03/24/2025 01:30 PM Senate LABOR & COMMERCE

        SB  55-TRS CONTR RATE; PERS/TRS SOC SECUR OR SBS                                                                    
                                                                                                                                
2:09:16 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."                                                                                                                          
                                                                                                                                
2:10:05 PM                                                                                                                    
SENATOR  BERT  STEDMAN,  District A,  Alaska  State  Legislature,                                                               
Juneau, Alaska,  sponsor of SB  55 stated  that the bill  aims to                                                               
include  Teachers   Retirement  System  (TRS)  employees  in  the                                                               
Supplemental  Benefit System  (SBS). Without  Social Security  or                                                               
SBS,  these  employees  lose about  2533   percent  of  potential                                                               
retirement benefits. SB 55 is  intended to make retirement fairer                                                               
and more secure for them.                                                                                                       
                                                                                                                                
2:11:13 PM                                                                                                                    
SENATOR MERRICK  asked if anything  prevents TERS  employees from                                                               
joining social security.                                                                                                        
                                                                                                                                
2:11:23 PM                                                                                                                    
SENATOR  STEDMAN  replied  that there  was.  Teachers  originally                                                               
chose not to join Social  Security in the 1960s because penalties                                                               
meant  some  of  their  work  wouldn't  be  credited,  and  their                                                               
salaries were  relatively high at  the time. He said  since then,                                                               
economic conditions have shifted,  and Congress has removed those                                                               
penalties. Now,  teachers can opt  into the  state's Supplemental                                                               
Benefit  System  (SBS), which  has  proven  very successful.  The                                                               
concern  is that  without Social  Security or  a similar  system,                                                               
teachers risk losing a crucial foundation for their retirement.                                                                 
                                                                                                                                
2:13:47 PM                                                                                                                    
CHAIR BJORKMAN  opened public testimony  on SB 55;  finding none,                                                               
he closed public testimony.                                                                                                     
                                                                                                                                
2:14:15 PM                                                                                                                    
CHAIR BJORKMAN solicited the will of the committee.                                                                             
                                                                                                                                
2:14:17 PM                                                                                                                    
SENATOR MERRICK  moved to report  SB 55, work  order 34-LS0301\A,                                                               
as amended,  from committee  with individual  recommendations and                                                               
attached fiscal note(s).                                                                                                        
                                                                                                                                
2:14:34 PM                                                                                                                    
CHAIR  BJORKMAN  found  no  objection and  [CSSB  55  (L&C)]  was                                                               
reported from the Senate Labor and Commerce Standing Committee.