Legislature(1995 - 1996)
1995-05-02 Senate Journal
Full Journal pdf1995-05-02 Senate Journal Page 1422 SB 148 SENATE BILL NO. 148 "An Act relating to a defined contribution retirement plan for state employees" which had been placed at the bottom of the calendar (page 1408) was read the second time. Fiscal notes published today from Department of Administration (2). Senator Duncan rose to a point of order regarding AS 24.08.036. President Pearce ruled that Senator Duncan's point was not well taken. Senator Duncan appealed the ruling of the Chair. The question being: "Shall the ruling of the Chair be upheld?" The roll was taken with the following result: 1995-05-02 Senate Journal Page 1423 SB 148 SB 148 Uphold ruling of the Chair YEAS: 12 NAYS: 8 EXCUSED: 0 ABSENT: 0 Yeas: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Nays: Adams, Donley, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff and so, the ruling of the chair was upheld. Senator Duncan moved that the bill be returned to the Finance Committee. Objections were heard. Senator Halford rose to a point of order. President Pearce cautioned members to confine debate to the motion. The question being: "Shall the bill be returned to the Finance Committee?" The roll was taken with the following result: SB 148 Return to Senate Finance Committee YEAS: 8 NAYS: 12 EXCUSED: 0 ABSENT: 0 Yeas: Adams, Donley, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff Nays: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson and so, the bill was not returned to the Finance Committee. Senator Miller moved and asked unanimous consent for the adoption of the Rules Committee Substitute offered on page 1407. Senator Duncan objected. 1995-05-02 Senate Journal Page 1424 SB 148 The question being: "Shall the Rules Committee Substitute be adopted?" The roll was taken with the following result: SB 148 Second Reading Adopt Rules Committee Substitute? YEAS: 12 NAYS: 8 EXCUSED: 0 ABSENT: 0 Yeas: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Nays: Adams, Donley, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff and so, CS FOR SENATE BILL NO. 148(RLS) "An Act relating to contributions and benefits in the teachers' retirement system and in the public employees' retirement system; relating to retirement incentive programs for the public employees' retirement system, the judicial retirement system, and the teachers' retirement system; relating to separation incentives for certain state employees; repealing a provision permitting the National Education Association to participate in the teachers' retirement system; and providing for an effective date" was adopted and read the second time. Senator Duncan offered Amendment No. 1 : Page 1, line 1, through page 27, line 28: Delete all material and insert: ""An Act relating to retirement incentive programs for the public employees' retirement system, the judicial retirement system, and the teachers' retirement system; relating to separation incentives for certain state employees; and providing for an effective date." BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: * Section 1. FINDINGS AND PURPOSE. The State of Alaska and many local governments and school districts are facing the need to restructure their operations and their work forces in order to reduce expenditures and balance budgets. Retirement and separation 1995-05-02 Senate Journal Page 1425 SB 148 incentives are management tools that have been used extensively by the private sector, the federal government, and other state and local governments across the country. The purpose of this Act is to make these management tools temporarily available to the state and to the municipalities and school districts of the state. This Act will enable these entities to be more efficient and cost-effective by eliminating certain nonessential positions, and producing a net reduction in personnel costs. * Sec. 2. RETIREMENT INCENTIVE PROGRAM. (a) An employer may adopt a retirement incentive plan under secs.3 - 6 of this Act, as appropriate, and designate categories of employees eligible to participate in that plan. An employer need not extend the incentive plan to all employees who would otherwise be eligible, but may choose to extend the plan only to employees (1) in specific budget or administrative components of the employer; (2) in specific job classifications; (3) in specific geographic locations; or (4) on the basis of any combination of factors under (1) - (3) of this subsection. (b) An employee is eligible to participate in a retirement incentive plan under this Act only if the (1) employee is a vested member of the public employees' retirement system or the teachers' retirement system; (2) employee will be qualified to retire under AS14.25.110 or AS39.35.370 after receipt of the credit described in (f) of this section; (3) savings to the employer in personal services costs for the employee's position will exceed the costs to the employer for that position within three years after the employee is appointed to retirement. (c) An employer shall file its proposed retirement incentive plan with the commissioner of administration. The commissioner shall approve the plan if the plan meets the requirements of this Act, except that the commissioner may approve a state agency's retirement incentive plan only if the office of management and budget approves the calculation of savings under (b)(3) of this section. A proposed plan filed under this section must (1) identify job classifications of employees, and specific budget or administrative components, eligible to participate in the plan; 1995-05-02 Senate Journal Page 1426 SB 148 (2) include a reimbursement agreement that (A) requires the employer, for each employee who retires under the plan, to reimburse the appropriate retirement system, within three years after the end of the fiscal year in which the employee is appointed to retirement, in an amount equal to (i) the actuarial equivalent of the difference between the benefits the participant receives after the addition of the credit under (f) of this section and the amount the participant would have received without the credit, less the amount the participant has paid on the indebtedness determined under (d) or (e) of this section; and (ii) an appropriate share of the administrative costs of the program; and (B) provides that contributions from the employer under this section take priority over other obligations of the employer to the maximum extent permitted by law. (d) A member of the teachers' retirement system who participates in an approved retirement incentive plan under this Act is indebted to that system for an amount calculated under this subsection. The indebtedness is 25.95 percent of the member's actual compensation for the school year in which the member terminates employment, or the calculated school year compensation for a member who works less than the entire school year. An outstanding indebtedness at the time a member is appointed to retirement under an approved retirement incentive plan requires an actuarial adjustment to the benefits payable to that member. (e) A member of the public employees' retirement system who participates in an approved retirement incentive plan under this Act is indebted to that system for an amount calculated under this subsection. The indebtedness is 22-1/2 percent for a peace officer or fire fighter, and 20-1/4 percent for other members, of the member's actual annual compensation for the year in which the member terminates employment, or the calculated annual compensation for a member who works fewer than 12 months. An outstanding indebtedness at the time a member is appointed to retirement under an approved retirement incentive plan requires an actuarial adjustment to the benefits payable to that member. 1995-05-02 Senate Journal Page 1427 SB 148 (f) An employee who participates in an approved retirement incentive plan under this Act receives a credit of three years. The three years must be applied in the following order until exhausted: (1) to meet the age or service required for eligibility for normal retirement under AS14.25.110 or AS39.35.370, as appropriate; (2) to meet the age required for early retirement under AS14.25.110 or AS39.35.370, as appropriate; (3) to reduce the actuarial adjustment required for early retirement under AS14.25.110 or AS39.35.370, as appropriate; (4) as years of credited service for calculating retirement benefits. (g) In this section, (1) "department" means (A) a principal department of the executive branch of state government; an independent state entity that is attached to a principal department of the executive branch for administrative purposes but that is not a public organization as defined in AS39.35.680 is part of that department for purposes of this paragraph; and (B) the Office of the Governor; (2) "employer" has the meaning given in AS14.25.220 and AS39.35.680 and includes a department. * Sec. 3. AUTHORIZATION FOR STATE EMPLOYEE RETIREMENT INCENTIVE. (a) A state agency may adopt, and file with the commissioner of administration for approval, a proposed retirement incentive plan for its employees. (b) Upon the request of a state agency, the commissioner of administration shall establish one or more periods during which the employees of that state agency who are eligible under sec.2(b) of this Act to participate in a retirement incentive plan may apply to the commissioner of administration to participate in the state agency's approved plan. The periods shall begin no earlier than June 30, 1995, and end no later than June 30, 1998. The periods shall be no less than 30 days and no more than 60 days in duration, and may not begin less than 30 days after their establishment. A state agency is not required to request an application period, and may request more than one application period. 