Arctic Circle) 9 29 17 9 30 18 9 31 19 8

01 In other states minus 6. 02 (b) For purposes of (a) of this section, "election district" means an election 03 district designated in the governor's proclamation of reapportionment and redistricting 04 of December 7, 1961. 05 Sec. 29.60.165. COST-OF-LIVING SURVEY. Subject to an appropriation 06 for this purpose, the director shall conduct a survey, at least every five years, to review 07 the differentials established in AS 29.60.164. This survey must address factors, as 08 determined by the director, that are also relevant in review of state salary schedules, 09 entitlement for beneficiaries of state programs, and payments for state service 10 providers. The survey must reflect the costs of living in various election districts of 11 the state, and Seattle, Washington, by using the cost of living in Anchorage as the 12 base. 13 * Sec. 11. AS 29.60.290(b) is amended to read: 14 (b) The area cost-of-living differential payable to each municipality under this 15 section shall be determined [ANNUALLY BY ELECTION DISTRICT] under the 16 provisions of AS 29.60.164 and 29.60.165 [AS 39.27.030]. Except as provided in 17 AS 29.60.300, application of the area cost-of-living differential may not result in a 18 payment that is less than the minimum payment determined under (a) of this section. 19 [FOR PURPOSES OF THIS SUBSECTION, THE ELECTION DISTRICTS USED 20 ARE THOSE DESIGNATED BY THE PROCLAMATION OF REAPPORTIONMENT 21 AND REDISTRICTING OF DECEMBER 7, 1961, AND RETAINED FOR THE 22 HOUSE OF REPRESENTATIVES BY PROCLAMATION OF THE GOVERNOR 23 SEPTEMBER 3, 1965.] 24 * Sec. 12. AS 39.20.250(a) is amended to read: 25 (a) Terminal leave for unused personal leave shall be allowed upon separation 26 from service. The payment equals the personal leave balance at the time of 27 separation from service multiplied by the officer's or employee's annualized 28 hourly rate of pay [THE COMPENSATION THAT THE OFFICER OR EMPLOYEE 29 WOULD HAVE RECEIVED IF THE OFFICER OR EMPLOYEE HAD REMAINED 30 IN THE SERVICE UNTIL THE EXPIRATION OF THE PERIOD OF UNUSED 31 PERSONAL LEAVE]. A payment of terminal leave to an employee shall be made as

01 a lump sum payment [OR IN INSTALLMENTS OVER A PERIOD OF TIME, 02 AS THE EMPLOYEE ELECTS]. 03 * Sec. 13. AS 39.27.011 is amended by adding new subsections to read: 04 (e) Effective July 1, 1996, the amounts set out in the salary schedule contained 05 in (a) of this section are increased by the lesser of 06 (1) 1.5 percent; or 07 (2) one-half of the percentage increase in the United States Department 08 of Labor, Bureau of Labor Statistics, consumer price index for all urban consumers for 09 Anchorage, Alaska, from the second half of 1994 to the second half of 1995. 10 (f) Effective July 1, 1997, the amounts set out in the salary schedule contained 11 in (a) of this section, as increased under (e) of this section, are increased by the lesser 12 of 13 (1) 1.5 percent; or 14 (2) one-half of the percentage increase in the United States Department 15 of Labor, Bureau of Labor Statistics, consumer price index for all urban consumers for 16 Anchorage, Alaska, from the second half of 1995 to the second half of 1996. 17 (g) Effective July 1, 1998, the amounts set out in the salary schedule contained 18 in (a) of this section, as increased under (e) and (f) of this section, are increased by 19 the lesser of 20 (1) 1.5 percent; or 21 (2) one-half of the percentage increase in the United States Department 22 of Labor, Bureau of Labor Statistics, consumer price index for all urban consumers for 23 Anchorage, Alaska, from the second half of 1996 to the second half of 1997. 24 * Sec. 14. AS 39.27.020 is repealed and reenacted to read: 25 Sec. 39.27.020. PAY DIFFERENTIALS. (a) The following pay differentials 26 are approved as an amendment to the basic salary schedule in AS 39.27.011: 27 Geographic Area Percentage Above or Below 28 (Election Districts) Basic Salary Schedule 29 3, 4, and 7 - 28 0 30 1, 2, 5, 6 5 31 34 - 36 10

01 29 - 33 4 02 37 - 40 20 03 Washington State minus 20. 04 (b) A pay differential authorized by (a) of this section applies only to that part 05 of an employee's gross salary that does not exceed $25,000 annually, prorated by pay 06 period. 07 (c) For purposes of determining the differential provided under (a) of this 08 section, an appointing authority may increase the salary on which the geographic pay 09 differential is computed by up to 20 percent of the employee's base salary set out in 10 AS 39.27.011 if 11 (1) the duty station for the position or job class is located in election 12 districts 37, 38, 39, or 40; 13 (2) the position or job class requires the employee to hold a license to 14 practice law under AS 08.08 or to practice medicine under AS 08.64; and 15 (3) the director certifies that recruitment or retention for the position 16 or job class in that election district is so difficult that the increase is essential to 17 recruitment or retention of employees in the position. 18 (d) The director may establish pay differentials for positions in foreign 19 countries or in states other than the State of Washington. If the director establishes 20 a pay differential under this subsection, the director shall adjust the differential as 21 necessary to maintain equitable relationships between salaries for positions outside the 22 state and in the state. 23 (e) For purposes of (a) of this section, "election district" means an election 24 district designated in the governor's proclamation of reapportionment and redistricting 25 applicable to the 1994 general election. 26 * Sec. 15. AS 39.27.030 is repealed and reenacted to read: 27 Sec. 39.27.030. COST-OF-LIVING SURVEY. Subject to an appropriation for 28 this purpose, the director shall conduct a survey, at least every five years, to review 29 the pay differentials established in AS 39.27.020. The survey may address factors, as 30 determined by the director, that are also relevant in review of state salary schedules, 31 entitlement for beneficiaries of state programs, and payments for state service

