03/30/2009 01:30 PM House FINANCE

CS FOR SENATE BILL NO. 89(FIN)                                                                                                
                                                                                                                                
     "An Act relating to retirement benefits for members of                                                                     
     the Alaska Territorial Guard; and providing for an                                                                         
     effective date."                                                                                                           
                                                                                                                                
JOSH TEMPLE, STAFF, SENATOR CHARLIE  HUGGINS, reported on the                                                                   
history of the Alaska Territorial  Guard.  From 1942 to 1947,                                                                   
a few men  and women volunteered  to be a part of  the Alaska                                                                   
Territorial Guard.  They were  officially recognized in 2000.                                                                   
In January 2009,  the U.S. Department of Defense  reduced the                                                                   
amount  of the  Guard's pensions  and  determined that  their                                                                   
service during  WW II  did not  count toward retirement  pay.                                                                   
Their  pensions would  be  reduced  on February  1.   Due  to                                                                   
public   outrage,   the   Alaska   Congressional   delegation                                                                   
sponsored  a bill to  permanently honor  the Guard  and offer                                                                   
them a full  pension.  They  also came up with  a stipulation                                                                   
that  the  army  fund the  pension  for  another  two  months                                                                   
through March 30.                                                                                                               
                                                                                                                                
Co-Chair  Stoltze noted  the retroactivity  provision in  the                                                                   
bill.                                                                                                                           
                                                                                                                                
Mr.  Temple   summarized  that  the  bill   provides  "bridge                                                                   
funding"  and   would  fund  the   difference  in   what  the                                                                   
Department of Defense  pensions used to be and  what they are                                                                   
now   until  the   federal   government   resumes  its   full                                                                   
responsibility of the pensions.                                                                                                 
                                                                                                                                
Co-Chair  Stoltze asked  how many  Guard  veterans this  bill                                                                   
would affect.   Mr.  Temple reported that  there are  26 men.                                                                   
The cost  would be  $31,300 for  FY09 and  $83,500 for  FY10,                                                                   
totaling $114,800.                                                                                                              
                                                                                                                                
MCHUGH PIERRE,  LIAISON, DEPARTMENT OF MILITARY  AND VETERANS                                                                   
AFFAIRS (DMVA), explained that  the governor sent a letter to                                                                   
the Secretary  of the  Army requesting  continued funding  of                                                                   
retirement  benefits for the  Guard.   The bill provides  for                                                                   
DMVA to  pay benefits to  eligible individuals who  served in                                                                   
the Guard.                                                                                                                      
                                                                                                                                
1:39:47 PM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze asked for demographics  regarding the Guard.                                                                   
Mr. McHugh  related that the  beneficiaries of this  bill are                                                                   
in their 80's  and 90's.  He  reported that DMVA is  ready to                                                                   
respond  to  the  bill  and  make   the  payments  until  the                                                                   
Congressional fix is in place.                                                                                                  
                                                                                                                                
Co-Chair Stoltze commented that the bill has a sunset date.                                                                     
                                                                                                                                
1:41:40 PM                                                                                                                    
                                                                                                                                
Representative  Salmon asked  why the  duration is only  from                                                                   
April 2009  to February  2010.  Mr.  Pierre reported  that in                                                                   
consulting with  the Congressional  delegation, it  was found                                                                   
that a  fix should be  in place by the  end of October.   The                                                                   
legislation would  extend into the  next session in  case the                                                                   
fix was not yet in place.                                                                                                       
                                                                                                                                
Co-Chair Stoltze noted a fiscal note by DMVA.                                                                                   
                                                                                                                                
1:42:59 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Thomas  MOVED to  REPORT  CSSB  89 (FIN)  out  of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal  note.  There being NO  OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CSSB 89 (FIN) was REPORTED out  of Committee with a "do pass"                                                                   
recommendation and  with fiscal note #1 by  the Department of                                                                   
Military and Veterans Affairs.                                                                                                  
                                                                                                                                
1:44:10 PM