1995-05-02 Senate Journal Page 1428 SB 148 (c) A proposed retirement incentive plan adopted under this section may not permit an employee who is the governor, the lieutenant governor, or a commissioner, deputy commissioner, or assistant commissioner of a principal department of the executive branch to participate in the plan. (d) A proposed retirement incentive plan adopted under this section may permit participation only by an employee who is eligible to participate under sec.2(b) of this Act and who (1) has been continuously employed by the state for at least one year before the employee applies to participate in the state agency's approved plan; (2) is a permanent seasonal employee who has been continuously employed by the state in a permanent seasonal position during all of the time in the one year before the employee's application to participate in which the position normally is filled; (3) has a job sharing agreement with a state agency in which two or more employees share a single position identified by a single position control number and in which the employee who applies to participate in the plan was continuously employed by the agency during the portion of the one year before the employee's application in which the employee normally worked under the job sharing agreement; or (4) meets a combination of the requirements of this subsection. (e) The commissioner of administration may not accept the application of an employee to participate in an approved retirement incentive plan adopted under this section unless the employee will be appointed to retirement not later than the first day of the month that is six months after the last day of the application period established by the commissioner under (b) of this section. A state agency, in a plan adopted under this section, may set an earlier date by which an employee must be appointed to retirement in order to participate in the plan. * Sec. 4. AUTHORIZATION FOR RETIREMENT INCENTIVE FOR EMPLOYEES OF THE UNIVERSITY OF ALASKA. (a) The Board of Regents of the University of Alaska may adopt, and file with the commissioner of administration for approval, a proposed retirement incentive plan for university employees. 1995-05-02 Senate Journal Page 1429 SB 148 (b) Upon the request of the Board of Regents, the commissioner of administration shall establish one or more periods during which the employees of the university who are eligible under sec.2(b) of this Act to participate in a retirement incentive plan may apply to the commissioner of administration to participate in the university's approved plan. The periods shall begin no earlier than June 30, 1995, and end no later than June30, 1998. The periods shall be no less than 30 days and no more than 60 days in duration, and may not begin less than 30 days after their establishment. The Board of Regents is not required to request an application period, and may request more than one application period. (c) The commissioner of administration may not accept the application of an employee to participate in an approved retirement incentive plan adopted under this section unless the employee will be appointed to retirement not later than the first day of the month that is six months after the last day of the application period established by the commissioner under (b) of this section. The Board of Regents, in a plan adopted under this section, may set an earlier date by which an employee of the University of Alaska must be appointed to retirement in order to participate in the plan. (d) A participant in the optional university retirement program under AS14.40.661 - 14.40.799 who is vested in the public employees' retirement system or the teachers' retirement system may participate in a retirement incentive plan for that system if the participant meets the other qualifications of this Act. If a provision of this subsection is inconsistent with another provision of law, the provision of this subsection governs. * Sec. 5. AUTHORIZATION FOR RETIREMENT INCENTIVE FOR OTHER EMPLOYEES IN THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM. (a) The governing body of a political subdivision of the state or public organization that has elected to participate in the public employees' retirement system under AS39.- 35.550 - 39.35.650 may adopt, and file with the commissioner of administration for approval, a proposed retirement incentive plan for its employees. Upon the request of the governing body, the commissioner of administration shall establish one or more periods during which the employees of a political subdivision or public organization who are eligible to participate in a retirement incentive 1995-05-02 Senate Journal Page 1430 SB 148 plan may apply to the commissioner of administration to participate in the approved plan. The periods shall begin no earlier than October 31, 1995, and end no later than October 31, 1998. The periods shall be no less than 30 days and no more than 60 days in duration, and may not begin less than 60 days after their establishment. The governing body is not required to request an application period, and may request more than one application period. (b) The commissioner of administration may not accept the application of an employee to participate in an approved retirement incentive plan adopted under this section unless the employee will be appointed to retirement not later than the first day of the month that is six months after the last day of the application period established by the commissioner under (a) of this section. The governing body of the political subdivision or public organization, in a plan adopted under this section, may set an earlier date by which an employee must be appointed to retirement in order to participate in the plan. * Sec. 6. AUTHORIZATION FOR RETIREMENT INCENTIVE FOR OTHER EMPLOYEES IN THE TEACHERS' RETIREMENT SYSTEM. (a) An employer under the teachers' retirement system who is not otherwise covered by secs.3 or 4 of this Act may adopt, and file with the commissioner of administration for approval, a proposed retirement incentive plan for its employees. A plan adopted under this section must provide that the application period for participation in the retirement incentive plan is June30, 1995, through December31, 1995. (b) The commissioner of administration may not accept the application of an employee to participate in an approved retirement incentive plan adopted under this section unless the employee will be appointed to retirement on or before August1, 1996. The employer, in a plan adopted under this section, may set an earlier date by which an employee must be appointed to retirement in order to participate in the plan. * Sec. 7. POLITICAL SUBDIVISION OR PUBLIC ORGANIZATION EMPLOYMENT. For purposes of determining the years of service requirements for retirement under AS14.25.110 or AS39.35.370, as appropriate, a vested member who is a state employee and who applies to participate in a retirement incentive plan approved under this Act may receive credit for employment with a political subdivision or public organization before the political 1995-05-02 Senate Journal Page 1431 SB 148 subdivision or organization became an employer under the public employees' retirement system. The member may not receive credit for those years under this subsection for purposes of determining benefits. If a provision of this section is inconsistent with any other provision of law, the provision of this section governs. * Sec. 8. RECOVERY OF EMPLOYER DELINQUENCIES. To recover a delinquency owed by an employer other than the state under an agreement entered into under sec. 2(c)(2) of this Act, the Department of Administration may (1) direct that the amount of the delinquency or a lesser amount be withheld from any money payable to the employer by a state department or agency and that the amount withheld be credited to the delinquency; and (2) bring an action against the employer. * Sec. 9. PROVISION AND AUTHORIZATION FOR ADMINISTRATIVE DIRECTOR OF COURT. (a) The chief justice of the state supreme court may adopt a retirement incentive plan for an administrative director of the Alaska Court System who is a member of the judicial retirement system under AS22.25.012 if participation in the plan will result in savings to the court system in personal services costs within three years after the commencement of the plan. The administrative director may participate only if the administrative director is vested in the judicial retirement system and will be qualified to retire under AS22.25.010 after receipt of the retirement incentive. To participate, the administrative director shall apply to the commissioner of administration to participate in the approved court system plan. (b) The court system shall include in the retirement incentive plan