Legislature(2013 - 2014)BARNES 124
04/09/2014 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| Board of Professional Counselors | |
| HB206 | |
| HB116 | |
| HB384 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | HB 206 | TELECONFERENCED | |
| += | HB 116 | TELECONFERENCED | |
| += | HB 203 | TELECONFERENCED | |
| *+ | HB 384 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 116-PERS CREDIT FOR MILITARY SERVICE
3:52:59 PM
CHAIR OLSON announced that the next order of business would be
HOUSE BILL NO. 116, "An Act relating to the use of credited
military service by retired peace officers and firefighters to
meet certain requirements for major medical insurance coverage;
and providing for an effective date."
3:53:55 PM
VASILIOS GIALOPSOS, Staff to Representative Charisse Millett,
stated that HB 116 would be an option under PERS Tier II and III
for peace officers and firefighters who are veterans of the
armed forces to opt to purchase time up to five years towards
medical retirement benefits. He said this would create a
separate indebtedness in comparison to the existing PERS buy-
back provisions for PERS retirement. He stated that one change
in Version U of HB 116 [not yet before the committee] can be
found on page 2, [lines 28-30], of proposed Section 3, which
adds subsection (b). This amendment was suggested by the
Division of Retirement & Benefits in order for the intent of the
bill to take effect. He deferred to the division to explain the
effect.
3:55:13 PM
REPRESENTATIVE REINBOLD moved to adopt the proposed committee
substitute (CS) for HB 116, labeled 28-LS0398\U, Wayne, 2/25/14
as the working document.
CHAIR OLSON objected for the purpose of discussion.
3:55:30 PM
MR. GIALOPSOS referred to page 2, lines 28-30, of proposed
Section 3, which adds subsection (b). He deferred to the
Division of Retirement & Benefits to explain the effect.
3:55:44 PM
KATHY LEA, Chief Pension Officer, Division of Retirement and
Benefits, Department of Administration, stated the new
subsection [in Version U] clarifies that the costs calculated
for [AS 39.35.340] (j) are not in addition to any costs outlined
in subsection (b). Thus, there are not two costs to claim
military service for health eligibility, so only one cost will
be charged.
3:56:42 PM
REPRESENTATIVE CHENAULT asked for clarification on the fiscal
note explanation.
MS. LEA answered that HB 116 has a zero fiscal note. The cost
to using up to five years to count towards health eligible is
borne entirely by the member. It is an actuarial cost at time
of his/her retirement. Since there isn't any impact on the
system, the division submitted a zero fiscal note.
3:57:26 PM
CHAIR OLSON asked if it would be similar to the military buy in.
MS. LEA answered yes.
3:57:36 PM
REPRESENTATIVE CHENAULT referred to page 2, [Section 3], of HB
116. He asked what this language means and how it will affect a
peace officer who is retiring, and to further explain how that
would affect their retirement payments of benefits.
MS. LEA explained a provision in PERS states that any claim for
service which will reduce a member's payment below what it would
be absent claiming the service cannot use the service. This
paragraph refers to that provision. The division would want to
be able to use the service whether or not it had an effect on
the benefit.
3:58:42 PM
REPRESENTATIVE CHENAULT asked whether that was the reason for
the language change in Version U.
MS. LEA, after first mulling it over, answered yes.
3:59:34 PM
REPRESENTATIVE MILLETT pointed out that the profession of police
officer is a "young man's job," which is a reason for this bill.
She anticipated this bill is a cost savings measure. It will
allow police officers and firefighters to buy up to five years
of military medical service as a "buy back." In turn, this
allows municipalities to hire lower cost employees. She said
that she did not wish to disrespect any older officers.
4:01:16 PM
CHAIR OLSON, after first determining no one else wished to
testify, closed public testimony on HB 116.
CHAIR OLSON removed his objection.
REPRESENTATIVE JOSEPHSON said he was glad to see the bill again
in committee. He characterized the bill as a "win-win" that
gives great discretion to the firefighters and police officers
to choose whether to use the program.
4:02:18 PM
REPRESENTATIVE REINBOLD moved to report the proposed committee
substitute (CS) for HB 116, labeled 28-LS0398\U, Wayne, 2/25/14
out of committee with individual recommendations and the
accompanying fiscal notes. There being no objection, CSHB
116(L&C) was reported from the House Labor and Commerce Standing
Committee.