01 providers. The survey must reflect the costs of living in various election districts of 02 the state, and Seattle, Washington, by using the cost of living in Anchorage as a base. 03 * Sec. 16. AS 39.27.045 is amended to read: 04 Sec. 39.27.045. DEFINITION. In AS 39.27.020 - 39.27.030 [AS 39.27.030 - 05 39.27.040], "director" means the director of the division of personnel. 06 * Sec. 17. AS 39.35.160(a) is amended to read: 07 (a) A [BEGINNING JANUARY 1, 1987, EACH] peace officer or fire fighter 08 who is first hired on or after the effective date of this bill section shall contribute 09 to the system an amount equal to seven percent of the peace officer's or fire 10 fighter's compensation. A peace officer or fire fighter first hired before the 11 effective date of this bill section shall contribute to the system an amount equal to 12 seven and one-half percent of the peace officer's or fire fighter's compensation. Each 13 [BEGINNING JANUARY 1, 1987, EACH] other employee who is first hired on or 14 after the effective date of this bill section shall contribute to the system an amount 15 equal to six percent of the employee's compensation. Each other employee who 16 is first hired before the effective date of this bill section shall contribute to the 17 system an amount equal to six and three-quarters percent of the employee's 18 compensation. The contributions shall be deducted by the employer at the end of each 19 payroll period. The contributions shall be deducted from employee compensation 20 before computation of applicable federal taxes, and the contributions shall be treated 21 as employer contributions under 26 U.S.C. 414(h)(2). 22 * Sec. 18. AS 39.35.370(a) is amended to read: 23 (a) Subject to AS 39.35.450, a terminated employee is eligible for a normal 24 retirement benefit 25 (1) at age 60 with at least five years credited service; 26 (2) with at least 20 years of credited service as a peace officer or fire 27 fighter for peace officers or fire fighters first hired before the effective date of this 28 bill section; [OR] 29 (3) at age 50 with at least 20 years of credited service as a peace 30 officer or fire fighter, for peace officers and fire fighters first hired on or after the 31 effective date of this bill section;

01 (4) with at least 30 years of credited service for all other employees if 02 the employee was first hired before the effective date of this bill section; or 03 (5) at any time when the employee's age and amount of credited 04 service equal or exceed 85 when added together, for all other employees first 05 hired on or after the effective date of this bill section. 06 * Sec. 19. AS 39.35.370(b) is amended to read: 07 (b) Subject to AS 39.35.450, a terminated employee is eligible for an early 08 retirement benefit at age 55 with at least five years credited service. An actuarial 09 adjustment shall be made to retirement benefits paid under this section for an early 10 retirement benefit. The monthly amount of a retirement benefit that would be due 11 under (c) of this section shall be reduced by multiplying one-half of one percent 12 times the number of months, to the nearest month, by which the retirement date 13 of the employee falls short of the date that the employee reaches age 60. 14 * Sec. 20. AS 39.35.370(c) is amended to read: 15 (c) The monthly amount of a retirement benefit for 16 (1) a peace officer or fire fighter is two percent of the average monthly 17 compensation times the years of credited service through 10 years, plus two and one- 18 half percent of the average monthly compensation times the years of service over 10 years; 19 (2) [. FOR] all other employees first hired before the effective date 20 of this bill section, [IT] is 21 (A) [(1)] two percent of the average monthly compensation 22 times all years of service before July 1, 1986, and for years of service through 23 a total of 10 years; plus 24 (B) [(2)] two and one-quarter percent of the average monthly 25 compensation times all years of service after June 30, 1986, over 10 years of 26 total service through 20 years; plus 27 (C) [(3)] two and one-half percent of the average monthly 28 compensation times all years of service after June 30, 1986, over 20 years of 29 total service; 30 (3) all other employees first hired on or after the effective date of 31 this bill section, is

01 (A) one and one-half percent of the average monthly 02 compensation times all years of service through a total of 10 years; plus 03 (B) one and three-quarters percent of the average monthly 04 compensation times all years of service over 10 years of total service 05 through 20 years; plus 06 (C) two percent of the average monthly compensation times 07 all years of service over 20 years. 08 * Sec. 21. AS 39.35.450(a) is amended to read: 09 (a) Benefits payable under this section are in place of benefits payable under 10 AS 39.35.370, 39.35.385, and former AS 39.35.460 [39.35.460]. Upon filing an 11 application with the administrator or when a disabled employee first attains eligibility 12 for normal retirement under AS 39.35.400(f) or 39.35.410(h), the employee shall 13 designate the person who is the employee's spouse at the time of appointment to 14 retirement as the contingent beneficiary. However, if the designation of the spouse is 15 revoked under (c) of this section, the employee may designate a dependent approved 16 by the administrator as the contingent beneficiary or may take normal or early 17 retirement under AS 39.35.370 or 39.35.385 [OR A LEVEL INCOME OPTION 18 UNDER AS 39.35.460]. The administrator shall pay benefits under the option elected 19 by the employee. The employee may elect an option that provides that 20 (1) the employee is entitled to receive a reduced benefit payable for 21 life, and, after the employee's death, the contingent beneficiary is entitled to payments 22 in the amount of 75 percent of the reduced benefit payable for life; 23 (2) the employee is entitled to receive a reduced benefit payable for 24 life, and, after the employee's death, the contingent beneficiary is entitled to receive 25 payments in the amount of 50 percent of the reduced benefit payable for life [; 26 (3) THE EMPLOYEE IS ENTITLED TO RECEIVE A REDUCED 27 BENEFIT PAYABLE DURING THE JOINT LIFETIME OF THE EMPLOYEE AND 28 THE CONTINGENT BENEFICIARY, AND, AFTER THE DEATH OF EITHER THE 29 EMPLOYEE OR THE CONTINGENT BENEFICIARY, THE SURVIVOR IS 30 ENTITLED TO RECEIVE PAYMENTS IN THE AMOUNT OF 66 2/3 PERCENT OF 31 THE REDUCED BENEFIT PAYABLE FOR LIFE].

