Legislature(2007 - 2008)
2007-04-16 House Journal
Full Journal pdf2007-04-16 House Journal Page 0800 HB 206 The House Special Committee on Ways & Means considered: HOUSE BILL NO. 206 "An Act relating to the accounting and payment of contributions under the defined benefit plan of the Public Employees' Retirement System of Alaska, to calculations of contributions under that defined benefit plan, and to participation in, and termination of and amendments to participation in, that defined benefit plan; making conforming amendments; and providing for an effective date." and recommends it be replaced with: CS FOR HOUSE BILL NO. 206(W&M) (same title) 2007-04-16 House Journal Page 0801 The report was signed by Representative Hawker, Chair, with the following individual recommendations: No recommendation (5): Fairclough, Wilson, Cissna, Gruenberg, Hawker Amend (2): Roses, Seaton A House Special Committee on Ways & Means letter of intent for CSHB 206(W&M), signed by Representative Hawker, Chair, follows: "The House Special Committee on Ways and Means moved House Bill 206 (HB 206) out of committee in order to allow the House Finance Committee to consider the cost-share provisions contained therein concurrently with other legislation regarding pension financing and payment of the unfunded accrued actuarial liability (UAAL). HB 206 changes the defined benefit plan of the Public Employees' Retirement System of Alaska (PERS) to an employer cost-sharing program similar to the teachers' retirement system (TRS). The bill does not contain provisions to equalize allocation of the UAAL or recognize excess contributions already made in good faith by employers in order to reduce their UAAL and, consequently, their contribution rates. For some employers, passage of HB 206 could increase their required contribution rates and will provide a disincentive to remain in the PERS plan. The proposal offered in HB 206 also does not provide long-term assurance of a fixed maximum annual contribution rate for employers. While these issues and possible alternatives were discussed, the House Special Committee on Ways and Means decided to move the plan offered by the administration in HB 206 along with this expression of concern regarding that approach. Representative Paul Seaton presented one approach to address these concerns which has been forwarded to the House Finance Committee. It is the recommendation of the committee that the House Finance Committee seek a solution that provides parity and assurance of contribution rates for employers." 2007-04-16 House Journal Page 0802 The following fiscal note(s) apply to CSHB 206(W&M): 1. Indeterminate, Dept. of Administration HB 206 was referred to the Finance Committee.