Legislature(2025 - 2026)
2025-05-10 House Journal
Full Journal pdf2025-05-10 House Journal Page 1090 HB 78 The following was read the second time: HOUSE BILL NO. 78 "An Act relating to the Public Employees' Retirement System of Alaska and the teachers' retirement system; providing certain employees an opportunity to choose between the defined benefit and defined contribution plans of the Public Employees' Retirement System of Alaska and the teachers' retirement system; and providing for an effective date." 2025-05-10 House Journal Page 1091 with the: Journal Page FIN RPT CS(FIN) NEW TITLE 6DP 3DNP 2AM 1066 FN1: (ADM) 1066 FN2: (ADM/VARIOUS DEPTS) 1066 Representative Kopp moved and asked unanimous consent that the following committee substitute be adopted in lieu of the original bill: CS FOR HOUSE BILL NO. 78(FIN) "An Act relating to the public employees' retirement system and the teachers' retirement system; providing certain employees an opportunity to choose between the defined benefit and defined contribution plans of the public employees' retirement system and the teachers' retirement system; and providing for an effective date." There being no objection, it was so ordered. Amendment No. 1 was offered by Representative Saddler: Page 1, line 4, following "system;" (title amendment): Insert "relating to supplemental employee benefits;" Page 28, following line 24: Insert new bill sections to read: "* Sec. 44. AS 39.30.170(a) is amended to read: (a) An employer in the teachers' retirement system (AS 14.25) or the Public Employees' Retirement System of Alaska (AS 39.35) that does not participate in the federal social security system may become a participating employer in the employee benefits program under AS 39.30.150 - 39.30.180; however, an employee who is a member of the teachers' retirement system may choose not to participate in the employee benefits program under AS 39.30.150 - 39.30.180 [, IF (1) THE EMPLOYER PARTICIPATES AS AN EMPLOYER IN THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM UNDER AS 39.35; AND (2) THE EMPLOYER 2025-05-10 House Journal Page 1092 (A) IS ELIGIBLE FOR MEMBERSHIP IN BUT HAS NEVER ELECTED TO BECOME A MEMBER OF THE FEDERAL SOCIAL SECURITY SYSTEM; OR (B) WITHDRAWS FROM MEMBERSHIP IN THE FEDERAL SOCIAL SECURITY SYSTEM]. * Sec. 45. AS 39.30.180(3) is amended to read: (3) "participating employer" means (A) the State of Alaska; [AND] (B) an employer who (i) [WHO] is an employer as defined in AS 14.25.220, 14.25.590, AS 39.35.680, or 39.35.990; and (ii) does not participate [WHO HAS NEVER PARTICIPATED IN OR HAS WITHDRAWN FROM PARTICIPATION] in the federal social security system [; AND (iii) WHOSE PARTICIPATION IN THE SUPPLEMENTAL EMPLOYEE BENEFIT PROGRAM HAS BEEN APPROVED BY THE COMMISSIONER]." Renumber the following bill sections accordingly. Page 52, line 21: Delete "and 40 - 96" Insert ", 40 - 43, and 46 - 98" Page 52, line 27: Delete "Section 97" Insert "Section 99" Page 52, line 28: Delete "sec. 98" Insert "sec. 100" Representative Saddler moved and asked unanimous consent that Amendment No. 1 be adopted. Representative Kopp objected. 2025-05-10 House Journal Page 1093 Representative Kopp moved and asked unanimous consent to abstain from voting because of a conflict of interest. Objection was heard, and he was required to vote. The question being: "Shall Amendment No. 1 be adopted?" The roll was taken with the following result: CSHB 78(FIN) Second Reading Amendment No. 1 YEAS: 17 NAYS: 21 EXCUSED: 2 ABSENT: 0 Yeas: Allard, Bynum, Costello, Coulombe, Elam, Johnson, McCabe, Moore, Prax, Ruffridge, Saddler, Schwanke, Stapp, Tilton, Tomaszewski, Underwood, Vance Nays: Burke, Carrick, Dibert, Edgmon, Eischeid, Fields, Foster, Galvin, Gray, Hall, Hannan, Himschoot, Holland, Jimmie, Josephson, Kopp, Mears, Mina, Schrage, Story, Stutes