01 * Sec. 22. AS 39.35.475(a) is amended to read: 02 (a) Once each year the administrator shall increase benefit payments to 03 (1) eligible disabled members; 04 (2) [, TO] persons age 60 or older receiving benefits under this system 05 in the preceding calendar year; 06 (3) members who were first hired before the effective date of this 07 bill section [, AND TO PERSONS] who have received benefits under this system for 08 at least five years and who are not otherwise eligible for an increase under this 09 section; and 10 (4) survivors of members described in (3) of this subsection when 11 the member and the survivor have together received benefits under this system 12 for at least five years. 13 * Sec. 23. AS 39.35.475(b) is amended to read: 14 (b) The increase in benefit payments applies to total benefit payments except 15 for the cost-of-living allowance under AS 39.35.480. For members first hired on or 16 after the effective date of this bill section, the amount of the increase is a 17 percentage of the current benefit equal to the lesser of 50 percent of the increase 18 in the cost of living in the preceding calendar year or six percent. For members 19 first hired before the effective date of this bill section, the [THE] amount of the 20 increase is a percentage of the current benefit equal to 21 (1) the lesser of 75 percent of the increase in the cost of living in the 22 preceding calendar year or nine percent, for recipients who on July 1 are at least 65 23 years old and for members receiving disability benefits; and 24 (2) the lesser of 50 percent of the increase in the cost of living in the 25 preceding calendar year or six percent, for recipients who on July 1 are at least 60 but 26 less than 65 years old or for recipients who are less than 60 years old on July 1 but 27 who have received benefits from the system for at least five years. 28 * Sec. 24. AS 39.35.485(a) is amended to read: 29 (a) An employee who is eligible for a benefit calculated in accordance with 30 AS 39.35.370(c) is entitled to a benefit of at least $25 a month for each year of 31 credited service, not including adjustments made under AS 39.35.340 for military

01 service, AS 39.35.350 for reinstatement of credited service, AS 39.35.360 for credit 02 for earlier service, AS 39.35.370(c) for early retirement, AS 39.35.420 for 03 nonoccupational death benefits, AS 39.35.450 for the survivor's option, former 04 AS 39.35.460 for the level income option, AS 39.35.475 for the post-retirement 05 pension adjustment, and AS 39.35.480 for the cost of living. 06 * Sec. 25. AS 39.35.535(c) is amended to read: 07 (c) A benefit recipient may elect major medical insurance coverage in 08 accordance with regulations and under the following conditions: 09 (1) a person who is younger than 60 years of age must pay an amount 10 equal to the full monthly group premium for retiree major medical insurance coverage 11 and the full monthly group premium for any dependent coverage elected; 12 (2) a person who is at least 60 years of age but is younger than 65 13 years of age must pay an amount equal to one-half of the full monthly group premium 14 for retiree major medical insurance coverage and any dependent coverage elected; 15 (3) a disabled member or a person 65 years of age or older and who 16 is receiving a benefit based on membership which began before the effective date 17 of this bill section is not required to make premium payments for retiree major 18 medical insurance coverage or any dependent coverage; 19 (4) a disabled member or person 65 years of age or older and who 20 is receiving a benefit based on membership that began on or after the effective 21 date of this bill section is not required to make premium payments for retiree 22 major medical insurance coverage; however, for any dependent coverage elected, 23 the person is required to pay an amount equal to one-half of the monthly group 24 premium. 25 * Sec. 26. AS 39.35.680(4) is amended to read: 26 (4) "average monthly compensation" means the result obtained by 27 dividing the compensation earned by an employee during a considered period by the 28 number of months, including fractional months, for which compensation was earned; 29 the considered period consists of (A) for employees first hired before the effective 30 date of this bill section, the three consecutive payroll years during the period of 31 credited service that yields the highest average, and (B) for employees first hired on

01 or after the effective date of this bill section, the five consecutive payroll years 02 during the period of credited service that yield the highest average, or if the 03 employee does not have the required number of [THREE] consecutive payroll years, 04 the employee's period of credited service; an employee must have at least 115 days 05 of credited service in the last payroll year in order for that year to be used as part of 06 the [THREE] consecutive payroll years; 07 * Sec. 27. AS 44.31.020 is amended to read: 08 Sec. 44.31.020. DUTIES OF DEPARTMENT. The Department of Labor shall 09 (1) enforce the laws, and adopt regulations under them concerning 10 employer-employee relationships, including the safety, hours of work, wages, and 11 conditions of workers, including children; 12 (2) accumulate, analyze, and report labor statistics; 13 (3) operate systems of workers' compensation and unemployment 14 insurance; and 15 (4) gather data reflecting the cost of living in the various election 16 districts of the state upon request of the director of personnel for determination of 17 area cost-of-living differentials under AS 29.60.164 and 29.60.165 or under 18 AS 39.27.030 [AS 39.27.030 - 39.27.040]. 19 * Sec. 28. AS 39.27.035, 39.27.040; and AS 39.35.460 are repealed. 20 * Sec. 29. FINDINGS AND PURPOSE AS TO SECS. 30 - 43. The State of Alaska and 21 many local governments are facing the need to restructure their operations and their work 22 forces in order to reduce expenditures and to balance budgets. Retirement and separation 23 incentives are management tools that have been used extensively by the private sector, the 24 federal government, and other state and local governments across the country. The purpose 25 of secs. 30 - 43 of this Act is to make these management tools temporarily available to the 26 state and to the municipalities of the state. Sections 30 - 43 of this Act will enable these 27 entities to be more efficient and cost-effective by eliminating certain nonessential positions 28 and producing a net reduction in personnel costs. 29 * Sec. 30. RETIREMENT INCENTIVE PROGRAM. (a) An employer may adopt a 30 retirement incentive plan under secs. 30 - 43 of this Act, as appropriate, and designate 31 categories of employees eligible to participate in that plan. An employer need not extend the

01 incentive plan to all employees who would otherwise be eligible, but may choose to extend 02 the plan only to employees 03 (1) in specific budget or administrative components of the employer; 04 (2) in specific job classifications; 05 (3) in specific geographic locations; or 06 (4) on the basis of any combination of factors under (1) - (3) of this 07 subsection. 08 (b) An employee is eligible to participate in a retirement incentive plan under secs. 09 30 - 43 of this Act only if the 10 (1) employee is a vested member of the public employees' retirement system 11 or the teachers' retirement system; 12 (2) employee will be qualified to retire under AS 14.25.110 or AS 39.35.370 13 after receipt of the credit described in (f) of this section; 14 (3) savings to the employer in personal services costs for the employee's 15 position will exceed the costs to the employer for that position within three years after the 16 employee is appointed to retirement. 17 (c) An employer shall file its proposed retirement incentive plan with the 18 commissioner of administration. Except as provided in sec. 37 of this Act, the commissioner 19 shall approve the plan if the plan meets the requirements of secs. 30 - 43 of this Act, except 20 that the commissioner may approve a state agency's retirement incentive plan only if the office 21 of management and budget approves the calculation of savings under (b)(3) of this section. 22 A proposed plan filed under this section must 23 (1) identify job classifications of employees, and specific budget or 24 administrative components, eligible to participate in the plan; 25 (2) include a reimbursement agreement that 26 (A) requires the employer, for each employee who retires under the 27 plan, to reimburse the appropriate retirement system, within three years after the end 28 of the fiscal year in which the employee is appointed to retirement, in an amount equal 29 to 30 (i) the actuarial equivalent of the difference between the benefits 31 the participant receives after the addition of the credit under (f) of this section

01 and the amount the participant would have received without the credit, less the 02 amount the participant has paid on the indebtedness determined under (d) or (e) 03 of this section; and 04 (ii) an appropriate share of the administrative costs of the 05 program; and 06 (B) provides that contributions from the employer under this section 07 take priority over other obligations of the employer to the maximum extent permitted 08 by law. 09 (d) A member of the teachers' retirement system who participates in an approved 10 retirement incentive plan under secs. 30 - 43 of this Act is indebted to that system for an 11 amount calculated under this subsection. The indebtedness is 25.95 percent of the member's 12 actual compensation for the school year in which the member terminates employment, or the 13 calculated school year compensation for a member who works less than the entire school year. 14 An outstanding indebtedness at the time a member is appointed to retirement under an 15 approved retirement incentive plan requires an actuarial adjustment to the benefits payable to 16 that member. 17 (e) A member of the public employees' retirement system who participates in an 18 approved retirement incentive plan under secs. 30 - 43 of this Act is indebted to that system 19 for an amount calculated under this subsection. The indebtedness is 22 1/2 percent for a 20 peace officer or fire fighter, and 20 1/4 percent for other members, of the member's actual 21 annual compensation for the year in which the member terminates employment, or the 22 calculated annual compensation for a member who works fewer than 12 months. An 23 outstanding indebtedness at the time a member is appointed to retirement under an approved 24 retirement incentive plan requires an actuarial adjustment to the benefits payable to that 25 member. 26 (f) An employee who participates in an approved retirement incentive plan under secs. 27 30 - 43 of this Act receives a credit of three years. The three years must be applied in the 28 following order until exhausted: 29 (1) to meet the age or service required for eligibility for normal retirement 30 under AS 14.25.110 or AS 39.35.370, as appropriate; 31 (2) to meet the age required for early retirement under AS 14.25.110 or

01 AS 39.35.370, as appropriate; 02 (3) to reduce the actuarial adjustment required for early retirement under 03 AS 14.25.110 or AS 39.35.370, as appropriate; 04 (4) as years of credited service for calculating retirement benefits. 05 (g) In this section, 06 (1) "department" means 07 (A) a principal department of the executive branch of state government; 08 an independent state entity that is attached to a principal department of the executive 09 branch for administrative purposes but that is not a public organization as defined in 10 AS 39.35.680 is part of that department for purposes of this paragraph; and 11 (B) the Office of the Governor; 12 (2) "employer" 13 (A) for purposes of a retirement incentive plan under AS 14.25, means 14 the Board of Regents of the University of Alaska, the Department of Education, or the 15 Regional Resource Center, but does not include a school district; and 16 (B) for purposes of a retirement incentive plan under AS 39.35, has the 17 meaning given in AS 39.35.680 and includes a department but does not include a 18 school district. 19 * Sec. 31. AUTHORIZATION FOR STATE EMPLOYEE RETIREMENT INCENTIVE. 20 (a) A state agency may adopt, and file with the commissioner of administration for approval, 21 a proposed retirement incentive plan for its employees as part of a permanent reduction in the 22 personal services costs in that section of the state agency. 23 (b) Upon the request of a state agency, the commissioner of administration shall 24 establish one or more periods during which the employees of that state agency who are 25 eligible under sec. 30(b) of this Act to participate in a retirement incentive plan may apply to 26 the commissioner of administration to participate in the state agency's approved plan. The 27 periods shall begin no earlier than June 30, 1996, and end no later than June 30, 1999. The 28 periods shall be no less than 30 days and no more than 60 days in duration, and may not 29 begin less than 30 days after their establishment. A state agency is not required to request an 30 application period and may request more than one application period. 31 (c) A proposed retirement incentive plan adopted under this section may not permit