a reimbursement agreement that requires the court system, for each administrative director of the Alaska Court System who is retired under the plan, to reimburse the judicial retirement system within three years after the end of the fiscal year in which the administrative director is appointed to retirement in an amount equal to (1) the actuarial equivalent of the difference between the benefits the administrative director receives after the addition of the credit under (e) of this section and the amount the participant would have received without the credit, less the total of the amount the participant has paid on the indebtedness determined under (d) of this section; and 1995-05-02 Senate Journal Page 1432 SB 148 (2) an appropriate share of the administrative costs of the program. (c) A retirement incentive plan adopted under this section must provide that contributions from the court system under (b) of this section take priority over other obligations of the court system to the maximum extent permitted by law. (d) An administrative director of the Alaska Court System who participates in an approved retirement incentive plan is indebted to the system. The amount of indebtedness is equal to 21 percent of the director's actual annual compensation for the year in which the director terminates employment to participate in the program, or the calculated annual compensation for an administrative director who works fewer than 12 months. An outstanding indebtedness at the time the administrative director is appointed to retirement under an approved retirement incentive plan will require an actuarial adjustment to the benefits payable to the director. (e) An administrative director of the Alaska Court System who participates in an approved retirement incentive plan receives a credit of three years that may only be used to meet the age requirements for normal or early retirement under AS22.25.010(d). (f) The chief justice of the Alaska Court System may adopt, and file with the commissioner of administration for approval, a proposed retirement incentive plan for the administrative director of the court system who is a member of the judicial retirement system. Upon the request of the chief justice, the commissioner of administration shall establish a period during which an administrative director eligible to participate in the retirement incentive plan of the court system may apply to the commissioner of administration to participate in the court system's approved plan. The period shall begin no earlier than July1, 1995, and end no later than June30, 1998. The period shall be no less than 30 days and no more than 60 days in duration and may not begin less than 30 days after establishment. The chief justice is not required to request an application period. (g) The commissioner of administration may not accept the application of an administrative director of the court system to participate in an approved retirement incentive plan adopted under this section unless the administrative director will be appointed to retirement not later than the first day of the month that is six months 1995-05-02 Senate Journal Page 1433 SB 148 after the last day of the application period established by the commissioner under (f) of this section. The chief justice, in a plan adopted under this section, may set an earlier date by which an administrative director must be appointed to retirement in order to participate in the plan. * Sec. 10. REEMPLOYMENT INDEBTEDNESS; PROHIBITION ON REEMPLOYMENT. (a) If an individual is reemployed as a member of the public employees' retirement system under AS39.35, the teachers' retirement system under AS14.25, the judicial retirement system under AS22.25, or the optional university retirement program under AS14.40.661- 14.40.799 after appoint- ment to retirement under this Act, that individual forfeits the incentive credit received under sec.2(f) or sec. 9(e) of this Act and is indebted to the system under which the individual took retirement. The indebtedness is 110 percent of the amount the individual received as a result of participation in a retirement incentive plan under this Act and to which the individual would not otherwise have been entitled, including the cost of health insurance. The amount that the individual has paid under sec. 2(d) or (e) or sec. 9(d) of this Act will be applied as a credit toward the reemployment indebtedness. Interest on the reemployment indebtedness accrues from the date of reemployment until the date that the individual either is appointed to retirement and accepts an actuarial adjustment to the individual's future benefits or repays the indebtedness in full. The rate of interest is that established by regulation for the public employees' retirement system by the public employees' retirement board and for the teachers' retirement system by the teachers' retirement board. (b) An individual who was appointed to retirement under this Act may not be employed by, or enter into a contract for personal services with, a state agency or the University of Alaska within the three years after the date of appointment to retirement, except that (1) the University of Alaska may enter into a personal services contract with the individual for teaching or research; and (2) the individual may accept employment with the legislature during a legislative session if the employment is on an hourly basis and does not entitle the individual to receive retirement, health, or leave benefits. 1995-05-02 Senate Journal Page 1434 SB 148 (c) Notwithstanding the prohibition in (b) of this section, a state agency or the University of Alaska may enter into a personal services contract with an individual who was appointed to retirement under this Act if the Board of Regents, for the University of Alaska, or the commissioner of administration, for a state agency, determines that there is a compelling reason to do so because of the individual's specialized or extensive experience that relates to a particular program or project of the state agency or university. However, a state agency may not enter into a contract with an individual under this subsection if the individual was employed by that state agency at the time of the individual's appointment to retirement. * Sec. 11. SEPARATION INCENTIVE PROGRAM. (a) A state agency may, with the approval of the director of the office of management and budget, establish a separation incentive program for its employees. The program may be offered in combination with an approved retirement incentive plan adopted under sec. 3 of this Act, or may be offered separately from such a plan. A state agency need not extend an incentive program under this section to all employees who would otherwise be eligible to participate, but may choose to extend the program only to employees (1) in specific budget or administrative components of the state agency; (2) in specific job classifications; (3) on the basis of any combination of factors under (1) and (2) of this subsection. (b) A separation incentive payment under this section shall be paid in a lump sum after the employee's separation from state service, and shall be equal to the lesser of an amount equaling six months of the employee's base salary, or $25,000. However, a state agency or the office of management and budget may set a lower separation incentive payment in the state agency's separation incentive program. (c) Upon the request of a state agency, the commissioner of administration shall establish one or more periods during which the employees of that state agency may apply to the commissioner of administration to participate in the state agency's approved separation incentive program. The periods shall begin no earlier than July 1, 1995, and end no later than June 30, 1998. The periods 1995-05-02 Senate Journal Page 1435 SB 148 shall be no less than 30 days and no more than 60 days in duration, and may not begin less than 30 days after their establishment. A state agency is not required to request an application period, and may request more than one application period. If the commissioner of administration has established one or more application periods for a state agency under sec.3(b) of this Act, the application period or periods established under this subsection must coincide with the period or periods established under sec.3(b) of this Act. (d) A separation incentive program established under this section must provide that a separation incentive payment to an employee may be made only if (1) the employee is a permanent full-time or permanent full-time seasonal employee with at least five years of service with the state; and (2) the savings to the state agency in personal services costs for the position occupied by that employee would exceed, in the three years after the employee separates, the amount of the separation incentive payment. (e) If an individual who received a separation incentive payment under this section subsequently is reemployed by a state agency or the University of Alaska within the three years after the date that the individual received the separation incentive payment, the individual is liable to the state in an amount equal to 110 percent of the amount of the separation incentive payment, plus interest at the rate prescribed by AS45.45.010, commencing on the date that the