Excused: Nelson, Rauscher And so, Amendment No. 1 was not adopted. Amendment No. 2 was offered by Representative Josephson: Page 2, line 3: Delete "2025" Insert "2026" Page 3, line 3: Delete "2025" Insert "2026" Page 3, line 7: Delete "2025" Insert "2026" Page 3, line 8: Delete "2025" Insert "2026" 2025-05-10 House Journal Page 1094 Page 3, line 24: Delete "2025" Insert "2026" Page 3, line 25: Delete "2025" Insert "2026" Page 3, line 26: Delete "2025" Insert "2026" Page 14, line 22: Delete "may" Insert "shall" Page 15, line 27: Delete "30" Insert "25" Page 20, line 11: Delete "2025" Insert "2026" Page 20, line 26: Delete "2025" Insert "2026" Page 25, line 4: Delete "2025" Insert "2026" Page 32, line 30: Delete "2025" Insert "2026" Page 33, line 2: Delete "2025" Insert "2026" 2025-05-10 House Journal Page 1095 Page 33, line 5: Delete "2025" Insert "2026" Page 33, line 8: Delete "2025" Insert "2026" Page 33, line 9: Delete "2025" Insert "2026" Page 34, line 2: Delete "2025" in both places Insert "2026" in both places Page 34, line 3: Delete "2025" Insert "2026" Page 43, line 6: Delete "may" Insert "shall" Page 45, line 18: Delete "25" Insert "20" Page 45, line 22: Delete "30" Insert "25" Page 49, line 26: Delete "2025" Insert "2026" Page 50, line 10: Delete "2025" Insert "2026" 2025-05-10 House Journal Page 1096 Page 51, line 22: Delete "2025" in both places Insert "2026" in both places Page 51, line 24: Delete "2026" Insert "2027" Page 52, line 2: Delete "2025" Insert "2026" Page 52, line 3: Delete "2025" Insert "2026" Page 52, line 4: Delete "2026" Insert "2027" Page 52, line 28: Delete "2025" Insert "2026" Representative Josephson moved and asked unanimous consent that Amendment No. 2 be adopted. Representative McCabe objected. Representative Costello moved and asked unanimous consent to divide the question. Representative Kopp objected. The question being: "Shall Amendment No. 2 be divided?" The roll was taken with the following result: CSHB 78(FIN) Second Reading Amendment No. 2 Divide the Question 2025-05-10 House Journal Page 1097 YEAS: 15 NAYS: 23 EXCUSED: 2 ABSENT: 0 Yeas: Bynum, Costello, Coulombe, Elam, Johnson, McCabe, Moore, Prax, Ruffridge, Saddler, Stapp, Tilton, Tomaszewski, Underwood, Vance Nays: Allard, Burke, Carrick, Dibert, Edgmon, Eischeid, Fields, Foster, Galvin, Gray, Hall, Hannan, Himschoot, Holland, Jimmie, Josephson, Kopp, Mears, Mina, Schrage, Schwanke, Story, Stutes Excused: Nelson, Rauscher And so, the motion failed. Amendment No. 1 to Amendment No. 2 was offered by Representatives Kopp and Josephson: Page 3, lines 27-29 of the amendment: Delete all material and insert: "Page 45, line 17-21: Delete all material and insert: "(1) is at least 50 years of age and has at least 20 years of membership service as a peace officer or firefighter;"" Representative Kopp moved and asked unanimous consent that Amendment No. 1 to Amendment No. 2 be adopted. Objection was heard and withdrawn. There being no further objection, Amendment No. 1 to Amendment No. 2 was adopted. Representative McCabe rose to a point of order regarding conflicts of interest. The Speaker stated that the conflict of interest had been disclosed, objections heard, and no further action was needed. The question being: "Shall Amendment No. 2 as amended be adopted?" The roll was taken with the following result: CSHB 78(FIN) Second Reading Amendment No. 2 as amended 2025-05-10 House Journal Page 1098 YEAS: 21 NAYS: 17 EXCUSED: 2 ABSENT: 0 Yeas: Burke, Carrick, Dibert, Edgmon, Eischeid, Fields, Foster, Galvin, Gray, Hall, Hannan, Himschoot, Holland, Jimmie, Josephson, Kopp, Mears, Mina, Schrage, Story, Stutes Nays: Allard, Bynum, Costello, Coulombe, Elam, Johnson, McCabe, Moore, Prax, Ruffridge, Saddler, Schwanke, Stapp, Tilton, Tomaszewski, Underwood, Vance