01 an employee who is the governor, the lieutenant governor, or a commissioner, deputy 02 commissioner, or assistant commissioner of a principal department of the executive branch to 03 participate in the plan. 04 (d) A proposed retirement incentive plan adopted under this section may permit 05 participation only by an employee who is eligible to participate under sec. 30(b) of this Act 06 and who 07 (1) has been continuously employed by the state for at least one year before 08 the employee applies to participate in the state agency's approved plan; 09 (2) is a permanent seasonal employee who has been continuously employed 10 by the state in a permanent seasonal position during all of the time in the one year before the 11 employee's application to participate in which the position normally is filled; 12 (3) has a job sharing agreement with a state agency in which two or more 13 employees share a single position identified by a single position control number and in which 14 the employee who applies to participate in the plan was continuously employed by the agency 15 during the portion of the one year before the employee's application in which the employee 16 normally worked under the job sharing agreement; or 17 (4) meets a combination of the requirements of this subsection. 18 (e) The commissioner of administration may not accept the application of an employee 19 to participate in an approved retirement incentive plan adopted under this section unless the 20 employee will be appointed to retirement not later than the first day of the month that is six 21 months after the last day of the application period established by the commissioner under (b) 22 of this section. A state agency, in a plan adopted under this section, may set an earlier date 23 by which an employee must be appointed to retirement in order to participate in the plan. 24 * Sec. 32. AUTHORIZATION FOR RETIREMENT INCENTIVE FOR EMPLOYEES OF 25 THE UNIVERSITY OF ALASKA. (a) The Board of Regents of the University of Alaska 26 may adopt, and file with the commissioner of administration for approval, a proposed 27 retirement incentive plan for university employees. 28 (b) Upon the request of the Board of Regents, the commissioner of administration 29 shall establish one or more periods during which the employees of the university who are 30 eligible under sec. 30(b) of this Act to participate in a retirement incentive plan may apply to 31 the commissioner of administration to participate in the university's approved plan. The

01 periods shall begin no earlier than June 30, 1996, and end no later than June 30, 1999. The 02 periods shall be no less than 30 days and no more than 60 days in duration and may not begin 03 less than 30 days after their establishment. The Board of Regents is not required to request 04 an application period and may request more than one application period. 05 (c) The commissioner of administration may not accept the application of an employee 06 to participate in an approved retirement incentive plan adopted under this section unless the 07 employee will be appointed to retirement not later than the first day of the month that is six 08 months after the last day of the application period established by the commissioner under (b) 09 of this section. The Board of Regents, in a plan adopted under this section, may set an earlier 10 date by which an employee of the University of Alaska must be appointed to retirement in 11 order to participate in the plan. 12 (d) A participant in the optional university retirement program under AS 14.40.661 - 13 14.40.799 who is vested in the public employees' retirement system or the teachers' retirement 14 system may participate in a retirement incentive plan for that system if the participant meets 15 the other qualifications of secs. 30 - 43 of this Act. If a provision of this subsection is 16 inconsistent with another provision of law, the provision of this subsection governs. 17 * Sec. 33. AUTHORIZATION FOR RETIREMENT INCENTIVE FOR OTHER 18 EMPLOYEES IN THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM. (a) The 19 governing body of a political subdivision of the state or public organization that has elected 20 to participate in the public employees' retirement system under AS 39.35.550 - 39.35.650 may 21 adopt, and file with the commissioner of administration for approval, a proposed retirement 22 incentive plan for its employees. A plan adopted under this section must provide that the 23 application period for participation in the retirement incentive plan is December 31, 1996, 24 through June 30, 1997. 25 (b) The commissioner of administration may not accept the application of an employee 26 to participate in an approved retirement incentive plan adopted under this section unless the 27 employee will be appointed to retirement on or before February 1, 1998. The governing body 28 of the political subdivision or public organization, in a plan adopted under this section, may 29 set an earlier date by which an employee must be appointed to retirement in order to 30 participate in the plan. 31 * Sec. 34. AUTHORIZATION FOR RETIREMENT INCENTIVE FOR EMPLOYEES OF

01 REGIONAL RESOURCE CENTERS IN THE TEACHERS' RETIREMENT SYSTEM. (a) 02 A regional resource center that has employees who are members of the teachers' retirement 03 system may adopt, and file with the commissioner of administration for approval, a proposed 04 retirement incentive plan for its employees. A plan adopted under this section must provide 05 that the application period for participation in the retirement incentive plan is June 30, 1996, 06 through December 31, 1996. 07 (b) The commissioner of administration may not accept the application of an employee 08 to participate in an approved retirement incentive plan adopted under this section unless the 09 employee will be appointed to retirement on or before August 1, 1997. The regional resource 10 center, in a plan adopted under this section, may set an earlier date by which an employee 11 must be appointed to retirement in order to participate in the plan. 12 * Sec. 35. POLITICAL SUBDIVISION OR PUBLIC ORGANIZATION EMPLOYMENT. 13 For purposes of determining the years of service requirements for retirement under 14 AS 14.25.110 or AS 39.35.370, as appropriate, a vested member who is a state employee and 15 who applies to participate in a retirement incentive plan under secs. 30 - 43 of this Act may 16 receive credit for employment with a political subdivision or public organization before the 17 political subdivision or organization became an employer under the public employees' 18 retirement system. The member may not receive credit for those years under this section for 19 purposes of determining benefits. If a provision of this section is inconsistent with any other 20 provision of law, the provision of this section governs. 21 * Sec. 36. PROVISION AND AUTHORIZATION FOR ADMINISTRATIVE DIRECTOR 22 OF COURT. (a) The chief justice of the state supreme court may adopt a retirement 23 incentive plan for an administrative director of the Alaska Court System who is a member of 24 the judicial retirement system under AS 22.25.012 if participation in the plan will result in 25 savings to the court system in personal services costs within three years after commencement 26 of the plan. The administrative director may participate only if the administrative director is 27 vested in the judicial retirement system and will be qualified to retire under AS 22.25.010 28 after receipt of the retirement incentive. To participate, the administrative director shall apply 29 to the commissioner of administration to participate in the approved court system plan. 30 (b) The court system shall include in the retirement incentive plan a reimbursement 31 agreement that requires the court system, for each administrative director of the Alaska Court