individual received the separation incentive payment. (f) If an employee is eligible to participate in an approved retirement incentive plan adopted under sec. 3 of this Act, (1) a separation incentive payment to that employee may not exceed the amount that the state agency would be obligated to pay to the appropriate retirement system, notwithstanding (b) of this section; and (2) the employee may participate in either the separation incentive program under this section or the retirement incentive plan adopted under sec.3 of this Act, but not both. (g) In this section, "base salary" means the monthly salary paid to an employee under the applicable collective bargaining agreement, AS39.27.011, or another applicable pay schedule, and includes geographic differential; if an employee is paid on an hourly 1995-05-02 Senate Journal Page 1436 SB 148 basis, the employee's base salary is the employee's hourly rate, including geographic differential, multiplied by the number of hours in the employee's regular work week, multiplied by 4.35. * Sec. 12. OFFICE OF MANAGEMENT AND BUDGET. (a) When designating an employee category for participation in a retirement incentive plan or a separation incentive program under this Act, the executive head of the relevant state agency shall describe in detail the expected effect of the plan or program on the agency's personal services cost and operation. This financial report must be approved by the director of the office of management and budget before the commissioner of administration may approve the proposed plan or program. The state agency shall report each year to the office of management and budget on the cost of each employee's participation and the effect on the agency's personal services cost and operation. (b) The office of management and budget shall submit to the legislature annual reports on the retirement incentive and separation incentive programs under this Act beginning January15, 1997, and continuing through January15, 1999, and shall submit a final report January15, 2000. Each report must provide the information necessary for the legislature to evaluate the effectiveness of the programs in achieving their objectives. The report must include information on the designated employee categories under the incentive programs, including the cost of each incentive program per participant, the cost to the state, the cost to the employee, the annual budgeted amount, by state agency, for the incentives, the number of positions deleted or left vacant, and the projected or actual net savings over the three-year period. * Sec. 13. PROGRAM CHANGES. (a) An individual employee does not have a vested or contractual right to a benefit under this Act until an agreement is executed with the administrator that specifically authorizes that employee to participate in the retirement incentive program under this Act or until an agreement is executed with the commissioner of administration to participate in the separation incentive program under this Act. The legislature reserves the right to change any aspect of either incentive program as it relates to employees for whom participation agreements have not yet been executed with the administrator or with the commissioner of administration. 1995-05-02 Senate Journal Page 1437 SB 148 (b) In this section, "administrator" means the administrator of the public employees' retirement system for employees who are members of that system, and the administrator of the teachers' retirement system for employees who are members of that system. *Sec. 14. REGULATIONS. The commissioner of the Department of Administration may adopt regulations under AS44.62 (Administrative Procedure Act) to implement and interpret this Act. * Sec. 15. DEFINITIONS. (a) Unless provided otherwise in this Act, the definitions set out in AS14.25.220 apply to provisions in secs. 2- 10 of this Act that relate to the teachers' retirement system and members of the teachers' retirement system. (b) Unless provided otherwise in this Act, the definitions set out in AS39.35.680 apply to provisions in secs. 2- 10 of this Act that relate to the public employees' retirement system and members of the public employees' retirement system. (c) Unless provided otherwise in this Act, the definition set out in AS22.25.900 applies to provisions in sec.9 of this Act that relate to the judicial retirement system and members of the judicial retirement system. (d) In this Act, (1) "judicial retirement system" means the retirement system established for judges and justices in AS22.25; (2) "office of management and budget" means the office of management and budget in the Office of the Governor; (3) "public employees' retirement system" means the Public Employees' Retirement System of Alaska (AS39.35); (4) "state agency" (A) means (i) the legislative branch of state government; (ii) the judicial branch of state government; (iii) a principal department of the executive branch of state government; an independent state entity that is attached to a principal department of the executive branch for administrative purposes but that is not a public organization as defined in AS39.35.680 is part of that department for purposes of this clause; and 1995-05-02 Senate Journal Page 1438 SB 148 (iv) the Office of the Governor; (B) does not include (i) the University of Alaska; (ii) a political subdivision of the state; or (iii) a public organization as defined in AS39.35.680; (5) "teachers' retirement system" means the Teachers' Retirement System of Alaska (AS14.25). * Sec. 16. Sections 2, 3, and 11 of this Act are repealed July1, 1999. * Sec. 17. Sections 4- 7 and 9 of this Act are repealed July1, 1997. * Sec. 18. This Act takes effect immediately under AS01.10.070(c)." Senator Duncan moved for the adoption of Amendment No. 1. Objections were heard. Senator Pearce lifted the call. Senator Donley moved and asked unanimous consent that he be excused from a call of the Senate for the remainder of May 2. Without objection, Senator Donley was excused. Senator Pearce called the Senate. The call was satisfied. The question being: "Shall Amendment No. 1 be adopted?" The roll was taken with the following result: CSSB 148(RLS) Second Reading Amendment No. 1 YEAS: 7 NAYS: 12 EXCUSED: 1 ABSENT: 0 Yeas: Adams, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff Nays: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Excused: Donley 1995-05-02 Senate Journal Page 1439 SB 148 and so, Amendment No. 1 failed. Senator Leman offered Amendment No. 2 : Throughout bill: Delete "March 31, 1996" Insert "July 1, 1995" Senator Leman moved for the adoption of Amendment No. 2. Objections were heard. The question being: "Shall Amendment No. 2 be adopted?" The roll was taken with the following result: CSSB 148(RLS) Second Reading Amendment No. 2 YEAS: 8 NAYS: 11 EXCUSED: 1 ABSENT: 0 Yeas: Frank, Green, Kelly, Leman, Miller, Sharp, Taylor, Torgerson Nays: Adams, Duncan, Ellis, Halford, Hoffman, Lincoln, Pearce, R.Phillips, Rieger, Salo, Zharoff Excused: Donley and so, Amendment No. 2 failed. Senator Duncan offered Amendment No. 3 : Page 1, line 1, through page 27, line 28: Delete all material and insert: ""An Act relating to retirement incentive programs for the public employees' retirement system, the judicial retirement system, and the teachers' retirement system; relating to separation incentives for certain state employees; and providing for an effective date." 1995-05-02 Senate Journal Page 1440 SB 148 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: * Section 1. FINDINGS AND PURPOSE. The State of Alaska and many local governments are facing the need to restructure their operations and their work forces in order to reduce expenditures and balance budgets. Retirement and separation incentives are management tools that have been used extensively by the private sector, the federal government, and other state and local governments across the country. The purpose of this Act is to make these management tools temporarily available to the state and to the municipalities of the state. This Act will enable these entities to be more efficient and cost-effective by eliminating certain nonessential positions, and producing a net reduction in personnel costs. * Sec. 2. RETIREMENT INCENTIVE PROGRAM. (a) An employer may adopt a retirement incentive plan under secs.3 - 6 of this Act, as appropriate, and designate categories of employees eligible to participate in that plan. An employer need not extend the incentive plan to all employees who would otherwise be eligible, but may choose to extend the plan only to employees (1) in specific budget or administrative components of the employer; (2) in specific job classifications; (3) in specific geographic locations; or (4) on the basis of any combination of factors under (1) - (3) of this subsection. (b) An employee is eligible to participate in a retirement incentive plan under this Act only if the (1) employee is a vested member of the public employees' retirement system or the teachers' retirement system; (2) employee will be qualified to retire under AS14.25.110 or AS39.35.370 after receipt of the credit described in (f) of this section; (3) savings to the employer in personal services costs for the employee's position will exceed the costs to the employer for that position within three years after the employee is appointed to retirement. 