Excused: Nelson, Rauscher And so, Amendment No. 2 as amended was adopted. Amendment No. 3 was offered by Representative Ruffridge: Page 12, line 20: Delete "60" Insert "62" Delete "five" Insert "10" Page 42, line 6: Delete "60" Insert "62" Delete "five" Insert "10" Representative Ruffridge moved and asked unanimous consent that Amendment No. 3 be adopted. There was objection. The question being: "Shall Amendment No. 3 be adopted?" The roll was taken with the following result: CSHB 78(FIN) am Second Reading Amendment No. 3 YEAS: 16 NAYS: 22 EXCUSED: 2 ABSENT: 0 2025-05-10 House Journal Page 1099 Yeas: Bynum, Costello, Coulombe, Elam, Johnson, McCabe, Moore, Prax, Ruffridge, Saddler, Schwanke, Stapp, Tilton, Tomaszewski, Underwood, Vance Nays: Allard, Burke, Carrick, Dibert, Edgmon, Eischeid, Fields, Foster, Galvin, Gray, Hall, Hannan, Himschoot, Holland, Jimmie, Josephson, Kopp, Mears, Mina, Schrage, Story, Stutes Excused: Nelson, Rauscher And so, Amendment No. 3 was not adopted. Amendment No. 4 was offered by Representative Ruffridge: Page 7, line 26: Delete "eight" Insert "10" Page 7, line 29: Delete "eight" Insert "10" Page 37, line 18: Delete "eight" Insert "10" Page 37, line 21: Delete "eight" Insert "10" Representative Ruffridge moved and asked unanimous consent that Amendment No. 4 be adopted. There was objection. The question being: "Shall Amendment No. 4 be adopted?" The roll was taken with the following result: CSHB 78(FIN) am Second Reading Amendment No. 4 YEAS: 16 NAYS: 22 EXCUSED: 2 ABSENT: 0 2025-05-10 House Journal Page 1100 Yeas: Bynum, Costello, Coulombe, Elam, Johnson, McCabe, Moore, Prax, Ruffridge, Saddler, Schwanke, Stapp, Tilton, Tomaszewski, Underwood, Vance Nays: Allard, Burke, Carrick, Dibert, Edgmon, Eischeid, Fields, Foster, Galvin, Gray, Hall, Hannan, Himschoot, Holland, Jimmie, Josephson, Kopp, Mears, Mina, Schrage, Story, Stutes Excused: Nelson, Rauscher And so, Amendment No. 4 was not adopted. Amendment No. 5 was offered by Representative Ruffridge: Page 51, line 31, following "subsection.": Insert "However, regardless of how many members of the defined contribution retirement plan timely elect to participate in the defined benefit retirement plan under this subsection, the administrator of the teachers' retirement system may not transfer more than 25 percent of eligible members from the defined contribution retirement plan to the defined benefit retirement plan in a fiscal year. The administrator shall prioritize transfers based on seniority as determined by date of hire." Page 52, line 12, following "subsection.": Insert "However, regardless of how many members of the defined contribution retirement plan timely elect to participate in the defined benefit retirement plan under this subsection, the administrator of the public employees' retirement system under AS 39.35 may not transfer more than 25 percent of eligible members from the defined contribution retirement plan to the defined benefit retirement plan in a fiscal year. The administrator shall prioritize transfers based on seniority as determined by date of hire." Representative Ruffridge moved and asked unanimous consent that Amendment No. 5 be adopted. Representative Kopp objected. The question being: "Shall Amendment No. 5 be adopted?" The roll was taken with the following result: 2025-05-10 House Journal Page 1101 CSHB 78(FIN) am Second Reading Amendment No. 5 YEAS: 13 NAYS: 25 EXCUSED: 2 ABSENT: 0 Yeas: Coulombe, Elam, Johnson, McCabe, Moore, Prax, Ruffridge, Saddler, Schwanke, Stapp, Tomaszewski, Underwood, Vance Nays: Allard, Burke, Bynum, Carrick, Costello, Dibert, Edgmon, Eischeid, Fields, Foster, Galvin, Gray, Hall, Hannan, Himschoot, Holland, Jimmie, Josephson, Kopp, Mears, Mina, Schrage, Story, Stutes, Tilton Excused: Nelson, Rauscher And