01 System who is retired under the plan, to reimburse the judicial retirement system within three 02 years after the end of the fiscal year in which the administrative director is appointed to 03 retirement in an amount equal to 04 (1) the actuarial equivalent of the difference between the benefits the 05 administrative director receives after the addition of the credit under (e) of this section and 06 the amount the participant would have received without the credit, less the total of the amount 07 the participant has paid on the indebtedness determined under (d) of this section; and 08 (2) an appropriate share of the administrative costs of the program. 09 (c) A retirement incentive plan adopted under this section must provide that 10 contributions from the court system under (b) of this section take priority over other 11 obligations of the court system under (b) of this section to the maximum extent permitted by 12 law. 13 (d) An administrative director of the Alaska Court System who participates in an 14 approved retirement incentive plan is indebted to the system. The amount of indebtedness is 15 equal to 21 percent of the director's actual annual compensation for the year in which the 16 director terminates employment to participate in the program, or the calculated annual 17 compensation for an administrative director who works fewer than 12 months. An outstanding 18 indebtedness at the time the administrative director is appointed to retirement under an 19 approved retirement incentive plan will require an actuarial adjustment to the benefits payable 20 to the director. 21 (e) An administrative director of the Alaska Court System who participates in an 22 approved retirement incentive plan receives a credit of three years that may only be used to 23 meet the age requirements for normal or early retirement under AS 22.25.010(d). 24 (f) The chief justice of the Alaska Supreme Court may adopt and file with the 25 commissioner of administration for approval, a proposed retirement incentive plan for the 26 administrative director of the court system who is a member of the judicial retirement system. 27 Upon the request of the chief justice, the commissioner of administration shall establish a 28 period during which an administrative director eligible to participate in the retirement incentive 29 plan of the court system may apply to the commissioner of administration to participate in the 30 court system's approved plan. The period shall begin no earlier than July 1, 1996, and end 31 no later than June 30, 1999. The period shall be no less than 30 days and no more than 60

01 days in duration and may not begin less than 30 days after establishment. The chief justice 02 is not required to request an application period. 03 (g) The commissioner of administration may not accept the application of an 04 administrative director of the court system to participate in an approved retirement incentive 05 plan adopted under this section unless the administrative director will be appointed to 06 retirement not later than the first day of the month that is six months after the last day of the 07 application period established by the commissioner under (f) of this section. The chief justice, 08 in a plan adopted under this section, may set an earlier date by which an administrative 09 director must be appointed to retirement in order to participate in the plan. 10 * Sec. 37. RECOVERY OF EMPLOYER DELINQUENCIES. To recover a delinquency 11 owed by an employer other than the state under an agreement entered into under sec. 30(c)(2) 12 of this Act, the Department of Administration may 13 (1) direct that the amount of the delinquency or a lesser amount be withheld 14 from any money payable to the employer by a state department or agency and that the amount 15 withheld be credited to the delinquency; and 16 (2) bring action against the employer. 17 * Sec. 38. REEMPLOYMENT INDEBTEDNESS; PROHIBITION ON REEMPLOYMENT. 18 (a) If an individual is reemployed as a member of the public employees' retirement system 19 under AS 39.35, the teachers' retirement system under AS 14.25, the judicial retirement system 20 under AS 22.25, or the optional university retirement program under AS 14.40.661 - 14.40.799 21 after appointment to retirement under secs. 30 - 43 of this Act, that individual forfeits the 22 incentive credit received under secs. 30 - 43 of this Act and is indebted to the system under 23 which the individual took retirement. The indebtedness is 150 percent of the amount the 24 individual received as a result of participation in a retirement incentive plan under secs. 30 - 25 43 of this Act and to which the individual would not otherwise have been entitled, including 26 the cost of health insurance. The amount that the individual has paid under sec. 30(d) or (e) 27 of this Act will be applied as a credit toward the reemployment indebtedness. Interest on the 28 reemployment indebtedness accrues from the date of reemployment until the date that the 29 individual either is appointed to retirement and accepts an actuarial adjustment to the 30 individual's future benefits or repays the indebtedness in full. The rate of interest is that 31 established by regulation for the public employees' retirement system by the public employees'

01 retirement board and for the teachers' retirement system by the teachers' retirement board. 02 (b) An individual who was appointed to retirement under secs. 30 - 43 of this Act may 03 not be employed by, or enter into a contract for personal services with, a state agency or the 04 University of Alaska within the five years after the date of appointment to retirement, except 05 that 06 (1) the University of Alaska may enter into a personal services contract with 07 the individual for teaching or research that does not entitle the individual to receive retirement, 08 health, or leave benefits, except social security replacement if required by the Internal Revenue 09 Code; and 10 (2) the individual may accept employment with the legislature during a 11 legislative session if the employment is on an hourly basis and does not entitle the individual 12 to receive retirement, health, or leave benefits. 13 (c) Notwithstanding the prohibition in (b) of this section, a state agency or the 14 University of Alaska may enter into a personal services contract with an individual who was 15 appointed to retirement under secs. 30 - 43 of this Act if the Board of Regents, for the 16 University of Alaska, or the commissioner of administration, for a state agency, determines 17 that there is a compelling reason to do so because of the individual's specialized or extensive 18 experience that relates to a particular program or project of the state agency or university. 19 However, a state agency may not enter into a contract with an individual under this subsection 20 if the individual was employed by the state agency at the time of the individual's appointment 21 to retirement. 22 * Sec. 39. LEGISLATIVE EMPLOYEE RETIREMENT INCENTIVE PLAN. (a) The 23 Legislative Council may adopt and file with the commissioner of administration a retirement 24 incentive plan for employees of the legislative branch of state government. The plan must 25 designate categories of employees eligible to participate in that plan, include a reimbursement 26 agreement for the cost of participation by employees in the plan, and require employees to 27 meet the eligibility criteria and pay the indebtedness amount under sec. 30 of this Act. The 28 Legislative Council may exercise the powers of an employer under sec. 30 of this Act, but a 29 plan adopted by the council is not subject to review by the office of management and budget 30 or approval of the commissioner of administration. 31 (b) The application periods established by the Legislative Council under the plan

