2015-03-04                     House Journal                      Page 0363
HB 135                                                                                                                        
HOUSE BILL NO. 135 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         
                                                                                                                                
     "An Act establishing a Roth contribution program for the public                                                            
     employees' deferred compensation program; and providing for an                                                             
     effective date."                                                                                                           
                                                                                                                                
was read the first time and referred to the Labor & Commerce and                                                                
Finance Committees.                                                                                                             
                                                                                                                                

2015-03-04                     House Journal                      Page 0364
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1.  Zero, Dept. of Administration                                                                                               
                                                                                                                                
                                                                                                                                
The Governor's transmittal letter dated March 3, 2015, follows:                                                                 
                                                                                                                                
                                                                                                                                
"Dear Speaker Chenault:                                                                                                         
                                                                                                                                
Under the authority of Article III, Section 18 of the Alaska                                                                    
Constitution, I am transmitting a bill relating to the establishment of a                                                       
Roth contribution program for the public employees' deferred                                                                    
compensation program.                                                                                                           
                                                                                                                                
Currently, AS 39.45.050 only allows deferred tax contributions to be                                                            
made on behalf of participating employees under the public                                                                      
employees' deferred compensation program (program). Deferred                                                                    
contributions are contributions that are not taxed until the participating                                                      
employee begins receiving benefits under the program. The bill would                                                            
allow Roth contributions in addition to deferred tax contributions.                                                             
Roth contributions are contributions made post-tax, thereby                                                                     
eliminating the tax liability at the time of retirement.                                                                        
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor"