04/16/2016 09:00 AM Senate FINANCE

CS FOR HOUSE BILL NO. 83(JUD)                                                                                                 
                                                                                                                                
     "An Act relating to  collecting information about civil                                                                    
     litigation  by the  Alaska Judicial  Council; repealing                                                                    
     Rule  41(a)(3), Alaska  Rules of  Civil Procedure,  and                                                                    
     Rules  511(c)  and  (e),   Alaska  Rules  of  Appellate                                                                    
     Procedure; and providing for an effective date."                                                                           
                                                                                                                                
9:21:13 AM                                                                                                                    
                                                                                                                                
Vice-Chair   Micciche   discussed   the   three   previously                                                                    
published fiscal notes.                                                                                                         
                                                                                                                                
9:22:33 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GABRIELLE  LEDOUX,  SPONSOR,  discussed  the                                                                    
legislation:                                                                                                                    
                                                                                                                                
      In  2005, Alaska  moved away  from  a defined  benefit                                                                    
     (DB) to  a defined contribution (DC)  retirement system                                                                    
     for public  employees hired after July  1st, 2006. Both                                                                    
     the  DB and  DC  plans contain  risks  and benefits  to                                                                    
     employees  and  employers. With  a  DB  plan comes  the                                                                    
     advantage  of  professional   money  management,  lower                                                                    
     fees, pooled risk and  long term investment strategies.                                                                    
     However,   employers   carry    significant   risk   if                                                                    
     investment returns fall  short or actuarial predictions                                                                    
     prove inaccurate, which they are  shielded from in a DC                                                                    
     plan.  Taking  both  of  these   points  of  view  into                                                                    
     account, the Variable  Benefit Retirement System (VBRS)                                                                    
     was developed.                                                                                                             
                                                                                                                                
     The goal  of the  VBRS is to  fund a  retirement system                                                                    
     for  public  safety   employees  through  employee  and                                                                    
     employer  contributions  that  will provide  for  self-                                                                    
     sufficient   retirees   and   protect   employers   and                                                                    
     taxpayers from  the liability suffered in  the event of                                                                    
     plan  shortfalls. It  affords  public safety  employees                                                                    
     the distinct  advantages and efficiencies of  a DB plan                                                                    
     by guaranteeing  a benefit  level and  medical stipend,                                                                    
     and  affords   employers  the  fiscal   discipline  and                                                                    
     control  of  a  DC  plan by  maintaining  a  fixed  22%                                                                    
     employer contribution  and adjusting benefit  levels to                                                                    
     address  any changes  in the  size of  the fund.  Other                                                                    
     features of the plan include:                                                                                              
                                                                                                                                
                                                                                                                                
          ages,  adjustable medical  stipend and  adjustable                                                                    
          employees   contribution   rates  to   deal   with                                                                    
          shortfalls and maintain a healthy fund