Legislature(2005 - 2006)
2005-04-11 Senate Journal
Full Journal pdf2005-04-11 Senate Journal Page 0880 SB 141 CS FOR SENATE BILL NO. 141(FIN) "An Act relating to the teachers' and public employees' retirement systems and creating defined contribution and health reimbursement plans for members of the teachers' retirement system and the public employees' retirement system who are first hired after July 1, 2005; relating to university retirement programs; establishing the Alaska Retirement Management 2005-04-11 Senate Journal Page 0881 Board to replace the Alaska State Pension Investment Board, the Alaska Teachers' Retirement Board, and the Public Employees' Retirement Board; adding appeals of the decisions of the administrator of the teachers' and public employees' retirement systems to the jurisdiction of the office of administrative hearings; providing for nonvested members of the teachers' retirement system defined benefit plans to transfer into the teachers' retirement system defined contribution plan and for nonvested members of the public employees' retirement system defined benefit plans to transfer into the public employees' retirement system defined contribution plan; providing for political subdivisions and public organizations to request to participate in the public employees' defined contribution retirement plan; and providing for an effective date" was read the third time. Senator Hoffman moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 1. Without objection, the bill was returned to second reading. Senator Hoffman offered Amendment No. 1 : Page 7, lines 9 - 30: Delete all material. Renumber the following bill sections accordingly. Page 8, lines 8 - 11: Delete all material. Renumber the following bill sections accordingly. Page 68, line 15, through page 69, line 13: Delete all material. Renumber the following bill sections accordingly. Page 72, lines 4 - 7: Delete all material. Renumber the following bill sections accordingly. Page 105, line 23: Delete "sec. 59" Insert "sec. 56" 2005-04-11 Senate Journal Page 0882 Page 109, line 19: Delete "SECTIONS 139 AND 140" Insert "SECTIONS 133 AND 134" Page 109, line 20: Delete "secs. 139 and 140" Insert "secs. 133 and 134" Page 109, lines 21 - 22: Delete "secs. 139 and 140" Insert "secs. 133 and 134" Page 109, line 23: Delete "Sections 11, 12, 14, 15, 20, 89 - 94, 107, 114, and 131" Insert "Sections 8, 9, 11, 12, 17, 84 - 89, 101, 108, and 125" Page 109, line 25: Delete "Section 141" Insert "Section 135" Page 109, line 26: Delete "secs. 142 and 143" Insert "secs. 136 and 137" Senator Hoffman moved for the adoption of Amendment No. 1. Senator Green objected. The question being: "Shall Amendment No. 1 be adopted?" The roll was taken with the following result: CSSB 141(FIN) Second Reading Amendment No. 1 YEAS: 8 NAYS: 12 EXCUSED: 0 ABSENT: 0 Yeas: Davis, Ellis, Elton, French, Guess, Hoffman, Kookesh, Olson Nays: Bunde, Cowdery, Dyson, Green, Huggins, Seekins, Stedman, Stevens B, Stevens G, Therriault, Wagoner, Wilken and so, Amendment No. 1 failed. 2005-04-11 Senate Journal Page 0883 CS FOR SENATE BILL NO. 141(FIN) was automatically in third reading. Senator Olson moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 2. Without objection, the bill was returned to second reading. Senator Olson offered Amendment No. 2 : Page 46, line 14, through page 47, line 24: Delete all material and insert: "(b) The Alaska Retirement Management Board consists of nine trustees. The commissioner of administration and the commissioner of revenue shall serve on the board. Four trustees shall be appointed by the governor and three shall be elected from the membership of state retirement systems. (c) The governor shall appoint four trustees who meet the eligibility requirements for an Alaska permanent fund dividend and who are professionally credentialed or have recognized competence in investment management, finance, banking, economics, accounting, pension administration, or actuarial analysis as follows: (1) two trustees shall be appointed from the general public; a trustee appointed under this paragraph may not hold another state office, position, or employment and may not be a member or beneficiary of a retirement system managed by the board; (2) one trustee shall be employed as a finance officer for a political subdivision participating in the public employees' retirement system; (3) one trustee shall be employed as a finance officer for a political subdivision participating in the teachers' retirement system. (d) Two trustees shall be members of the public employees' retirement system elected by members of the public employees' retirement system. One trustee shall be a member of the teachers' retirement system elected by members of the teachers' retirement system. Elections shall be conducted by the board. A candidate shall be professionally credentialed or have recognized competence in 2005-04-11 Senate Journal Page 0884 investment management, finance, banking, economics, accounting, pension administration, or actuarial analysis. The candidate who receives the most votes cast in the election is elected to the seat. If two seats are to be filled at the election, the candidate who receives the highest number of votes cast and the candidate who receives the second highest number of votes cast are elected to the seats. The term of office of an elected member is three years. The governor shall fill a vacancy in an unexpired elective term by appointment for the period remaining before the next regularly scheduled election held under this subsection. The term limitations