1995-05-02 Senate Journal Page 1441 SB 148 (c) An employer shall file its proposed retirement incentive plan with the commissioner of administration. The commissioner shall approve the plan if the plan meets the requirements of this Act, except that the commissioner may approve a state agency's retirement incentive plan only if the office of management and budget approves the calculation of savings under (b)(3) of this section. A proposed plan filed under this section must (1) identify job classifications of employees, and specific budget or administrative components, eligible to participate in the plan; (2) include a reimbursement agreement that (A) requires the employer, for each employee who retires under the plan, to reimburse the appropriate retirement system, within three years after the end of the fiscal year in which the employee is appointed to retirement, in an amount equal to (i) the actuarial equivalent of the difference between the benefits the participant receives after the addition of the credit under (f) of this section and the amount the participant would have received without the credit, less the amount the participant has paid on the indebtedness determined under (d) or (e) of this section; and (ii) an appropriate share of the administrative costs of the program; and (B) provides that contributions from the employer under this section take priority over other obligations of the employer to the maximum extent permitted by law. (d) A member of the teachers' retirement system who participates in an approved retirement incentive plan under this Act is indebted to that system for an amount calculated under this subsection. The indebtedness is 25.95 percent of the member's actual compensation for the school year in which the member terminates employment, or the calculated school year compensation for a member who works less than the entire school year. An outstanding indebtedness at the time a member is appointed to retirement under an approved retirement incentive plan requires an actuarial adjustment to the benefits payable to that member. 1995-05-02 Senate Journal Page 1442 SB 148 (e) A member of the public employees' retirement system who participates in an approved retirement incentive plan under this Act is indebted to that system for an amount calculated under this subsection. The indebtedness is 22-1/2 percent for a peace officer or fire fighter, and 20-1/4 percent for other members, of the member's actual annual compensation for the year in which the member terminates employment, or the calculated annual compensation for a member who works fewer than 12 months. An outstanding indebtedness at the time a member is appointed to retirement under an approved retirement incentive plan requires an actuarial adjustment to the benefits payable to that member. (f) An employee who participates in an approved retirement incentive plan under this Act receives a credit of three years. The three years must be applied in the following order until exhausted: (1) to meet the age or service required for eligibility for normal retirement under AS14.25.110 or AS39.35.370, as appropriate; (2) to meet the age required for early retirement under AS14.25.110 or AS39.35.370, as appropriate; (3) to reduce the actuarial adjustment required for early retirement under AS14.25.110 or AS39.35.370, as appropriate; (4) as years of credited service for calculating retirement benefits. (g) In this section, (1) "department" means (A) a principal department of the executive branch of state government; an independent state entity that is attached to a principal department of the executive branch for administrative purposes but that is not a public organization as defined in AS39.35.680 is part of that department for purposes of this paragraph; and (B) the Office of the Governor; (2) "employer" has the meaning given in AS14.25.220 and AS39.35.680 and includes a department. * Sec. 3. AUTHORIZATION FOR STATE EMPLOYEE RETIREMENT INCENTIVE. (a) A state agency may adopt, and file with the commissioner of administration for approval, a proposed retirement incentive plan for its employees. 1995-05-02 Senate Journal Page 1443 SB 148 (b) Upon the request of a state agency, the commissioner of administration shall establish one or more periods during which the employees of that state agency who are eligible under sec.2(b) of this Act to participate in a retirement incentive plan may apply to the commissioner of administration to participate in the state agency's approved plan. The periods shall begin no earlier than June 30, 1995, and end no later than June 30, 1998. The periods shall be no less than 30 days and no more than 60 days in duration, and may not begin less than 30 days after their establishment. A state agency is not required to request an application period, and may request more than one application period. (c) A proposed retirement incentive plan adopted under this section may not permit an employee who is the governor, the lieutenant governor, or a commissioner, deputy commissioner, or assistant commissioner of a principal department of the executive branch to participate in the plan. (d) A proposed retirement incentive plan adopted under this section may permit participation only by an employee who is eligible to participate under sec.2(b) of this Act and who (1) has been continuously employed by the state for at least one year before the employee applies to participate in the state agency's approved plan; (2) is a permanent seasonal employee who has been continuously employed by the state in a permanent seasonal position during all of the time in the one year before the employee's application to participate in which the position normally is filled; (3) has a job sharing agreement with a state agency in which two or more employees share a single position identified by a single position control number and in which the employee who applies to participate in the plan was continuously employed by the agency during the portion of the one year before the employee's application in which the employee normally worked under the job sharing agreement; or (4) meets a combination of the requirements of this subsection. (e) The commissioner of administration may not accept the application of an employee to participate in an approved retirement incentive plan adopted under this section unless the employee will be appointed to retirement not later than the first day of the month 1995-05-02 Senate Journal Page 1444 SB 148 that is six months after the last day of the application period established by the commissioner under (b) of this section. A state agency, in a plan adopted under this section, may set an earlier date by which an employee must be appointed to retirement in order to participate in the plan. * Sec. 4. AUTHORIZATION FOR RETIREMENT INCENTIVE FOR EMPLOYEES OF THE UNIVERSITY OF ALASKA. (a) The Board of Regents of the University of Alaska may adopt, and file with the commissioner of administration for approval, a proposed retirement incentive plan for university employees. (b) Upon the request of the Board of Regents, the commissioner of administration shall establish one or more periods during which the employees of the university who are eligible under sec.2(b) of this Act to participate in a retirement incentive plan may apply to the commissioner of administration to participate in the university's approved plan. The periods shall begin no earlier than June 30, 1995, and end no later than June30, 1998. The periods shall be no less than 30 days and no more than 60 days in duration, and may not begin less than 30 days after their establishment. The Board of Regents is not required to request an application period, and may request more than one application period. (c) The commissioner of administration may not accept the application of an employee to participate in an approved retirement incentive plan adopted under this section unless the employee will be appointed to retirement not later than the first day of the month that is six months after the last day of the application period established by the commissioner under (b) of this section. The Board of Regents, in a plan adopted under this section, may set an earlier date by which an employee of the University of Alaska must be appointed to retirement in order to participate in the plan. (d) A participant in the optional university retirement program under AS14.40.661 - 14.40.799 who is vested in the public employees' retirement system or the teachers' retirement system may participate in a retirement incentive plan for that system if the participant meets the other qualifications of this Act. If a provision of this subsection is inconsistent with another provision of law, the provision of this subsection governs. * Sec. 5. AUTHORIZATION FOR RETIREMENT INCENTIVE FOR OTHER EMPLOYEES IN THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM. (a) The governing body of a political subdivision of the state or public organization that has elected to 1995-05-02 Senate Journal Page 1445 SB 148 participate in the public employees' retirement system under AS39.