01 during which the employees of a legislative agency who meet the requirements of sec. 30(b) 02 of this Act are eligible to participate in the retirement incentive plan shall begin no earlier 03 than June 30, 1996, and end no later than June 30, 1999. The application periods shall be no 04 less than 30 days and not more than 60 days in duration, and may not begin less than 30 days 05 after their establishment. The Legislative Council is not required to establish an application 06 period and may establish more than one application period. 07 (c) The commissioner of administration may not accept the application of an employee 08 to participate in the Legislative Council retirement incentive plan under this section unless the 09 employee will be appointed to retirement not later than the first day of the month that is six 10 months after the last day of the application period established by the Legislative Council under 11 this section. The Legislative Council may set an earlier date by which an employee must be 12 appointed to retirement in order to participate in the plan. 13 (d) The provisions of secs. 35, 37, 38, 41, and 43 of this Act apply to a plan adopted 14 under this section. 15 * Sec. 40. OFFICE OF MANAGEMENT AND BUDGET. (a) When designating an 16 employee category for participation in a retirement incentive plan under secs. 30 - 32 of this 17 Act, the executive head of the relevant state agency shall describe in detail the expected effect 18 of the plan or program on the agency's personal services cost and operation. This financial 19 report must be approved by the director of the office of management and budget before the 20 commissioner of administration may approve the proposed plan or program. The state agency 21 shall report each year to the office of management and budget on the cost of each employee's 22 participation and the effect on the agency's personal services cost and operation. 23 (b) The office of management and budget shall submit to the legislature annual reports 24 on the retirement incentive and separation incentive programs under secs. 30 - 43 of this Act 25 beginning January 15, 1998, and continuing through January 15, 2000, and shall submit a final 26 report January 15, 2001. Each report must provide the information necessary for the 27 legislature to evaluate the effectiveness of the programs in achieving their objectives. The 28 report must include information on the designated employee categories under the incentive 29 programs, the cost to the state, the cost to the employee, the annual budgeted amount, by state 30 agency, for the incentives, the number of positions deleted or left vacant, and the projected 31 or actual net savings over the three-year period, and recommendations to the legislature for

01 changes in appropriations that reflect the cost and cost savings resulting from the retirement 02 and separation incentive programs. 03 * Sec. 41. PROGRAM CHANGES. (a) An individual employee does not have a vested 04 or contractual right to a benefit under secs. 30 - 43 of this Act until an agreement is executed 05 with the administrator that specifically authorizes that employee to participate in the retirement 06 incentive program under secs. 30 - 43 of this Act or until an agreement is executed with the 07 commissioner of administration to participate in the separation incentive program under secs. 08 30 - 43 of this Act. The legislature reserves the right to change any aspect of either incentive 09 program as it relates to employees for whom participation agreements have not yet been 10 executed with the administrator or with the commissioner of administration. 11 (b) In this section, "administrator" means the administrator of the public employees' 12 retirement system of employees who are members of that system, and the administrator of the 13 teachers' retirement system for employees who are members of that system. 14 * Sec. 42. REGULATIONS. The commissioner of administration may adopt regulations 15 under AS 44.62 (Administrative Procedure Act) to implement and interpret secs. 30 - 38 and 16 40 - 43 of this Act. 17 * Sec. 43. DEFINITIONS. (a) Unless otherwise provided in secs. 30 - 43 of this Act, the 18 definitions set out in AS 14.25.220 apply to provisions in secs. 31 - 39 of this Act that relate 19 to teachers' retirement system and members of the teachers' retirement system. 20 (b) Unless otherwise provided in secs. 30 - 43 of this Act, the definitions set out in 21 AS 39.35.680 apply to provisions in secs. 31 - 39 of this Act that relate to the public 22 employees' retirement system and members of the public employees' retirement system except 23 that "employer" does not include a school district. 24 (c) In secs. 30 - 43 of this Act, 25 (1) "office of management and budget" means the office of management and 26 budget in the Office of the Governor; 27 (2) "public employees' retirement system" means the Public Employees' 28 Retirement System of Alaska (AS 39.35); 29 (3) "state agency" 30 (A) means 31 (i) the judicial branch of state government;

01 (ii) a principal department of the executive branch of state 02 government; and independent state entity that is attached to a principal 03 department of the executive branch for administrative purposes but that is not 04 a public organization as defined in AS 39.35.680 is part of that department for 05 purposes of this clause; and 06 (iii) the Office of the Governor; 07 (B) does not include 08 (i) the University of Alaska; 09 (ii) a political subdivision of the state; or 10 (iii) a public organization as defined in AS 39.35.680; 11 (4) "teachers' retirement system" means the Teachers' Retirement System of 12 Alaska (AS 14.25). 13 * Sec. 44. SALARY ADJUSTMENTS FOR CERTAIN EXEMPT EMPLOYEES OF THE 14 EXECUTIVE BRANCH. Permanent and temporary employees of the executive branch who 15 are in the exempt service under AS 39.25, who are not members of a collective bargaining 16 unit established under the Public Employment Relations Act (AS 23.40), and who are not 17 otherwise covered by AS 39.27.011(a), are entitled to receive salary adjustments comparable 18 to those received by the classified and partially exempt employees of the executive branch 19 under AS 39.27.011(e) - (g), as enacted by sec. 13 of this Act, and to receive geographic 20 differentials comparable to those received by the classified and partially exempt employees 21 of the executive branch under AS 39.25.020, as enacted by sec. 14 of this Act. 22 * Sec. 45. SALARY INCREASES FOR EMPLOYEES OF THE UNIVERSITY OF 23 ALASKA. The employees of the University of Alaska who are not members of a collective 24 bargaining unit are entitled to receive salary increases in accordance with the compensation 25 policy of the Board of Regents of the University of Alaska. 26 * Sec. 46. SALARY ADJUSTMENTS FOR EMPLOYEES OF THE JUDICIAL BRANCH. 27 For the fiscal years beginning July 1, 1997, and July 1, 1998, permanent and temporary 28 employees of the judicial branch, other than justices and judges, who are not members of a 29 collective bargaining agreement unit are entitled to receive salary adjustments comparable to 30 those received by the classified and partially exempt employees of the executive branch under 31 AS 39.27.011(f) - (g), as enacted by sec. 13 of this Act, and geographic differential

