Legislature(2025 - 2026)BELTZ 105 (TSBldg)
03/12/2025 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB54 | |
| SB24 | |
| SB55 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 54 | TELECONFERENCED | |
| += | SB 24 | TELECONFERENCED | |
| += | SB 55 | TELECONFERENCED | |
SB 55-TRS CONTR RATE; PERS/TRS SOC SECUR OR SBS
1:49:49 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of 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."
1:50:49 PM
CHAIR BJORKMAN opened public testimony on SB 55.
1:51:18 PM
CHAIR BJORKMAN solicited a motion.
1:51:20 PM
SENATOR MERICK moved to adopt Amendment 1, work order 34-
LS0301\A.3.
34-LS0301\A.3
Wayne
3/11/25
A M E N D M E N T 1
OFFERED IN THE SENATE BY SENATOR BJORKMAN
TO: SB 55
Page 1, line 1:
Delete "relating to employer contributions in the
teachers' retirement system;"
Page 1, lines 4 - 13:
Delete all material and insert:
"* Section 1. AS 39.30.150(a) is amended to read:
(a) In place of contributions to the
federal social security system that would have
been required on behalf of an employee had the
participating employer belonged to the social
security system, a [THE] participating employer
in the public employees' retirement system
(AS 39.35) shall contribute an amount equal to
6.13 percent of the wages of the employee up to
the taxable wage base then in effect in the
social security system, and a participating
employer in the teachers' retirement system
(AS 14.25) shall contribute an amount required
under (d) of this section. For each employee, the
contributions required under this subsection and
(d) - (g) of this section [. THIS CONTRIBUTION]
shall be paid into an individual employee annuity
account in the Department of Administration under
the terms of the State of Alaska Supplemental
Annuity Plan. The department shall pay 6.13
percent of the wages of the employee up to the
taxable wage base then in effect in the social
security system into the individual employee
annuity account established under this
subsection. This wage reduction shall be treated
as an employer contribution under 26 U.S.C.
414(h)(2). All costs of establishing and
administering the programs established under
AS 39.30.150 - 39.30.180 shall be paid from the
contributions made to the individual employee
annuity accounts under this section.
* Sec. 2. AS 39.30.150 is amended by adding new
subsections to read:
(d) A participating employer in the
teachers' retirement system (AS 14.25) shall
contribute an amount equal to 6.13 percent of the
wages of the employee up to the taxable wage base
then in effect in the social security system,
less a contribution by the department, if
applicable, under (e) of this section.
(e) Of the amount under (d) of this
section equal to 6.13 percent of the wages of the
employee up to the taxable wage base then in
effect in the social security system, the
department shall contribute
(1) for the fiscal years ending
June 30, 2027, through June 30, 2029, 100 percent;
(2) for the fiscal years ending
June 30, 2030, through June 30, 2033, 66 and two-
thirds percent;
(3) for the fiscal years ending
June 30, 2034, through June 30, 2037, 33 and one-third
percent.
(f) An employee in the teachers'
retirement system (AS 14.25) shall contribute an
amount equal to 6.13 percent of the wages of the
employee up to the taxable wage base then in
effect in the social security system, less a
contribution by the department, if applicable,
under (g) of this section.
(g) Of the amount under (f) of this
section equal to 6.13 percent of the wages of the
employee up to the taxable wage base then in
effect in the social security system, the
department shall contribute
(1) for the fiscal years ending
June 30, 2027, through June 30, 2029, 100 percent;
(2) for the fiscal years ending
June 30, 2030, through June 30, 2033, 66 and two-
thirds percent;
(3) for the fiscal years ending
June 30, 2034, through June 30, 2037, 33 and one-third
percent."
Page 2, line 25:
Delete "2025"
Insert "2026"
1:51:26 PM
CHAIR BJORKMAN objected for purposes of discussion.
1:51:38 PM
At ease.
1:52:12 PM
CHAIR BJORKMAN reconvened the meeting.
1:52:42 PM
KONRAD JACKSON, Staff, Senator Jesse Bjorkman, Alaska State
Legislator, Juneau, Alaska, explained Amendment 1(A.3):
[Original punctuation provided.]
The amendment before you A.3, removes language from SB
55 which proposed to increase the individual
retirement account.
The amendment further puts participating members of
the Teachers Retirement System into the Alaska
Supplemental benefits program.
AS 39.30.150 is amended by adding new subsections
laying out the payment of the employer and employee
contributions to the system. Specifically, for the
first three years of participation, the Department of
Education and Early Development (DEED) shall pay 100
percent of the employers and employers' contribution.
During the 4th through 7.th years of participation,
the department shall pay 66 2/3 percent and the
following three years, the department shall pay 33 1/3
percent of the required contributions.
Following June 30, 2037, the employers and employees
shall be responsible for their respective
contributions.
A change to the effective date is also made by the
amendment.
He stated this would change the effective date from 2026 to
2027, this will match the timing of the stepped payment plan.
If this is not done, the TRS participants would begin
participation one year before the Department began
covering the cost. They would therefore be required to
pay 100 percent of their respective contributions for
one year before the stepped phase in begins.
1:55:13 PM
CHAIR BJORKMAN removed his objection.
1:55:19 PM
CHAIR BJORKMAN found no further objection and Amendment 1 was
adopted.
1:55:31 PM
CHAIR BJORKMAN stated his goal in amending SB 55 is further
consideration of SB 55 is to clarify the potential financial
impact, especially in terms of less cash in paychecks as
districts contribute to the supplemental benefit system and
retirement savings.
[CHAIR BJORKMAN held SB 55, as amended, in committee.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB24 Public Testimony-Email-Susan Allmeroth 03.03.25.pdf |
SL&C 3/12/2025 1:30:00 PM |
SB 24 |
| SB24 Public Testimony-Letter-Beverly Wooley 03.02.25.pdf |
SL&C 3/12/2025 1:30:00 PM |
SB 24 |
| SB24 Public Testimony-Letter-Dennis Hull 03.03.25.pdf |
SL&C 3/12/2025 1:30:00 PM |
SB 24 |
| SB24 Public Testimony-Email-Brad Boedecker 03.06.25.pdf |
SL&C 3/12/2025 1:30:00 PM |
SB 24 |
| SB24 Draft Proposed Amendment ver N.2.pdf |
SL&C 3/12/2025 1:30:00 PM |
SB 24 |
| SB24 Draft Proposed Amendment ver N.3.pdf |
SL&C 3/12/2025 1:30:00 PM |
SB 24 |
| SB55 Draft Proposed Amendment ver A.3.pdf |
SL&C 3/12/2025 1:30:00 PM |
SB 55 |