03/23/2009 09:00 AM Senate FINANCE

SENATE BILL NO. 89                                                                                                            
                                                                                                                                
     "An Act relating to retirement benefits for members of                                                                     
     the Alaska Territorial Guard; and providing for an                                                                         
     effective date."                                                                                                           
                                                                                                                                
9:03:54 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  explained that the bill was  first heard on                                                                   
February 3 and  was set aside to allow Congress  and the U.S.                                                                   
Army to  arrive at  a solution.  He noted  a letter  from the                                                                   
congressional  delegation  (March  18,  2009, Copy  on  File)                                                                   
informing the committee that the  benefits for the Guard will                                                                   
cease  and  asking  the  legislature   to  provide  temporary                                                                   
payments  until  Congress resolves  the  issue  later in  the                                                                   
year. Senate  Bill 89 is necessary  to ensure payment  of the                                                                   
benefits.                                                                                                                       
                                                                                                                                
Senator  Huggins   MOVED  to   ADOPT  Work  Draft   LS0432\S,                                                                   
Bannister, 3/21/09.                                                                                                             
                                                                                                                                
Co-Chair Stedman OBJECTED for discussion.                                                                                       
                                                                                                                                
DARWIN  PETERSON,  STAFF,  SENATOR   BERT  STEDMAN,  SPONSOR,                                                                   
informed the committee  that members of the  committee worked                                                                   
with the Department  of Military and Veterans  Affairs (DMVA)                                                                   
to draft  a new  CS in  light of  the fact  that Congress  is                                                                   
unable   to  make   retirement  payments   until  a   defense                                                                   
authorization bill is passed.  The CS changes the payments to                                                                   
interim payments  until the issue  is resolved.  The original                                                                   
bill had a set amount of $550  per month appropriated to each                                                                   
guardsman; the CS  takes into account the amount  each person                                                                   
is getting  paid by  the military in  relation to  the amount                                                                   
they should  be getting  paid if  territorial guard  work was                                                                   
credited. He explained  that the March 20 fiscal  note by the                                                                   
DMVA reflects  the cost of  $83,500 for the payments  through                                                                   
February 2010,  when the bill  sunsets. If Congress  does not                                                                   
resolve the  issue before the  next legislative  session, the                                                                   
issue will need to be revisited in February 2010.                                                                               
                                                                                                                                
Co-Chair Stedman reiterated that  the measure was intended to                                                                   
bridge the payments until Congress could act.                                                                                   
                                                                                                                                
Co-Chair  Stedman removed  his objection  to the adoption  of                                                                   
the CS. There being NO OBJECTION, it was so ordered.                                                                            
                                                                                                                                
Co-Chair  Stedman queried  the  administration's position  on                                                                   
the legislation.                                                                                                                
                                                                                                                                
MCHUGH PIERRE,  LIAISON, DEPARTMENT OF MILITARY  AND VETERANS                                                                   
AFFAIRS,  spoke in support  of the  legislation. He  reminded                                                                   
the committee  that 26 Alaska Territorial Guard  members will                                                                   
be  receiving a  deduction in  their federal  pay. They  were                                                                   
receiving  federal   retirement  pay  for   federal  services                                                                   
performed  through  the  federal military.  The  Division  of                                                                   
Personnel  of the U.S.  Department of  Army decided  that the                                                                   
law currently  on the  books did not  fully meet  the payment                                                                   
requirements   for  the  guard   members  and  is   therefore                                                                   
suspending  the payment  for the  time served  in the  Alaska                                                                   
Territorial  Guard from  approximately 1942  through 1946  or                                                                   
1947.                                                                                                                           
                                                                                                                                
Mr. Pierre  emphasized that  DMVA is  proud of the  committee                                                                   
for taking care  of the elders, but expressed  disappointment                                                                   
in the federal  government for refusing to make  the payments                                                                   
until the problem is corrected.                                                                                                 
                                                                                                                                
9:09:05 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  asked whether  the administration  supports                                                                   
the  bill.  Mr.  Pierre  responded  that  the  administration                                                                   
supports serving veterans.                                                                                                      
                                                                                                                                
Co-Chair Stedman  pointed out that quick action  was required                                                                   
to make sure veterans  do not miss payments. He  asked if the                                                                   
governor's  signature was forthcoming.  Mr. Pierre  responded                                                                   
that DMVA can get the money to  the veterans who are in need.                                                                   
                                                                                                                                
Senator Huggins directed attention  to page 2, line 10 of the                                                                   
CS regarding  the individual  reimbursing the department  [in                                                                   
case of  overpayment]. He  asked if  the department  had full                                                                   
confidence  that individuals  would  make the  reimbursement.                                                                   
Mr. Pierre  answered that  the department  would monitor  the                                                                   
situation  closely and  make certain  that the veterans  were                                                                   
not put  in a position to  have to repay the  department. The                                                                   
department  will   also  make  sure  veterans   do  not  miss                                                                   
payments.                                                                                                                       
                                                                                                                                
Senator Huggins commented  that people he had  spoken to want                                                                   
to do the right thing.                                                                                                          
                                                                                                                                
9:11:32 AM                                                                                                                    
                                                                                                                                
Senator  Olson asked  how  veterans could  be  sure that  the                                                                   
payments  would  be  made  in a  timely  matter.  Mr.  Pierre                                                                   
assured  the committee  that  after the  bill  is signed  the                                                                   
department  would make  payments as quickly  as possible.  He                                                                   
anticipated that payments will  need to be sent out in April.                                                                   
Senator Olson expressed appreciation  on behalf of guardsmen.                                                                   
                                                                                                                                
9:12:21 AM     AT EASE                                                                                                        
9:12:40 AM     RECONVENED                                                                                                     
                                                                                                                                
Senator Thomas  commented that $83,000  is a small  amount of                                                                   
money compared to the service rendered by the veterans.                                                                         
                                                                                                                                
Senator Huggins  MOVED to  REPORT CS SB  89 out of  committee                                                                   
with individual  recommendations and the  accompanying fiscal                                                                   
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
CS  SB 89  was REPORTED  out of  committee with  a "do  pass"                                                                   
recommendation  and with  accompanying fiscal  note 1  by the                                                                   
Department of Military and Veterans Affairs.