01 adjustments comparable to those received by the classified and partially exempt employees 02 of the executive branch under AS 39.27.020, as enacted by sec. 14 of this Act. 03 * Sec. 47. SALARY INCREASES FOR JUDICIAL BRANCH EMPLOYEES. For the 04 fiscal year beginning July 1, 1996, and ending June 30, 1997, the temporary and permanent 05 employees of the judicial branch, other than justices and judges, who are not members of a 06 collective bargaining unit are entitled to receive a salary increase of 5.2 percent of the 07 employee's base salary as of June 30, 1996. 08 * Sec. 48. JUDGES AND JUSTICES. Notwithstanding AS 22.05.140(d), AS 22.07.090(c), 09 AS 22.10.190(d), and AS 22.15.220(e), and sec. 13 of this Act, justices and judges in the 10 judicial branch are not entitled to receive the increases provided by AS 22.05.140(d), 11 AS 22.07.090(c), AS 22.10.190(d), and AS 22.15.220(e) for the fiscal year beginning July 1, 12 1996, and ending June 30, 1997. 13 * Sec. 49. SALARY INCREASES FOR LEGISLATIVE BRANCH EMPLOYEES. 14 Employees of the legislative branch of state government who are not otherwise subject to 15 AS 39.27.011, other than legislators, are entitled to receive salary adjustments comparable to 16 those received by the classified and partially exempt employees of the executive branch under 17 AS 39.27.011(e) - (g), as enacted by sec. 13 of this Act. 18 * Sec. 50. APPROVAL OF MONETARY TERMS OF AGREEMENTS. (a) This section 19 (1) supersedes the provisions of any bill passed by the Second Session of the 20 Nineteenth Alaska State Legislature and enacted into law that disapproves the monetary terms 21 of the collective bargaining agreements listed in this section; and 22 (2) satisfies the terms of any bill passed by the Second Session of the 23 Nineteenth Alaska State Legislature and enacted into law that imposes conditions on the 24 approval of the monetary terms of those agreements. 25 (b) This section constitutes approval of the monetary terms of the collective bargaining 26 agreements entered into between the state and the following collective bargaining 27 organizations: 28 (1) Alaska State Employees Association, for the General Government Unit; 29 (2) Alaska Public Employees Association, for the Supervisory Unit; 30 (3) Public Employees Local 71, for the Labor, Trades and Crafts Unit; 31 (4) Inlandboatmen's Union of the Pacific, representing the unlicensed marine

01 unit; 02 (5) International Organization of Masters, Mates, and Pilots, Pacific Maritime 03 Region, for the Masters, Mates, and Pilots Unit; 04 (6) Public Safety Employees Association, representing state troopers and other 05 commissioned law enforcement personnel; 06 (7) the Classified Employees Association, representing University of Alaska 07 employees; 08 (8) the Alaska Community Colleges' Federation of Teachers, representing 09 faculty members of the University of Alaska; 10 (9) the Alyeska Correspondence School Education Association representing 11 teachers at the Alyeska Central School; 12 (10) Alaska Vocational Technical Center Teacher's Association representing 13 teachers at the Alaska Vocational Technical Center; and 14 (11) International Brotherhood of Electrical Workers representing nonjudicial, 15 nonsupervisory, classified employees of the Alaska Court System. 16 * Sec. 51. DECLINING TO PLACE EMPLOYEES OF THE LABOR RELATIONS 17 SECTION IN THE EXEMPT SERVICE. The legislature declines to place employees of the 18 labor relations section of the Department of Administration in the exempt service because it 19 finds that the public is better served by maintaining the current status of these employees. 20 * Sec. 52 LIMITATION ON THE REDUCTION OF EMPLOYEE SALARIES. (a) So 21 long as the employee remains in the same geographic area, as set out in AS 39.27.020, as 22 amended by sec. 14 of this Act, 23 (1) the salary that an employee is receiving on June 30, 1996, may not be 24 reduced by application of a provision of sec. 14 of this Act until June 30, 1997; 25 (2) for the fiscal year beginning July 1, 1997, the salary that an employee is 26 receiving on June 30, 1997, may not be reduced by more than five percent as a result of the 27 application of a provision of this Act. 28 (b) If an employee moves to another geographic area after June 30, 1996, both the pay 29 differential in AS 39.27.020(a) and the limitation on applicable salary in AS 39.27.020(b), as 30 reenacted by sec. 14 of this Act, apply to that employee's salary on the effective date of the 31 move.

01 (c) Nothing in this Act prohibits a reduction in an employee's salary as a result of a 02 voluntary or involuntary demotion. 03 * Sec. 53 Nothing in this Act modifies or terminates the terms of a collective bargaining 04 agreement in effect on the effective date of this Act. 05 * Sec. 54. Section 52 of this Act is repealed July 1, 1998. 06 * Sec. 55 Sections 30, 31, and 39 of this Act are repealed July 1, 2000. 07 * Sec. 56. Sections 32 - 36 of this Act are repealed December 31, 1999. 08 * Sec. 57. This Act takes effect July 1, 1996.