Legislature(2025 - 2026)SENATE FINANCE 532
04/14/2025 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB57 | |
| Presentation: Department of Administration – Division of Reitrment and Benefits | |
| SB55 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 55 | TELECONFERENCED | |
| += | SB 57 | TELECONFERENCED | |
SENATE BILL NO. 55
"An Act relating to employer contributions in the
teachers' retirement system; relating to supplemental
employee benefits; and providing for an effective
date."
10:19:18 AM
Co-Chair Hoffman relayed that SB 55 was previously heard on
April 8. The committee would hear public testimony.
10:20:03 AM
ROSE FOLEY, STAFF, SENATOR BERT STEDMAN, explained that SB
55 was an attempt to create a more equitable retirement
system for the two retirement systems of the state, PERS
and TRS. The bill would allow for those under the TRS plan
to join SBS or Social Security.
Co-Chair Bert Stedman, Sponsor, commented that the bill
recognized that teachers were not in Social Security or
SBS, which left their retirement lacking. He considered
the retirement system for the teacher sonly invested 15
percent of their salary. He thought it was clearly
recognized that cities that did not include Social Security
or SBS left their employees short.
10:24:16 AM
Co-Chair Hoffman OPENED public testimony.
10:24:33 AM
NILS ANDREASSEN, EXECUTIVE DIRECTOR, ALASKA MUNICIPAL
LEAGUE, testified in support of the bill. He said that PERS
and TRS had been devalued over time. He noted the current
defined contribution cost of 4.2 percent, which was much
lower that the percentage prior to 1986. The plan prior to
1986 offered a great incentive as a valid replacement of
Social Security, but this was no longer the case. He urged
maximizing choice for employees. He noted that there were
100 local governments that did not participate in PERS that
did not face the liability issues faced by the state.
10:29:22 AM
Mr. Andreassen stressed the concern for public sector
employees who were planning for retirement. He wondered
whether SBS diminished the incentive to increase payroll at
a higher rate. He related that ultimately, this is a
compensation package selection that is up to employers, who
faced with SB 55's increased contribution requirements of
between $19 and $42 million would likely have to find trade
- offs in what else they currently offer. This is the exact
conversation that Congress had in 2021, when evaluating
whether to force all state and local governments into
Social Security, irrespective of their own alternatives,
such as SBS.
10:31:19 AM
HEATHER ARANA, DIRECTOR OF BENEFITS AND COMPENSATION,
UNIVERSITY OF ALASKA FAIRBANKS (via teleconference),
testified in support of the bill.
10:33:28 AM
Co-Chair Stedman agreed that the University should be
carved out of the bill. He added that he believed that the
Universitys retirement plan was weak. He believed, given
current budgetary constraints, cost of the bill would need
to be phased in. He expressed concern for employees in the
state without a reasonable retirement plan.
10:35:24 AM
Co-Chair Hoffman CLOSED public testimony.
SB 55 was HEARD and HELD in committee for further
consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 55 UA SYSBRA 041425.pdf |
SFIN 4/14/2025 9:00:00 AM |
SB 55 |
| 041425 Normal Cost Fundamentals Presentation to Senate Finance April 2025.pdf |
SFIN 4/14/2025 9:00:00 AM |
|
| 041425 DRB Presentation to Senate Finance Alaska Supplemental Benefits System-Annuity Plan April 2025.pdf |
SFIN 4/14/2025 9:00:00 AM |