- 35.550 - 39.35.650 may adopt, and file with the commissioner of administration for approval, a proposed retirement incentive plan for its employees. Upon the request of the governing body, the commissioner of administration shall establish one or more periods during which the employees of a political subdivision or public organization who are eligible to participate in a retirement incentive plan may apply to the commissioner of administration to participate in the approved plan. The periods shall begin no earlier than October 31, 1995, and end no later than October31, 1998. The periods shall be no less than 30 days and no more than 60 days in duration, and may not begin less than 60 days after their establishment. The governing body is not required to request an application period, and may request more than one application period. (b) The commissioner of administration may not accept the application of an employee to participate in an approved retirement incentive plan adopted under this section unless the employee will be appointed to retirement not later than the first day of the month that is six months after the last day of the application period established by the commissioner under (a) of this section. The governing body of the political subdivision or public organization, in a plan adopted under this section, may set an earlier date by which an employee must be appointed to retirement in order to participate in the plan. * Sec. 6. AUTHORIZATION FOR RETIREMENT INCENTIVE FOR EMPLOYEES OF REGIONAL RESOURCE CENTERS IN THE TEACHERS' RETIREMENT SYSTEM. (a) A regional resource center that has employees who are members of the teachers' retirement system may adopt, and file with the commissioner of administration for approval, a proposed retirement incentive plan for its employees. A plan adopted under this section must provide that the application period for participation in the retirement incentive plan is June30, 1995, through December31, 1995. (b) The commissioner of administration may not accept the application of an employee to participate in an approved retirement incentive plan adopted under this section unless the employee will be appointed to retirement on or before August1, 1996. The regional resource center, in a plan adopted under this section, may set an earlier date by which an employee must be appointed to retirement in order to participate in the plan. 1995-05-02 Senate Journal Page 1446 SB 148 * Sec. 7. POLITICAL SUBDIVISION OR PUBLIC ORGANIZATION EMPLOYMENT. For purposes of determining the years of service requirements for retirement under AS14.25.110 or AS39.35.370, as appropriate, a vested member who is a state employee and who applies to participate in a retirement incentive plan approved under this Act may receive credit for employment with a political subdivision or public organization before the political subdivision or organization became an employer under the public employees' retirement system. The member may not receive credit for those years under this subsection for purposes of determining benefits. If a provision of this section is inconsistent with any other provision of law, the provision of this section governs. * Sec. 8. RECOVERY OF EMPLOYER DELINQUENCIES. To recover a delinquency owed by an employer other than the state under an agreement entered into under sec. 2(c)(2) of this Act, the Department of Administration may (1) direct that the amount of the delinquency or a lesser amount be withheld from any money payable to the employer by a state department or agency and that the amount withheld be credited to the delinquency; and (2) bring an action against the employer. * Sec. 9. PROVISION AND AUTHORIZATION FOR ADMINISTRATIVE DIRECTOR OF COURT. (a) The chief justice of the state supreme court may adopt a retirement incentive plan for an administrative director of the Alaska Court System who is a member of the judicial retirement system under AS22.25.012 if participation in the plan will result in savings to the court system in personal services costs within three years after the commencement of the plan. The administrative director may participate only if the administrative director is vested in the judicial retirement system and will be qualified to retire under AS22.25.010 after receipt of the retirement incentive. To participate, the administrative director shall apply to the commissioner of administration to participate in the approved court system plan. (b) The court system shall include in the retirement incentive plan a reimbursement agreement that requires the court system, for each administrative director of the Alaska Court System who is retired under the plan, to reimburse the judicial retirement system within three years after the end of the fiscal year in which the administrative director is appointed to retirement in an amount equal to 1995-05-02 Senate Journal Page 1447 SB 148 (1) the actuarial equivalent of the difference between the benefits the administrative director receives after the addition of the credit under (e) of this section and the amount the participant would have received without the credit, less the total of the amount the participant has paid on the indebtedness determined under (d) of this section; and (2) an appropriate share of the administrative costs of the program. (c) A retirement incentive plan adopted under this section must provide that contributions from the court system under (b) of this section take priority over other obligations of the court system to the maximum extent permitted by law. (d) An administrative director of the Alaska Court System who participates in an approved retirement incentive plan is indebted to the system. The amount of indebtedness is equal to 21 percent of the director's actual annual compensation for the year in which the director terminates employment to participate in the program, or the calculated annual compensation for an administrative director who works fewer than 12 months. An outstanding indebtedness at the time the administrative director is appointed to retirement under an approved retirement incentive plan will require an actuarial adjustment to the benefits payable to the director. (e) An administrative director of the Alaska Court System who participates in an approved retirement incentive plan receives a credit of three years that may only be used to meet the age requirements for normal or early retirement under AS22.25.010(d). (f) The chief justice of the Alaska Court System may adopt, and file with the commissioner of administration for approval, a proposed retirement incentive plan for the administrative director of the court system who is a member of the judicial retirement system. Upon the request of the chief justice, the commissioner of administration shall establish a period during which an administrative director eligible to participate in the retirement incentive plan of the court system may apply to the commissioner of administration to participate in the court system's approved plan. The period shall begin no earlier than July1, 1995, and end no later than June30, 1998. The period shall be no less than 30 days and no more than 60 days in duration and may not begin less than 30 days after establishment. The chief justice is not required to request an application period. 1995-05-02 Senate Journal Page 1448 SB 148 (g) The commissioner of administration may not accept the application of an administrative director of the court system to participate in an approved retirement incentive plan adopted under this section unless the administrative director will be appointed to retirement not later than the first day of the month that is six months after the last day of the application period established by the commissioner under (f) of this section. The chief justice, in a plan adopted under this section, may set an earlier date by which an administrative director must be appointed to retirement in order to participate in the plan. * Sec. 10. REEMPLOYMENT INDEBTEDNESS; PROHIBITION ON REEMPLOYMENT. (a) If an individual is reemployed as a member of the public employees' retirement system under AS39.35, the teachers' retirement system under AS14.25, the judicial retirement system under AS22.25, or the optional university retirement program under AS14.40.661- 14.40.799 after appoint- ment to retirement under this Act, that individual forfeits the incentive credit received under sec.2(f) or sec. 9(e) of this Act and is indebted to the system under which the individual took retirement. The indebtedness is 110 percent of the amount the individual received as a result of participation in a retirement incentive plan under this Act and to which the individual would not otherwise have been entitled, including the cost of health insurance. The amount that the individual has paid under sec. 2(d) or (e) or sec. 9(d) of this Act will be applied as a credit toward the reemployment indebtedness. Interest on the reemployment indebtedness accrues from the date of reemployment until the date that the individual either is appointed to retirement and accepts an actuarial adjustment to the individual's future benefits or repays the indebtedness in full. The rate of interest is that established by regulation for the public employees' retirement system by the public employees' retirement board and for the teachers' retirement system by the teachers' retirement board. (b) An individual who was appointed to retirement under this Act may