of (e)(1) of this section do not apply to trustees elected under this subsection. (e) The trustees appointed under (c) of this section (1) shall serve for staggered terms of three years and may be reappointed to the board for a total of three consecutive terms; a person who has served three consecutive terms may not be reappointed to the board for at least one year; (2) may be removed by the governor for cause by written notice; after a trustee receives written notice of removal, the trustee may not participate in board business and may not be counted for purposes of establishing a quorum. (f) A vacancy on the board of trustees appointed to the board under (e)(2) of this section shall be promptly filled. A person filling a vacancy holds office for the balance of the unexpired term of the person's predecessor, and the balance of the unexpired term served is not included in the three-term limitation under (e)(1) of this section. A vacancy on the board does not impair the authority of a quorum of the board to exercise all the powers and perform all the duties of the board. (g) Five trustees constitute a quorum for the transaction of business and the exercise of the powers and duties of the board. (h) A trustee may not designate another person to serve on the board in the absence of the trustee. 2005-04-11 Senate Journal Page 0885 (i) The board shall provide annual training to its members on the duties and powers of a fiduciary of a state fund and other training as necessary to keep the members of the board educated about pension management and investment. (j) The board shall elect a trustee to serve as chair and a trustee to serve as vice-chair for one-year terms. A trustee may be reelected to serve additional terms as chair or vice- chair." Page 105, lines 19 - 26: Delete all material and insert: "* Sec. 132. The uncodified law of the State of Alaska is amended by adding a new section to read: TRANSITION: INITIAL STAGGERED TERMS OF TRUSTEES OF THE ALASKA RETIREMENT SECURITY AND PORTABILITY BOARD. (a) Notwithstanding AS 37.10.210(e), as repealed and reenacted by sec. 59 of this Act, in making the initial appointments under AS 37.10.210(c), as repealed and reenacted by sec. 59 of this Act, the governor shall appoint one member for one year, one member for two years and two members for three years. (b) Notwithstanding AS 37.10.210(d), as repealed and reenacted by sec. 59 of this Act, the initial term of the candidate who receives the highest number of votes cast in a two-seat election shall be elected to a three-year term, and the candidate in a two-seat election who receives the second highest number of votes cast shall be elected to a one-year term. The initial term of a candidate who receives the highest number of votes cast in a one seat election shall be two years." Senator Olson moved for the adoption of Amendment No. 2. Senator Green objected. The question being: "Shall Amendment No. 2 be adopted?" The roll was taken with the following result: 2005-04-11 Senate Journal Page 0886 CSSB 141(FIN) Second Reading Amendment No. 2 YEAS: 8 NAYS: 12 EXCUSED: 0 ABSENT: 0 Yeas: Davis, Ellis, Elton, French, Guess, Hoffman, Kookesh, Olson Nays: Bunde, Cowdery, Dyson, Green, Huggins, Seekins, Stedman, Stevens B, Stevens G, Therriault, Wagoner, Wilken and so, Amendment No. 2 failed. CS FOR SENATE BILL NO. 141(FIN) was automatically in third reading. The question being: "Shall CS FOR SENATE BILL NO. 141(FIN) "An Act relating to the teachers' and public employees' retirement systems and creating defined contribution and health reimbursement plans for members of the teachers' retirement system and the public employees' retirement system who are first hired after July 1, 2005; relating to university retirement programs; establishing the Alaska Retirement Management Board to replace the Alaska State Pension Investment Board, the Alaska Teachers' Retirement Board, and the Public Employees' Retirement Board; adding appeals of the decisions of the administrator of the teachers' and public employees' retirement systems to the jurisdiction of the office of administrative hearings; providing for nonvested members of the teachers' retirement system defined benefit plans to transfer into the teachers' retirement system defined contribution plan and for nonvested members of the public employees' retirement system defined benefit plans to transfer into the public employees' retirement system defined contribution plan; providing for political subdivisions and public organizations to request to participate in the public employees' defined contribution retirement plan; and providing for an effective date" pass the Senate?" The roll was taken with the following result: 2005-04-11 Senate Journal Page 0887 CSSB 141(FIN) Third Reading - Final Passage YEAS: 12 NAYS: 8 EXCUSED: 0 ABSENT: 0 Yeas: Bunde, Cowdery, Dyson, Green, Huggins, Seekins, Stedman, Stevens B, Stevens G, Therriault, Wagoner, Wilken Nays: Davis, Ellis, Elton, French, Guess, Hoffman, Kookesh, Olson and so, CS FOR SENATE BILL NO. 141(FIN) passed the Senate. Senator Gary Stevens moved for the adoption of the effective date clauses. The question being: "Shall the effective date clauses be adopted?" The roll was taken with the following result: CSSB 141(FIN) Effective Date Clauses YEAS: 20 NAYS: 0 EXCUSED: 0 ABSENT: 0 Yeas: Bunde, Cowdery, Davis, Dyson, Ellis, Elton, French, Green, Guess, Hoffman, Huggins, Kookesh, Olson, Seekins, Stedman, Stevens B, Stevens G, Therriault, Wagoner, Wilken and so, the effective date clauses were adopted. Senator Elton gave notice of reconsideration.