CSHB 199(FIN): "An Act relating to compensation for certain state employees; and providing for an effective date."
00CS FOR HOUSE BILL NO. 199(FIN) 01 "An Act relating to compensation for certain state employees; and providing for 02 an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 29.60.160(a) is amended to read: 05 (a) Payments to a municipality or other eligible recipient under AS 29.60.110 06 - 29.60.130 shall reflect area cost-of-living differentials. Payments shall be based on 07 the sum of per capita, per mile, and per bed or facility grants due each municipality 08 or other recipient multiplied by the appropriate area cost-of-living differential. The 09 area cost-of-living differential for each recipient shall be determined annually by 10 election district under the provisions of former AS 39.27.020 and AS 39.27.030. 11 Application of the area cost-of-living differential may not result in distribution of an 12 amount less than the amount of the payment determined without reference to 13 application of this section. 14 * Sec. 2. AS 29.60.290(b) is amended to read:
01 (b) The area cost-of-living differential payable to each municipality under this 02 section shall be determined annually by election district under the provisions of former 03 AS 39.27.020 and AS 39.27.030. Except as provided in AS 29.60.300, application of 04 the area cost-of-living differential may not result in a payment that is less than the 05 minimum payment determined under (a) of this section. For purposes of this 06 subsection, the election districts used are those designated by the proclamation of 07 reapportionment and redistricting of December 7, 1961, and retained for the house of 08 representatives by proclamation of the governor September 3, 1965. 09 * Sec. 3. AS 39.27 is amended by adding a new section to read: 10 Sec. 39.27.021. Pay differentials by election district and in other states. 11 (a) The following pay differentials are approved as an amendment to the basic salary 12 schedules provided in AS 39.27.011: 13 Percentage Pay Geographic Areas 14 Differential (Election Districts) 15 0 1, 2, 3, 4, 7, 8, 9, and 10 16 4 16a (Fairbanks South of the Arctic Circle except 17 the duty stations of Tok and Delta Junction) 18 5 5 19 9 11 20 11 6 21 16 16b (the duty stations of Tok and Delta Junction) 22 20 15b (the duty station of Nenana) 23 27 12 and 13 24 30 15a (Yukon-Kuskokwim except the duty station of Nenana) and 19 25 34 18 26 38 14 27 42 16c (Fort-Yukon - North of the Arctic Circle) and 17 28 -13 Seattle-Tacoma 29 (b) For purposes of (a) of this section, "election district" means an election 30 district designated in the governor's proclamation of reapportionment and redistricting 31 of December 7, 1961.
01 (c) The director of the division of personnel shall establish salary differentials 02 for positions in other states or foreign countries. The differentials shall be adjusted 03 annually, effective July 1, to maintain equitable relationships between salaries for 04 positions in other states or foreign countries and salaries for positions in Alaska. 05 * Sec. 4. AS 39.27.030 is amended to read: 06 Sec. 39.27.030. Cost-of-living survey. Subject to an appropriation for this 07 purpose, the director shall conduct a survey, at least every five years, to review the pay 08 differentials established in AS 39.27.021 [AS 39.27.020]. The survey may address 09 factors, as determined by the director, that are also relevant in review of state salary 10 schedules, entitlement for beneficiaries of state programs, and payments for state 11 service providers. The survey must reflect the costs of living in various election 12 districts of the state, and Seattle, Washington, by using the cost of living in Anchorage 13 as a base. 14 * Sec. 5. AS 39.27.045 is amended to read: 15 Sec. 39.27.045. Definition. In AS 39.27.021 - 39.27.045 [AS 39.27.020 - 16 39.27.030], "director" means the director of the division of personnel. 17 * Sec. 6. AS 39.30.150(a) is amended to read: 18 (a) In place of contributions to the federal social security system that would 19 have been required on behalf of an employee had the participating employer belonged 20 to the social security system, the participating employer shall contribute the amount 21 required by (d) of this section [AN AMOUNT EQUAL TO 6.13 PERCENT OF THE 22 WAGES OF THE EMPLOYEE UP TO THE TAXABLE WAGE BASE THEN IN 23 EFFECT IN THE SOCIAL SECURITY SYSTEM]. This contribution shall be paid 24 into an individual employee annuity account in the Department of Administration 25 under the terms of the State of Alaska Supplemental Annuity Plan. The department 26 shall pay 6.13 percent of the annual wages of the employee up to $68,400 [THE 27 TAXABLE WAGE BASE THEN IN EFFECT IN THE SOCIAL SECURITY 28 SYSTEM] into the individual employee annuity account established under this 29 subsection. This wage reduction shall be treated as an employer contribution under 30 26 U.S.C. 414(h)(2). All costs of establishing and administering the programs 31 established under AS 39.30.150 - 39.30.180 shall be paid from the contributions made
01 to the individual employee annuity accounts under this section. 02 * Sec. 7. AS 39.30.150 is amended by adding a new subsection to read: 03 (d) For state employees who were first employed under the employee benefits 04 program under AS 39.30.150 - 39.30.180 before the effective date of this subsection 05 and for employees of participating employers other than the state, the participating 06 employer shall contribute an amount equal to 6.13 percent of the annual wages of the 07 employee up to $68,400. For state employees who were first employed under the 08 program on or after the effective date of this subsection, the state shall contribute an 09 amount equal to 3.065 percent of the annual wages of the employee up to $68,400. 10 * Sec. 8. AS 39.30.180 is amended by adding a new paragraph to read: 11 (3) "program" means the program established under AS 39.30.150 - 12 39.30.180. 13 * Sec. 9. AS 39.35.675(d) is amended to read: 14 (d) In this section , "cost-of-living differential" means an adjustment to salary 15 based on the cost of living in the geographic region where the employee works and 16 includes a pay step differential under former AS 39.27.020 or a pay differential 17 under AS 39.27.021 . 18 * Sec. 10. AS 39.27.020 is repealed. 19 * Sec. 11. LIMITATION ON SALARY REDUCTION FOR GEOGRAPHIC 20 DIFFERENTIALS. (a) The salary that an employee is receiving on June 30, 1999, may not 21 be reduced by application of a provision of sec. 3 of this Act so long as the employee remains 22 in the same geographic area as set out in AS 39.27.021, enacted by sec. 3 of this Act. If an 23 employee moves to another geographic area on or after July 1, 1999, the pay differential in 24 AS 39.27.021, enacted by sec. 3 of this Act, applies to the employee's salary on the effective 25 date of the move. 26 (b) If, on July 1, 1999, an employee's salary would have been reduced but for the 27 provisions of (a) of this section, that employee's salary may not be increased by application 28 of an adjustment to the salary schedules in AS 39.27.011 or a step increase until the 29 application of the adjustment or increase to the reduced salary the employee would otherwise 30 have been receiving as of July 1, 1999, results in an amount that meets or exceeds the salary 31 that the employee was receiving on June 30, 1999.