so, Amendment No. 5 was not adopted. Amendment No. 6 was offered by Representative Stapp: Page 9, line 6, following "employer": Insert ", except as provided in (j) of this section," Page 9, line 20: Delete "a new subsection" Insert "new subsections" Page 9, line 22: Delete the second occurrence of "contribution" Insert "contributions" Following "(a)": Insert "and (j)" Page 9, following line 23: Insert a new subsection to read: "(j) In addition to a contribution an employer may be required to make under (a) of this section for employees who became members of the system before July 1, 2025, each employer that employs employees who first became members of the plan after June 30, 2025, shall contribute to the system every payroll period an amount calculated by applying a rate established by the board under AS 37.10.220 to the total of all base salaries paid by the employer to active members of the system. The rate 2025-05-10 House Journal Page 1102 must be sufficient to pay the actuarially determined employer normal cost, all contributions required under AS 39.30.370 and AS 39.35.750, and past service costs for members of the system. This subsection does not apply to the state as an employer." Page 39, line 26, following "(h)": Insert "and (k)" Page 40, line 17: Delete "a new subsection" Insert "new subsections" Page 40, line 19: Delete the second occurrence of "contribution" Insert "contributions" Following "(a)": Insert "and (k)" Page 40, following line 20: Insert a new subsection to read: "(k) In addition to a contribution an employer may be required to make under (a) of this section for employees who became members of the system before July 1, 2025, each employer that employs employees who first became members of the plan after June 30, 2025, shall contribute to the system every payroll period an amount calculated by applying a rate established by the board under AS 37.10.220 to the total of all base salaries paid by the employer to active members of the system. The rate must be sufficient to pay the actuarially determined employer normal cost, all contributions required under AS 39.30.370 and AS 39.35.750, and past service costs for members of the system. This subsection does not apply to the state as an employer." Representative Stapp moved and asked unanimous consent that Amendment No. 6 be adopted. Representative Kopp objected. Representative Allard rose to a point of order regarding the germaneness of the debate. 2025-05-10 House Journal Page 1103 The Speaker stated that the debate was germane and directed the member to continue. The question being: "Shall Amendment No. 6 be adopted?" The roll was taken with the following result: CSHB 78(FIN) am Second Reading Amendment No. 6 YEAS: 17 NAYS: 21 EXCUSED: 2 ABSENT: 0 Yeas: Allard, Bynum, Costello, Coulombe, Elam, Johnson, McCabe, Moore, Prax, Ruffridge, Saddler, Schwanke, Stapp, Tilton, Tomaszewski, Underwood, Vance Nays: Burke, Carrick, Dibert, Edgmon, Eischeid, Fields, Foster, Galvin, Gray, Hall, Hannan, Himschoot, Holland, Jimmie, Josephson, Kopp, Mears, Mina, Schrage, Story, Stutes Excused: Nelson, Rauscher And so, Amendment No. 6 was not adopted. Amendment No. 7 was offered by Representative Stapp: Page 8, lines 12 - 14: Delete "The board may not increase the member contribution unless the board increases the employer contribution under AS 14.24.070(a)(2) by an equal amount." Page 38, lines 3 - 5: Delete "The board may not increase the employee contribution unless the board increases the employer contribution under AS 39.35.255(a)(2) by an equal amount." Representative Stapp moved and asked unanimous consent that Amendment No. 7 be adopted. Representative Kopp objected. Representative Stapp moved and asked unanimous consent to withdraw Amendment No. 7. There being no objection, it was so ordered.