not be employed by, or enter into a contract for personal services with, a state agency or the University of Alaska within the three years after the date of appointment to retirement, except that (1) the University of Alaska may enter into a personal services contract with the individual for teaching or research; and 1995-05-02 Senate Journal Page 1449 SB 148 (2) the individual may accept employment with the legislature during a legislative session if the employment is on an hourly basis and does not entitle the individual to receive retirement, health, or leave benefits. (c) Notwithstanding the prohibition in (b) of this section, a state agency or the University of Alaska may enter into a personal services contract with an individual who was appointed to retirement under this Act if the Board of Regents, for the University of Alaska, or the commissioner of administration, for a state agency, determines that there is a compelling reason to do so because of the individual's specialized or extensive experience that relates to a particular program or project of the state agency or university. However, a state agency may not enter into a contract with an individual under this subsection if the individual was employed by that state agency at the time of the individual's appointment to retirement. * Sec. 11. SEPARATION INCENTIVE PROGRAM. (a) A state agency may, with the approval of the director of the office of management and budget, establish a separation incentive program for its employees. The program may be offered in combination with an approved retirement incentive plan adopted under sec. 3 of this Act, or may be offered separately from such a plan. A state agency need not extend an incentive program under this section to all employees who would otherwise be eligible to participate, but may choose to extend the program only to employees (1) in specific budget or administrative components of the state agency; (2) in specific job classifications; (3) on the basis of any combination of factors under (1) and (2) of this subsection. (b) A separation incentive payment under this section shall be paid in a lump sum after the employee's separation from state service, and shall be equal to the lesser of an amount equaling six months of the employee's base salary, or $25,000. However, a state agency or the office of management and budget may set a lower separation incentive payment in the state agency's separation incentive program. 1995-05-02 Senate Journal Page 1450 SB 148 (c) Upon the request of a state agency, the commissioner of administration shall establish one or more periods during which the employees of that state agency may apply to the commissioner of administration to participate in the state agency's approved separation incentive program. The periods shall begin no earlier than July 1, 1995, and end no later than June 30, 1998. The periods shall be no less than 30 days and no more than 60 days in duration, and may not begin less than 30 days after their establishment. A state agency is not required to request an application period, and may request more than one application period. If the commissioner of administration has established one or more application periods for a state agency under sec.3(b) of this Act, the application period or periods established under this subsection must coincide with the period or periods established under sec.3(b) of this Act. (d) A separation incentive program established under this section must provide that a separation incentive payment to an employee may be made only if (1) the employee is a permanent full-time or permanent full-time seasonal employee with at least five years of service with the state; and (2) the savings to the state agency in personal services costs for the position occupied by that employee would exceed, in the three years after the employee separates, the amount of the separation incentive payment. (e) If an individual who received a separation incentive payment under this section subsequently is reemployed by a state agency or the University of Alaska within the three years after the date that the individual received the separation incentive payment, the individual is liable to the state in an amount equal to 110 percent of the amount of the separation incentive payment, plus interest at the rate prescribed by AS45.45.010, commencing on the date that the individual received the separation incentive payment. (f) If an employee is eligible to participate in an approved retirement incentive plan adopted under sec. 3 of this Act, (1) a separation incentive payment to that employee may not exceed the amount that the state agency would be obligated to pay to the appropriate retirement system, notwithstanding (b) of this section; and (2) the employee may participate in either the separation incentive program under this section or the retirement incentive plan adopted under sec.3 of this Act, but not both. 1995-05-02 Senate Journal Page 1451 SB 148 (g) In this section, "base salary" means the monthly salary paid to an employee under the applicable collective bargaining agreement, AS39.27.011, or another applicable pay schedule, and includes geographic differential; if an employee is paid on an hourly basis, the employee's base salary is the employee's hourly rate, including geographic differential, multiplied by the number of hours in the employee's regular work week, multiplied by 4.35. * Sec. 12. OFFICE OF MANAGEMENT AND BUDGET. (a) When designating an employee category for participation in a retirement incentive plan or a separation incentive program under this Act, the executive head of the relevant state agency shall describe in detail the expected effect of the plan or program on the agency's personal services cost and operation. This financial report must be approved by the director of the office of management and budget before the commissioner of administration may approve the proposed plan or program. The state agency shall report each year to the office of management and budget on the cost of each employee's participation and the effect on the agency's personal services cost and operation. (b) The office of management and budget shall submit to the legislature annual reports on the retirement incentive and separation incentive programs under this Act beginning January15, 1997, and continuing through January15, 1999, and shall submit a final report January15, 2000. Each report must provide the information necessary for the legislature to evaluate the effectiveness of the programs in achieving their objectives. The report must include information on the designated employee categories under the incentive programs, including the cost of each incentive program per participant, the cost to the state, the cost to the employee, the annual budgeted amount, by state agency, for the incentives, the number of positions deleted or left vacant, and the projected or actual net savings over the three-year period. * Sec. 13. PROGRAM CHANGES. (a) An individual employee does not have a vested or contractual right to a benefit under this Act until an agreement is executed with the administrator that specifically authorizes that employee to participate in the retirement incentive program under this Act or until an agreement is executed with the commissioner of administration to participate in the separation incentive program under this Act. The legislature reserves 1995-05-02 Senate Journal Page 1452 SB 148 the right to change any aspect of either incentive program as it relates to employees for whom participation agreements have not yet been executed with the administrator or with the commissioner of administration. (b) In this section, "administrator" means the administrator of the public employees' retirement system for employees who are members of that system, and the administrator of the teachers' retirement system for employees who are members of that system. *Sec. 14. REGULATIONS. The commissioner of the Department of Administration may adopt regulations under AS44.62 (Administrative Procedure Act) to implement and interpret this Act. * Sec. 15. DEFINITIONS. (a) Unless provided otherwise in this Act, the definitions set out in AS14.25.220 apply to provisions in secs. 2- 10 of this Act that relate to the teachers' retirement system and members of the teachers' retirement system except that "employer" does not include a school district. (b) Unless provided otherwise in this Act, the definitions set out in AS39.35.680 apply to provisions in secs. 2- 10 of this Act that relate to the public employees' retirement system and members of the public employees' retirement system. (c) Unless provided otherwise in this Act, the definition set out in AS22.25.900 applies to provisions in sec.9 of this Act that relate to the judicial retirement system and members of the judicial retirement system. (d) In this Act, (1) "judicial retirement system" means the retirement system established for judges and justices in AS22.25; (2) "office of management and budget" means the office of management and budget in the Office of the Governor; (3) "public employees' retirement system" means the Public Employees' Retirement System of Alaska (AS39.35); (4) "state agency" (A) means (i) the legislative branch of state government; (ii) the judicial branch of state government; 1995-05-02 Senate Journal Page 1453 SB 148 (iii) a principal department of the executive branch of state government; an independent state entity that is attached to a principal department of the executive branch for administrative purposes but that is not a public organization as defined in AS39.35.680 is part of that department for purposes of this clause; and (iv) the Office of the Governor; (B) does not include (i) the University of Alaska; (ii) a political subdivision of the state; or (iii) a public organization as defined in AS39.35.680; (5) "teachers' retirement system" means the Teachers' Retirement System of Alaska (AS14.25). * Sec. 16. Sections 2, 3, and 11 of this Act are repealed July1, 1999. * Sec. 17. Sections 4- 7 and 9 of this Act are repealed July1, 1997. * Sec. 18. This Act takes effect immediately under AS01.10.070(c)." Senator Duncan moved for the adoption of Amendment No. 3. Objections were heard. The question being: "Shall Amendment No. 3 be adopted?" The roll was taken with the following result: CSSB 148(RLS) Second Reading Amendment No. 3 YEAS: 7 NAYS: 12 EXCUSED: 1 ABSENT: 0 Yeas: Adams, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff Nays: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Excused: Donley 1995-05-02 Senate Journal Page 1454 SB 148 and so, Amendment No. 3 failed. Senator Duncan offered Amendment No. 4 : Page 2, line 12: Delete "5.5" Insert "6.5" Page 3, line 2, through page 4, line 5: Delete all material. Renumber the following bill sections accordingly. Conform internal references to bill sections accordingly. Senator Duncan moved for the adoption of Amendment No. 4. Senator Miller objected. The question being: "Shall Amendment No. 4 be adopted?" The roll was taken with the following result: CSSB 148(RLS) Second Reading Amendment No. 4 YEAS: 7 NAYS: 12 EXCUSED: 1 ABSENT: 0 Yeas: Adams, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff Nays: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Excused: Donley and so, Amendment No. 4 failed. Senator Duncan offered Amendment No. 5 : Page 7, line 31: Delete "six" Insert "seven" 1995-05-02 Senate Journal Page 1455 SB 148 Page 10, lines 2 - 6: Delete "fighter for peace officers or fire fighters first hired before March31, 1996, or hired on or after that date by a nonparticipating employer; [, OR] (3) with at least 25 years of credited service as a peace officer or fire fighter for peace officers and fire fighters first hired on or after March31, 1996, other than employees of nonparticipating employers;" Insert "fighter; [,] or" Page 10, line 7: Delete "(4)" Insert "(3)" Page 10, line 9: Delete "; or" Insert "." Page 10, lines 10 - 11: Delete "(5) with a combination of age and years of credited service equal to or greater than 85." Senator Duncan moved for the adoption of Amendment No. 5. Objections were heard. The question being: "Shall Amendment No. 5 be adopted?" The roll was taken with the following result: CSSB 148(RLS) Second Reading Amendment No. 5 YEAS: 8 NAYS: 11 EXCUSED: 1 ABSENT: 0 Yeas: Adams, Duncan, Ellis, Hoffman, Kelly, Lincoln, Salo, Zharoff Nays: Frank, Green, Halford, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Excused: Donley and so, Amendment No. 5 failed. 1995-05-02 Senate Journal Page 1456 SB 148 Senator Duncan offered Amendment No. 6 : Page 8, line 7: Delete "five and one-half" Insert "six and one-half" Page 10, lines 7 - 11: Delete "(4) with at least 30 years of credited service for all other employees if the employee was first hired before March31, 1996, or if the employee was hired on or after that date by a nonparticipating employer; or (5) with a combination of age and years of credited service equal to or greater than 85." Insert "(4) with at least 30 years of credited service for all other employees." Senator Duncan moved for the adoption of Amendment No. 6. Objections were heard. The question being: "Shall Amendment No. 6 be adopted?" The roll was taken with the following result: CSSB 148(RLS) Second Reading Amendment No. 6 YEAS: 7 NAYS: 12 EXCUSED: 1 ABSENT: 0 Yeas: Adams, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff Nays: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Excused: Donley and so, Amendment No. 6 failed. Senator Duncan offered Amendment No. 7 : 1995-05-02 Senate Journal Page 1457 SB 148 Page 9, after line 27: Insert a new bill section to read: "* Sec. 15. AS39.35.345(d) is repealed and reenacted to read: (d) An employee may choose whether the credited service granted under this section is used to satisfy the credited service requirements for normal retirement or is only used for the calculation of benefits. An election under this subsection is irrevocable and applies to all temporary credited service that the employee has accrued when the employee retires." Renumber the following bill sections accordingly. Conform internal references to bill sections accordingly. Page 27, after line 25: Insert a new bill section to read: "* Sec. 42. A member of the public employees' retirement system who has claimed credited service under AS39.35.345 on or before the effective date of sec.15 of this Act may exercise the election established under AS39.35.345(d), as amended by sec. 15 of this Act, before the member is appointed to retirement." Renumber the following bill sections accordingly. Senator Duncan moved for the adoption of Amendment No. 7. Objections were heard. The question being: "Shall Amendment No. 7 be adopted?" The roll was taken with the following result: CSSB 148(RLS) Second Reading Amendment No. 7 YEAS: 7 NAYS: 12 EXCUSED: 1 ABSENT: 0 Yeas: Adams, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff Nays: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson 1995-05-02 Senate Journal Page 1458 SB 148 Excused: Donley and so, Amendment No. 7 failed. Senator Duncan offered Amendment No. 8 : Page 10, line 24, through page 11, line 12: Delete all material. Renumber the following bill sections accordingly. Conform internal references to bill sections accordingly. Senator Duncan moved for the adoption of Amendment No. 8. Objections were heard. The question being: "Shall Amendment No. 8 be adopted?" The roll was taken with the following result: CSSB 148(RLS) Second Reading Amendment No. 8 YEAS: 7 NAYS: 12 EXCUSED: 1 ABSENT: 0 Yeas: Adams, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff Nays: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Excused: Donley and so, Amendment No. 8 failed. Senator Duncan offered Amendment No. 9 : Page 10, line 27: Delete "one and one-half" Insert "two" Senator Duncan moved for the adoption of Amendment No. 9. Objections were heard. 1995-05-02 Senate Journal Page 1459 SB 148 The question being: "Shall Amendment No. 9 be adopted?" The roll was taken with the following result: CSSB 148(RLS) Second Reading Amendment No. 9 YEAS: 5 NAYS: 14 EXCUSED: 1 ABSENT: 0 Yeas: Adams, Duncan, Ellis, Lincoln, Zharoff Nays: Frank, Green, Halford, Hoffman, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Salo, Sharp, Taylor, Torgerson Excused: Donley Hoffman changed from "Yea" to "Nay". and so, Amendment No. 9 failed. Senator Duncan offered Amendment No. 10 : Page 5, lines 13 - 28: Delete all material. Renumber the following bill sections accordingly. Conform internal references to bill sections accordingly. Page 12, line 28, through page 13, line 12: Delete all material. Renumber the following bill sections accordingly. Conform internal references to bill sections accordingly. Senator Duncan moved for the adoption of Amendment No. 10. Objections were heard. The question being: "Shall Amendment No. 10 be adopted?" The roll was taken with the following result: 1995-05-02 Senate Journal Page 1460 SB 148 CSSB 148(RLS) Second Reading Amendment No. 10 YEAS: 7 NAYS: 12 EXCUSED: 1 ABSENT: 0 Yeas: Adams, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff Nays: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Excused: Donley and so, Amendment No. 10 failed. Senator Duncan offered Amendment No. 11 : Page 13, lines 13 - 26: Delete all material. Renumber the following bill sections accordingly. Conform internal references to bill sections accordingly. Senator Duncan moved for the adoption of Amendment No. 11. Objections were heard. The question being: "Shall Amendment No. 11 be adopted?" The roll was taken with the following result: CSSB 148(RLS) Second Reading Amendment No. 11 YEAS: 7 NAYS: 12 EXCUSED: 1 ABSENT: 0 Yeas: Adams, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff Nays: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Excused: Donley 1995-05-02 Senate Journal Page 1461 SB 148 and so, Amendment No. 11 failed. Senator Halford moved that the bill be considered engrossed, advanced to third reading and placed on final passage. Senator Duncan objected. Senator Duncan rose to a point of order. President Pearce ruled the point well taken. The question being: "Shall the bill be advanced to third reading?" The roll was taken with the following result: CSSB 148(RLS) Advance from Second to Third Reading? YEAS: 12 NAYS: 7 EXCUSED: 1 ABSENT: 0 Yeas: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Nays: Adams, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff Excused: Donley and so, the bill failed to advance to third reading. CS FOR SENATE BILL NO. 148(RLS) will appear on the May 3 calendar.